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SAP FI

NOTES

SAP FI NOTES
INDEX
PARTICULARS
Introduction
Enterprise Structure
1. Chart of Accounts
2. Accounts groups customization
3. Open and Close Posting Periods
Sales Tax Procedures
1. Tolerance Groups
General Ledger Accounts (GL Accounts)
1.Negative Postings
2. Creation of GL Masters
3. Parked document
Foreign Currency Transaction (FCT)
1. Reversal of Reversed document
2. Mass Reversal
3. Balance Interest calculation
4. Accounts Principles
Accounts Payable (AP)
House Bank
1. Link between sundry creditors and Advance to vendors
2. Purchase Invoice Posting
3. Term of Payments-Maximum Cash discount
4. Automatic payment Program(APP)
5. Check printing
6. Credit Memo
Accounts Receivable (AR)
1. Sales Invoice Posting
2. Incoming payment
3. Link between sundry debtors and advance from
customers
2

Page No.
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41
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99
106
115
116
119
128
130
132
134
135
142
144

4. Advance Receipt posting


Bill of Discounting (Bill of Exchange)
1. Define dunning areas
Sales Tax
Asset Accounting (AA)
1.Chart of Depreciation
2. Asset Classes
3. Asset Sale /Transfer/Scrapping
Reports
1.Chart of Accounts List
2.Trail balance / Ledger /Vendors List
3. Data Takeover
4.Up loading of master in SAP (LSMW)
5.Balances uploading
Bank Reconciliation Statement (BRS)
1.House Bank
2.Check Lots
3.Sales and Purchase Invoices posting
Cash Journal (CJ)
Withholding Tax(TDS/TCS)
1.Maintain Calendar
2.Withholding tax codes
3.Create Remittance Challan
4.Print TDS Certificate
5.Quaterly Return

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170
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176
199/201/202
204
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205/206
209
212
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228
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INTRODUCTION
SAP stands for System Application and Products in data Processing
FI stands for Financials
CO stands for Controlling
Version : ECC6
ECC stands for ERP Central Component
SAP was released in 1972 It head quarters in Germany
What is ERP?
ERP stands for Enterprise Resource planning, it is integrated all functions in one
system.
Organization
|
-----------------------------------------------------------------------------------------|
|
|
|
Purchase Dept.
Store Dept. Production Dept.
Accounts Dept.
Will have no of departments in organization. ERP integrate all the functions into one
system.
It will facilitate free flow of data among the departments.
Advantages:
Once stores person updates in the system It can be shared by account person.
No mismatch in reporting Data Source is only one once updation.
Store Department at Factory: Where the material is received are updates his records
send the bill to account person.
Accounts department at City office : Pass an entry in the books

Disadvantages:
Duplicate job
Time gap.
ERP Packages:
SAP, Oracle, Financials, Peoples soft, BAAN , J.D.Edwards
1972- SAP R/1 Real time data processing
1980-SAP R/2 Included no.of countires and no.of currencies
1990 SAP R/3- R/3 stands for
Data Structure
1.Application Server
2.Data based server
3.Presentation
1999 My SAP.com Web baed
2004 Net weaver Integrates information, people and process.
Areas to be covered under FI /CO
FI:
1. General Ledger accounting
2. Accounts payable
3. Accounts receivable
4. Asset accounting
CO:
Cost element accounting
Cost center accounting
Internal orders
Profit center accounting
Product costing
Profitability analysis

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

Integration of:
1.
2.
3.
4.

Material Management Module to Financials (MM to FI)


Sale & Distribution module to Financial module integrate (SD to FI)
Data take over(From Non-SAP to SAP)
Closing procedure

Reports:
In all the module systems gives around 2000 reports
You can attach the reports to favorites

Some important reports you can attach the reports on desk top.
Cross company code transactions:
India version: TDS , Excise and sales tax
Companies Act:1956: as per Schedule VI Balance sheet and Profit & Loss A/c

What are difference between SAP EE 4.7 and ECC 6.0?


SAP EE 4.7
Stands for Enterprise Edition
No Netware concept (Offline)
Segment wise report is not possible
Only one currency

SAP ECC 6.0


Stands for Enterprise Central Compound
Netware concept (Online)
Is it possible
Multiple ledgers in currencies
Document splitting
Foreign currency revaluation based on
accounting principles

Role of FI /CO Consultant


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

Project Manger
Senior Consultant
Junior consultant (Each project 3 to 6 members)
Support Consultant (Eg.IBM, Accenture)
Core Team Members
End User

How to Open SAP


Open: Double lick on SAP Logon Icon
Double Click ECC 6 Server
First Screen:
First Field : Client :2 Clients
1. Development client
2. Production client
In the implementation SAP
1. Consultants
2. Company staff (Core Team Members)

The consultant they do the customization in development client


The company staff will do the testing.
The customization will be transferred to client through transport requests.
In the production client you enter day to day transaction.
Some companies they will give 3 clients:
1. Development client
2. Testing client
3. Production client
Client:

800/000/810 You can copy and give any number

User:

Cost of package will depend on the no.of users licenses.


100 users license used by 1000 employees
It fixes the responsibility on employee.

User ID: SAP user: You can use small or capital letters (Its not case sensitive)
Password: The length of password Min3 Max 8
(it can be numeric, Alpha Numeric , Alphabets, and Special characters.)
Password is not case sensitive
Not possible to change password more than once in a day
Latest 5 passwords can not be used
Password can not be restored

Money is the password.

What is client?
Aravind Group
(Aravind Industries Ltd)
(Aravind Steel Ltd)

Wipro
(Consluting Firm)

To Purchase Sap Package From Sap India Bangalore Wipro Will Customize(Map)
Aravind Requirement In SAP
ARAVIND
Project Manager
Core team accounts manager
Cost accountant
Purchase Manager
Sales Manager
It staff

WIPRO
Project manager
FI Consultant
CO Consultant
MM Consultant
SD Consultant
ABAP programmer
BASIS Administrator

Aravind :Core Team As is Process_What Is Requested From SAP


Wipro :To Be Process What Should Be Done In SAP
Development
Client

Production
Client

Wipro Customization

- Transport Request

Aravind Core Team

- Testing

After testing by Aravind core team customization will be transported to production client
through transport request
Production client is live client where we enter day to day transactions
If the consultant do customization once again in production client, if they commit any
mistake all the postings will go wrong where as development client customization is
tested customization by the Aravind core team and corrected by Wipro team.
We will not get any mistakes in the development client customization.
In live environment we should have minimum 2 clients some companies they keep 3
clients
Development Client

Testing quality Client

Wipro Customization

Transport Request

Aravind Core Team

->

Testing

Production Client
->

"When SAP is purchased from SAP India we get clients like 000,001,067 and 800"
Basis consultant copies 000 client and give the number required by Aravind care team
Client :800

(Development Client)

User : Cost of package will be based on number of user licenses


User Id Creation Is The Job of BASIS Administrator
A) Cost Factor

B) User Id Fixes Responsibility on Employee


SAP User:

It Is Not Case sensitive (Capital Letters Or Small Letters)

Password:

Password Is Case Sensitive (From Ecc 5 Onwards)

Length of Password: Minimum 6 Maximum 40


"We can use alphabets, Numerical, alphanumeric, special characters-like"
Not possible to change password more than once in a day.
System will not permit to use latest previous 5 passwords
EG:

1.09.2008
5.09.2008
12.09.2008

ABC123
XYZABC
ABC123

system will not permit

Password can not be restored


BASIS Administrator deletes old password and gives a new password : oracle
Language

: 41 Languages

If we do not specify any language it takes English by default or we can use EN for
English
If we user id : The menu will be in German
Client: 800
User: SAPUSER
Password: oracle
Press enter
Now open SAP
Select and choose the radio button depend on necessity.
1st Radio button
2nd Radio button
3rd Radio button

Employee1
Can not work
Work
Can work

Employee2
Can work
Can work
Can not work

In training institutes we have to select 2nd radio button

Enter
1st raw is called menu bar
Menu Edit ,Favorites ,Extras
2nd raw is called standard tool bar
3rd row is called in title bar
4th is called application tool bar
5th & last is called status bar
The second row the tick is called enter, beside tick box is called is command field."
One employee can work in number of sessions (windows) at a time -the maximum is 6
sessions
How to create a new session?
Path: From the menu bar - Select system- Create session
To move from one session to another session (alt+tab)
How to end session?
Path :From the menu bar - select system- End session
To view which version we are using?
Path : From menu bar - Select system- Status-Sap system data
How to use transaction codes (T/C)?
We want posting of transaction.
option-1
Go through the path and post
the transaction

option-2
Use transaction code in command field
and press enter

Path: Accounting --> Financial accounting


-> General ledger-->Posting ->General posting
To go back to SAP easy access screen:
Use: /n

in command field and press enter.

10

we can create our own transaction


codes they should start with Y or Z

For Posting Transaction:


Document (Voucher) entry
(F-02)

Account display (FS10N)

After posting we want to view the ledger.


a) Use:/n (changing) in command field and enter - to back to sap easy access screen
b) Use FS10N in command field and press enter- to go to account display
Instead
use:/NFS10N in command field and press enter change session with new transaction
code.
use /OFS10N in command field and press enter- create session with new transaction
code.
./N for change
./O for create
How to activate transaction codes in sap menu?
Path :From the menu bar - select extras - Settings - Display technical namesEnter
HOW TO SET A START TRANSCTION?
To make one screen as beginning screen
Path: From menu bar select extras - set start transactions (transaction code is
F-02)
Enter
Give a message transaction F-02 set as start transaction
HOW TO CLOSE SAP?
Path: From the menu bar select system - log off - select yes button for the
message to logoff
Select yes button to log off
HOW TO UNLOCK THE TRANSACTION CODE?

11

At the time of customization -screen will come with display mode not enter mode
Path:Tools-Administrator- Monitor-Lock entries (tr.code is SM12)
Select list button- Message - No lock entries found
Path: From the menu bar select lock entry- Delete all-select yes button for the
message
Delete all lock entries - Enter.
Organization structure:
SAP
---------|
|
Group
Company
|
|
Company
Company code
|
|
Units
Businesses Area
Creation of Project: Group --> Companies Units
In SAP Group is called as company
Company is called as company code
Unit is called as Business area
ARAVIND GROUP(AVG)
|
---------------------------------------------------------------------------------|
|
|
Aravind Mills Ltd(AML)
Aravind Steels Ltd(ASL) Aravind Industries ltd(AIL)
|
|
|
|
|
|
HYD
BGL
HYD
BGL
HYD
BGL
FI consultant will do customization at company code level -company or group is only for
information.
We do customization for Aravind Mills Ltd after words we copy customization including
accounts to other company codes in one step and make modifications where ever
required.

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ENTERPRISE STRUCTURE
DEFINE COMPANY:
Path: Tools - Customizing IMG (implementation guide) - Execute project
(trns.code SPRO)
SPRO stands for SAP Project Reference Object
Select SAP reference IMG button : This is called customization area or configuration
area or implementation area
Path:SPRO- Enterprise structure - Definition - Financial accounting - Define
company ( Tr code is OX15)
It we select IMG activity documentation button: It gives description part about company
To select IMG activity button: To do customization
Select IMG activity button
Select new entries button
Company

: AVG

Company name

:Aravind group

name of company2 :blank


street

:Ameerpet

postal code

:500034

country

:For country select dropdown(pull down) button, select in for india"

Language key

:select drop down button select EN for English

Currency

:For currency select drop down button here 218.


Select INR for Indian rupees

Select save button or Ctrl+s

Development client
production client
|
consultant Customization
Transport request

13

By default it gives the latest request we have to create our own request and afterwards
to transport to production client
For each step we need not create separate request.
For Basic settings
:1st request
For General ledger
:2nd request
For Account payable
:3rd request
For Accounts receivable :4th request
For Asset accounting
:5th request
For Controlling
:6th request
Select create request button (F8)
Give the short description :FI basic settings for Aravind Mills Ltd
Press enter
Press enter once again to save in the request. We get a message data was saved: Data
was saved in two places:1.Development client 800 2. In Transport request

2.DEFINE COMPANY CODE:

( Tr code is OX02)

Path: Tools - Customizing - IMG- executive project (SPRO)


Select sap reference button IMG
SPRO - path upto select sap reference IMG button is same.
SPRO
Consultant job

No SPRO
End user

job

Note the path SPRO


Path: Enterprise structure - Definition- financial accounting - edit, copy, delete,
check company code
Edit company code data
Select new entries button
Give company code :AML
City
:Hyderabad
Country
:IN
Currency
:INR
Language
:EN
Select save button or Ctrl+S

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Title
Name
Street
Post code
City
Country

:Select company
:Aravind mills ltd
:Ameerpet
:500034
:Hyderabad
:IN

Press enter
To select our request number select dropdown button beside request number.
We can see here number of requests.
Select request number by seeing the description.
Press enter to save in the request.
Description can be same should be different
3.ASSIGN COMPANY CODE TO COMPNAY
Path: SPRO - Enterprise structure - Assignment - Financial accounting - Assign
company code to company ( Tr code is OX16)
Select position button give the company code AML enter
For company AML assign company AVG
Select save button or Crtl+S
Select dropdown beside request number
Select your request number
Press enter to save in the request
4.Define Business Areas
path: SPRO- Enterprise structure- Definition -financial accounting- define
business area ( Tr code is OX03)
Select new entries button
Business area:
AMLH
Description
:Hyderabad AML
Bangalore business area link this number
Select save button or C trl+s
Press enter to save in your request

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*Assignment of business areas to company code is not required

Aravind Mills Ltd


|
HYD BGL

Aravind Group
|
Aravind Steels Ltd
|
HYD BGL

Aravind Industries ltd


|
HYD
BGL

AML accounts person

ASL accounts person

At the time of posting


Company code
Business area

:
:

AML
HYD

ASL
HYD

* Without giving company code we can not pass to business area


At the time of request generation:
Company code
AML
Business area
HYD
We get HYD data of company
Code AML only

ASL
HYD
HYD data of company
code ASL only

Some business area can be used by number of company codes in the client assignment
of business area to company code is not required.
HYD incharge for AML, ASL and AIL in the report
Company code
AML +ASL+AIL
Business area
HYD
Hyderabad data for all company codes we have Hyderabad business area separately
for each company code.
HYD Hyderabad business area
HYD1 Hyderabad business area
HYD2 Hyderabad business area
AML accounts person
Company code
Business area

:AML
:HYD/HYD1

ASL
HYD1/HYD2

There will be a mixup

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CHART OF ACCOUNTS:
Company Codes:
Option-1
when we want to compare or consolidate
we can have same set of accounts
(chart of accounts) -i.e.,

AML

ASL

AIL

Conveyance account no.

400000

400000

400000

Option-2
Each company code has their on
set of accounts conveyance account no.

400000

400000

400000

400000

300000

200000

400000
100000

300000
100000

100000
100000

Accounts coding will be same.

Compare or consolidate by using group


Chart of Accounts
when we create conveyance account no
we use 2 numbers
Company code no.
Group no.

We are comparing or consolidating by using group account number.


Companies following option1
Chart of Accounts name
Description of chart of accounts
Maintenance language English
Length of account number most 10 digits (we are using 6 digits)
CREATION OF CHART OF ACCOUNTS)
path: SPRO - Financial accounting- General ledger accounting - GL accounts Master Data-Preparation - Edit chart of accounts list (TR.CODE.OB13
The other way to give transaction code is from the menu bar -> Select system - Status
Select new entries button.
Chat of accounts
Description
Maintenance language

:AML
:Chart of Accounts for Aravind group
:English

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Length of GL account no.


Controlling integration
Group chart of accounts

:6 (min 6 max 10)


:select manual creation of cost elements
:Blank

Under status deselect blocked check box (do not select blocked check box)
Select save button or Ctrl+S
Select your request and press enter to save in your request

Controlling integration: select manual creation of cost elements.


FI (Financials)

CO (Controlling)
expenditure

When we past to expenditure accounts in FI it updates, CO automatically provided. We


create expenditure accounts as cost elements.
All expenditure accounts need not be cost elements expenditure accounts like interest,
Depreciation, Non-operating expenses -will not be consolidated for costing -they are
debatable.
Cost elements creation
Manual
Automatic
When we select manual, when expenditure account is created and posted in FI, we
want that expenditure to update co-create that expenditure account as CO element. If
we do not want to update co-records that expenditure create expenditure account only
and not to create as cost element -here we have flexibility. If we choose automatic,
when we create an expenditure account automatically cost element will be created.
When we post to that expenditure account in FI, automatically CO records will be
updated-no flexibility.
UNDER STATUS DESLECT BLOCKED CHECK BOX:
Accounts creation is at end user area, users at the time of posting, they will not check
whether account is there as not they create new account and post accounts.
We will have number of duplicate accounts in SAP once we create an account and past
transaction-IT can not be deleted
In live environment after up leading accounts - select blocked check box. No body can
create any account whether original account or duplicate account. When there is a
necessity to create a new account an authorized person say accounts manager

18

deselects the blocked check box, create the account and afterwards select blocked
check box.
We have to create the accounts now. We are deselecting the blocked check box.
ASSIGN COMPANY CODE TO CHART OF ACCOUNTS
path: SPRO- Financial accounting - General ledger accounting- GL AccountingMaster data-Preparation-Assign company code to chart of accounts. (Tr.code
OB62)
Select position button
Give the company code
Enter

AML

For company code AML assign chart of accounts AML


Select save button or Ctrl+S
Press enter to save in your request.
Accounts groups
100000
100001
100002
100003

Equity share capital


Cash account
Preference share capital
SBI current Account

We have created 1000 accounts


We want to view current assets balance or transaction.
We can not get directly-we have to verify each and every account and add the
respective accounts- in this example account no.100001 and 100003
We are preparing balance sheet on liabilities we have items like share capital, Reserves
& surplus-We have to verify each and every account and assign to the respective itemsit takes so much time to assign accounts.
To get account balances directly or to assign accounts easily SAP has given account
groups.
Chart of accounts
|
Accounts groups
|
Accounts

AML
Share capital (100000 - 100099)
|
Current assets (200000-200099)

19

When we create the accounts, we create within the range. Cash account will be created
within the range of 200000-200099."
Equity share capital will be created within the range of 100000-100099.
When we want to see current assets balances-we give current assets or at the time of
crating balance sheet for Share capital-we give the range 100000-100099
While crating account groups we take client's balance sheet and crate the groups-after
implementation also we wants to see the way he used to get.
WHILE CREATING THE ACCOUNTS GROUPS:
1 Series for liabilities
2.Series for assets
3.Series for income
4.Series for expenditure
We have 1000 accounts the user at the time of posting to expenditure account he need
not see all accounts he gives 4 only expenditure accounts will appear.
CUSTOMIZATION (TR.CODE.OBD4)
path: SPRO-Financial accounting-General ledger accounting- GL accountsmaster data-preparations-Define account group
select new entries button
Chart of
accounts
AML
AML
AML
AML
AML
AML

Account
group
SCPL
RSPL
ACDN
SCLN
UNSL
CLPL

AML
AML

FAST
CAST

AML
AML
AML

SALE
OTHER
INCR

AML

RMCL

Name
Share Capital
Reserves & Surplus
Accumulated depreciation
Secured Loans
Unsecured loan
Current Liabilities and
Provisions
Fixed Assets
Current Assets loans &
Advances
Sales
Other Income
Increase / Decrease in
stocks
Raw material consumption
20

From
account
100000
100100
100200
100300
100400
100500

To
account
100099
100199
100299
100399
100499
100599

200000
200100

200099
200199

300000
300100
300200

300099
300199
300299

400000

400099

AML
AML
AML
AML
AML

PRSN
MFRG
ADMN
INTR
DEPR

Personnel cost
Manufacturing Expenses
Administration Expenses
Interest
Depreciation

400100
400200
400300
400400
400500

400199
400299
400399
400499
400599

Select save button on Crtl+S


Select your request and press enter and save in your request
6 digits
1000000

100099

share capital 1000-1099 100000000-1000000099


Reserves & Surplus
Accumulated Depreciation
Unsecured loans
Current Liabilities & Provision
Fixed Assets

Afterwards we require liabilities account groups with 1 series 10 account groups.


How many groups we can crate with 1sries . available accounts (1999-1599)=400
accounts. New account groups with 1series we can create 400/100=4 groups .
Now we have to go for 5 series .
The user at the time of posting first the will give 1*
If the account is not there then he will check with 5*
When we use 6 digits:
Afterwards we require liabilities account groups with 1 series to 10 account groups. How
many groups we can create with 1 series available accounts (199999-100599=99400)
accounts.
For each account group we are assigning 100 accounts new account groups with 1
series. We can create 99400/100=944 accounts groups. 5/6/7/8/ digits.
Retained earnings accounts:
In the year end: P & L account balances transfer to surplus in P & L A/c Reserves &
Surplus (100100-100199) Balance Sheet A/c balances carry forward to next year as
opening balance.
This is required in the year end and not during the implementation. SAP has made
mandatory this step during the implementation. If the consultant does not do this step,
we will have problems in the year end.

21

Though accounts are not yet created assign on account for retained earnings account
purpose. We can specify retained earnings account any account number which is with
in range 100100-100199.
Generally we specify the first account i.e.100100 as Retained earnings account and
when we start creating the accounts the first account to be created is 100100 surplus in
P & L Account.
Path: SPRO Financial accounting General ledger accounting GL Accounts
Master Data Preparations Define retained earnings account.
Give you chart of accounts AML enter. The transaction code is OB53 .
Account assignment
P & L Statement type X
Account 100100
Select save button or Ctrl+S
We get a warning message account 100100 not created in chart of accounts AML.
Ignore the warning the message press enter. Press enter once again to save in the
request.
Accounts creation is at end user area and the transaction code is FS00
400300

P & L type

Account No.

100100

Rent Account

P & L A/c
Balance Sheet A/c.

In the year end the balance will go to account no.100100


100000 Equity share capital
P & L A/c
Balance Sheet A/c. Select
In the year end the balance will go to the same account as opening balance 1 and 2
series for Balance Sheet Accounts 3 and 4 series for P & L Accounts.
a)
b)

Net operating profit (operating income operating expenses.


Net non-operating profit (non-operating income non operating expenses)
400300

Rent account

P&L

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Account No.

P & L Statement A/c type


Balance Sheet A/c.

Select
X

Type
100100
100101

X
Y

Net operating profit


Net non operating profit
Profit

In the year end the balance will go to account no.100100


300100 profit or sale of shares.
P & L A/c.
P& L Statement A/c. type Y
In the year end the balance will go to account no.100101.
Fiscal year

Fiscal year variant

Indian companies periods


US Companies

April to March +4 special periods


Jan to Dec.+4 Special Periods
July to June+4 Special periods
Oct. to Sep+4 special periods

April 2007 March 2008 Accounting year 2007-08.


In SAP we will call it as fiscal year 2007.
July 2007-June 2008
Oct.2007 Sep.2008

April 2007-March 2008


July 2007-June 2008
October 2007-September 2008

Fiscal year 2007


Fiscal year 2008
2007

2008

Fiscal year

9
6
3

3
6
9

2007
2007
2008

It is above 6 months in next year take next year otherwise same year.
April 2007
March 2008
1
12
(Normal periods)

Fiscal year 2007


13
14
15
(Special periods)

16

For year end adjustment purpose SAP has given special periods .
Special periods are part of March
March will have total 5 periods 1noraml period 4 special periods.
To get the profitability and different stages SAP has given special periods.

23

V3
K4
V6
V9

Why special periods are required:


20th March 2008 we have declared profitability upto February 2008 to the management
profitability figures should not be changed.
Users should be allowed to post transactions only for March 2008.
April 2007-March 2008 Fiscal year 2007.
Open periods
For posting

March 2008-March 2008


12,2007
- 12,2007

No user can post transaction before March 2008 and after March 2008.

30.03.2008
Open periods

April 2007- March 2008


April 2008- March 2009

Fiscal year 2007


Fiscal year 2008.

March 2008-March 2009


12,2007
-12,2008

15/04/2008 accounts dept. finalized profitability for the year ended 31/03/2008
Management adjustment entries
Entry Date 05/05/2008
Periods date 31/03/2008 to update last year ledger.
We get profitability finalized by management audits by Auditors.
20/05/2008 No.of ratification entries
Entry Date
22/05/2008
Posting date
31/03/2008

to update last year ledger.

We get profitability finalized by auditors. To day we want to see profitability finalized by


accounts department . we can not got March 2008 includes normal entries .
Management adjustments and auditors rectification entries.
Auditor is asking to show rectification entries list we can not get the list separately.
To get profitability separately or to get the rectification entries list separately SAP has
given special periods.

24

Usage of special periods is optional.


Special periods can come in the same month or different months.
Here stage means department profitability, Management profitability and Auditors
profitability the state can come in the same month or different months.
Accounts Dept. profitability

April 2008

Management adjustments and


Auditors rectification entries

May 2008

How special periods will be used:


April 2007-March 2008

Fiscal year 2007

20th March 2008 open periods for posting

March 2008-March 2008


12,2007.12,2007
No user can post transactions

before March 2008 and after March 2008.


April 2007-March 2008 F.Y 2007
April 2008-March 2009 F.Y.2008
15/04/2008 accounts dep. finalized profitability for the year end 31/03/2008
Management adjustment entries.
05/05/2008
Open periods

March 2008..March 2009


13,200712,2008

Entry date :05/05/2008


Posting date :31/03/2008 to update last year ledger period 13
We get profitability finalized by Management audit by a auditors.
22/05/2008 no.of rectification entries.
Open periods

Entry date
Posting date
Periods

March 2008 . March 2009


14,2007 12,2008
:22/05/2008
:31/03/2008 to update last year ledger
14

We get profitability finalized by auditors.


Accounts dep. Profitability :
1-12
Management Profitability
1-13

25

Auditors finalized profitability


List of auditors rectification entries

1-14
14-14

SAP known only calendar year periods we have to convert calendar year periods to
our accounting year periods.
Month
1
2
3
4
5
6
7
8
9
10
11
12

January
February
March
April
May
June
July
August
September
October
November
December

Days
31
29
31
30
31
30
31
31
30
31
30
31

Periods
10
11
12
1
2
3
4
5
6
7
8
9

April 2008
April 2008 March 2009 F.Y.2008
In which year it is coming 2008
As which year we are calling in SAP 2008
Year shift

Year shift
-1
-1
-1
0
0
0
0
0
0
0
0
0

January 2009
In which year it is coming
As which year we are calling in SAP
Year shift
Posting 05/01/2009 update 2008
Ledger not 2009 ledger
Month
1
2
3
4
5

Days
31
29
31
30
31

2009
2008
-1

Oct.2008-Sep 2009 F.Y.2009


Periods Year shift
October 2008
4
0
In which year it is coming as which 2008
5
0
year we are calling in SAP 2009
6
0
year shift
+1
7
0
8
0
January 2009

26

6
7
8
9
10
11
12

30
31
31
30
31
30
31

9
10
11
12
1
2
3

0
0
0
0
0
0
0

in which year it is coming


as which year we are calling
in SAP
year shift

2009
2008
+1

posting 05/10/2008 update 2009 ledger


not 2008 ledger

Path : SPRO Financial accounting Financial accounting Global settings


Fiscal year Maintain fiscal year variant (Maintain shortened fiscal year)
(Trs.code is OB29
Select position button fiscal variant V3
Enter
Select fiscal variant V3
Double click on periods folder
Select back arrow
Select new entries button
FV

Description

B1
April to March 4 Special periods

Do not select year depend check box


If we select year depend check box when we save it will ask for year when we give
year 2008 The conversion is applicable only for the year each year we have to create
the conversion.
If we deselect year dependent check box The conversion is common for all years.
Deselect calendar year check box
If we select calendar year check box It takes
Month 1 (Jan)will be as period 1
Month 4(April ) wil be as period 4
Where as we require month 4(April) should be as period 1 so deselect calendar year
check box.
No. of posting periods
:12
No.of special periods
:4
Select save button or Ctrl+S

27

Select your request press enter and press enter save in your request.
Select Fiscal year variant :B1
Double click on periods folder.
Select new entries button
First column
Second column
Third column
Last column

Month
1
2
3
4
5
6
7
8
9
10
11
12

Month
Day
Period
Year shift

Day
31
29
31
30
31
30
31
31
30
31
30
31

Period
10
11
12
1
2
3
4
5
6
7
8
9

Year Shift
-1
-1
-1
0
0
0
0
0
0
0
0
0

save
Assign company code to a Fiscal year variant
Path: SPRO Financial accounting Global settings Fiscal year Assign
company code to a Fiscal year variant (Tr.code is OB37)
Select position button
Give your company code:AML
Enter
For company code:AML
Assign fiscal variant :V3
Select save button
Ignore the warning message press enter and press enter to save in the request.

28

OPEN AND CLOSE POSTING PERIODS


Fiscal year : April 2008 March 2009 F.Y 2008
August 2008 March 2009
5,2008 12,2008
Open means: from

August 2008

Close means: to

March 2009

Company codes

: AML

ASL

AIL

All company codes


Fallow the same
Open and close periods
Option 1
A)
Define posting periods
Variant X
B)
Assign posting period
Variant to company codes
X.AML
X.ASL
X.AIL
C)
Define open and close periods for variant X
For X,5 2008 12,2008
Option-2
Each company code
having separate open
And close posting period variant

Assign posting period variant to company codes


X to AML

Y to ASL

Z to AIL

Period for variant


July 2008-March 2009 April 2008 to March 2009
For X
04,2008

For Y
12,2008

Sep. 2008 to Sep. 2008


For Z
06,2008

In this step we are defining which periods are open for posting.
Define variants for open posting periods:

29

Path : SPRO Financial accounting global setting Document posting periodsDefine variants for open posting periods
Select new entries button
Variant
AML

Name
posting period variant for AML

Ctrl+S, press enter in save


Assign posting period variant to company code:
Path : SPRO-Financial Accounting- Financial accounting global settingsDocument posting periods assign posting period variant company code.
Select position button
Give the company code
AML
For company code AML assign variant AML select save button or Ctrl+S
Press enter to save in your request.
Define open and closed posting periods for variant::
Path: SPRO Financial accounting Global settings Document Posting
periods- open and close posting periods.
Select new entries button.
Vare
: Select AML
Account type (A): Select + (valid for all accounts type)
From Account
Blank
To account
Blank
From period one (1)
1
Year
2008
To period
12
Year (Fiscal year)
2008
From period2
13
Year
2008
To period
16
Year
2008
Second column is option (from period 2)
Authorization group (Au.Gr):
Blank
Select save button or Ctrl+S

30

Select your request and press enter to save in your request.


Authorization Group:
This screen is required every month in production client nobody will have access for
customization areas.
The same screen is given at user level when it is available at user level, the users will
misuse.
SAP has given authorization group.
BASIS Administrator gives authorization group say X and X will be assigned to user IDs
manager accounts and deputy manager accounts.
When we open the system with the above user IDs then only we can change the
periods at the user level.
Posting periods entry at end user area:
Path: Accounting Financial accounting General Ledger - Environment Current
settings-open and close posting periods ( Transaction code :S_ALR_87003642)
Select position button
Posting period variant: AML
Enter
Document type and no. ranges
In normal accounting, account person only will pass all the entries. He will get voucher
nos continuously. In SAP voucher we call it as document.
FI Accounts Person
Material Receipt
Payment
Sales
Receipt

MM Stores Person
1

SD Sales Person

2
3
4

To get document number serially SAP has given document type


Doc.type
No.Range

SA
01

No.Range interval 1-100000

RE
02

RV
03

100001-200000

200001-300000

31

We are getting the document nos continuously by seeing the document number we can
tell where it is generated.
In a year 100000 vouchers are consumed system gives a message we give available
numbers 300001-400000
Path:SPRO-Financial accounting-Financial accounting Global settings
Document Document Header-Define Document Types (Tr.code:OBA7)
Select position button
Document type select

: SA

GL Account document
Enter
Select type

:SA

Select details button (Ctrl+Shift+F2)


Number range

:01

Select number range information button


Give the company code

: AML

Select change intervals button ()


Select interval button
No.range

:01

Year

:2008

From number

:1

To Number

:100000

Current number

:0

Deselect external(Ext) check box


If we select external check box, we have to give at the time of posting what should be
the document number.
Select press enter.
Select save button or Ctrl+S
Ignore warning message press enter
Number range interval cant be transported to production client what ever number for
development client for testing.
1. Consultant is an outsider he does not know how many document
numbers are required for each area.

32

2. All the departments want to have 1100000 which is not possible. In live
environment, before going live all the department heads sit together and
decide for production client.
What should be FI document number
What should be MM document number
What should be SD document number.
SAP have given two options.
Opetion1: Year specific

Option 2: Common to all years

01-2007-1-100000 500000 500001


01-2008-1-100000 3000
3001

01-9999-1-100000
53000-53001-53002

1st Entry
Date:24.09.2008
Posting date:24.09.2008

9999 means any year


in 2nd option we dont know how many

2nd Entry
Entry date:29.09.2008
Posting date:31.03.2008

Documents we have posted for each year

Note: companies follow 1st option.

Field status variant and field status groups


At the time of posting on screen we get around 70 fields. Fields are quality, text
(Narration), business area, value date
Debit
Credit

70
Filed
70
Filed
-----140 Filed
====
If we start filling up all the fields it takes so much time to post one document.

SAP has given a facility to make any filed as


1.

Suppress

2.

Required

3.

1.

Suppress: The filed will not be visible on screen a the time of posting.

33

Optional

2.

Required: We have to enter values to the field compulsory. The field value will
appear with question mark or tick mark-without entering the values we can not go
to next screen.

3.

Optional: The field will be visible on screen our choice to enter values or not the
fields selection is not common to all accounts. It depends on the account what
we are using. In case of sales account quantity filed is required. In case of
repairs account quantity filed is not required, we have 1000 accounts we have
to create 1000 scenarios. In stead of creation of 1000 scenarios SAP have given
field status groups.
Filed status Group

Repairs A/c
Equity share capital
Sales A/c
Purchase A/c
Cash A/c
Bank A/c

Suppress required optional

General
materials quantity select
Bank Accounts
cost Accouts

1. When we create accounts we have to assign field status group.


2. For filed status group we is field is suspected and which filed is optional.
3. At the time of posting by the user-he gives the account number the screen will
appear based on the fields selection to the field status group which is assigned in
account number.
4. Filed status groups are created under field status variant and field status variant
is assigned to company code / codes.
Afterwards:
Cash account
Dr
To Equity share capital
Bank accounts
|
Value date text Business area
|
Required Entry
General
^
Text
Business area
|
Required entry

34

Screen layout at the time of posting


Path:SPRO- Financial accounting Financial global settings Document Line
item-Controls- Define filed status variants
Select field status variant 1000 that is IDES group
Select copy as button (F6)
Change filed status variant (FSTV) to AML
Change field status name to field status VAR for AML
Press enter
Select copy all button
We get a message number of dependent entries copies 47
Enter
Select save button or Ctrl+S
Select your request and press enter to save in your request.
Select field status variant :

AML

Double click on field status groups folder


Double click field status on G001 that general (with,text, allocation)
Double click on General data
Text make it required entry filed
Select next group button
Select next page or page down button two times.
Business areas make it as required entry field
Save
Double click on field status group G005
That is Bank A/c obligatory value date
Double click on General data
Text make it as required entry field
Select next group button
Select next page or page down button two times.
Business area make it as required entry field.
Select next group button two times,

35

Value date make it as required entry filed.


Save.
Value date( Effective date):
Term loan from IDBI :20.09.2008
Deposit by us in our bank :22.09.2008
Document date
:22.09.2008
Posting date
:22.09.2008
In SAP we have interest calculations, Interest calculations in our book from 22.09.2008
where as IDBI calculates from 20.09.2008. There will be mismatch.
Interest calculations:
Value date
:Required entry filed
Document date
:22.09.2008
Posting date
:22.09.2008
Value date:
20.09.2008 field is modifiable after posting .
In our books also interest will be calculated from 20.09.2008
Value date
DOC & POS

:31.08.2008

Assign company code to field status variant :


Path: SPRO-Financial accounting-Financial accounting Global settingsDocument Line time-Controls-Assign company code to field status variants.
Select position button
Give the company code

:AML

Enter
For company code

:AML

Assign field status variant :AML


Select save button or Ctrl+S
Press enter to save in your request

36

SALES TAX PROCEDURE


General ledger, Accounts payable, Accounts receivable and Assets accounting
Basic
Excise
VAT /CST
To do normal posting also, sales tax procedure is required.
A) Create procedure
B) Create tax codes
C) Create accounts
D) Design accounts
Assign for country in-tax US ( Sales tax USA)
Tax IN (sales tax India) Temporary assignment
For our company any code: Country IN
Note the path this one
SPRO-Financial accounting Financial accounting global settings-Tax on sales /
Purchases - Basic settings - Assign country calculation procedure
Select position button
Give the country IN for India
Enter
For country IN assign procedure TaxUS
Sales Tax USA
Select save button or Ctrl+S
Press enter to save in your request.
TOLERANCE GROUPS:
This is two types
1.GL Accounts

2.Employee

a) Receipts / Payment transactions


b) Mandatory area
Retained area called open item management.

37

This is used for vendors, customers and balance sheet accounts where clearing is
required.
Outstanding expenses A/c
Salaries

500000

Bank 15000 Rent


Wages

15000
100000

If we see the account in the month end or year end-we will have no of credits and no. of
debits. We dont know which item is pending and how much is pending.
As per SAP open item management At the time of making payment System will as
against which provision we are making the payment. When we specify the payment is
being made against rent provision. It clears the transaction.
The advantage is we can see the account in 3 ways.
1) If we select open items payable Eg.Salaries and Wages.
2) If we select cleared items :paid Eg.Rent and bank
3) If we select all items: Payable + paid
The same way we use for vendors and customers and also.
Vendors X A/c
Bank For 1
100
Bank For 2
200
Bank-For3
300
Bank for 4
400
Bank for 5
500

1
2
3
4
5

1000
2000
3000
4000
5000

Bill wise out standings we can see for vendor.


We can have tolerances (payment differences). It can be amount tolerance or
percentage tolerance or both it can be debit amount or credit amount.
Outstanding expenses A/c
Salaries
Rent

500000
15000

Bank 15000 Wages


Bank 100000
Commission

100000
100005

There is difference of Rs.5 in the account for commission which need not be paid.
We can difference tolerances.

38

Tolerance
Group
A
B

Amount
100

percentage
5%

A) We have to assign tolerance group in account in outstanding expenses A/c we


have assigned tolerance group A
B) At the time of making payment system checks
Provision
100005
Payment
100000
Difference 5
If the difference of Rs.5 is within tolerance group amount. i.e.100 system will
clear the provision and transfer to sundry balances written off account at time of
making payment.
Disadvantages:
1. Tolerance group is given at account level and not at the transaction level.
Outstanding expenses A/c.
Salaries
Bank

Bank

15000

100000

500000

Diff to give
200

Rent

15000

15

Wages

100000

500

Commission 100005

100

2. There is not flexibility amount percentage tolerance group.


A
100
B
5%
C
0
Outstanding Expenses A/c.
Bank 15000
Bank 100000

Salaries
Rent
Wages
Commission

500000
15000
100000
100005

39

If we give tolerance group A in outstanding expenses account if the difference is less


than tolerance group amount and transferring sundry balances written of account
automatically.
When we give tolerance group C instead of A in outstanding expenses account.
Outstanding expenses A/c.
Bank
Bank
Bank
Provision
Payment
Difference

100000
15000
100000
100005
100000
----------5
=======

Not payable
Transfer 5

Salaries
500000
Rent
15000
Commission 100005

payable
Now Rs.100000 as part payment

To sundry balances off a/c and clear the transaction.


This is mandatory area.

Bank

Tolerance Group
A
B
C

Amount
100

Percentage
5%

Instead of crating group C - keep the filed blank and give amount zero.
While creating 1000 GL accounts, Vendor accounts and customer accounts.
Keep tolerance group field blank, system expects we have created blank
Tolerance group and already assigned.
For our company code: we are creating bank tolerance group wit amount zero so that
no need to assign.
Tolerance group while creating the accounts.
Path :SPRO Financial accounting General Leger Accounting Business
transactions-open item clearing clearing difference- Define tolerance groups for
G/L Accounts
Company code
Tolerance group
Description
Debit posting

: AML
:Blank
:Tolerance group for AML
:0

40

Credit posting
Debit percentage
Credit percentage
Save

:0
:0
:0

Select your request and press enter and save in your request.
Tolerance group for employees.
User wise upper limits for posting
Tolerance Group
A
100000
100000

B
100000
100000

C
10000000 Amount per document
10000000 Amount per open item
account item
0
5
10
Cash Discount
0
0
0
Payment Differenced
We have 1000 users distance we have to create 1000 scenarios (short cut method)
Accounts Dept:
1. City office cashier
2. Factory cashier
3. Branch cashier
4. Account 1
A
5. Account 2
6. Deputy Manager Accounts
7. Manager Accounts
8. DGM Accounts
In live environment / training institutes
SAP User
SAP User
SP user

AML
XYZ
ABC

B
C

A
Use only
Use only

Blank
A
A

Path: SPRO-Financial Accounting General Ledger Accounting Business


transactions Open Item clearing - Clearing differences Define tolerance
groups for employees.
Select new entries button
Group
: Blank
Company code
: AML
Upper limits for posting
Amount per document (Maximum Amount 9999999999)
Amount per open item account item 9999999999 cash discount per line item 10
Permitted payment difference
: Blank
Save

41

Press enter to save in your request.


ENTER GLOBAL PARAMETERS:
Path :SPRO-Financial accounting -Financial accounting global settings-Company
code-Enter global parameters
Select position button
Give the company code
Enter
Select company code
Select details button (F2)

:AML
:AML

Select business area financial statements check box


Select propose fiscal check box
Select define default value date check box
Select negative posting permitted check box
Select addition data button
Company code
: AML
Business Area
: HYD
BGL
Business place
:City factory
City office Factory
Permanent Account No.
(PAN) At company
Code level(Form 49A)
10 Digits Alpha numeric code
Tax Deduction at Source No (In SAP TDS No. / TAN) Form 49B -10 Digits alpha
numeric code
At company code level / business area level / at business place level
(GIR No.: General Identification Number)
TDS No.ABCDE 35467N
PAN NO.BBBBB5678N
Select back arrow, then
Save
Press enter to save in your request

Negative postings:
In case of reversals if we select negative postings check box it reduces from the same
side.
In SAP, when we post a wrong entry, we cant change the document. We have to go for
reversal or pass rectification entry.
1. Equity share capital receipt:

42

Cash account
Dr
To Equity share capital

400000

2. Preference share capital receipt:


Cash account
Dr
To Equity share capital
Reversal
3. Equity Share capital
To Cash account

400000

Doc.No.1

100000

Doc No.2

100000

Doc.No.3

100000

Doc No.4

100000

Doc.No.3

100000

Dr

100000

4.Cash Account
Dr
To Preference share Capital

100000

Rectification
3. Equity share capital
Dr
To Preference Share capital

100000

Account No.100000
Company code
Fiscal year

Ledger summary
AML
2008

Period
1
2
3
4
5
6
7

Debit Amount

Credit Amount

Balance

100000

500000
-100000

400000 Cr

1
Cash flow statement Reversal without
selecting negative
postings
Opening cash and
0
bank balances
Add: Inflows Equity
share capital
500000

2
Reversal by
selecting negative
postings
0

Preference share
capital
Less:Out flows
Equity share capital

100000

100000

Cumulative Balance

400000 Cr
3
Rectifications
0

500000

100000

43

500000

Closing Cash and


bank balances

50000

500000

500000

wrong

correct

Wrong

To check transport request::


Path: Tools ABAP work bench-Overview-Transport Organization (Tr.Code
:SE09)
Enter
Select find request (Ctrl+F)
Execute
Find company code (Ctrl+F)
Double click on define company code
GENERAL LEDGER MASTERS CREATIONS
1
Chart of Accounts level
1
2

GL Account Number
Company code

3
4.
5

Account group
Whether it s P & L Account
Whether it is a Balance Sheet A/c

6.

Description
a) Short text Max 20
b) Long text Max20

2
Company code
level
Account currency
Only balances in
local currency

3
Centrally

Tolerance group
Line item display
Open item
Management
Sort key

+
Company code fields

Field status group

Accounts to be created:
1. Surplus in P & L Account Reserves & Surplus
2. Equity share capital Share capital
3. Cash account current assets, loans & advances
44

Chart of accounts
fields

To check accounts groups for giving account numbers.


Path: SPRO Financial Accounting General ledger accounting GL Accounts
Master Data- Preparations- Define Account group (Tr.Code:OBD4)
Select position button
Give your chart of accounts AML
Enter
Reserves & Surplus

100100-100199

Share capital

100000-100099

Cash account-current assets

200100-200199

1. To check account-Group for giving account numbers.


2. Creation of General
CREATION OF GENRAL
Path : Accounting-Financial accounting General Ledger-Master records GL
Accounts-Individual Processing Centrally (Tr. Code is FS00)
Give the GL account 100100
Company code AML
From the menu select -> GL Account create
Account group: select reserves & surplus
Select balance sheet account radio button
Short text: surplus in P & L Account
GL Account Large text: Surplus in profit & Loss Account
Select control data tab
Select only balances in local currency in check box
We have
Tolerance group: Blank
Select line item display check box
Short key select 001 posting data
Select create / bank / interest
Field status group G001 General (with text, allocation)

45

Save
GL Account

:100000

Company code

: AML

Select with template button


GL Account

:100100 (Surplus in P & L Account)

Company code

: AML

Enter
By mistake save button
Your can not save
Change account group to Share capital
Select balance sheet a/c radio button
Change short text to equity Share capital
Change GL account long text to Equity share capital
Other filed common select save button
GL Account 200100
Company code

:AML

Select with template button


Give the GL Account 100100 surplus in P & L account
Company code

: AML

Enter
Change account group to current assets, loans & advances
Change short text to Cash account
Select balance sheet a/c radio button
Change GL account long text to Cash account
Select create / bank / interest tab
Change filed status group to G005 bank accounts (Obligatory value date)
Select relevant cash flow check box,
Select save button or Ctrl+S
To view the accounts created
Select drop down button beside GL account

46

Match Code:
Give the company code
Enter
Short text
GL account long text

: AML
: At the time of entry
: At the time of General ledger display

Posting of transactions
Path: Accounting Financial Accounting General ledger posting General
posting (Tr.Code is F-02)
Posting transaction

:10/07/2008

Document date

: In case of purchases document date will be party bill date-

we can enter manually 30.09.2008 or select F4- It gives calendar and select F-2 It
selects todays date .
Posting date

: Ledger updation will be based on posting date period will

appeal automatically based on


Posting date

: 30.09.2008

Reference

:Party bill No.

Doc No

:1

Normal cases
Document date (F4)

:30.09.2008

Posting date: will come automatically this is server date.


Type

:SA

Company code

:AML

Currency

: INR

System does not know debits and credits to differentiate between debit and credit SAP
Has given posting keys
Posting key

40

GL account Debit

Positing key

50

GL Account Credit

Posting key: Select 40


Account select the drop down button
GL long text

:*Cash*
47

Company code

: AML

GL Account

: Z*

Enter
Select account No.200100
Enter
200100 Cash account Filed status GRP-G005
Text

Business Area

Value date
Required
In enter global parameters select define default value
date check box
Amount
:400000
Business area
:AMLH
Text
: Equity share capital receipt
Posting key
: Select 50
Account select drop down button
Give the company code AML and press enter
Select account
:100000 Equity share capital
Press enter
Amount enter
:*(star)
Note: * (star) Means debits and credits equal
Cash A/c
Dr
500000
To Equity
300000
To Preference
*
Business area
:AMLH
Text Enter
:+
+ (plus) mean copies the last line item narration in the same document.
Salaries
A/c
Dr
(Salaries provision for Sep.)

100000

Wages
A/c
Dr
(Wages provision for Sep.)
To outstanding Exp
We can not use *
Press enter
From the menu select document simulate (Shift +F9)
In one document we can have 999 line items.
Debit will be posted without any assign and credit amount will be posted with minus
sign.
48

Select save button or Ctr+S


We get a message document 1 was posted in company code:AML
How to view the last posted document 1.
From the menu select document display.
Select display document header button or (F5)
Display document
Path: Accounting Financial accounting General ledger-Document Display
(Tr.Code:FB03)
Select document list button
Give the company code

:AML

Document type

:SA

Select executive button (F8)


To view last one week posted document 24/09/2008 to 1/10/2008
Select execute button
To view self (documents posted by us)
Select own documents only check box
To view documents posted by a specific user
From the menu select > Edit > Dynamic > Selections (Shift +F4)
User name :SAPUSER
Select execute (F8) button
Double click on document no.1
Change document :
Path: Accounting Financial Accounting General ledger-Document Change
(Tr.code is FB02)
Document No.

:1

49

Company code

:AML

Fiscal year

:2008

Enter
Double click on first line item cash account
We can change only value date filed assignment filed and text filed.
Account display:
Path: Accounting Financial Accounting General ledger Account Display
balances ( Tr.code is FS10N)
To view more than one account transactions select multiple selection button beside GL
Account no.
We want to view random account numbers transactions.
Press select single value tab.
Give the account no.100100
200100
Select copy button
To view continuous account numbers transactions
Press select intervals tab
Low limit
:100000
Upper limit :100099
Select copy button
Account no.100050
To exclude an account from the range
Select exclude single value tab
Singe value :
100050
Select copy button
To exclude a range of accounts

:select exclude intervals tab

Low limit

:100050

Upper limit

:100059

Select copy button

50

To view only one account


Select drop down button beside GL Account
Give the company code

:AML

Enter
Select account no.100000 Equity share capital
Company code

:AML

Fiscal year

:2008

Business area

:AMLH

Select execute (F8) button


Double lick on cumulate balance amount
Double click on document No.1
Select call up document overview button (F9)
Select back arrow (F3)
Document Number
1
2
3

Posting date

Text

Amount
100000
200000
300000
----------Total Amount
600000
======

We can create our own line layout


How to create our own line layout:
Select change layout button (Ctrl+F8)
Select the filed which are not required
Select right arrow or hide selected fields button
From hidden fields column
Select posting date
Select left arrow show select fields button change column positions
Column
Document No.
Amount in local currency
Text
Posting date

Pos
1
4
3
2

Length
10
20
35
10

Change text length 35 characters for amount in local currency select total check box
Select copy button
How save the layout:
51

Select save layout button (Ctrl+S)


Option 1
Common to
All
A) Deselect user specific Check box
B) We have to save with any number or name

Option 2
User specific
A) Select user specific check box
B) we can save will any number or
Name

Layout
: / AML
Deselect user specific check box
Description
: Standard layout for AML
Select save button
Select back arrow two times
Execute
Double click cumulate balance amount
How to choose our layout:
Press select layout button (Ctrl+S)
Select
: AML
How to make default line layout:
From the menu select settings layout - Administration
Keep the cursor on /AML
Select define default setting button
Save
Select back arrow three times
Give the account no.200100 cash account
Execute (F8)
Double click on cumulative balance amount
Hold Document:
It is a temporary document
This is user for adjustment purpose or at the time of posting we do not know either debit
or credit.
This document can be deleted there is no tracking for this document.
A) Loans to Directors
Create as hold document an once he gives money back delete the document.
B) Payment to a party purpose of payment we dont know
Cash balance = Account balance +/ Hold documents
Hold documents will not update records

52

Steps:
1. Run a program called RFTMBLU for conversion of hold documents
2. Creation of hold documents
3. Delete / complete hold documents
1.

Run a program called RFTMBLU for conversion of hold documents

Path : Tools ABAP Workbench- Development ABAP Editor (SE38)


Program
: give the program name :RFTMBLU
Select execute button
Select no. termination for read error check box
Execute
2. Creation of hold documents
Use the transaction code (F-02)
Document date

: Today date

Type

:SA

Company code: AML


Posting key

:50

Account no.

:200100 (cash account)

Enter
Give the amount

: 5000

Business area

:AMLH

Text

:Amount paid to Mr.X

From the menu select document hold


Tem parry document No.

:AML

Select hold document button


We get a message document AML was held
Second
F-02
Give the document date: Today date
Type

:SA

Company code

:AML

53

Posting key

: 40

Account 200100 (Cash account)


Enter
Give the amount 20000
Business area

:AMLH

Text

: Hold document testing

Posting key:

: 50

Account no.:

100000 (Equity share capital)

Enter
Amount enter

:* (Star)

Business area

: AMLH

Text

:+

From the menu select Document > Hold


Give the temporary document no. 123456 (give any number)
Select hold document button
3. Delete / Complete hold document (F-02)
Use the transaction code f-02
From the menu select
Path :Document Get held document Select document list button
Keep the cursor on document number 123456
Select delete button
select yes button
select back arrow (F3)
select document list button
Keep the cursor on document no.

:AML

select choose button


Give posting key

:40

Account no.

:100000 Equity share

Enter
Amount Enter

:*(Star)

54

Business Area

: AMLH

Text

:+

From the menu select document Simulate and save

Park Documents :
This is used for approvals Cashier
Enter the document he will
park in the system
Accounts will not be
updated
Account will not be updated

Informs to SR person SR person he can make changes


approval
to the document form amount /
Date / head of account before
release
And release document
Once he release the document
will be posted and updates
records

Steps:
1. Posting of packed document by cashier
2. Informed to Sr. person for release Be cashier
3. Display packed document and change date and amount
4. After change, inform to Cashier about approval
5. Display changes to packed document
1. Posting of Packed Document
Path : Accounting Financial accounting General Ledger- Posting-General
document parking (F-65)
Give the document date

: Today date

Document type

: SA

Company code

: AML

Posting key

:40

Account

:200100 (Cash account)

Enter
Amount

:9999

Business area

: AMLH

Text

: park document testing

55

Posting key:

:50

Account

:100000 (Equity share capital)

Enter
Amount enter

: *(Star)

Business area

:AMLH

Text

:+

From the menu select Document Park document


2. Informed to Senior Person for release
From the menu select system >short message
Give the title

: Please release Doc.No.3

Receipt user id of Senior person (sap user)


Recipient type

: Select SAP logon name

Select express mail check box (Screen down right side)


Select send button (Shift+F8)
From the menu select system > Create session
4.

Display packed document and change date and amount


Path :Accounting Financial accounting General ledger-Document parked
documents- post / delete (FBV0)

Select document list button


Give the company code

:AML

Enter by user ID

:Cashier

Execute (F8)
Double click on document no.3
To change the date
Select document header button
Change document date and posting date to 5.10.2008
Select back arrow
Select fast data enter button
Change amount 6000 Debit
56

6000 Credit
Select back arrow
From the menu select document post
Inform to cashier about approval
From the menu select System >Short message.
Title document no.3 released
Recipient User Id of Cashier
Recipient type
Select SAP logon name
Select express mail check box
Select send button (left side upper)
From the menu select system > Create session
4 .Display changes to packed document
Path: Accounting Financial accounting General ledger-Document - Parked
Documents-Display changes (FBV5)
Company code
: AML
Document No
:3
Fiscal year
:2008
Enter
Select all changes button
Sample document:
This is used for month end provisions
Salaries A/c Dr.
100000
Rent
Dr
50000
Wages
Dr
500000
To outstanding
650000
Create a sample document and store in the system every month by coping sample
document number and by changing date and amount we an post the provisions we will
not forget any provisions.
Steps:
1. Create 3GL masters
A) Salaries A/c
Personnel cost
B) Rent A/c Administration

57

C) Outstanding expenses Current liabilities & Provision


2. Difference no.range interval for no.range X2
3. Creation of sample document
4. posting of transaction by copying sample document
To check account groups for giving account numbers. The transaction code is OBD4
Select position button
Give the chart of accounts : AML
Enter
The personnel cost is 400100-400199
Administration range 400300-400399
Current liabilities & Provision range is 100500-100599
Creation of GL masters (FS00)
Give the GL Account 400100
Company code

:AML

Select with template button


Give the GL Account 100000 (Equity share capital )
Company code

:AML

Enter
Change account group to personnel cost (Staff cost)
Select P & L statement radio button
Change short text to Salaries A/c
Change long text to Salaries A/c
Other fields are common
Select save button or Ctr+S
GL A/c No:

.400300

Company code

:AML

Select with template button


Give the GL account

:400100 salaries

Company code

:AML

Enter
Change account group to Administration
Change short text to Rent account

58

Change long text to Rent account


Other fields are common
Select save button or Ctrl+S
GL Account

:100500

Company code

:AML

Select with template button


Give the GL account

:100000 (Equity share capital)

Company code

: AML

Enter
Change account group to Current liability & Provisions.
Change short text to Outstanding express
Change GL Account Outstanding express
Select control data tab
Select open item management check box
Save
Define no. range interval for no. range X2:
Path: SPRO Financial accounting Financial accounting global settings
Document Document number ranges- (Tr.Code is FBN1)
Give the company code

:AML

Select change intervals button


Select interval button
No. range

:X2

Year

:2008

From number

:500001

To number

:500100

Enter & Save


Ignore the message press enter
Creation of sample document
Path: Accounting Financial accounting General ledger - Posting Reference
documents Sample document (F-01)

59

Document date

:30.09.2008

Posting date

:30.09.2008

Type

:SA

Company code

:AML

Posting key

:40

Accounting

:400100 (salaries a/c)

Enter
Ignore the warning message ,press enter
Amount

:500000

Business area

: AMLH

Text

: Salaries provision for the month

Posting key:

:40

Account

:400300 (Rent account)

Enter
Account

:75000

Business area

: AMLH

Text

: Rent provision for the month

Posting key:

:50

Account no.

:100500 (out standing exp)

Enter
Amount enter

:*

Business area

:AMLH

Text

: Provision for the month

Select save button or Ctrl+S


We get a message document 500001 was stored in company code : AML
5. Posting of transaction by coping sample document : F-02)
From the menu select document post with reference.
Give the document no.

:500001

Company code

:AML

60

Fiscal year

:2008

Select display line items check box


Enter
Change the document date

:31.10.2008

Posting date

:31.10.2008

Enter
Ignore the warning message press enter
Change the amount to 600000
Text

:Add October (Salaries for the month of October)

Amount

:0

Enter
Line item having zero will not update records
Ignore the warning message
Amount enter

:*(star )

For text

: Add October

From the menu select document simulate


Select save button or Ctrl+S
Month end provisions:
Option 1:
Accrual / Deferral document

Option 2
Open item management

Option 1: Accrual Deferral document


31.10.2008 Salary provision
Salaries Dr
To out standing

100000
100000

01.11.2008 reversal next month 1st


Outstanding Dr
To Salaries

100000
100000

05.11.2008 Payment of salaries


Salaries
Dr
To Bank

105000
105000
61

31.10.2008
05.11.2008

Salaries A/c
100000
105000

01.11.2008

100000

100000

01.11.2008

Outstanding Expenses A/c


31.10.2008
100000

Profitability effect::
For October
100000
For November because October 5000
Option 2: open item management
31.10.2008 Salaries provision
Salaries
Dr
To out standing

100000
100000

05.11.2008 Salaries payment


Out standing Dr
Salaries
Dr
To Bank

100000
5000
105000

Salaries A/c
31.10.2008
5.11.2008

100000
5000
Outstanding Expenses A/c
31.10.2008

01/11/2008

100000

100000

Profitability effect
For October
For Nov. because of October salaries

100000
5000

Companies follow 1st option (other than year end)


In case of option 2 the person who makes the provision is accountant and the person
who is making the payment and clearing is Cashier - Cashier has to track the provision
and clear against the provision.

62

Option 1: Accrual / Deferral document :


Steps
1.Creation of reversal reason and reversal reason should allow us to reverse on any
day.
2. Enter accrual / Deferral documents
A) Rent Provision
08.10.2008
B) Salary provision
31.10.2008
3.Reversal of accrual / deferral documents in one step
1.Creation of reversal reason and reversal reason should any day.
Path : SPRO- Financial accounting General ledger accounting-Business
transactions Adjustment posting / Reversal - Define reason for reversal
Select new entries button
Reason
:11
Text
: Real / Deferral Reversal reason for AML
Select neg. posting check box
Select alternative position date check box
Select save button or Ctrl+S
Save in your request
If we do not select alternative posting date check box
31.10.2008
Salaries Dr
To out standing
System will allow you to reverses only 31.10.2008
We want to reverse next month 1st select alternative posting date check box
Rent provision:
Path : Accounting Financial Accounting General ledger Periodic processing
Closing Valuate- Enter Accrual / Deferral Document (Tr.Code is FBS1)
Document date

: Today date

Type

:SA

Company code

: AML

Reversal reason

: Select 11

Reversal date

:1.11.2008 (next months)

Posting key

:40
63

Amount

:400300 (Rent A/c)

Enter
Amount

:50000

Business area

:AMLH

Text

: Rent provision for October

Posting key

:50

Account no.

:100500 (out standing exp)

Enter
Amount

: *(star)

Business area

: AMLH

Text

:+

From the menu select document >Simulate and save


Salaries provision:
Tr.Code is FBS1
Document date

:3110.2008

Posting date

:31.10.2008

Type

:SA

Company code

:AML

Reversal reason

:11

Reversal date

:01.11.2008

Posting key

:40

Account

:400100 (Salaries A/c)

Enter
Ignore the warning message press enter
Give the amount

100000

Business area

AMLH

Text

:Salaries provision for the month of October

Posting key

50

Account

:100500 (outstanding exp.)

Enter

64

Amount

:*

Business area

:AMLH

Text

:+

From the menu select document > Simulate and save

Reversal accrual / Deferral document :


Path : Accounting Financial Accounting General Ledger Periodic
processing Closing Valuate Reverse accrual / Deferral Document (Tr.Code
is F.81)
Give the company code

: AML

Reverse posting date

:01.11.2008

Select text run check box


Execute (F8)
Select reversal documents button
Select back arrow
OPTION 2 : Open Item Management
This is used vendors customers / Balance Sheet items where clearing is required. We
have to select open item management check box
While crating the GL accounts
Out standing Expenses
Salaries A/c
Wagers A/c
Bank 25000 Rent a/c

500000
300000
25000

We can see the account in 3 ways


1. Open items: Payable Salaries and wages
2. cleared items : Paid rent and bank
3. All items : Payable + paid
3. Scenarios
1st Scenario

2nd Scenario

3rd Scenario

Full Clearing

Partial clearing

Residual items method

65

Provisional and payment


Same amounts
A) Rent Provision (Transaction code F-02)
Document Date & posting date
:13.10.2008
Type

: SA

Company code

: AML

Posting key

:40

Account no.

:400300 (Rent A/c.)

Enter
Give the amount

:15000

Business area

:AMLH

Text

: Rent provision

Posting key

:50

Account no.

:100500 (outstanding exp)

Enter
Amount

:* (enter star)

Business area

:AMLH

Text

:+

From the menu select Document > Simulate and save


B) How to view open item managed account transactions:
Path : Accounting Financial Accounting General Ledger- Account Display /
Change line items (Tr. Code is FBL3N)
Give the GL Account

:100500 (outstanding exp)

Company code

: AML

Select open items radio button


Select normal items check box
Execute (F8)
OUT GONG PAYMENT WITH CLEARING:

66

Path : Accounting Financial Accounting General Ledger - Posting Out going


payments (F-07)
Give the document date

: Todays date

Type

: SA

Company code

: AML

Clearing text

: outgoing payment

Account Under bank data

:200100 (Cash A/c.)

Business Area

:AMLH

Amount

: 15000

Text

: Outgoing payment

Account under open item selection :100500 (out standing expenses)


Amount type

: S(S is default) (S: Stands for GL Accounts)

Select process open items button


Reversed documents will not appear for clearing:
Double click on payable amount 15000
Document > Simulate and save
Go and see open item account transactions Tr.Code is FBL3N
Give the GL Account no

:.100500 (outstand expenses)

Company code

:AML

Select cleared items radio button


Clearing data

: Todays date

Select normal items check box


Execute (F8)
Select back arrow
Select open item radio button
Execute
(-*- This symbol is open item(document no. below))
2nd Scenario
Partial Clearing

3rd Scenario
Residual items method

67

When we make part payment we can use either partial clearing or residual items
method.
Out standing exp.
OI
Rent
40000 Cr
Cash
5000 Dr
------35000 Cr
=====

Outstanding Exp.
OI
Rent
30000

28000 Cr

------28000 Cr
=======
CI :
Rent 30000 Cr
Rent 30000 Cr
-------------0
=====

A) Rent Provision
Rent
To Outstanding

Dr 40000
40000

A) Rent Provision
Rent A/c
Dr
Outstanding

30000
30000

B) Part payment

B) Payment

Out standing Dr 5000


To Cash 5000

Outstanding
Dr 30000 cleared
To Cash
2000
To Outstanding 28000

Residual: Balance payable


Note : OI means Open Items
CI Means Cleared Items
Companies follow 1st method
We test how to view bill wise outstanding:
Rent Provision F-02
Document date

: Today date

Type

: SA

Company code

: AML

68

Rs.2000

Reference

:3456

Posting key

:40

Account No.

:400300 (Rent a/c)

Enter
Amount

: 40000

Business Area

: AMLH

Text

: Rent provision

Posting key

: 50

Account No.

:100500 (Outstanding exp.)

Enter
Amount

: * (enter star)

Text :+
From the menu select Document Simulate and save
Out going payment using partial clearing method: ( Tr. Code F-07)
Document Date

: Todays Date

Type

: SA

Company code

: AML

Reference

: 3456

Clearing text

:Outgoing payment

Account under bank data: 200100 (Cash a/c)


Business area

: AMLH

Account

: 5000

Text

: Outgoing payment

Account under open item selections 100500 (outstanding exp)


Select process open items button
Keep the cursor on the amount filed of line item against which we want to adjust.
Select partial payment tab
Creates payment amount column
Double click amount 40000
Double click on payment amount 40000
69

From the menu select Document >Simulate


Gives a message correct the marked Line items
Double click on blue font line items
Text enter

:+

Select save button or Ctrl +S

Go and see open item account transactions


The Transaction is code is FBL3N
Give the GL account

:100500 (outstanding Exp.)

Company code

: AML

Select open items radio button.


Select normal items check box
Select execute button
To view bill wise outstanding
Select change layout button (Ctrl+F8)
From the hidden fields column
Select reference field
Select amount in local currency under column contain.
Select left arrow or show selected fields button
Select copy button
Keep the cursor on reference
Select sub total button
To make balance payment of 35000 and cleared provision and part payment (F-07)
Give the document date

: Todays date

Type

: SA

Company code

: AML

Reference

:3456

Clearing Text

: Out going payment

Amount under bank date

:200100 (Cash A/c)

70

Business Area

:AMLH

Amount

:35000

Text

: Outgoing payment

Account

: Under open item selection 100500(out standing exp)

Account type

:S

Select process open item button


Double click on provision 40000
Double click on part payment 5000
From the menu select document > Simulate and save
Go and see open item managed account transactions (FBL3N)
Give the GL Account o.

:100500(out standing exp)

Company code

: AML

Select cleared items radio button


Select normal items check box
Execute
Residual items method:
Rent provision F-02
Give the document date

: Todays date

Type

: SA

Company code

: AML

Posting key

: 40

Account no.

:400300 (Rent account)

Enter
Amount

:30000

Business area

:AMLH

Text

: Rent provision

Posting key

:50

Account no.

:100500 ( outstanding exp)

Enter
71

Amount

:*

Business area

: AMLH

Text

:+

From the menu select Document ->Simulate and save

Out Going Payment Using Residual Items Method: (F-07)


Give the document date

: To days date

Type

: SA

Company code

: AML

Clearing Text

: out going payment

Account under bank date

: 200100 (Cash a/c)

Business area

: AMLH

Amount

:2000

Text

: out going payment

Account type

:S (default comes)

Select process open item button


Account

: Under open item selection 100500 (out standing exp)

Keep the cursor on the amount filed of the line item against which we want
adjust.
Select residual items tab
It creates residual items column
Double click on next amount 30000
Double click on residual items amount
From the menu select Document > Simulate
It gives the message correct the marked line items.
Double click on blue font line item.
Text enter

:+

Save
Go and see the open item managed account transactions (FBL3N):

72

Give the GL Account no.

:100500 (out standing exp.)

Company code

: AML

Select open items radio button


Select normal items check box
Execute
FOREIGN CURRENCY TRANSACTIONS
1. Check exchange rate type
Bank buying
Bank selling

Exports
Imports / Expenditure

G type
B type

Average rate MM /SD users type


Path : SPRO-SAP Net weaver- General Settings Currencies Check
exchange rate types
Select position button
Exchange rate type: B (enter B)
Enter
Define translation rates for currency translation:
Giving conversion factors for two currencies:
USD 1
JPY 100
ERO 1
GBP1
ITL1
JPY 100

:
:
:
:
:
:

INR 1
INR 1
JPY=Japanese - Yen
INR1
INR1
GBP=Great Britain -Pound
INR1
ITL=Italian -Lira
INR1 37Rs

0.01

Or
1

0.37

Once we follow one conversion factor follow continuously for all the years. Dont change
in between if we change in between it gives wrong results.
This is given at client level and not at company code level (Client 800)
Path: SPRO SAP Net weaver- General settings Currencies Define translation
ratios for currency translation

73

Ignore the message select yes button.


Select new entries button
Exchange rate type
G (Bank buying)
B (Bank selling)
M (Average rate)

From
USD
USD
USD

To
INR
INR
INR

valid (from)
01.10.2008
01.10.2008
01.10.2008

Ratio (from)
1
1
1

Ratio (to)
1
1
1

Select save button or Ctrl+S


Press enter to save in your request.
Enter exchange rates:
Path: SPRO- SAP Net weaver- General settings- currencies Enter exchange
rates
Forex Table
We can enter Daily quotations / Week end quotations / Month end quotations.
For each day end for each type we can enter only one rate.
Select new entries button
Exchange type
G
B
M

Valid from
10.10.2008
10.10.2008
10.10.2008

R
1
1
1

From currency
USD
USD
USD

Director quotation
47.00
47.50
47.10

To
INR
INR
INR

Press enter and save in your request.


Exchange rates entry at the End User Area:
Path: Accounting Financial accounting General ledger-Environment Current
settings Enter translation rates (S_BSE_68000174)
Foreign currency postings for end user area:
SCENARIO :1
When exchange rate is not entered at
the time of posting.

SCENARIO 2
When exchange rate is entered at the
Time of posting

a. IF we dont enter the rate at the time of posting, it takes rate from Forex
table

74

b. If take the latest date rate


1.10.2008
45
10.10.2008
47
Enter date :15.10.2008
Posting date :09.10.2008
c. To enter default exchange rate type based on document type.
General ledger posting
: SA Bank selling rate
Purchase INV posting (FI purchases)
:KR Bank selling rate
MM Purchases
:RE Bank selling rate
Sales invoice posting (FI Sales)
SD sales

DR Bank buying rate


RV Bank buying rate

If we do not specify system takes average rate.


1. To enter default exchange rate type B (Bank selling rate) for document type
SA
Use the Tr. Code is OBA7
Select type
: SA
Select details button
Under default values exchange rate type for foreign currency documents. Select B
(Bank selling rate)
Save
2. Posting of expenditure in USD F-02
Give the document date

: To days date

Type

: SA

Company code

:AML

Currency

: USD

Rate

: Blank

Posting key

:40

Account

: 400100 (salary)

Enter
Give the amount

:1000

Business area

: AMLH

Text

: Salary payment

75

Enter
Posting key

: 50

Account

:200100 (cash account)

Enter
Amount

:*

Business area

: AMLH

Text

:+

From the menu select Document ->Simulate


To view in INR
Select display currency button
Save

When exchange rate is extend at the time of posting


Expenditure posting Tr.Code is F-02
Document date

: To days date

Type

: SA

Company code

: AML

Currency

: USD

Rate

:50

Posting key

:40

Account no.

:400100 (salary account)

Enter
It gives the warning message exchange rate 50 deviates from table rte 47.50 by
5.26%
Ignore the warning message press enter
Amount

:10000 USD

Business area

: AMLH

Text

: Salary payment

Enter

76

Posting key

:50

Account no.

:200100 (Cash account)

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document ->Simulate and save


REVERSELS:
1. Individual Document Reversal
2. Reversal of Reversed document
3. Mass Reversal
4. Clearance Items Reversal
5. Account Deferral document reversal
1. Individual Document Reversal
A) To reverse one document at the time
B) To give reversal reason
C) At the time of reversal, it we do not give reversal date it takes original
document posting.
Date incase, that period should be open
1. Document posted on 10th April 2008 Doc.No.1 Generated
2. Now, we have open the periods from September 2008 to October 2008
6,2008 7,2008
3.

Ledger scrutiny - Doc.No.1 is wrong

Document No.
Reversal reason
Reversal date
Save

Blank

It takes original document posting date 10/04/2008


It can not reverse, since the April period is not open
Path : Accounting Financial Accounting General ledger Document Reverse
Individual Reversal (FB08)
Give the document no.

:1

Company code

:AML

Fiscal year

:2008
77

Select 01 reversal reason


Posting date

: Blank

Select display before reversal button


Select back arrow
Select save button or Ctrl+S
From the menu select Document >Display
Select Go to Display document Head button (F5)
Double click on document no.1
Select display document header button
1. Posted Documents
1
2
3
4
5
6 Reversal for 1
7 Reversal for 2
2. Document type and no./ranges : OBA7
Select type
: SA
Select details button
Number range
:01
Reversal Doc.type
: AB
3. Document display
Company code
Doc. Type

: FB03
: AML
: SA original documents
AB Reversed documents

2. Reversal of Reversed Document


Indirect method (work around)
To reverse Doc No.2 By mistake we have reversed Doc.No.1 and it has generated
Doc.No.18
Use transaction code F-02
From the menu select post with reference
Give the document no.

:18

Company code

:AML

Fiscal year

:2008

Select generate reverse posting check box


78

Select display line items check box


Enter
Enter once again
Change the text to reversal for Doc No.18
Enter
Text

:+

Enter
Save
Enter
From the menu select Document ->Display
Select display document header button
3. Mass Reversal
A)To reverse more than one document at time we use mass reversal.
B) The documents to be reversed can be continuous numbers or random numbers.
Path: Accounting Financial accounting General ledger Document
Reverse Mass reversal (F.80)
Give the company code
: AML
To reverse random numbers
Select multiple selection button beside document no.(-->)
Under single values
Give document no .2
4
Select copy button
Reason for reversal 01
Select test run check box
Execute
Select reverse documents button
Cleared Items Reversal
1. Go and see open item managed account transactions (FBL3N)
Give the GL Account Number 100500 (out standing exp)
Company code
: AML
Select clear items radio button
Execute

79

Out standing exp A/c


01
10 Bank

15000

9
Rent
CI
9
Rent
10
Bank
Stop payment instructions to the banker

15000
15000 Cr
15000 Dr

A) Reset cleared items Delink between the provision and payment.


Out standing expenses
01
10 Bank

15000

A/c
Rent

B) Reverse cheque transaction


Out standing expenses A/c
01
9
Rent

15000

15000

Path: Accounting Financial accounting General ledger-Document Reset clear


items (Tr.Code is FBRA)
Clearing document

: 10

Company code

: AML

Fiscal year

: 2008

Select save button or Ctrl +S


Select resetting and reverse button
Reversal reason

:01

Enter
We get a message clearing 10 reset
Enter
Go and see open item managed account transactions Tr code is FBL3N
Give the GL Account no.100500 outstanding expenses
Company code
: AML
Select open item radio button
Execute
Interest Calculations
80

Balance Interest calculation


S
Type
GL
Account

Item interest calculation


P Type
Vendor / Customers

Define interest calculation type:


Path : SPRO- Financial accounting General ledger accounting- Business
transactions Bank account interest calculation Interest calculation Global
settings Define interest calculation types
Interest indication

: G1

Name

: 10% Monthly

Interest calculation type

: Select S

Balance interest calculation


Press enter to save in your request
Prepare account balance interest calculation:
Path : SPRO- Financial accounting General ledger accounting- Business
transactions Bank account interest calculation Interest calculation Global
settings- prepare account balance interest calculation (Tr.Code OBAA)
Select new entries button
Interest calculation indicator

: G1

Interest calculation frequency

: Select 01

Calendar type

: Select G (28

31/365)

Select balance plus interest check box


Save
Press enter to save in your request
Calendar Type
In case of rupee loans we use G Calendar

In case of foreign currency loans we


use F calendar.
FC Loan from SBI LIBOR +2%

81

(LIBOR Mean London Inter Bank Offer


Rate)
For interest calculations the
denomination will be always 360 days
FIBOR Frankfurt Inter Bank Offer Rate
MIB - Mumbai Inter Bank Offer Rate

Define Reference Interest Rates:


SBI rupees term loan

10/04/2008
10/09/2008
Interest calculation for the year

100000
10000

1st method
On 100000 from 10/04/2008 to 31/03/2009 at 10%
On 100000 from 10/09/2008 to 31/03/2009 at 10%

15000
-3000
-------12000

2nd Method
On 10000 from 10/04/2008 to 09/09/2008 at 10%
On 90000 from 10/09/2008 to 31/03/2009 at 10%

5000
7000
-----12000
=====
10%
8%
Account Credit balance reference
interest rate : G2-10%
Account debit balance reference interest
rate G3-8%

If the account is having credit balance


If the account is having debit balance
Loan account Interest indicator

A) Interest rates are given to reference interest rate (G2 and G3)
B) Reference interest rates are specified separately if there is a credit balance and if
there is a debit balance and it will be assigned to interest indicator
C) Interest indicator will be specified in loan account.
Define reference interest rates:

82

Path : SPRO Financial accounting General ledger accounting Business


transaction Bank account interest calculation Interest calculation Define
reference interest rates (Tr code is OBAC)
Select new entries button
Ref int.rate

: G2

Long text

: Credit balance 10% interest

Description also credit balance 10% interest


Date from

:01.04.2008

Currency

: INR

Save
Press enter to save in your request
Select next enter button
Ref.int.rate

: G3

Long text

: Debit balance 8% interest

Description

: Dr. Bal 8% int

Date from

: 01.04.2008

Currency

: INR

Save

Define Time Dependent Terms


Path : SPRO Financial accounting General ledger accounting Business
transaction Bank account interest calculation Interest calculation- Define time
Dependent Terms
Select new entries button
Interest calculation indicator

: G1

Currency key

: INR

Effective from

: 10.04.2008

Sequential number

:1

Terms

: Select credit interest balance interest calculation

Ref.interst rate

: G2

Save

83

Press enter to save in your request


Select next entry button (F8)
Interest calculation indication

: G1

Currency key

: INR

Effective from

:01.04.2008

Sequential number

:2

Term

: Select debit interest balance interest


calculation

Reference rate

: G3

Save
Enter Interest Values
Same path as above (Tr code is OB83)
Select new entries button
Reference interest rate

: G2

Valid from

: 01.04.2008

Interest rate

: 10 (one month)

Reference interest rate

: G3

Valid from

: 01.04.2008

Interest rate

:8

Save
Press enter to save in your request

Creation Of 2 Gl Masters
A .SBI rupees term loan
B. Interest account

Secured loans
Intrest

To check account groups for giving account numbers OBD4


Select position button
Give the chart of accounts
: AML
Enter
Secured loan range
:100300 -100399
Interest range
: 400400-400499

84

Creation Of Gl Masters (Fs00)


Give the GL account no.

:100300

Company code

: AML

Select with template button


Give the GL Account no.

:100000 Equity share capital

Company code

: AML

Enter
Change the account group to secured loans
Change short text to SBI rupee term loan
Change GL account long text to SBI rupee term loan
Change GL Account text to SBI rupees term loan
Select Create / Bank / Interest tab
Field status group change to G005
Interest indicator select G1
Save
Tr.Code:FS00
GL Account no.

:400400

Company code

: AML

Select with template button


Give the GL account no.

:400100 salaries account

Company code

: AML

Enter
Select type / Description tab
Change account group to interest
Change short text to interest a/c
GL account long text: Interest account
Save
Assignment accounts for automatic postings:

85

Path : SPRO- Financial accounting General Accounting Business


Transactions bank account interest calculation- Interest Posting prepare GL
Account balance interest calculation (Tr.Code OBV2)
Select symbols button
0002 Interest paid
2000 GL Account (paid)
Interest account
Dr 0002
To SBI rupees term loan 2000
If more than term loan
2000

400400
100300
++++++++++ ( 10 Times plus)

(10 times +(plus) mean any account number)


Length of account no. maximum 10 digits
We are using 6 digits why can not we use ++++++ (6 times plus)
When we post a transaction Cash account Dr
Credit to equity share capital and when we give the account number 200100 for cash
account and 100000 for Equity Share Capital It takes in the beginning 0000200100
Debit and 0000100000 Credit and when we save it saves with 200100 and 100000.
If we gives 6 times plus when we simulate for loan it takes 000010 and it can not
save.
SBI rupees term loan 100300
IDBI rupees term loan 100301
ICICI rupees term loan 100302
At the time of interest calculation, we give for which loan account interest is to be
calculated. Now we are asking the system to calculate interest for 100301 IDBI rupees
term loan account 100301 will be replaced in ++++++++++
Select accounts button
Give the Chat of Accounts
Enter

: AML

Accounts symbol
0002
2000

Currency
INR
INR

Select save button or Ctrl +S


Press enter to save in your request
Open Posting period (Tr.Code is OB52)

86

GL A/c
400400
++++++++++

To open posting periods for April 2008


Select position button
Give the posting period variant

: AML

Enter
For Variant

: AML

From the period 1 is

:1

Select save button or Ctrl+S


Press enter to save in your request
SBI rupee term loan receipt
: F-02
10.04.2008 SBI cheque date
100000
12.04.2008 cheque deposit in bank
Document date
:12.01.2008
Posting date
:12.04.2008
Interest calculation in SAP from 12.04.2008
Where as bank calculates from 10.04.2008
We are giving value date 10.04.2008
Now SAP also calculates interest from 10.04.2008
Document date & posting date

:10.04.2008

Type

: SA

Company code

: AML

Posting key

:40

Account

:200100 (Cash a/c)

Enter
Ignore the warning message press enter
Amount

:100000

Business area

: AMLH

Value date

:10.04.2008

Text

: SBI Term loan receipt

Posting key

:50

Account key

:100300 SBI Rupee term loan

Enter

87

Amount

:*

Business area

: AMLH

Value date

:10.04.2008

Text

:+

From the new select document simulate and save.


Term loan repayment (F-02)
Due date
:10.09.2008
Cheque date
:10.09.2008
To bank credit in SBI books only on 12.09.2008 interest credit will be in our books
10.09.2008
SBI gives credit from 12.09.2008
Cheque date
:07.09.2008
Value date
:10.09.2008
F-02
Give the document date & posting date 07.09.2008
Type

: SA

Company code

: AML

Currency

: INR

Posting key

:40

Account no.

:100300 SBI rupee term loan

Enter
Ignore the warning message press enter
Amount

:10000

Business area

: AMLH

Value date

:10.09.2008

Text

: SBI Term Loan Repayment

Posting key

:50

Account

:200100 (Cash account)

Enter
Amount enter

:*

Business area

: AMLH

Value date

:10.09.2008

Text

:+
88

From the menu select document >Simulate and save


Balance Interest calculations:
Path: Accounting Financial accounting General ledger- periodic processingInterest calculation-Balance interest calculation (F.52)
Company code

:AML

Give the GL account

:100300 ( SBI Rupee Term Loan)

Calculation period

:01.04.2008 to 31.03.2009

Execute
Select back arrow
To view line item wise interest
Select additional balance line check box
Execute
Select bank arrow
How to give effect for floating rate of Interest
Interest rate change from 10% to 12% from 01.06.2008
On 100000 from 10/04/2008 to 31/05/2008 @10%
On 100000 from 01.06.2008 to 09.09.2008 @12%
On 90000 from 10/09.2008 to 31/03/2009 @12%
Open one more session with SPRO
Path :SPRO- Financial accounting General ledger accounting Business
transactions- Bank account interest calculation Interest calculation- Enter
Interest Values (OB83)
Select new entries button
Reference interest rate

: G2

Valid from

:01.06.2008

Interest rate

:12

Save
Press enter to save in your request come to the first session
Execute
Select back arrow

89

Interest postings to accounts:


Change the calculation period

: 01.04.2008 to 30.04.2008

Select post interest settlements check box


Select update master records check box
Session name

: AML

Posting to business area

: AMLH

Posting date of session

:30.04.2008

Posting segment text

: Interest for April 2008

Select execute button


To view the batch input session
From the menu select system >Services > Batch input Session
Select session name
: AML
Select process button
Select display errors only radio button
Select process button
We get a message processing of batch input session completed
Select exit batch input button
To view the document posted use the (Tr. Code FB03)
Go and see the GL maser (FS00)
Give the GL Account no.
:100300 (SBI rupee T.L)
Company code
: AML
From the menu select GL account ->Display -> Select create / Bank / Interest tab
Key date of last interest calculation :30.04.2008
Date of last interest run
:20.10.2008
On which date we have to run
1. Simple interest
SBI rupee term loan 10.04.2008 100000

2. Compound interest
SBI rupee term loan 10.04.2008 100000
30.4.2008
575
For may it calculates on 100575

0002-400400 Interest A/c


2000-100510 Interest payable a/c
For may it calculates on 100000
Interest also to post to separate accounts
400400 Interest on SBI Rupee Term Loan

90

400401 Interest on IDBI Rupee Term Loan


400402 Interest on ICICI Rupee Term Loan
0002-400400 interest on SBI rupee term loan, we are calculating interest for IDBI rupee
term loan
In batch input session select process forward radio button
Deselect display errors only radio button
40

400400 Interest on SBI Term Loan 1000


Change account no to 400401

How to make open items initially inactive:


Clearing
1
1000 Cr
2
2000 Cr
3
3000 Cr
Payment 1000 Dr
The difference is too large for clearing all items are initially inactive
1
1000 Cr
2
2000 Cr
3
3000 Cr
Payment
1000 Dr
Path : Accounting Financial Accounting General ledger Environment User
parameter- Editing options (Tr.code is FB00)
Select open items tab
Select selected items initially inactive check box
Save
Foreign Currency Balance Revaluation
FC term loan (Foreign currency TL)
|
Long term working capital
Fixed assets purchase
|
Local assets
Imported assets
21.10.2008
13.10.2008

100000 USD
100000 USD

47
50

4700000
5000000
----------300000
========

As per accounting standard 11 (ASII)


Balance to be revaluated and change to profit & loss account.

91

Creation of 3 GL Masters
A) SBI FC Term loan
B) Exchange again
C)Exchange loss

Secured loans
other income
Administration

To check account groups for giving account no.OBD4


Select position button
Give the chat of accounts
: AML
Enter
Note the other income range 300100 to 300199
Create of GL masters FS00
Give the GL account no.100301
Company code
: AML
Select with template button
Give the GL account no

:100300 (SBI Rupee Term Loan)

Company code

: AML

Enter
Change short text and long test to SBI FC term loan
Select control data tab
Account currency change to USD
Deselect only balance and loan currency check box
Select create / bank / Interest tab
Interest indicator

: Blank

Delete the dates


Save
GL Account

:300100

Company code

: AML

Select with template button


Give the GL account no.

:400300 Rent account

Company code

: AML

Enter
Select type/ Description tab

92

Change account group to other income change short text and GL account long text to
exchange gain
Save
GL Account

: 400301

Company code

: AML

Select with template button


Give the GL account no.400300 rent account
Company code

: AML

Enter
Change short text and GL account long text to exchange loss
Save
DEFINE ACCOUNT PRINCIPLES
Path : SPRO- Financial accounting(new)-Financial accounting global setting
(new)-Ledgers-Parallel accounting-Define accounting principles
Select new entries button
Accounting principle

:B

Name / Description of accounting principle.: INDIAN ACCOUNTING STANDARDS


Press enter to save in your request
Assignment accounting principle to ledger groups
Same path as above
Select new entries button
Accounting principle

: B1

Target ledger group

:0L

Save
Press enter to save in your request
Define valuation methods
Path: SPRO- Financial accounting (new)- General ledger accounting (new)Periodic processing Valuate- Define valuation methods
Select new entries button

93

Valuation method

: AML1

Description

: FC valuation bank selling method for AML

Select always evaluate radio button


Document type

: SA

Exchange rate type for debit balance

: B (bank selling rate)

Exchange rate type for credit balance

:B

Select determine exchange rate of ratio button


Save
Press enter to save in your request
Define Valuation Areas
Same path
Select new entries button
Valuation area

: BA

Valuation method

: AML1

Currency type

: Select company code currency

Save
Press enter to save in your request
Assign valuation areas and accounting principles
Same path
Select new entries button
Valuation area

: BA

Accounting principle

: B1

Save
Press enter to save in your request
Prepare automatic postings for foreign currency valuation:
Path :Upto valuate the path is same-Foreign currency valuation-Prepare
automatic posting for foreign currency valuation (Tr code is OBA1)
Double click on exchange rate difference using exchange rate key
Give you chart of accounts

: AML
94

Select change valuation area or right arrow button


Give the valuation area

: BA

Enter
Exchange rate difference key

: USD

expenses account

:400301

Exchange rate gains account

:300100

Select save button or Ctrl+S


Press enter to save in your request
Delete ledgers (other than OL) for Ledger Group OL
April March OL
Jan- Dec
G1
July June GL

Leading ledger
(India)
Non leading ledger 1(US)
Non leading ledger 2(Australia)

At the time of posting FI we dont give ledger group it updates all the ledgers
automatically
Indian accounting standards /
Australian accounting standards

US Accounting
standards (US GAAP)

FC revaluation
Creation of ledger groups OL
Assign ledgers
OL and GI

Add to asset
G1
G1

Delete ledgers assigned to ledger group OL other than OL


Path :SPRO-Financial accounting (new)- Financial accounting Global settings
(new) Ledger-Define ledger groupSelect ledger group :0L
Double click ledger assignment folder
Select ledgers other than OL
From the menu select delete
Ignore the message press enter and save
Press enter to save in your request
Assign exchange rate difference key in GL Master (FS00)

95

Give the GL 100301 SBI FC Term loan


Company code

: AML

From the menu select GL Account change


Select control data tab
Exchange rate difference key: Select USD
Select save button or Ctrl+S

Foreign currency term loan receipt (F-02)


Give the document date

: Todays date

Type

: SA

Company code

: AML

Currency

: USD

Rate

:47

Posting key

:40

Account

:200100 ( Cash account)

Enter
Ignore the warning message press enter
Amount

:100000

Business area

:AMLH

Text

:SBI FC Term Loan Receipt

Enter
Posting key

:50

Account

:100301 SBI FC Term loan

Enter
Amount enter

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and Save

96

Enter year end exchange rate in Forex table OB08


Select new entries button
Exchange rate
G
B

Valid from
31.03.2009
31.03.2009

From
USD
USD

Direct quotation To
49.50
INR
50.00
INR

Save
Foreign Currency Revolution
Path: Accounting Financial accounting-General ledger-Periodic processingclosing-valuate-foreign currency valuation (new) (Tr.code is FAGL_FC_VAL)
Give the company code

: AML

Valuation key date

:31.03.2009

Valuation area

: BA

Select GL balance tab


Select valuate GL Account balance check box
GL account 100301 SBI FC term loan
Select postings button
Give the batch input session name

:AML

Select execute button


Select 1postings button
Select back arrow two times
Month end revaluation
Diff
23.10.2008
31.10.2008
30.11.2008
Exchange Loss
31.10.2008
30.11.2008
SBI FC Term loan
23.10.2008
31.10.2008
01.11.2008

100000

47
47.50
49

0.50
2.00

5000
200000

Option 2
50000
200000

01.11.2008

50000

30.11.2008

4700000
50000
200000

100000
500000
97

Loss for October


50000
Loss for November 150000
--------Loss up to Nov.
200000
======
procedure for month end revaluation: (Tr code is FAGL_FC_VAL)
Enter month end exchange rates in Forex table
Company code

: AML

Valuation key date

: Month end date

Valuation area

: BA

Select crate posting check box


Select reverse posting check box
Select execute button
Procedure for year end revaluation
Enter year exchange rate in Forex table
Company code

: AML

Valuation key date year end date


Valuation area

: BA

Select create posting check box


Reversal posting date

:Blank

Deselect reverse posting check box


Select execute button
From the menu select System -> Services-Batch input Sessions
Select session FAGL_FC_VALU
Select process button
Give the business area

: AMLH

Enter
Second

98

Business area

: AMLH

Enter
We get a message processing of batch in put session completed
Select exit batch input button
To view the document posted view the Tr.Code FB03
Enter
Select display currency button
End user area

customization area SPRO

SAP easy access screen)


How to view path when transaction code is given
In command filed enter search SAP- menu
Search SAP-Menu
Press enter
Search text entry : F-02
Enter
CUSTOMIZATION AREA: Use the Tr.code is SPRO
Select find button (Ctrl+F)
Search term : Fiscal year
Enter
Select fiscal year in area financial accounting global settings
Enter

99

ACCOUNT PAYABLE
This is subledger (subsidiary ledger). This is used when material management (MM)
module is not implemented for all type purchases material purchase services.
When Material Management(MM) module is implemented.
This is used for services where TDS is to be deducted.
Eg.Job work charges /legal and professional charges
In normal accounting for raw material purchases.
Purchase
A/c
To party

Dr

In SAP :for Raw material purchases


Inventory
RM Dr
General ledger
To party
Sub ledger Sundry creditors General ledger
|
Reconciliation account on control account
Trail balance will not match when we post to party automatically it updates sundry
creditors RM
Basic settings for account payable:
1. Creation of vendor account groups
a) we create FI vendors services parties
b) MM vendors
-Reconciliation account
Material parties
-Required entry field
2. Create number range for vendor accounts:
3. Assign number range group to vendor account group.
4. Define tolerance group for vendors.
5. Creation of 2GL masters.
a) Inventory raw material
- Current assets, loans & advances
b) Sundry creditors RM
-Current liabilities & Provisions
6. Creation of vendor master
7. Document type and no.ranges
KR: Vendor invoices
KZ: Vendor payment
KA: Vendor document for transfers / Reversals
8. Posting keys :31
Vendor credit
:25
Vendor debit

100

Creation of vendor accounts groups:


Path :SPRO Financial accounting Accounts receivable and accounts payableVendor accounts-Master data-preparation for creating vendor master data- Define
account groups with screen layout (vendors)
Select new entries button
Account group
Name

:AML1
:FI vendors for AML

Double click on company code data


Double click on account management
Reconciliation account make it required entry field
Cash management group make it suppress
select save button
select create request button
short description :AP customization for AML
enter
press enter to save in your request
select next entry button
account group AML2
Name

:MM vendor for AML

Double click on company code data


Double click on account management
Reconciliation account :

Make it required entry filed.

Cash management group select suppress


Save
Create number range for vendors account :
Up to preparation for creating vendor master data path is same
Create number ranges for vendors account.(Transaction code is XKN1)
Select change intervals button
Select interval button
Number range

:13

101

From no.

:4200001

To no.

:4300000

Enter
Select interval button once again
No.range

:14

From No.

:4300001

To no

:4400000

Enter
Save
Ignore the warning message press enter

Assign number range to vendor account groups:


Same path
Select position button
Account group

:AML1

Enter
For account group

:AML1

Number range

:13

Account group AML2


Number range

:14

Press enter to save in your request


Define tolerance group for vendor
Path :SPRO-Financial accounting-Account receivable and account payableBusiness truncations-Outgoing payments-manual outgoing payments-Define
tolerances(Vendors)
Select new entries button
Company code
Tolerance group
Description
Save

:AML
: Blank
:Tolerance group for AML

102

Press enter save in your request


Creation 2GL masters (FS00)
Give the GL account no.200120
Company code

:AML

Select with template button


Give the GL account no.200100 Cash A/c
Company code

: AML

Enter
Change short text and GL A/c long text to Inventory RM (Raw material)
Select create /bank /interest tab
Field status group change to G001
Deselect relevant to cash flow check box
Save
One more A/c
GL Account No.100501
Company code

:AML

Select with template button


Give the GL A/c No.100500 (Outstanding exp)
Company code

:AML

Enter
Select type/ Description tab
Change short test and GL account long test to Sundry Creditor to RM
Select control data tab
Deselect only balances in local currency check box
Reconciliation account for account type select vendor
Deselect open item management check box
Sort key

:Select 012 vendor number

Select create /bank /interest tab


Field status group change to G067 (reconciliation accounts)
Save

103

Creation of vendor master:


Path : Accounting-Financial accounting Account payable-Master recordsMaintain centrally-Create (Transaction code is XK01)
Give the company code

:AML

Account group

:AML1

Enter
Title

:Select company

Name

:Birla Chemicals Limited

Street

: Ameerpet

Post

:500082

City

:Hyderabad

Country

:In(India)

Telephone no.

:040123456

Select next screen button three times


Reconciliation account

:Select 100501 (sundry creditors raw materials)

Sort key

:012 Vendor no

Select next screen button


Payment terms

:Select 0001 (payable immediately)

Tolerance group

:Blank

Select check double invoice check box


Save
MM Module
Purchase order
|
Goods receipt
|
Invoice verification

104

FI Module
Document date

:Party bill date

Posting date
31.10.2008
Reference vendor no. party bill no.
1234
|
Save
Doc no.100001

01.10.2008
07.11.2008
1234
|
save

System gives a wrong message no.100001 is posted to the party with the same
amount. Do you want to post once again.
Provided we select check double invoice check box (If MM module is not implemented
and same bill two times entry)
Document types and no. ranges (OBA7)
Select type KR Vendor invoice
Select details button
Number range

19 (Note down the no.range)

Select number range information button


Give the company code

: AML

Select change intervals button


Select interval button
No.range

:19

Year

:2008

From no.

:100001

To no.

:200000

Enter and save


Ignore the warning message press enter
Select back arrow 3 times
Select type

-KZ vendor payment

Select details button


No. range

15 (note down the no.range)

Select no.range information button


Give the company code

:AML

105

Select change intervals button


Select interval button
No.range

year

From no.

To no.

15

2008

200001

300000

Enter and save


Ignore the warning message press enter
Select back arrow 3 times
Select type KA vendor document
Select details button
No.range

17

Select no.range information button


Company code

: AML

Select change interval button


Select interval button
No.range

:17

Year

:2008

Form no.

:300001

To no.

:400000

Enter and save


Ignore the message press enter

106

HOUSE BANK
Bank branch name
Bank Address
Contact person
Telephone no.
Senario1
1. House bank

No.of account
IDs (Identification)

SBI Main branch


Current A/c
No.1

Current A/c
No.2

Current C/A
No.3

Scenario 2
2 House banks
Account ID

SBI Main branch


|
Current A/c No.

BI Begumpet Branch
|
Current A/c No.

Steps:
1) Creation of GL Master SBI current account Under Current assets , Loans &
Advances
2) Define House bank
3) Creation of check lots check from no., check to no.
* In SAP check mean cheque
1. Creation of GL Master (FS00)
Give the GL account no.200105
Company code
:AML
Select with template button
Give the GL account no. :
200100
Company
:
AML
Enter
Change short text and GL account long text
save

Cash A/c
SBI current A/c

2. Define house banks


Path : SPRO-Financial accounting Bank accounting-Bank accounts
Define house banks (FI12)
Give the company code

: AML

Enter

107

Select new entries button


House bank

:SBI

Bank country

:IN

Bank key

:AML1 (text field)

Save
Bank name

:State Bank of India

Street

:Bank Street

City

:Hyderabad

Bank branch

:Main branch

Enter
Press enter to save in your request
Double click on bank account folder
Select new entries button
Account ID

:SBI1

Description

:SBI current A/c no.1

Bank account no.

:AML1234

Currency

:INR

G/L Account no.

:200105 SBI current a/c

Select save button


3. Creation of check lots:
Path :Accounting Financial accounting-Accounts Payable Periodic
Processing -payments (F110)
From the menu select Environmentcheck Information Number ranges
(FCHI)
Paying company code

:AML

House bank

:SBI

Account ID

:SBI1

Select change button (Shift +F5)


Select create button
Lot no.

:1

108

Check no

:500001

To no.

:500100

Select Non sequential check box


Short information

:SBI

Purchase date

:Todays date i.e Check box issue date

Enter and save

Manual payment
Automatic payment
1. We can issue any check any time
System will issue check one after
another
2. Sequential or Non-sequential
Sequential
Purchase invoice posting
Path : Accounting-Financial accounting-Account payable Document entryInvoice general (Transaction code F-43)
Give the document date

:Todays date

Type

:KR(Vendor)

Company code

:AML

Posting key

:31 (Vendor credit)

Account

:4200001 (Vendor no.)

Enter
Give the amount

:500000

Business area

:AMLH

Text

:Purchase invoice posting

Posting key

:40

Account no.

:200120 (Inventory raw material)

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select document Simulate and save

109

2. How to view vendor account transactions


Path: Accounting Financial accounting-Account payable-Account Display
change line items (Transaction code is FBL1N)
Give the vendor account

:4200001

Company code

:AML

Select open items radio button


Select normal items check box
Select execute button
3. To view general ledger sundry creditor raw material Transaction code is
FS10N
Give the GL account no.

:100501 Sundry creditor raw material

Company code

: AML

Fiscal year

:2008

Business area

:AMLH

Select execute button


Double click on cumulate balance amount
To view vendor wise
Select change layout button
Select assignment field from the hidden fields column
Select amount in local currency (under column content)
Select left arrow
Select copy button
100501 Sundry creditors RM
Sort key
:012 Vendor number
Sort key updates assignment field automatically
Outgoing payment with clearing
Path :Accounting Financial accounting-Accounts payable -Document
entryOutgoing payment Post (F-53)
Give the document date

: Todays date

Type

:KZ

Company code

:AML
110

Clearing text

:Outgoing payment

Account under bank date

:200105 (SBI current account)

Amount

:5000

Business area

:AMLH

Text

:Outgoing payment

Account under open item select

:4200001

Account type

:K comes by default (K stands for Vendors)

Select process open items button


Double click on payable amount

:5000

Document Simulate
Select save button or Ctrl+S
Go and see the vendor account truncation (Tr.code is FBL1N)
Give the vendor account no.
Company code

:4200001

:AML

Select cleared item radio button


Select normal items check box
Execute
Creation of manual check
Path :Accounting Financial accounting Accounts payable Environment
Check information Create Manual checks (Tr code FCH5)
House bank
Account ID
Give the check no.
Save

:SBI
:SBI1
:500025

Display check resister


Upto check information the path is same
code is FCHN)

111

Display Check register (Tr

Give the paying company code :AML


Execute
Double click on check no.
:500025
Select accompany documents button
Bill no. Amount
1
5000
2
5000
3
15000
4
5000
5
5000

Payment
5000

Path A/c
Payment doc.no.
200005

Check
500001

5000
5000

200001
200010

500025 payment history


500005

Assignment of check no.to payment no.payment doc no.is cleared will be number
Check encashment date updating:
Based on bank statement we update check encashment date.
Advantage 1
1. We know on which date the check is encased by the party
2. Bank reconciliation is easier
3. upto check information the path is same change Additional info/Cash
(Tr code is FCH6)
paying company code
:AML
House bank
:SBI
Account ID
:SBI1
Check no.
:500025
Enter
Give the check encashment
:20.11.2008
Save
Go and see check register FCHN
give the paying company code
:AML
Execute
Sort date wise FI the encashment date is bank or offer 30.11.2008
Checks issued but not presented.
Unissued checks cancellation
Some time while writing check we commit mistake before issuing to party we
cancel check
Up to check information the path is same void unused checks (Tr code is FCH3)
Give the paying company code
House bank

:AML
:SBI

112

Account id
Check no.from
Void reason code

:SBI1
:500001
:Select 06 destroyed select void button
(Shift+F5)

Go and see the check register (FCHN)


Give the paying company code

:AML

Select execute button


Once the check lot is over all check keep the cursor and cheque no.from to select
sort in ascending order button (Ctrl +F5)
If any number is missing between the check is misused.
How to create void reason code
Path :SPRO-Financial accounting Accounts receivable and accounts
payable-Business truncations-Outgoing payments Automatic outgoing
payments-Payment media check management Define void reason codes
(Tr code is FCHV)
Select new entries button
Reason
Void reason code
Select save button or Ctrl+S
Press enter to save in your request

:15
:Stop payment for AML

How to delete encashment date data:


500019 we have to give encashment date 20.11.2008 for 500019.by mistake we
have given for 500020
500025 20.11.2008 to delete encashment date
500021
500022
Path :up to check information the path is same Delete Reset data (Tr.code
is FCHG)
Give the paying company code
:AML
House bank
:SBI
Account id
:SBI1
Check number
:500025
Select reset cashing data radio button
Execute
Select yes button for the message to reset data
Go and see the check register (FCHN)
113

Give the paying company code


Execute

:AML

Issued check cancellation


System will not permit to cancel encashed checks.
Vendor account
a) Invoice posting (F-43)
a) 01 (open items)
b) Outgoing payment with clearing (F-53)
b) Bank 5000 Dr a)5000 Cr
c) Manual check creation (FCH5)
CI (Clearing items)
A)
5000 Cr
B)
5000 Dr
d)Display check register (FCHN)
e) Issued check cancellation
1) Reset cleared items Delinking bill amount and payment amount
Vendor Account
01
B) Bank
5000 Dr
A)
5000 Cr
2) Reverse payment
Vendor account
01
A)
5000 Cr
Cancel check
Path :upto check information the path is same Void-Cancel payment (Tr.Code
is FCH8)
Paying company code

:AML

House bank

:SBI

Account ID

:SBI1

Check number

:select 500025

Void reason code

:15 (stop payment for AML)

Reversal reason

:select 01(reversal in current period)

Select cancel payment button


Go and seethe vendor account FBL1N
Give the vendor account no. :4200001
Company code
:AML
Select open items radio button
Select normal items check box
Select execute button
114

Go and see the check register FCHN


Give the paying company code
Select execute button

:AML

Advance payments to vendors (down payments to vendors)


Sundry creditors Purchase
Advance
Advance to vendors
(current liabilities)
(current assets)
Payment
purchase
1. Creation of GL master Advance to vendors Current assets, Loans & Advances
2. Link between sundry creditors ands advances to vendors
A (Advance special GL indicator)
^
Sundry creditors
Advance to vendors
Reconciliation account
Alternative reconciliation account or special
GL Account
100501
200150
Vendor A/c
4200001 BirlaChemals Limited -100501
At the time of making payment we know the purpose of payment.
If it is payment against a bill -4200001
100501-Sundry creditors
If it is payment as an advance 4200001 A
4200001 Birla Chemicals Limited -100501
A(Advance (Special GL indicator))
^
100501 200150
Advance payment posting
Purchase invoice posting
Transfer of advance from special GL to normal by clearing special GL items.
Clearing of normal items.
Vendor account have two parts
1) Normal items
2) Special GL items
Creation of GL master advance to vendors (FS00)
GL A/c No.

:200150

Company code

:AML

Select with template button


Give the GL account no.100501 (Sundry creditors raw material)
115

Company code

:AML

Enter
Change account group to current assets loans & advances
Change short text and GL account long text to Advance to vendors
Other fields are common
Select save button or Ctrl+S
Link between sundry creditors and advance to vendors:
Path :SPRO-Financial accounting-Accounts receivables and accounts payables
Business transactions-Down payment made-Define alternative reconciliation
account for down payments (Tr code is OBYR)
Double click on A or down payment on current assets
Give the chart of accounts

:AML

Enter
Reconciliation account

:100501

Special GL account

:200150

Select save button or Ctrl+S


Press enter to save in your request
Advance payment posting:
Path :Accounting Financial accounting Account payable Document entrydown payment Down payment (F-48)
Document date

:Todays date

Type

:KZ

Company code

:AML

Vendor account

:4200001

Special GL indicator

:A

Bank account

:200105 SBI current account

Business area

:AMLH

Amount

:25000

Text

:Advance payment posting

116

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and save


Go and see the vendor account transaction (Tr.code is FBL1N)
Give the vendor account no.
:4200001
Company code
:AML
Select open items radio button
Select special GL transaction check box
Execute
Purchase invoice posting (F-43)
Give the document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no

:4200001

Enter
Amount

:25000

Business area

:AMLH

Text

:purchase invoice posting

Posting key

:40

Account no.

:200120 inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select document simulate and save


Go and see the vendor account (Truncation code FBL1N)
Give the vendor account no.

:4200001
117

Company code

:AML

Select open item radio button


Select normal items check box
Execute
Select back arrow
Select special GL truncation check box along with normal items
Execute
Transfer of advance from special GL to normal by clearing special GL items
Path :Accounting Financial accounting-Accounts payable-Document entryDown payment Clearing (F-54)
Give the document date

:Todays date

Document type

:KA

Company code

:AML

Vendor account

:4200001

Text

:Advance transfer to normal

Select process down payments button


Transfer posting

:25000

Save
Go and see the vendor account transactions FBL1N
Give the vendor account no.

:4200001

Company code

:AML

Select clearing items radio button


Select special GL transaction check box
Execute
Select back arrow
Select open items radio button
Select normal items check box
Execute

118

Clearing of normal items:


Path : Accounting Financial accounting Accounts payable Account Clear
(F-44)
Give the account no.
:4200001
Company code
:AML
Select process open items button
Double click on credit 25000
Double click on debit
25000
Save
Go and see the vendor accounts (Transaction code .FBL1N)
Give the vendor account no.
:4200001
Company code
:AML
Select cleared items radio button
Select normal items check box
Execute
Vendor account
|
Normal / Items
6
5
25000
425000
Sundry creditors C/L
Special GL items
Advance to vendor 3
25000
5
25000
2nd Scenario
Advance more bill less
Advance
200000
Bill amount
50000
A) Advance payment posting (F-48)
B) Purchase in voice posting (F-43)
C) Transfer of advance of Rs.500000 from special GL to normal (F-54)
Vendor A/c normal items
D
C
50000
Special GL items
A 200000

50000

50000

D) Clearing of normal items (F-44)

119

Final result
Vendor special GL shows a balance of Rs.1500000 Advance to vendors
To be cleared against future bills.
3rd Scenario
Advance bill more
Advance
9000
Bill amount
90000
Vendor A/c
normal items
A) Advance payment posting (F-48)
B) Purchase invoice posting (F-43)
C
9000 B
90000
C) Transfer of advance from special GL to normal
by clearing
Special GL Items
Special GL (F-54)
A
9000 C
9000
D) While making balance payment
Of Rs.81000 double click on bill
Amount 900000 and payment amount
Rs.9000. All the 3 line items will go to
Clearing items (F-53)
TERMS OF PAYMENT
1
Payable immediately - Due net
Path : SPRO-Financial accounting Accounts receivable and accounts
payable Business transactions-Incoming invoices / Credit memos
Maintain terms of payment
Select new entries button
Payment terms
:AML1
Select customer check box
Select vendor check box
Default for base line date
No default
:No.of purchases during the month base line date at
the time of Invoice posting Blank
For all purchases during the month give month end
date.
Document date
:Party bill date
Posting date
:Goods receipt date
Entry date
:Quality approval date
Payment terms

:If the payment is made within 10 days -3% cash


discount

120

If the payment is made within 20 days -2% ash


discount payable within 30 days
Under default for baseline date: Select posting date radio button
Percentage No.of days
Term 1
3
10
Term2
2
20
Term3
30
Press enter
Select save button or Ctrl+S
Press enter to save in your request
Cash Discount Received
Trade discounts are to be adjusted to purchases where as cash discounts are to
be shown under other income.
Creation of GL master Cash discount received other income (FS00)
Give the GL A/c no.

:300101

Company code

:AML

Select with template button


Give the GL account 300100 exchange gain
Company code

:AML

Enter
Change short text and GL account long text to cash discount received.
Save
Assignment of account for automatic postings:
Path :SPRO-Financial accounting-Accounts receivable and Accounts
payable-Business transactions-Out going payments-Out going payments
global settings Define accounts for cash discount taken. (Tr Code is
OBXU)
Give the Chart of Accounts
:AML
Enter
Save
Give the account no.300101 cash discount received
Save
Press enter to save in your request

121

Purchase invoice posting (F-43)


Document date

:25.10.2008

Posting date

:01.11.2008

Entry date

:Todays date

Type

:KR

Company code

:AML

Currency

:INR

Posting key

:31

Account

:4200001

Enter
Amount

:100000

Payment terms

:Select AML1

Text

:Purchase invoice posting

Enter
Ignore the warning message press enter
Posting key

:40

Account no.

:200120 Inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select document Simulate and Save

Go and see the vendor account (Transaction code is FBL1N):


Vendor account

:4200001

Company code

:AML

Select open item radio button


Select normal items check box
Execute
122

Form the menu select change layout button


Form the hidden fields column
Select current cash discount amount
Select amount in document currency under column-contain
Select left arrow or show selected fields button
Select copy button
Outgoing payment with clearing (F-53)
Document date

:Todays date

Type

:KZ

Company code

:AML

Clearing text

:Out going payment

Account under bank data

:200105 SBI current account

Business area

:AMLH

Amount

:97000

Text

:out going payment

Account

:Under open item selection 4200001

Select process open items button


Double click on payable amount

:100000

From the menu select document Simulate


We get a message correct the marked line items.
Double click on blue font
Text enter

:+

Save

123

Automatic payment program (APP)


System will

-Check due dates


-Issue check
-Pass the enter and cleared party account
-Generate payment advance
- update check register
The check lot should be sequential we are not programmer system given payment
program.
Check format and payment advice format
APP will be used by cash rich companies
They run weekly / for every 10 days /For every 15 days
At the time of APP run, we have to give bankwise ranking with available amounts.
SBI
1
1000000
IDBI
2
500000
ICICI
3
300000
It will issue checks from SBI upto 10 lakhs. Then afterwards it issued form IDBI upto
500000 Then it goes to ICICI and issued up to 3000000
After run, it gives a proposal In the proposal it shows for which parties for which bills
from which bank it is going to issue to checks.
We can edit proposal

By blocking some invoices for payment


Or
By charging bank

Due

Party Y
1
2
3
4
5

Party X
1
2
3
4
5

Black invoices 4,5 and make the payment for 1,2 and 3 use the fund for party bill
payments.
System is issuing form SBI for party X 3 bills party is having account in ICICI-Change
bank from SBI to ICICI.
Setup payment methods for country for payment transactions
Path :SPRO Financial accounting-Account receivable and account payable
Business transactions-Outgoing payments Automatic outgoing payments

124

-Payment method /Bank selection for payment program-Setup payment method


per country for payment transactions
Select new entries button
Country

:IN

Payment method

:B

Description

:Check

Select outgoing payments radio button


Select check radio button
Document type for payment

:KZ

Clearing document type

:KZ

Payment medium program

:RFFOUS_C

Name of print date set

:LIST1S

Save
Press enter to save in your request

Setup payment methods per company code for payment transactions:


Same path
Select new entries button
Paying company code

:AML

Payment method

:B

Minimum amount

:10

Maximum amount

:9999999999

Select payment per due day check box


Select from data button
From for the payment medium: F110_PRENUM_CHECK
Drawer on the form

: for Aravind Mills Limited

Authorized signatory
Save
Press enter to save in your request
Setup all company codes for payment transactions:
125

Same path
Select new entries button
Company code
:AML
Paying company code
:AML
Separate payment per business area check box
Out going payment with cash discount from : Bank interest rate 1.5% per month
18% per annum
Payment term:
If we make the payment within 30 days we get -1% cash discount
Due within 60 days
System will payment 60 days since discount is less than bank interest rate.
Within 30 days
:Interest for month 1.5
Within 60 days
:Interest for month 1.5+1.5
Payment terms:
If we make the payment within 30 days we get 2% cash discount.
Due with in 60 days
System will within 30 days since discount more than bank interest rate.
Maximum cash discount:
Payment term:
If we make the payment within 30 days we get 1% cash discount. Due within 60 days.
Though we are not entitled, system claims 1% cash discount and make the balance
payment only even if it is paid with 60 days.
Special GL transaction to be paid under vendors : Select A (Advances)
Save
Press enter to save in your request
Setup paying company codes for payment transactions:
Same path
Select new entries button
Paying company code

:AML

Select forms button


From for the payment advise F110_D_AVIS
Select sender details button
Text ID

:Select ST (ST stands for Text)

Letter header

:F_0001_HEADER

Footer

:F_0001_FOOTER
126

Sender

:F_0001_SENDER

Save and Press enter to save in your request


Creation of sequential check lots (FCHI)
Paying company code

:AML

House bank

:SBI

Account ID

:SBI1

Select change button


Select create button
Lot number

:2

Check number

:800001

To

:801000

Deselect non-sequential check box


Short information

:SBI

Purchase date

:Todays

Enter and save


Assign payment methods in vendor master:
Path :Accounting-Financial accounting Accounts payable-Master records
Maintain centrally-Change (XK02)
Give the vendor no.
:4200001
Company code
:AML
Select payment transaction check box under company code data
Enter
Payment methods
:Select B
Payment block
:If we dont want to make the payment to this party in this
run, select -Skip account
Alternative payee

:We have purchased from Birla Chemicals Limtied BCL has


to make the payment to party XYZ BCL instructs us to
make the payment to XYZ-in alternative payee give XYZ no.
when we run APP ,check will be in the name of XYZ and
party clearing will be BCL

127

House bank

:BCL in having account in ICICI It instructs us to issue


check from ICICI only We give house bank ICICI- check
we issued only form ICICI.
Individual payment
:When we run APP, it will issue one check only for all the bills
due some parties ask us to issue separate check for each
bill. Select individual payment check box.
Separate check will be issued for each bill.
Select save button or Ctrl+S
END USER AREA
Purchase invoice posting (F-43)
Document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Give the amount

:9999

Business area

:AMLH

Text

:Purchase invoice posting

Posting key

:40

Account no.

:200120 Inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

Document Simulate and save


Setup bank determination:
Path :Accounting Financial accounting Accounts payable-Periodic processingPayments (Tr code is FBZP)
From the menu select Environment maintain -Configuration
Automatic payment program Customization one Screen FBZP

128

Select bank determination button


Select position button
Paying company code

:AML

Enter
Select AML
Double click on ranking order folder
Select new entries button
Payment method

:B

Currency

:INR

Bank order

:1

House bank

:SBI

Save
Press enter to save in your request
Double click on bank accounts folder
Select new entries button
House bank

:SBI

Payment method

:B

Currency

:INR

Account ID

:SBI1

Bank sub account

:200105 (SBI current account)

Business area

:AMLH

save
Double click available amounts folder
Select new entries button
House bank

:SBI

Account ID

:SBI1

Days

:999

Currency

:INR

available for outgoing payment :1000000


Save

129

Automatic payment program run (Tr code is F110)


Path :Up to periodic processing the path is same- Payments (Tr code is F110)
Run date
Identification
Select parameter tab
Company codes
Payment methods

:Todays date
:AML1
:AML
:B

Though we have given the date, we can run tomorrow it self


Payment term

:If we make the payment within 10 days we get 2% cash


discount (Dues within 30 days)

Purchase today

:07.11.2008

If we make the payment to day -2%


If we make the payment on 14.11.2008 2%
System will not issue check todays It will issue in the next run since the discount
amount is same.
It control the cash flows
Party bill date
Payment term
APP run today

:07.11.2008
:AML2
30 days credit 07-12-2008
: It asks next Posting date :14.11.2008

APP run2
Next payable date
Next posting date

:14.11.2008
:14.11.2008
:14.11.2008

Vendor from
Vendor to
Save

:4200001
:4300000

21.11.2008

Select bank arrow


Select proposal button (Shift +F1)
Select start immediately check box
Enter
Go on press enter (Basic Tr code box green tick mark box)
Till we get the message payment Proposal has been created
130

To edit the proposal -Select any proposal button enter (Shift +F4)
Double click on vendor no.
To block on invoice for payment
Double click on document no.

:100001

Payment block

:Select A (Block for payment )

Enter
To change bank for second bill
Double click on document no.

:100004

Select reallocation button


Payment method

:B

House bank

:SBI

Account ID

:SBI1

Enter
Save
Select bank arrow two times
We get a message payment proposal has been edited
Select payment run button
Enter
Go on press enter .
It we get the message payment run has been carried out.
To take check printing:
Select printout / data medium tab for the program RFFOUS_C
Give the variant

:A1

Select maintain variants button


Select for all selection screen radio button
Select continue button
Program run date

:07.11.2008

Identification feature

:AML1

Paying company code

:AML

131

Payment method

:B

Business area

:AMLH

House bank

:SBI

Account id

:SBI1

Check lot no.

:2

Select print checks check box


Printer

:LP01

Select print immediately check box


Select print payment advice notes check box printer :LP01
Select print immediately check box
Select print payment summary check box
Printer

:LP01

Select print immediately check box


No.of sample print outs

:0

Select dont void any checks check box


Select attributes button (F5)
Meaning

:SBI check printing date 08.11.2008

Save
Select back arrow
Save once again
Select bank arrow
Select print out button
Select start immediately check box
For job name in place of question of mark Give variant A1
A1
Company code
:AML
Business area
:AMLH
Bank
:SBI
Account ID
:SBI1
Check lot no.
:2
Parameters are saved in the variant in place of question mark A1
Press enter
Enter once again
To view check printing

132

From the menu select system Services output control


Select execute button
Select spool no.check box for check
Select display contents (F6)
Go and see the vendor Account FB11N
Give the vendor account

:4200001

Company code

:AML

Select cleared items radio button


Select normal items check box
Execute
Double click on document type

:KZ

For the amount

:9999

Select call up document overview button (F9)


Select display document header button
Enter
From the menu select Environment check information

Go and see the check register (FCHN)


Give the paying company code
Execute

:AML

Credit memo postings


Purchase from Birla Chemicals Limited
If the material is not good
Return the material or reduce the amount (Price)
BCL will issue credit note to mail or AML raises Debit note on BCL
Both are same
Doc type
:KG (Credit memo)
KA
No.range 17
17
No need to give no.range interval already we have given earlier

133

Path :Accounting- Financial accounting Accounts payable Document entry


Credit memo general (F-41)
Document date

:Todays date

Type

:KG (Vendor credit memo)

Company code

:AML

Posting key

:21 Credit memo

Account

:4200001

Enter
Give the amount

:1000

Business area

:AMLH

Text

: Credit memo posting

Posting key

:500

Account no.

:200120 Inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and save


Note: Cash journal postings not accept negative balances
Normal postings Accept negative postings

134

ACCOUNTS RECEIVABLE (A/R)


This is also a Sub Ledger (Subsidiary Ledger)
This is used when Sales & Distribution (SD) Module Is not implemented-All types of
sales.
Eg: Product Sale/Raw Material Sale/Scrap Sale
When Sales & Distribution(SD) Module is implemented-This is used for Raw Material
Sale /Scrap Sale/Asset Sale-(Other than Product Sale)
At the time of sale:
Customer Account Dr
TO SALES

Sub ledger Sundry Debtors(General Ledger)


|
|
General Ledger
|
|
|
Reconciliation Account
Or
Control Account

BASIC SETTINGS FOR ACCOUNTS RECEIVABLE:


1.Creation Of Customer Account Groups
A)FI Customers
Asset Sale/Scrap Sale/RM Sale
Parties

Reconciliation account field

135

B)SD CUSTOMERS

Required Entry field

PRODUCT SALE PARTIES


2.Create number ranges for customer accounts
3.Assign number ranges to customer account groups
4.Creation of 2 GL masters
A)Sundry Debtors-

"Current Assets,Loans&Advances"

B)Sales Account
Sales
5.Creation Of Customer Master
6. Document Types And No.Ranges
DR
Customer Invoice
DZ
Customer Payment
DA
Customer Document For
Transfers/Reversals
7.Posting Keys

01
15

OBA7

Customer Debit
Customer Credit

We test a scenario where vendor is a customer


Party BCL
Party BCL
Purchase
100000
Sales
100000
Sales
20000
Purchase
20000
-------------Net Payable
80000
Net Receivable 80000
When we Pay/Receive net amount we have to clear vendor transactions and customer
transactions at a time
Note : Create receipt terms (if any cash discount debit - Debit expenses )
1.SALES INVOICE POSTING:
Creation of customer account groups
Path: SPRO- Financial Accounting- Account Receivables and accounts payables
customer accounts Master data- Preparation for creating customer master dataDefine account groups with screen layout (customers)
Select new entries button
Account group

: AML1

136

Name

: FI Customers for AML

Double lick company code data


Double click account management
Reconciliation account make it required entry filed
Save
Select create request button
Short description for AR customization for AML
Press enter
Enter once again to Save in your request
Select next entry button
Account group

: AML2

Name

: SD customers for AML

Double click on company code data


Double click on account management
Reconciliation account make it required entry filed.
Save.
Create No. range for customer accounts:
Path :Upto preparation for creating customer master data the path is same.Create no. range for customer accounts (Tr.code is XDN1)
Select change intervals button
Select interval button
No. range

:23

From no.

:6600001

To no.

:6700000.

Enter
Select interval button once again
No.range

:24

From no.

:6700001

To no.

:6800000

Enter and Save

137

Ignore the warning message press enter


Assign Number ranges to customer account groups:
Same path
Select position button
Account group

: AML1

Enter
For AML1

Assign no.range :23

For AML2

Assign no.range :24

Save
Press enter to save in your request
Define tolerance group for Customer
Path :SPRO-Financial accounting-Account receivable and account payableBusiness truncations-incoming payments-manual incoming payments-Define
tolerances(Customers)
Select new entries button
Company code
:AML
Tolerance group
: Blank
Description
:Tolerance group for AML
Save
Press enter save in your request

Creation of GL Masters (FS00):


Give the GL account no.

:200110

Company code

:AML

Select with template button


Give the GL account no.200150 advance to vendors
Company code

: AML

Enter
Change short text and GL account long text to Sundry Debtors
138

Select control data tab


Change reconciliation account for account type to customers
Change sort key to 031 customer number
Select Create / Bank / Interest tab
Field status group

:G067

Save
GL account no

:300000

Company code

:AML

Select with template button


Change GL account 300100 Exchange gain
Company code

:AML

Enter
Select type/description tab
Change the account group to sales/.
Change short text and GL account loge text to sales account
Other fields are common
Select save button or Ctrl+S
Creation of customer master
Path: Accounting- Financial accounting Accounts receivables-Master recordsMaintain Centrally-Create (Tr.Code is XD01)
Account group

:select FI customer for AML

Company code

:AML

Enter
Title :

: select Company

Name

: BIRLA Chemicals Limited

Country

: IN for India

Select control data tab


Vendor

:4200001

Select company code data button


Reconciliation account

:200110 Sundry debtors

139

Sort key

:031 (Customer no.)

Select payment transaction tab


Terms of payment

:0001 payable immediately due net

Save

Document type number ranges (OBA7)


Select type Dr customer invoice
Select details button
No.range

:18

Select no.range information button


Company code

:AML

Select change intervals button


Select intervals button
No.range

:18

Year

:2008

Form no.

:400001

To no.

:500000

Enter and save


Ignore the warning message press enter
Select back arrow 3 times
Select type

:DZ (Customer payment )

Select details button


No. range

:14

Select no.range information button


Company code

::AML

Select change intervals button


Select interval button
No.range

:14

Year

:2008

From no.

:500001

140

To no.

:600000

Enter and save


Ignore the message press enter
Select back arrow three times
Select type

:DA (customer document)

Select details button


No.range

:16

Select no.range information button


Company code

:AML

Select change interval button


Select interval button
No.range

:16

Year

:2008

Form no.

:600001

To no.

:700000

Enter and save


Ignore the warning message press enter

ENTER USER AREA


Sales invoice posting:
Path accounting Financial accounting Account receivable- Document entryInvoice General (F-22)
Give the document date

:Todays date

Type

:DR

Company code

:AML

Posting key
Account

:01 Invoice (Customer debit) C:Customer D: Debit


: select 6600001

Enter
Give the amount

:500000

Business area

: AMLH

141

Text

: Sales Invoice posting

Posting key

:50

Account

:300000 (sales account)

Enter
Account

:*

Business area

:AMLH

Text

:+

From the menu select document Simulate and save

2.How To View Customer Account TransactionsPath : Accunting Financial accounting Accounts receivable- Account-Display /
Change line items (Tr.code is FBL5N)
Give the customer account no.

:6600001

Company code

:AML

Select open items radio button


Select normal items check box
Select execute button
Select back arrow
To view vendor and customer transactions together
Select vendor items check box along with normal items
Execute
3.Incoming payment and clear vendor and customer transactions together
Step A)Document type DZ should allow vendor transactions
Document types and no. Ranges-OBA7
Select doc type:
Select details button

DZ

Select doc type: kz


Select details button

Below no. RangeAccount type:

Below no. RangeAccount type:

142

A
D
K
M
S

Assets
Customers selected
Vendors to select
Materials
GL accounts selected

Normal receipt entry:


Bank A/c DR
To customer

D
K
M

GL
customer

use the Tr.code OBA7


Select document type
select details button
select vendor check box
save

A
assets
customers to select
vendors selected
materials
S
GL accounts selected

Normal payment entry:


vendor a/c DR
Vendor
To Bank
GL

: DZ (customer payment )

Incoming Payment :
Path :Accounting Financial accounting Accounts receivable- Document entryIncoming payments (Tr.Codes is F-28)
Give the document date

: Todays date

Type

: DZ Customer payment

Company code

: AML

Clearing text

: Incoming payment

Account under bank data

: 200105 (SBI current account)

Business area

:AMLH

Amount

:496000

Text

: Incoming payment

Account under open item selection


Account type

: Select 6600001
:D comes by default (D stands for
customers)

Select other accounts check box


Select process open item button
Select standard open items check box
Account type

: Select K (Vendors)

143

Company code

:AML

Account

:4200001

Select continue button


Double click on all open items
Document Simulate and save
Go And See The Customer Account Transactions (Tr.code is FBL5N)
Give the customer account no.

:6600001

Company code

:AML

Select cleared items radio button


Select normal items check box
Select vendor items check box
Execute
Advance Receipts From Customers
(Down Payment Receipts From Customers)
Sundry
Sale
Advance
Debtors
(Current
Asset)
Receipt
Sale

Advance from
Customers
(Current Liabilities)

1. Creation Of GL Master-Advance From CustomersProvisions (FS00)

under Current Liabilities &

2. Link between Sundry Debtors and advance from Customers

A
(Advance)
Special GL Indicator
/\
Sundry debtors Advance from customers
(Reconciliation Account)

(Alternative reconciliation
account or special GL
account)

3.Advance Receipt Posting


144

4. Sales invoice posting


5. Transfer of advance from special GL to normal by clearing special GL items
6. Clearing of normal items
a)Customer account two parts
b) Special GL items
1.

Creation of GL master advance from customer current liabilities &


provisions (FS00)
Give the GL account no.

:100502

Company code

:AML

Select with template button


Give the GL account no.

:200110 Sundry debtors

Company code

:AML

Change account group to current liability & provisions


Change short & GL account long text advance from customers
Save
3. Link between Sundry Debtors and advance from Customers
Path :SPRO-Financial accounting-Accounts receivable and accounts
payable-Business transactions-Down payment received Define
reconciliation accounts for customer down payments(OBXR)
Double click on special GL indicator A
Give a your chart of accounts

:AML

Enter
Reconciliation account

:200110

Special GL account

:100502

Select save button or Ctrl+S


Press enter to save in your request
END USER AREA
Advance receipt posting:
Path :Accounting- Financial accounting Accounts receivable-Document entryDown payment Down payment (Tr.code is F-29)

145

Give the document date

:Todays date

Type

:DZ

Company code

:AML

Customer account

:6600001

Special G/L indicator

:A

Bank account

:200105 SBI current account

Business area

:AMLH

Amount

:12000

Text

:Advance receipt posting

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and save


Go and see the customer account transaction (FBL5N)
Give the customer account no.

:6600001

Company code

:AML

Select open items radio button


Select special GL transactions check box
Execute
Sales invoice posting ( Tr code is F-22)
Give the document date

:Todays date

Type

:DR customer invoice

Company code

:AML

Posting key

:01

Account

:6600001

Enter
Amount

:12000

Business area

:AMLH

146

Text

:Sales invoice posting

Posting key

:50

Account no.

:300000 Sales A/c

Enter
Amount enter

:*

Business area

:AMLH

Text

:+

Form the menu select document Simulate and save

Go and see the customer account transaction (FBL5N)


Give the customer account no.

:6600001

Company code

:AML

Select open items radio button


Select normal items check box
Execute
Select back arrow
Select special G/L transactions check box along with normal items
Execute
Transfer of advance from special GL to normal by clearing special GL items:
Path :Accounting-Financial accounting Accounts receivable-Document entryDown payment clearing (F-39)
Give the document date

:Todays date

Type

:DA

Company code

:AML

Customer account

:6600001

Text

:Advance receipt clearing

Select process down payment button


Transfer posting

:12000

Save

147

Go and see the customer account transactions (FBL5N)


Give the customer account no.

:6600001

Company code

:AML

Select cleared items radio button


Select special GL transactions check box
Execute
Select bank arrow
Select open items radio button
Select normal items check box
Execute
Clearing of normal items:
Path :Accounting- Financial accounting Accounts receivable Account Clear
(F-32)
Give the account no.

:6600001

Company code

:AML

Select process open item button


Double click on debit

:12000

Double click on credit

:12000

Save
Go and see the customer account transactions FBL5N
Give the customer account no. :6600001
Company code
:AML
Select cleared items radio button
Select normal items check box
Execute

148

BILL DISCOUNTING
Fund based limits
(Money will be given
physically by the bank)
1. Cash credit
Local Sales order
2. Packing credit
Export sales orders
3.Bank overdraft
4.Bill discounting
Bill discounting mechanism

Non fund based limits


(Money will no be given
physically by the bank to
the company)
1. Bank Guarantees (BG)
2. Letter of credit (LC)
AML

Sale 500000 on 12.11.2008


Term of payment 30 Days Credit

AML Discounts the bill


With the bank
|
Bank will charge 30 days
|
On due date, bank will collect
From customer
|
----------------------------------------------------------------------------------------|
|
Customer makes the
customer does not make
the
payment to the bank
Payment to bank liability to
AML

149

No liability to AML

Liability to AML
Contingent liabilities
Liability is uncertain

Year end:

This is shown in notes to accounts Under contingent liabilities

Bills discounted with bank


Normal Accounting
A) Incase of sales
Customer A/c
Dr
To Sales
B) Bill of exchange payment
- No entry C) Bill discounting
Bank current A/c Dr
To Bank bill discounting
D) Report view customer wise
/BIllwise due date
wise/Bankwise out standings
available in SAP
E) Reverse contingent liability
Bank bill discounting Dr
To Customer

SAP Accounting
Customer A/c Dr
(Sundry debtors)
To Sales
Customer special GL (W) Dr
(Sundry debtors bill of exchange)
To customer a/c with clearing
(Sundry debtors)
Bank current A/c Dr
To Interest A/c
To Bank Bill discounting

Bank bill discounting (with clearing) Dr


To Customer special GL(W) with
clearing
(sundry debtors will of exchange)

Presentation in Balance sheet:


Sundry debtors=Sundry debtors
Sundry debtors
(Bill of exchange)
Bank bill discounting

Debit
} Net Zero
Credit

Or
Dont plot sundry debtors bill of exchange and bank discounting in balance sheet-It is
required only for notes to accounts.

150

Customer A/c
Normal items
A) 100000

SBI bill discounting


OP BAL
300000
B)100000

E)100000

C)100000
---------400000

Special GL
B)100000

E)100000

300000

Limits with banks:


Bill discounting limit
Already discounted

SBI
5000000
3000000
------------2000000

Limit available
Bill discounted as per C
Limit available
Payment by customer as per E
Now limit available

IDBI
2000000
2000000
-----------0
=======

1000000
----------1000000
1000000
----------2000000
======

Creation of 2 GL masters
Sundry debtors (Bill exchange under current assets, loans & advances.
SBI bill discounting

Secured loans

Fund based limits and non-fund base limits

First change on current asset and


second change on fixed assets.

Creation of GL account (FS00)


Give the GL account no.

:200111

Company code

:AML

Select with template


Give the GL account no.200110 Sundry debtors
Company code

:AML

151

Enter
Change short text to sundry debtors Bill of Exchange
Change GL account long text to sundry debtors (Bill of exchange)
Other fields are common
Select save button or Ctrl+S
GL account no.

:100302

Company code

:AML

Select with template with button


Give the GL account no.100300 SBI Rupee Term loan
Company code

:AML

Change short text and GL account long text to SBI bill discounting
Select control data tab
Select open item management check box
Select create /bank /interest tab
Select post automatically only check box
Save
Link between sundry debtors and sundry debtors bill of exchange
Path:SPRO-Financial account-Bank account Business transactions-Bill of
exchange transactions-Bill of Exchange receivable-Post bill of change receivableDefine alternative reconcile Actual for Bills/Exchange receivable (Tr code is
OBYN)
Double click on special GL indicator

:W (Bill of Exchange receivable)

Give the chart of accounts

:AML

Enter
Reconciliation account

:200110

Special GL account

:200111 Sundry debtors (Bill of exchange)

Save
Save in your request
Link for Bank current account, Sundry debtors Account and bank bill discounting
account

152

Path: up to the bill of exchange receivable at bank-Define bank sub accounts(Tr


code is OBYK)
Select new entries button
Chart of accounts

:AML

Bank account

:200105 SBI current account

Usage select discounting special GL indicator :W


Customer reconciliation account :200110(sundry debtors)
Bank sub account for liability :100302 (SBI bill discount)
Save
Press enter to save in your request
END USER AREA
Sales invoice posting (F-22)
Give the document date

:Todays date

Type

:DR

Company code

:AML

Select posting key

:01

Account no.

:6600001

Enter
Amount

:100000

Business area

:AMLH

Payment terms

:Select NT 30 Net 30 (30 days credit)

Text

:sales invoice posting

Posting key

:50

Account

:300000 Sales account

Enter
Ignore the warning message press enter
Amount

:*

Business area
Text

:AMLH
:+

From the menu select document Simulate and save


153

Bill of exchange payment:


Path :Accounting Financial accounting- Accounts receivable Document entryBill of exchange Payment (F-36)
Give the document date

:Todays date

Type

:DZ

Company code

:AML

Posting key

:09 Customer special debit

Account no.

:6600001

Special GL indictor

:W

Enter
Amount

:100000

Business area

:AMLH

Text

:Bill of exchange payment

Due on

:14.12.2008 (30 days due date)

Placement usage

:select discounting

Domicile

:SBI

Control bank location

:Main Branch, HYD

select choose open item button


Select process open item button
Double click on receivable :100000
From the menu select document Simulate and save
Note the document no.500003
Bill discounting:
Path :Accounting Financial accounting- Accounts receivable- Document entry
Bill of exchange Discounting (F-33)
Give the document date

:Todays date

Type

:DA

Company code

:AML

Bank account

:200105 (SBI current account)

154

Business area

:AMLH

Amount

:95000

Text

:SBI bill discounting

Posting key

:40

Account no.

:400400 Interest account

Enter
Amount

:500000

Business area

:AMLH

Text

:+

Press select bill of exchange button


Doc no.

:500003

Document Simulate and save


Report to view customer wise bill wise, document wise and bank wise
outstanding:
Path :Accounting Financial accounting-Accounts receivable-Periodic
processing Bill of exclude processing Korea-Bill of exchange management
(Tr codes S_ALR_87012213)
Give the chart of accounts

:AML

GL account

:200111 Bill of exchange

Company code

:AML

Special GL indicator

:W

Usage

:select D (Discounting)

Select discounted /Collected radio button


Execute
Select current layout button
Keep the fields due date, document no, customer received form, document dataDomicile.
Amount in local currency
Select copy button
Reverse contingent liability :

155

Path :Accounting-Financial accounting Accounts receivable-Document entryBill of exchange Reverse contingent liability (F-20)
Give the document date & Posting date
:13.12.2008
Type
:DA
Company code
:AML
GL account
:200111 (Sundry debtors bill of exchange)
Usage
:Select discounting
Due by
:31.12.2008
Customer
:6600001
Select edit line items button
Ignore the all warning message and press enter
Select drop down button for command column
+
++
-

Set items to active


Set items is blocks to active
Set items to inactive
Set items in blocks to inactive

Customer made payment for 2,3 and 4 bills.


Bill No
2
3
4
5

or
+
+
+

or

++
++
-

Customer made payment for 1 and 5 bills


Bill no.
or
or
1
+
2
3
4
5
+

Command filed select +


Save
From the menu select document Display

156

If bill is dishonored:
Contingent liability becomes actual liability base step E reverse contingent liability
additional entry to be passed.
Customer
account
To SBI current account

Dr
(Sundry debtors)

Dunning (Reminder)
If the customer does not make the payment as per terms of payment system will
issue dunning letters.
We are not programmers we use system given dunning letter formats.
Dunning area:
Company code as a whole /Regional wise / location wise
Eg.Big companies
Separate marketing heads
For East

For West

For North

For South

Only to his area customers.


Here we create each session as one dunning area .
Small companies one marketing head for all the regions.
Company code will be the dunning area.
(Cash credit : Loan from bank and after sales we discharge the liability export sales
order , packing credit loan from bank , bill discounting after sale)
Dunning levels type of letters
Maximum
:9 levels
We are using
:4 levels
Dunning intervals (Frequency)
:10 days
Grace period
:3 days
Eg:
Sale on 17.11.2008
Payment terms 0001
Payable immediately

1st Letter
after
20.11.2008

2nd Letter
after
30.11.2008

3rd Letter
after
10.12.2008

4th Letter
after
20.12.2008

Dunning charges: For sending the letter we can collect dunning charges form the
customer.
It can be level based / amount
Based

157

It can be fixed percentage amount


It will be shown only in the letter
It will not be posted the accounts
Define dunning areas:
Path :SPRO-Financial accounting-Accounts receivable and account payableBusiness transactions Dunning Basic settings for dunning Define dunning
areas.
Select new entries button
Company code

:AML

Area

:Blank

Text

:Dunning area to AML

save
Ignore the warning message press enter
Press enter to save in your request
Define dunning procedures:
Path :Up to dunning the path is same Dunning procedures-Define procedures
(Tr code is FBMP)
Select new procedure button
Dunning procedure

:AML

Name

:Dunning procedure for AML

Dunning interval in days:10


No.of dunning levels

:4

Line item grace periods :3 days


Interest indicator

:Select 01 standard item interest calculation

Select standard transactions dunning check box


Ignore the warning message press enter
Dunning texts button
Company code

:AML

Select customer radio button


Enter

158

Select new company code button


Give the company code :AML
Enter
For company code

:AML select separate notice per dunning level check box

Select back arrow two times


Select Yes button for the message to save date
Press enter to save in your request
Select dunning levels button
Select always dun check box for all the four levels
Select charges button (F6)
Give the currency

:INR

Enter
Company code

:AML

Select customer radio button


Enter
Open one more session with transaction code :FBMP
Double click on procedure

0001

Select dunning text button


Give the company code

:0001

Select customer radio button


Enter
Come to the first session
Dunning level 1
From F150-Dunn -01
Dunning level 2
Select pagedown button (right side)
Dunning level 3
Form F150_dunn_02
Dunning level 4th

159

Form F150_dunn_02
Now select charges button
Give the currency :INR
Enter
Select back arrow
Save
Ignore the warning message press enter
Press enter to save in your request
Assign dunning procedure in customer master:
Path :Accounting-Financial accounting-Accounts receivable Master recordsMaintain centrally-Change (Tr code is XD02)
Give the customer account no.

:660001

Company code

:AML

Enter
Select company code date button
Select correspondence tab
Dunning procedure

:select AML

Save
END USER AREA
Sale invoice posting (F-22)
Give the document date & posting date :10.11.2008
Type

:DR

Company code

:AML

Posting key

:01

Account

:6600001

Enter
Amount

:1111

Business area

:AMLH

Text

:Sales invoice posting


160

Posting key

:50

Account no.

:300000 Sales account

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu Select Document Simulate and save

Dunning run
Path: Accounting Financial accounting-Accounts receivable Periodic
processing-Dunning-(Tr code F150)
Run on

:Todays date

Identification

:AML1

Select parameter tab


Dunning date

:Todays date

Documents posted up to

:Today date

Company code

:AML

Customer

:6700000

Save
Select back arrow
Select schedule button
Select start immediately check box
Output devise

:LP01

Select schedule button


Go on press enter till we get the message Dun selection is complted
Select dunning print out button
Select print button
Go on press enter till we get the message dunning print out is completed
Select dunning history button

161

Give your company code :AML


Execute (F8)
Keep the cursor on 1111
Select display dunning notice button
Keep the cursor on the document no.
Select print preview button
Go and see the customer master (XD02)
Customer
:6600001
Company code
:AML
Enter
Its updates automatically
Last dunned date
:17.11.2008 and dunning level.

162

SALES TAX
VAT means valued added tax or LST Local Sales Tax
CST mans Central Sales Tax
Purchase
Input tax
1
Local
purchases
VAT/CST
Purchase
Basic
100
Excise 8% 8
VAT 4%
4.32(B+E)
4.4(CST2%)
--------Bill amount 112.32
======

Sales (Output tax)


2
3
outside
state

4
Local
Sales

CST purchase

VAT /L

100
8
2.16(CST2%)

200
20

--------

CST sales
200
20
27.50(VAT12.5%)

--------247.50
=====

110.16
=====

Outside
State sales

--------224.40
======

Payment to sales Department


1. Local sales Local purchases 27.50-4.32=23.18
2. Local sales CST purchases 27.50=27.50
3. CST sales Local purchases 4.4-4.32=0.08
4. CST sales CST purchases=4.4=4.4
At the time of local purchases, tax paid on purchases, can be adjusted to tax
payable at the time of sales. (Local sales /CST sales)

163

At the time of CST purchase, tax paid on purchases can not be adjusted to add to
inventory.
Excises rates are based on products
Excise rates are given central excise tariff, in central excise tariff we have 8 digits
chapter ID.
52000000 Textiles 8%
Central excise will be covered in the end.
We are testing now without excise duty.
Customization of sales tax

1. Define tax procedure


Path :SPRO-Financial accounting Financial accounting global settingsTax on sales /purchases-Basic settings-Check calculation procedure.
Double click on define procedures
Select new entries button
Procedure

:H Tax

Description

:Sales tax India

Save
Press enter to save in your request
Select H Tax
Double click control data folder
Select new entries data folder
Select new entries button
Step

Co

C Type

Description From To

10

Select BASB Base amount

20

MWVS

Input tax

10

10

Select VST -Input tax

30

MWAS

Output tax 10

10

MWS output tax

Save

164

Account key

Assign country to calculation procedure


Up to basic settings the path is same Assign country to calculation procedure
Select position button
Give the country

:IN for India

Enter
For country IN assign procedure H tax
Save
Press enter to save in your request

Define tax codes for sales and purchases


Up to tax on sales of purchases the path is same-Calculation Define-Tax
codes for sales and purchases. (Tr.code is FTXP)
Give the country

:IN for India

Enter
Give the tax code

:Vo

Enter
Description

:0% input tax

Tax type

:Select V input tax

Enter
Input tax, tax percent rate 0
Keep the cursor on ouput tax, tax percent rate
Select deactivate line (F5) button
Save
Tax code

:V1

Enter
Description

:4% input tax

Tax type

:select V input tax

Enter
Input tax, tax % rate 4

165

Keep the cursor out put tax, tax percent rate


Select deactivate line button
Save
Tax code

:A0

Enter
Description

:0% output tax

Tax type

:select A output tax

Enter
Output tax, tax percent rate 0
Keep the cursor our input tax, tax percent rate
Select deactivate line button
Save
Tax code

:A1

Enter
Description

:12.5% output tax

Tax type

:Select A out put tax

Enter
Output tax, tax percent rate 12.5%
Keep the cursor on input tax, tax percent rate
Select deactivate line button
Save
Assign tax codes for non-taxable transactions
Path :Up to tax on sales/purchases the path is same Posting-Assign tax codes
for non-taxable transactions (Tr code is OBCL)
Select position button
Give your company code
:AML
Enter
For AML select input tax V0
Out put tax Vo
Save
Press enter save in your request
Creation of GL master FS00
166

1. VAT receivable
2. VAT payable

Current assets,
Loans & Advances

Current liability
Tr code is FS00
Give the GL account no.

:200155

Company code

:AML

Select with template button


Give the GL account no.

:200120 (Inventory RM)

Company code

:AML

Enter
Change short and GL long text to VAT receivable
Select create / Bank /Interest tab
Field status group change to G041 (Tax office clearing accounts)
Save
One more account
Give the GL account no.100505
Company code

:AML

Select with template button


Give the GL account no.

:200155

Company code

:AML

Enter
Select type/Description tab
Change account group to current liability and provisions
Change short text and GL account long text to VAT payable
Save
Give the GL account no.:200120
Company code

:AML

From the menu select GL account change


Select control data tab
Tax category

:Select * (All tax types allowed)

167

Select posting without tax allowed check box


Save
Ignore the warning message press enter
GL Account

300000

Company code

AML

Sales A/c

From the menu select GL account change


Tax category

:select *

Select posting without tax allowed check box


Save
Ignore the message press enter
Assignment of accounts for automatic postings:
Path :SPRO-Financial accounting Financial accounting global settings-Tax
on sales/purchases-posting-Define tax accounts (OB40)
Double click on transactions VST (input tax)
Give the Chart of Accounts :AML
Enter
Select save button or Ctrl+S
Give the account :200155 VAT receivable
Save
Press enter to save in your request
Select back arrow
Double click on transactions MWS(output tax)
Save
Give the account no.100505 VAT table
Save
Press enter to save in your request
In line environment FI consultants job: Customization
Creation of Tax procedure
Creation of tax codes
Creation of GL accounts
Assignment of GL accounts
168

MM module:
Purchase order material no.RM1
Purchase order vendor 1234
Purchase order Qty 1 Kg
Purchase order Rate 100
Purchase order tax code V1 (4% input tax)
Goods receipt
Tax procedure:
Base amount
100 (1* 100) inventory Account
Input tax on base amount 4
VST -200155 VAT receivable
(V1-4% )
----Vendor credit
104
===
SD module:
Sales order

Customer no.
9876
Material
FG1
Qty
1Kg
Rate
200
Tax code
A1 (12.5%) output tax

Tax procedure
Base amount
200 sales account
Output tax on base amount 25 MWS -100505 VAT payable
At 12.5%
----Customer debit
225
===
In FI for sales:
Customer account Dr 225
To sales
200
To VAT payable
25
Save
Sales invoice posting Tr code is F-22
Give the document date :Todays date
Company code

:AML

Posting key

:01 customer debit

Account

:6600001

Enter
Give the amount

:225

169

Select calculate tax check box


Text

:Tax sales invoice posting

Posting key

:50

Account no.

:300000 (Sales a/c)

Enter
Amount

:*

Tax code

:Select A1

Business area

:AMLH

Text

:+

From the menu select Document- Simulate


Double click on VAT payable line item
Business area

:AMLH

Text

:+

Save

170

ASSET ACCOUNTING
Bad debits:
1. Creation of GL Master :Provision for bad debts reconciliation A/c No.200112
2. Link between sundry debtors and provision for bad debts :OBXY
E
/\
200110

Reserve for bad debt


200112

3. Sales invoice posting

F-22

4. Transfer from customer normal to customer special GL


E
Customer special GL E
ER
Dr
To customer with clearing
5. After 3 years bad debtors Dr
To Customer special GL

F-30
Provision for bad debt
Sundry debtors
F-30
Provision for bad debt

Asset accounting: This is sub ledger (subsidiary ledger)


Chart of Depreciation
Asset accounting customization will be done for Chart of Depreciation will be assigned
to company code/codes.
We have to copy either Germany chart of depreciation or Indian Chart of Depreciation.
Depreciation areas:
Book depreciation (Postings to accounts)
171

Income tax depreciation


Group depreciation
Costing depreciation

|
| Only for information
|

Depreciation methods;
Straight Line Method depreciation method (SLM)
Written down value depreciation method (WDV)
Depreciation keys
5% SLM Rate
5% WDV Rate

Rate +Method

Transaction types
100 External acquisition
110 In-house production \
210 Retirement with revenue
Asset debit
The debit can be use of External acquisition (Outside purchase) /In house
production/Inter unit transfer/Inter company purchase.
With transaction type we will come to know because of what it is debited.
Posting keys:
70 Asset Debit
75 Asset Credit
Asset accounting is based on 4 rules:
1. Sub asset master is to be created with reference to main asset master.
2. Main asset master is to be created with reference to asset class
3. Account determination is specified in asset class
4. For account determination we assign GL accounts based on the nature of
transaction.

Purchase
200000 P & M
200000 P& M

Account
determinatio
n

Asset class

1.Land
2.Building

Free hold
Lease hold
Factory
Non factory
Machine no.1
15.05.2003

Profit on asset Dept A


sale

172

Main asset
master

Sub asset
master

Motor

3. Plant &
Machinery
Loss on asset
Sale
Loss due to
scrapping
Depreciation

Dept B
Dept C
4. Furniture &
Fixtures
5. Vehicles

Accumulation
depreciation

6. Capital
work in
progress

Machine no.2

20.11.2008

Furniture &
Fixtures
Heavy ,
Others
General
Expansion 1
Expansion 2

Additions to specific mechanical will be created as sub asset masters.


Main asset will be have always sub number zero.
Crate machine no.1 Master
Motor to machine no.1
Addition to machine no.1

1-0
1-1
1-2

If we give 1-0 it gives main asset value


If we give 1-1 it gives motor value
If we give 1 it gives machines 1 with additions
Why we call Land /Buildings etc. as account determinations.
These items will determine the GL accounts to be posted automatically.
Motor purchase: .
Motor A/c
Dr
SL
To Bank GL

500000
2000000
500000

Transaction type :100


P & M 50000 GL

Save
CUSTOMIZATION
Copy reference Chat of Depreciation /Depreciation Area:
Path :SPRO-Financial accounting-Asset Accounting Organizational structures
Copy reference Chart of Depreciation /Depreciation area (Tr code is EC08)
Double click on copy reference Chart of Depreciation
From the menu select organizational object

173

Copy org. object (F6)


From Chart of Depreciation :Select ODE
(Maximum valuation: Germany)
To chart of Depreciation

:AML

Enter
Ignore the message press enter
Select create request button
Short depreciation :Asset customization for AML
Enter
Press enter once again to save in your request
We get a message chart of depreciation ODE copy to AML
Enter
Select back arrow
Double click on specify depreciation of Chart of Depreciation
Select position button
Chart of Depreciation

:AML

Enter
Change the description to Chart of Depreciation for AML
Press enter to save in your request
Select back arrow
Double click copy /delete depreciation areas
Give the Chart of Depreciation :AML
Enter
Select areas 3,10,15,20,31,32,41 &51
From the menu select Edit Delete
Save
Ignore the warning message press enter
Press enter to save in your request
Assign Chart of Depreciation to Company code

174

Path :Up to organization structure the path is same Assign Chart of Depreciation
to company code (Tr code is OAOB)
Select position button
Give the company code

:AML

Enter
For company code AML Chart of Depreciation AML
Save
Press enter to save in your request

Specify account determination


Path :Up to the organizational structure the path is same Asset Class-Specify
account determination
Select new entries button
Account
Description
determination
AML10000
Land
AML11000
Building
AML20000
Plant & Machinery
AML30000
Furniture & Fixtures
AML31000
Vehicles
AML40000
Capital work in progress
Save
Press enter to save in your request
Create screen layout rule
Same path
Select screen layout

1000

Select screen layout

1100

Select screen layout

2000

Select screen layout

2100

Select screen layout

2500

Select screen layout

3000
175

Select copy as button


Change screen layout 1000 to AML1
Name

:Land

Change screen layout 1100 to AML2


Name

:Buildings

Change screen layout 2000 to AML3


Name

:Plant & Machinery

Change screen layout 2100 to AML4


Name

:Furniture & Fixtures

Change screen layout 2500 to AML5


Name

:Vehicle

Change the screen layout 2600 to AML6


Name

:Capital work in progress

Enter & Save


Press enter to save in your request
Define number range intervals
Path :Same path (Tr code is AS08)
Company code

:AML

Select change intervals button


Select interval button
Number range

:01

From number

:100000

Enter
Select interval button once again
No.range

:02

From no.

:100001

To no.

:200000

Enter
Select interval button
No.range

:03
176

From no.

:200001

To no.

:300000

Enter
Select interval button
No.range

:04

From no.

:300001

To no.

:400000

Enter
Select interval button
No.range

:05

From no.

:400001

To no.

:500000

Enter
Select interval button
No.rage

:06

From no.

:500001

To no.

:600000

Enter & Save


Define asset classes:
Path :Same path (Tr code is OAOA)
Select new entries button
Asset class :AML1000
Description

:Free hold land

Short text also :Free hold land


Account determination

:select AML10000 Land

Screen layout rule

:select AML1 Land

No.rage

:01

Select included asset under inventory data


Select no.AUC or Summary Management of AUC
Save

177

Press enter to save in your request


Note: AUC stands for Asset Under Construction
Select next entry button (F8)
Asset class

:AML1100

Description

:Factory Buildings

Short text

: Factory Buildings

Account determination

:select AML11000 Buildings

Screen layout rule

:AML2

Number rage

:02

Select include asset under inventory data check box


Select no.AUC or Summary Management of AUC
Save
Select next entry button (F8)
Asset class

:AML2000

Description

: Dept A

Short text

: Dept A

Account determination

:select AML20000 P & M

Screen layout rule

:AML3

Number rage

:03

Select include asset under inventory data check box


Select no.AUC or Summary Management of AUC
Save
Select next entry button (F8)
Asset class

:AML3000

Description

: Furniture & Fixtures

Short text

: Furniture & Fixtures

Account determination

:select AML30000 Furniture & Fixtures

Screen layout rule

:AML4

Number rage

:04

178

Select include asset under inventory data check box


Select no.AUC or Summary Management of AUC
Save
Select next entry button (F8)
Asset class

:AML3100

Description

: Vehicles and others

Short text

: Vehicles and others

Account determination

:select AML31000 Vehicles and others

Screen layout rule

:AML5

Number rage

:05

Select include asset under inventory data check box


Select no.AUC or Summary Management of AUC
Save
Select next entry button (F8)
Asset class

:AML4000

Description

: Capital Work in Progress -General

Short text

: Capital Work in Progress -General

Account determination

:select AML40000 CWIP-General

Screen layout rule

:AML6

Number rage

:06

Select include asset under inventory data check box


Select line item settlement radio button
Save
Select include asset under inventory data check box:
Inventory means fixed inventory, whatever assets we create they will be included in
fixed assets inventory.
As per companies auditors report order (CARO) the auditor will state whether fixed
assets have been physically verified by management or not.
Incase of big companies physical verification in a phased manner

179

When we create an asset master There is a field called last verification date
Asset nos
Last verification date
1
31.03.2008
2
31.03.2007
3
31.03.2008
4
31.03.2008
5
31.03.2007
In the report we give the report date From 01.04.2007 to 31.03.2008 we get the list of
asset verified during the year
1
2
3
4

31.03.2008
31.03.2008
31.03.2008
31.03.2008

We have not selected for capital work in progress


We can not verify every that assets once they are commissioned they will be shown
under respective head and not under capital work in progress
For capital work progress general Select line item settlement radio button
Machinery
01/11/2008

Debit to
CWIP

Asset commissioned on 22.11.2008


as machine no.10

Fright AMT
15/11/2008
Settle from Capital Work In Progress to machine no.10 line item wise
Commissioning charges 22/11/2008
Determine areas in the asset class
Path :SPRO-Financial accounting Asset accounting-Valuation Determine
depreciation areas in the asset class (Tr.Code is OAYZ)
Give the chat of depreciation

:AML

Enter
Select position button
Asset class :AML1000 (Free hold land)
Enter
Select AML1000 (Free hold land)

180

Double click depreciation areas folder


Deselect deactivation check box for area 01 Book depreciation
Layout

:Select 2000 depreciation on asset sub-no level

For area 01 layout 2000


For area 02 layout 2000
For area 30 layout 2000
Save
Press enter to save in your request
Select back arrow
The same procedure the followed for asset class
AML1100
AML2000
AML3000
AML3100
AML4000

Factory building
Dept A
Furniture & Fixtures
Vehicles & other
Capital work in progress

Deselect deactivation check box for area 01 for land there is no depreciation
In asset master creation-Capitalization date required Land purchase details
registration date
Depreciation key(Rate)

0%

For area 01- Select 2000 Depreciation on asset sub number level
Asset no.
Machine 10 1
Motor
1
-

Sub.no.
0
1

10/08/2005
22/11/2008

Creation of 15 General ledger master FS00


S.N
GL Account No.
o.
1
200000
Land

Account No.to
copy
200110 Sundry
debtors

181

Parameters to Maintain
-Account group Fixed assets
-200000-20009
-Change the account group Fixed
Assets
-Sort key -018 Asset number
Reconciliation A/c for account type
Asset

2
3.
4.
5.
6.

200005
Buildings
200010
Plant & Machinery
200015
Furniture & Fixtures
200020
Vehicles
200025
Capital work in
progress

100200
Accumulate
depreciation- Building

100205
Accumulated
depreciation Plant &
Machinery
100210
Accumulated
depreciation Furniture
& Fixtures
100215 Accumulated
depreciation Vehicles
300102 Assets sales

9.

10
11.

200000 Land
-Do-

-Do -

-Do-

-Do -

-Do-

-Do -

-Do-Do -

-Do-

Account group-Accumulate
depreciation
-100200-100299
-Sort key -018 Asset number
-Reconciliation A/c for account type
Assets
-Field Status group- 067
Reconciliation accounts

100200
Depreciation
-Buildings

-Do -

-Do-

-Do-

-Do-

-Do-

300100
Exchange gain

12

300103 Profit on asset


sale

-Do-

13

400302 Loss on asset


sale
400303 Loss due to
scrapping

-Do-

14

-Field status group 067


Reconciliation accounts.
-Do -

-Do-

Account group other income


300100-300199
Sort key -018 Asset number
Field status group G052
-Account group other Income
-300100-300199
-Sort key 018 Asset number
-Field status group -G001
-Do-Do-

182

15

400500 Depreciation

Change the Account group


Depreciation
400500-400599
Sort key -018 Asset number
Filed status group-G001

Assignment of accounts for automatic postings:


Path :SPRO-Financial accounting Asset accounting-Integration with the general
ledger-Assign GL accounts.
Give the your Chat of Depreciation
Enter
The Transaction code is AO90

:AML

Select chant of accounts

:AML

Double click on account determination folder


Select account determination

:AML10000 Land

Double click on Balance sheet accounts folder


Acquisition column :Acquisition and production costs Give the A/c No.:200000 Land
Loss made on asset retirement w/o revenue.(w/o revenue mean scrap)
Give the account no.400303 loss to scraping
Clearing account revenue from asset sale

:300102

Gain from asset sale

:300103

Loss from asset sales

:400302

Press enter
Select save button
Ignore the warning message press enter
Press enter to save in your request
Double click on account determination folder
Select account determination

:AML11000 Buildings

Double click on Balance Sheet accounts folder


Acquisition column acquisition and production cost a/c no.200005

183

Loss made on asset retirement w/o revenue

:400303

Clearing account revenue from asset sale

:300102

Gain from asset sale

:300103

Loss from asset sale

:400302

Save
Ignore the message press enter
Double click on depreciation folder
Accumulated depreciation for ordinary depreciation 100200 accumulated depreciation
buildings
Expense account for ordinary depreciation 400500 Depreciation account
Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML 20000 P & M

Double click on Balance Sheet accounts folder


Acquisition column acquisition and production cost Give the GL account no.:200010
Loss made on asset retirement (without) w/o revenue 400303
Clearing account revenue from asset sales

:300102

Gain from asset sale

:300103

Loss from asset sale

:400302

Select save button or Ctrl+S


Double click on depreciation folder
Accumulated depreciation account for ordinary depreciation a/c no.100205
Expense account for ordinary deprecation

:400500

Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML30000 Furniture & Fixtures

Double click on balance sheet account folder


Acquisition :Acquisition and production costs 200015 (Furniture & Fixtures a/c)
Loss made on asset retirement w/o revenue

184

:400303

Clearing account revenue from asset sale

:300102

Gain from asset sale

: 300103

Loss from asset sale

:400302

save
Ignore the message press enter
Double click on depreciation folder
Accumulated depreciation account for ordinary depreciation 100210
Expense for ordinary deprecation

:400500

Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML 31000 vehicles

Double click on Balance Sheet accounts folder


Acquisition: Acquisition production costs

:200020

Loss made on asset retirement w/o revenue

:400303

Clearing account revenue from asset sale

:300102

Gain from asset sale

:300103

Loss from asset sale

:400302

Save
Ignore the message press enter
Double click on depreciation folder
Accumulate depreciation for ordinary depreciation

:100215

Expenses account for ordinary depreciation

:400500

Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML40000 Capital Work In

progress
Double click on Balance Sheet accounts folder
Acquisition :Acquisition and production cost

:200025

Loss made on asset retirement w/o revenue

:400303

185

Clearing accounts revenue from asset sale

:300102

Gain from asset sale

:300103

Loss from asset sale

:400302

Select save button or Ctrl+S


Ignore the message press enter
Specify document type for posting of deprecation:
Up to integration with general ledger the path is same Post-Deprecation to the
GL Specify Document type for posting deprecation-Double click on define
document type (Tr code is OBA7)
Select type AF Deprecation postings
Select details button
Note the number range 04
Select number range information button
Give the company code

:AML

Select change intervals button


Select intervals button
Number range

:04

Year

:2008

From no.

:700001

To no.

:800000

Select external check box


Enter and save
Ignore the warning message press enter
As per SAP documentation :
From ECC5 onwards
Up to 4.7 EE

Not to select external check box


Select external check box

When we select external check box, we have to give what should be the document
number at the time of posting.
There is an exception for deprecation postings also we have to select external check
box
In normal postings we are posting are document at a time.

186

Incase of deprecation / when we run depreciation number of documents will be


generated at a time based on account determination
04-2008 -700001 -800000 Select external check box
AML 10000 Land
AML11000 Buildings
Depreciation account
AML20000 Plant & Machinery
Assessment for
AML30000 Furniture & Fixtures Account determination
AML31000 Vehicles
AML40000 Capital work in Progress
When we run depreciation 4 documents will be generated automatically every month.
700001

Depreciation DR
To Acc Dep Buildings

700002

Depreciation DR
To Acc. Dep-Plant & Machinery

700003

Depreciation DR
To Acc Dep Furniture & Fixtures
Depreciation DR
To Acc Dep -Vehicles

700004

Specify intervals and posting rules:


Same path (next step) (Tr code is OAYR)
Select company code

AML

Double click on posting rules folder


Select monthly posting radio button
Save
Press enter to save in your request
Specify rounding for net book value and /or deprecation:
Path :SPRO-Financial accounting-Asset accounting-Valuation Amount
specifications (company code/Deprecation area) Specify rounding of net book
value and /or deprecation
Ignore the message press enter
187

Select company code

:AML

Double click on rounding specifications folder


Select area 01 book deprecation
Select details button
Select automatically calculated depreciation check box
Select arithmetic rounding radio button
Save
Press enter to save in your request
Define screen layout for asset master data:
Path :SPRO-Financial accounting-Asset accounting-Master data-Screen layoutDefine screen layout for asset master data
Double click on define screen layout for asset master data
Select layout

:AML1 Land

Double click on logical fields groups folder


Select 2 posting information
Double click on field group rules folder
Capitalization data make it required entry field
Select main number check box
Select sub-no check box
Select copy check box
We have created AML1 by copying layout 1000
Afterwards we create XYZ layout by copying
AML1 what ever fields we have chosen for AML1 should be copied XYZ
Select save button or Ctrl+S
Press enter to save in your request
Select back arrow
Select 3 time dependent date
Double click on filed group rules folder
Business area make it required entry field
Select main no.check box, sub no.check box

188

Save
Select back arrow two times
The same procedure is to the followed for layout AML 2 Buildings
AML 3 Plant & Machinery
AML10 Furniture & Fixtures
AML5 Vehicles
AML6 Capital Work in Progress
Define screen layout for asset deprecation areas:
Same path (Tr code is AO21)
Select screen layout 2000 deprecation on asset sub no.level
Double click on field groups folder
Depreciation keys make it required entry filed
Select main no.check box
Select sub-no.check box
Select copy check box
Save
Deprecation keys creation (Rate+ Methods)
1. Define base methods
2. Define declining balance method
3. Define period control methods
4. Define period control methods
5. Maintain deprecation key
First steps will be assigned in 5th step and 5th step will be assigned in Asset master.
1. Define base methods:
Path :SPRO Financial accounting-Asset accounting-Depreciation Valuation
methods Depreciation key-Calculation methods Define base methods
Base method
:0014 Ordinary :Explicit percentage (after end of life)
A) Ordinary deprecation
B) Explicit percentage creation percentages rate given in Companies Act
Schedule XIV
C) After end of line If the next box value becomes zero no depreciation should be
calculated.
Define declining balance methods
Same path
189

Give the Char of Depreciation AML


Enter
Note down decimal balance 001
002
Decimal factor 2
Max percentage 20
Beginning years :Wear and tear will be less
Acquisition value
100000
Rate of depreciation
5%
First year
5
Second year
5
Third year
5
Fourth year
5
--20
First 4 years :100000*5% *98% (2% discount as per companies act)
5th year onwards :100000*5%
Define multi level methods: (Tr code is AFAMS)
same path
select new entries button
multilevel method

:A

Description

:5% SLM

Validity star

:Select from ordinary deprecation on star date

Save
Press enter to save in your request
Double click on levels folder
Select new entries button
Acquisition year

:9999

Year

:999

Periods

:12

Base value

:Select 01 Acquisition value

Percentage

:5

Save

190

Acquisition year

:9999

We have given say any year 2008- This rate is applicable for the assets purchased in
the year 2008 Next year also we are purchasing an asset having 5% rate-we have to
create acquisition year once again in the next year.
When we give 9999 purchase can be in the year
2. Years 999
A) 5% SLM rate 20 years (100/5)
B) 5% WDV rate
?
C) 1% SLM rate 100 years (100/1)
D) 1% WDV rate
?
999 max no. of year
In base method once the net book value becomes zero Dot calculate depreciation .
In some countries.
First 5 years 5%
Next 5 years 10%
Next 5 years 15%
3. Periods 12 months
4. Base value 01 Acquisition value in case of SLM
24 Net book value incase of WDV
5. Percent 5 rate of depreciation
6. Reduction 1
Acquisition vale
100000
1% Scrap value
1000
-----99000
Dep 5% only on 99000
7. Remine life

Percentage method
India

Select acquisition year 9999


Double click on Multi level method folder
Select next entry button
Multilevel method A2
Description :5% WDV

191

Useful life method


Machine no.1-In year 2003
Useful life :20 Years
Going for SAP in 2008
Select rem life
Asset master -15 Years

Validity star :From ordinary depreciation star date


Save
Select acquisition year 9999
Double click on levels folder
Select new entries button
Acquisition year
:9999
Year
:999
Periods
:12
Base value
:Select 24 net book value
Percent
:5
Save
Maintain period control methods:
Same path
Give the Chart of deprecation :AML
Enter
Select new entries button
Period method

:006

Description

:AML period control method

Acquisition year

:Select 01 pro rate at period start date

Add year

:Select 01

Retirement year

:01 (Retirement mean sale)

Transfer year

:01

Press enter to save in your request


Maintain deprecation key:
Same path Tr code is AFAMA
Select new entries button
Depreciation key

:AML1

Description

:5% Straight line dep.method

Select period control according to fiscal year check box


Select dep. to the day check box
Save

192

Ignore the warning message press enter


Press enter to save in your request
Double click on assignment of calculation methods folder
Select new entries button
Depreciation type

:Select ordinary deprecation

Phase

:Select from the start of depreciation

Base method

:0014

Declare balance method

:001

Period control method

:006

Multilevel method

:A1

Class

:Select straight line depreciation

Save
Select back arrow 4 times
Select depreciation key

:AML1

Select activate button


Save
Select new entries button
Depreciation key

:AML2

Depreciation

:5% written Down Value Deprecation method

Period control according to Fiscal year check box


Select depreciation to the day check box
Save
Ignore the warning message press enter
Double click assignment of calculation methods folder
Select new entries button
Depreciation type

:Select ordinary depreciation

Phase

:Select from the start of depreciation

Base method

:0014

Declare balance method:001


Period control method :006
Multilevel method

:A2

193

Class

:Select declining balance depreciation

Save
Select back arrow four times
Select depreciation key AML2
Select activate button
Save
Select first page control page up button
Select depreciation key

:0000(no depreciation no interest )

Select activate button


Save
FI END USER AREA:
Create of main asset master:
Path :Accounting-Financial accounting-Fixed assets-Asset Crete Asset (The
Transaction code is AS01)
Asset class

:Select AML2000 Department A

Company code

:AML

Enter
Give the description

:Machine no.1

Capitalized on

:18.04.2008

Select time dependent tab


Business area

:AMLH

Select depreciation area tab


Depreciation key

:Select AML1

Useful life

:15 years

Period

:6 months

Ordinary depreciation start date :18.04.2008


Note: Commissioning date Indian system, sum countries is next month first day
Eg. 01/05/2008)
save

194

Creation of sub asset master


Path :Up to fixed assets the path is same-Asset-Create-Sub number Asset(The
transaction code is AS11)
Asset

:200001

Company code

:AML

Enter
Description

:Motor

Capitalized on

:29.11.2008

Select time dependent tab


Select deprecation area tab
Change the depreciation key AML2
Useful life

:15 years

Period

:01

Ordinary depreciation:29.11.2008
Save
Main asset purchase posting:
Path :Accounting-Financial accounting-Fixed asset Posting-Acquisition-External
acquisition -With vendor (Transaction code is F-90)
Give the document date and posting date

:18.04.2008

Type

:KR (Vendor invoice)

Company code

:AML

Posting key

:31 Vendor credit

Account

:4200001

Enter
Ignore the warning message press enter
Amount

:500000

Business area

:AMLH

Text

:Machinery purchase posting

Posing key

:70 Debit asset

Account

:Select 200001 -0 Machine no.


195

Transaction type

:Select 100 External asset acquisition

Enter
1st Rule:
Sub asset master with reference to main asset master
200001-1 with reference to 200001
2nd Rule
Main asset with reference to asset also 200001 with reference to AML2000 Dept A
3rd Rule
Account determination is specified in asset class
AML200000 Plant & Machinery specified in AML2000 Dept A
4th Rule
For account determination we assign accounts based on the nature of transaction
For AML2000-Incase of acquisition-2000010 Plant & Machinery
Amount enter
:*
Text
:+
From the menu select document Simulate and save
Sub asset purchase posting (F-90)
Give the document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Amount

:100000

Business area

:AMLH

Text

:Motor purchase posting

Posting key

:70

Account

:200001-1 that motor

Transaction type

:100

Enter
(Applicable 1st rule)
Amount

:*

196

Text

:+

From the menu select document Simulate and save


REPORT TO VIEW SUB ASSET WISE, YEAR WISE VALUES
Path :Accounting Financial accounting Fixed assets Asset Asset explorer
(Tr code is AWO1N)
Give the company code

:AML

Asset no.

:200001

Sub No.

:0

Fiscal year

:2008

Enter
Select Display depreciation calculation button
Select period information button
Select back arrow
Select compression tab
Change the asset to 200001
Sub no.

:1

Enter
Select planned values tab
Change the fiscal year to 2009
Enter
Select display depreciation calculation button
2nd Report
Report to view for all assets for particular period
Path :Accounting-Financial accounting Fixed assets Information system
Reports on asset accounting Asset balances Balance lists Once again asset
balances By business area (Tr code is S_ALR_87011965
Press all selections button (Shift +F7)
Give the company code

:AML

Report date

:31.12.2008

197

Execute
Double click on Dept A
Double click on Machine no.1
Select back arrow 3 times
Change the report date to 30.04.2008
Execute
Double click on Dept A

Depreciation run:
Path :Accounting Financial accounting Fixed assets -period processing
depreciation run Execute (Tr code is AFAB)
Give the company code

:AML

Fiscal year

:2008

Posting period

:1

Select planned posting run radio button


Select test run check box
(Note :If you run in middle of year select unplanned posting run radio button)
Execute
Ignore the warning message press enter
Select error list button (F7) (Right side corner)
Select back arrow
Deselect text run check box
From the menu select program Execute in back ground
Enter
Select continue button
To schedule in the rights select date /time button
Give the schedule start date :01.12.2008
Time :Give HR 23.00
Save
To post immediately select immediate button
198

Save
Note down get a message background job was scheduled for program RA POST 2000
To check whether the job or not from the menu select System Jobs-Job overviewServices select execute button
To view the document posted: (Tr code is FB03)
Select document list button
Give the company code
:AML
Document type
:AF
Execute
Double click on document no.
Use the Tr code is AFAB
Company code
:AML
Fiscal year
:2008
Before Dep run for May 2008 and after Dep run for April 2008 we have commissioned
an asset with back date 200002-0 Machine no.2 25.04.2008
Posted period
2
1. select planned posting run radio button posting as per plan (earlier we have
selected monthly posting)
For 200001-0 from 1st May 2008 to 31st May 2008
For 200002-0 for 25th April 2008 to 31st May 2008
Report run:
Before run for May
Posting period
Select report run
System checks which assets are commissioned in April and not posted depreciation.
200002-0 from 25th April 2008 to 30th April 2008
Once it is completed
Posting period
2
Select planned posting run
200001-0 From 1st May 2008 to 31st May 2008
200002-0 from 1st May 2008 to 31st May 2008
Repeat run is possible only after planned posting run
We have run depreciation up to October 2008 -now we have commissioned an asset
with April date repeat run is possible only for last planned posting run-In this example
only for October.
Restart

199

Rare cases server is down during processing time system gives message restart.
Unplanned posting run:
Posting run not as per plan,
We have run for April
We want to run May to November Dep. At a time.
Posting period
8
Select unplanned posting run
Depreciation will be posted from May to no.at at time.
Asset sales :
200001-0 Machine no.1
Acquisition value
Acquisition depreciation
Net book value 30.04.2008
Asset sales on 01.05.2008
Profit on asset sale

500000
890
--------499110
501000
---------1890

1to check fields status for field status group G052 use the Tr code is OBC4
Select field status variant :AML
Double click on filed status groups folder
Double click on field status group G052
Accounts for fixed assets retirement
Double click on Asset accounting
Asset retirement make it required entry field
Save
Press enter to save in your request
ASSET SALE
Path :Accounting financial Accounting Fixed assets Posting Retirement
Retirement with revenue with customer (F-92)
Give the document date & Posting date :01.05.2008
Type

:DR

Company code

:AML

Posting key

:01

200

Account no.

:6600001

Enter
Ignore the message press enter
Give the amount

:501000

Business area

:AMLH

Text

:Asses sale

Posting key

:50

Account no.

:300102 Asset sale

Enter
Amount

:*

Business area

:AMLH

Text

:+

Select asset retirement check box


From the menu select document Simulate
Enter
Asset no.
Sub number
Transaction type

:200001
:0
:210 comes by default
(210 stand for retirement with revenue)

Give the asset value (Capitalization date):01.05.2008


Select complete retirement check box
Enter
Contra
01
70
40
75
50
01
50

Customer
Account Dep P & M 200001-0
Asset Sale
Plant & Machinery 2000001-0
Profit on asset sale
Customer
P&M

501000
890
501000
500000
1890
501000
501000

We get a message correct the marked line item.


Double click on blue font line item
Select display document overview button
Asset sale on

20.05.2008

Sale 2000001-0 Machine

201

01 Customer
501000
70 Acc Dept P & M 1500
2000001-0

Acquisition value
500000
Acc Dep up to 19.05.2008 1500
---------Net book value 19.05.20084985000

40 Asset sale
501000
50 Asset sale
501000
75 Plant & Machinery 500000
Asset sale on 20.05.2008 501000
2000001-0
CONTRA
---------50 Profit on asset sale 2500
profit on asset sale
25000
Depreciation A/c
3014 890 DR
2015
3115 610 DR
(Dep up to 19/05/2008)
ASSET TRANSFER

Accumulated Depreciation account


1500 3014 890
3115 610

When we transfer an asset from one unit to another unit with the company code we
have to transfer at cost
HYD BGL
200001-0
Capitalization date 20/04/2008
To transfer asset on 01.05.2008 to BGL
To transfer acquisition value
To transfer accumulated depreciation from the date of receipt (From 01/08) depreciation
will be calculated in Bangalore unit
1st Method
2d Method
Two step procedure
one step procedure
A) Creation of asset master in BGL (AS01)
Creation of asset master and transfer
values
B) Transfer values
Path: Accounting Financial accounting Fixed assets Posting Transfer
Transfer with in company code (ABUMN)
Give your company code :AML
Ente
Give the asset no. 200001 Sub No.0
Document date

:01.05.2008 |

Posting date

:01.05.2008 | Todays date

Asset value date

:01.05.2008 |

Text

:Asset Transfer

Select new asset radio button

202

Give the description

:Machine no.1

Asset class

:AML2000 Dept A

Select master data button


Give the business area

:AMLB

Select additional data button


Give the capitalized on 01.05.2008
Select depreciation area tab
Give the depreciation key :AML1
Useful life

:20 years

Period

:5 months

Ordinary depreciation date :01.05.2008


Select back arrow
Enter
Select save button or Ctrl+S
Go and see the document FB03
Give the document no.30
Company code

:AML1

Fiscal year

:2008

Enter
1) When we want to transfer no. of assets at a time go for two step procedure
2) When the asset has to be created in the receiving unit as a sub asset goes for
two step procedure.
Asset scrapping
200000-1 Motor in Hyderabad unit 29.11.2008
This cant be sold transferred /used we can scrap the asset
Scrap asset on 01.01.2009
It calculates depreciation up to 31.12.2008
The net book value will be charged to P & L Account
Impairment of assets (AS28)
If the expected relation of the asset is less than net book value and future cash flows
are negative, we have to impair the asset for the difference.
To check motor value as on 31.12.2008 (Tr code is S_ALR_87011965)
203

Press all selections button


Give the company code
Business area
Report date

:AML
:AMLH
:31.12.2008

Select execute button


Double click on Dept A
Asset Scrapping:
Path :Accounting Financial accounting Fixed Assets Posting RetirementAsset retirement by scrapping (Tr code ABAVN)
Give the asset no.200001 Sub No.1
Document date
:01.01.2009
Posting date
:01.01.2009
Asset value date
:01.01.2009
Text
:Asset scrapping
Save
Go and see the document (FB03)
Document no.
:31
Company code
:AML
Fiscal year
:2008
Enter
Capital work in progress line item settlement
Machinery 01.11.2008
Debit to CWIP
Machine No.5
Freight charges 05.11.2008
Asset commissioned as machine no.5 on
31.12.2008
We settle from CWIP to respective asset
Commissioning charges
30.11.2008

This is linked with CO this will be covered in the


end

204

REPORTS:
Step 1.How to create a folder?
Keep the cursor and favorites from the menu select Favorites Insert folder
Give the folder name FI reports
Enter
Step 2. How to attach the report to folder ?
Keep the cursor on FI reports folder from the menu select Favorites Insert
truncation tr code is (S_ALR_87011965)
Double click on asset balances report
Step 3. How to attach the report on desktop?
Go to report Asset balances on right top select generates a short cut button
System description
:ECC6
Enter
Select OK button
Close SAP
Icon desktop
Double click on asset balances Icon
Give the password :oracle (SAP password)
Step 4: How to create variant?
Go to asset balances report
Give the company code

:AML

Report date

:30.11.2008

205

From the menu select go to variant --Save as variant


Give the variant name :AML
Date

:30.11.2008.

Save
Now close SAP
Double click on asset balances Icon on desktop
Give the password

:oracle

Enter
Select get variant button (Select asset balances S_ALR_87011965)
Execute
Select

:AML

Chart of Accounts List


Path :Accounting Financial accounting General ledger Information
system General ledger reports Master data Chart of account- Chart of
account (S_ALR_87012326)
Give your chart of accounts
Execute

:AML

TRAIL BALANCE
Path: Up to general ledger report the path is same -Account balances
Korea-Trail Balance (Tr code is (S_ALR_87012310)
Country

:Korea

Trail balance :South Korea


Give the company code

:AML

Execute
Ignore the warning message press enter
Select current layout button
Keep the fields
GL account
GL account long text

206

Closing balances
Enter
To down lead to excel from the menu select list export spread sheet
Enter
List >Export local file
Select spread sheet radio button
Enter
See directory file name :AML.xls
Select generate button
LEDGER:
Path :Accounting Financial accounting General ledger Periodic
processing closing Document Balances audit trail All accounts
-General ledger from the document file (Tr code is S_ALR_87100205)
Give the company code
Execute

:AML

(Select menu bar Settings-Layout Current button )


or
Select current layout button(Ctrl+F8)
Keep the fields document no.
Posting date
From the hidden fields column
Select text fields
Select left arrow
Select debit amount in local currency
Select left arrow
Select credit amount in local currency
Select cumulative balances
Select left arrow
Select total check box for debit amount in local currency, Credit amount in local
currency
Select copy button

207

To go the document level


Double click an amount no.
Select call up document over view button
VENDORS LIST
Path :Accounting Financial accounting Accounts payable Information
system -Reports for accounts payable accounting Mater data Vendor list
(Tr code is S_ALR_87012086)
Give the company code
:AML
Select address and telecom check box
Execute
Vendor wise patches
Path :Up to report for account payable accounting the path is same
-Vendor balances vendor business (S_ALR_87012093)
Give the company code
Execute
Each vendor wise

:AML

Out standing lit of vendors:


Path :up to reports for accounts payable accounting the path is same
Vendor Items- List of Vendors Open item for printing (S_ALR_87012083)
Give the company code
Execute

:AML

Age wise analysis of vendors:


Path :Up to vendors column item the path is same -Vendor payment history
with open item sorted list (S_ALR_87012085)
Give the company code

:AML

Summarization level

:0

Select days overdue squirted list check box


Execute
Vendor advances report
208

Path :Up to vendors column items the path is same List of Down
payments open on key date vendors (S_ALR_87012105)
Give the company code
Execute

:AML

Vendor ledger:
Path :Open and cleared up to vendors: Item the path is same List of
vendor line item (S_ALR_87012103)
Give the company code
Execute

:AML

Depreciation fore cost


Path :Accounting Financial accounting Fixed Assets Information
system -Reports are asset accounting Depreciation fore cost-Depreciation
on Capitalized Assets (Depreciation simulation) (S_ALR_87012936)
Give the company code
Report date
Execute

:AML
:31.03.2011 (Give the any month end date)

Fixed assets schedule as per schedule VI of Companies Act


Path :Information system Accounting Financial accounting Fixed
assets -Asset history sheet (Tr code is AR02)
Give the company code
:AML
Report date
:31.03.2009
Select group totals only radio button
Execute
Select assets button
Double click on asset retirements

209

DATA TAKEOVER
Master uploading
Balance uploading
Master uploading:
GS Master
Vendor masters
Customer masters
Asset masters
Material master

:FS00
:XK01
:XD01
:AS01
:MM01

Create an excel file conversion to text file Up loading to SAP


Legacy System Migration
Work bench (LSMW)

Batch data
Communication (BDC)

Computer aided testing


tool (CATT)

ABAP :They teach all 3 methods


LSMW:Job of functional consultant
Open an excel file and note down for which fields values are to be uploaded
GL
Accou
nt no.

Com
pany
code

Acco
unt
Grou
p

10000
1

AML

SCPL

P&
L
Stat
eme
nt
A/c

Balan
ce
Sheet
A/c

Short
Text

Long
Text

Acc
ount
curr
ency

PREF
Share
cap.

PREF
Share
Cap.

INR

210

Only
Balanc
e in
local
curren
cy
X

Line
item
displ
ay

So
rt
ke
y

Field
statu
s
group

00
1

G001

20012
5

AML

CAST

30000
5
40010
1

AML

SALE

AML

PRSN X

Invento
ry
Stores
Sales
trading
Wages
account

Inventory
Stores

INR

00
1

G001

Sales
Trading
Wages
account

INR

G001

INR

00
1
00
1

Delete above column headings


Delete other sheets (like sheet 2 , sheet 3)
Select complete sheet
Press right mouse button
Select format cells
Select number Category Text
Select ok button
From the menu select file save as
Save type

:select Text (tab delimited)

File name

:AML Text

Select save button


Select no button
Select cancel button
From the menu select file close
Select no button
2. Open an excel file and not down technical name of each filed technical name
shall be noted down as per step one order
Open an excel file
Component

Data type

length

Open SAP FS00


Give the GL No.100000 Equity share capital
Company code

:AML

Enter

211

G001

Keep the cursor on GL A/c press F1


Select technical information button
Double click field name SAKNR
Copy component SAKNR in excel 1 component column
Data type

:C

Length

:10

Copy component BUKRS that is company code in excel component column


Data type

:C

Length

:4

Select back arrow in SAP


Keep the cursor on account group
Press F1
Select technical information button
Double click on filed name KTOKS
Copy component KTOKS that is account group in excel component column
Data type

:C

Length

:4

Copy component XPLACCT That is P & L statement account in excel component


column
Data type

:C

Length

:1

Copy component XBILK that is I Balance Sheet A/c in excel component column
Data type

:C

Length

:1

Copy TXT20-ML That is GL A/c short text in excel component column


Data type

:C

Length

:20

Copy component TXT50_ML That is GL long text in excel component column


Data type

:C

Length

:50

212

Select back arrow


Select control data tab
Keep the cursor on account currency press F1
Select technical information button
Double click on filed name WAERS
Copy component WAERS that is account currency in excel component column
Data type

:C

Length

:5

Copy XSALH that is only balance in local currency in excel component column
Data type

:C

Length

:1

Line item display

:copy component XKRES that is line item display in excel

component column
Data type

:C

Length

:1

Sort key: copy component ZUAWA that is sort key in excel component column
Data type
:C
Length
:3
Copy component FSTAG that is field status group in excel component
Data type
:C
Length
:4
Save the file an ex file, file AML
Up loading of master in SAP (Tr code is LSMW)
Note: LSMW used for create No. of GL accounts at a time.
Ignore the message press enter
Project

:AML

Subproject

:FI

Object

:GLMaster

Select create entry button


Description

:AML Project

Enter
Sub project description FI Area
213

Enter
Object name

:GL master up loading

Enter
Select continue button (F8)
Select double click Display click change button (Shift +F7)
Select execute button
Select batch in put recording radio button
From the menu select Goto recording Overview
Select create recording button (Ctrl +F1)
Give the recording name

:AMLGL

Description

:GL Master uploading

Enter
FS00
Give the GL Account
Company code

:100305
:AML

From the menu select GL Account create


Account group select secured loans
Select balance sheet account radio button
Short text and GL account long text :IDBI rupee term loan
Select control data tab
Select only balances in local currency check box
Select line display check box
Sort key

:001

Posting date

Select create 1 bank /Interest tab


Field status group

:G005 Bank Accounts

Save
Keep the cursor on FS00
Select default all button
Save
Select back arrow two times

214

Give the recording name

:AMLGL

Enter and save


Select back arrow
Execute
Select create a structure button
Source structure

:AMLSTR

Description

:AML GL Structure

Enter and save


Select back arrow
Execute
Keep the cursor on AMLSTR
Select table maintain button
Copy from
AML excel component column in SAP field name column
Copy from excel
AML excel data type column in SAP type column
Copy AML excel length column in SAP length column
Verify the copies data some data not copied copy to next page
Save
Select back arrow
Select back arrow once again
Select save button or Ctrl+S
Execute
Select back arrow
Execute
Kept the cursor on AMLGL
Save
Back arrow

215

Execute
From the menu select Extras-Auto field mapping
Press enter
Go on select accept proposal button (Press Accept proposal button many times)
Till we get the message
Auto field mapping completed
Enter and save
Select back arrow
Skip maintain fixed values, transactions user defined routines
Select specify files radio button
Execute
Keep the cursor on the PC (Fronted)
Select add entry button
Select file

:AML text

Name

:GL Master uploading

Select tabulator radio button


Enter & Save
Select back arrow
Execute
Save
Select back arrow
Execute
Execute once again
Select back arrow two times
Skip display read data
Select convert data radio button
Execute
Execute once again
Select back arrow two times
SKIP Display converted data
Select create batch input folder session

216

Execute
Execute once again
We get a message /batch input folder
With 4 transactions created
Ignore the message press enter
Execute
Select session name GL master
Select process button
Select display errors only button
Select process button
We get a message processing of batch input session completed
Select exit batch input button
To view accounts created (Tr code is FS00)
Selected drop down button for GL A/c No.
Company code
:AML
Enter
(Note: check it uploaded GL Accounts 100001, 200125,300005,400101)

217

BALANCES UP LOADING
Company going live in SAP from 1st December 2008 unloads take balances as
on 30th November 2008 and enter in SAP P & L Account balances as well as
Balance Sheet Account balances.
Company going live in SAP from 1st April 2008 on wards, - Take Balance Sheet
account balances as on 31.03.2008 in SAP dont enter all the transactions
Reasons:
1. In normal accounting all vendors, Customers, Assets are part of General
Ledger where as in SAP we have sub ledger concept.
2. In normal accounting for vendors/ customers Purchases /Sales
transactions and advances will be entered in one account where as in SAP
we have normal items and special GL Item.
3. In normal accounting for Fixed Assets- We have account wise acquisition
value and accumulated depreciation where as in SAP for Fixed Assets, we
have each sub asset wise acquisition value and accumulated depreciation.
4. In normal accounting depreciation in a provisional figure where as in SAP it is
actually calculated figure.
5. In normal accounting raw material consumption is a derived figure.

218

Opening stock +Purchases Closing stock whereas in SAP we maintain each


material wise quantity, rate and amount and raw material consumption is
actually calculated figure.
6. In normal accounting we will not pass production entries and delivery entries
where as in SAP, system pass production entries and delivery entries with
production cost.
Procedure
1) We should enter day to day date in SAP production client till balances are up
loaded and tallied.
2) Incase of Vendors /Customers we have to prepare a statement showing only
open items which should match with trail balance figure.
3) Incase of Assets, prepare a statement showing each asset wise acquisition value
and accumulated depreciation which should match with trail balance figure.
4) Incase of materials, prepare as a statement showing Material wise, Quantity ,
Rate and Amount which should match with Trail Balance figure.
5) We have to create 5 dummy accounts under any account group.
A) GL Clearing
B) Vendor clearing
C) Customer clearing
D) Asset clearing
E) Stock taking
F)
6) After uploading balances, if the above 5 clearing accounts become zero, Then
our date takeover is correct
Trail Balance (For opening balances)
Debit
Equity share capital
Party A/c
Accumulated Dep. P & M Machine no.40
Sales
P & M Machine no.40
Party X
Inventory RM
Cash account

219

500000
200000
100000
150000

Credit
500000
100000
300000
400000

RM Consumption

1.
2.
3.
4.
5.

350000
--------1300000
=======

---------1300000.
=======

GL clearing A/c
Vendor clearing A/c
Customer clearing A/c
Asset clearing A/c
Stock taking A/c

1. To take GL Credit side items:Tr code F-02)


GL clearing A/c
Dr
1300000
To Equity share capital a/c
To Vendor clearing a/c
To Asset clearing a/c
To Sales a/c

500000
100000
300000
400000

2. To take GL debit side items (F-02)


Asset clearing
Dr
500000
Customer
Dr 200000
Stock taking
Dr
100000
Cash account
Dr
150000
Raw material consumption Dr 350000
To GL Clearing
1300000
3. A)

Prepare a statement showing each vendor wise bill wise open item and
advances which showed match with trail balance .
Party A
Bill no.1
400000 Cr
Bill no.2
50000 Cr
Bill no.3
30000 Cr
Advance
20000Dr
100000 Cr

B) Entry for Vendors (f-43)


Vendor clearing Dr 115000
Party A (SPLGLA) Dr 200000
To party A-BIL1 No.1
To party A-BIL1No.2
To party A-Bill No.3

advances to vendor
400000
}
Sundry creditors
500000
}
45000
30000 Sundry creditors

4 (A) Prepare a statement showing each customer wise bill wise open items and
advances which should match with trail balances

220

Bill no.1
Bill No.2
Advance

Party X
50000 Dr
1800000 Dr
30000 Cr 200000 Cr

4 (B) Customer balances F-22


Party X- Bill no.1
Dr
50000
Sundry debtors
Party X-Bill no.2
Dr
180000 Sundry debtors
To party X (SPL GLA)
300000 Advances from customer
To Customer clearing
200000 Advance from customer
5(A)

To make fixed assets P & M GL account and accumulated depreciation


plant & Machinery GL Account as non-reconciliation accounts and pass. F02

40 Plant & Machinery


500000
50 Accumulated Depreciation P & M
50 Asset clearing

300000
200000

Non-reconciliation means in FS00


For Plant & Machinery GL A/c and accumulated depreciation P & M GL A/c
Reconciliation a/c type Assets remove
5 (B) Creation of asset masters:
|
|
AS01
LSMW
Use the Tr code is AS01
Asset class
:AML2000 Dept A
Company code
:AML
Description
:Machine no.40
Give the capitalized date :20.06.2006
Select time dependent tab
Business area
:AMLH
Select depreciation areas tab
Depreciation key
:AML1
Use life
:15 years Period 4 months
Ordinary deprecation date :01.04.2008
Save
5 (C ) To take over acquisition value and accumulated depreciation for asset
2000004-0
It will not updated our GL Accounts since account for account type
Assets.

221

Path :SPRO-Financial accounting Asset Accounting Asset data transfer


manual online transfer Create/Change /Display legacy asset (The Tr code
is AS92)
Double click on change legacy asset
Give the asset no.
:200004
Sub number
:0
Company code
:AML
Select takeover values button
Ignore the warning message press enter
Cumulated acquisition value
:500000
Accumulate ordinary deprecation :30000
No book values
:200000
Save
5. D)

To make fixed assets P & M A/c and accumulated depreciation P & M


account as reconciliation accounts.

Path :SPRO-Financial accounting Asset accounting Preparing for


production start up-Production start up-Set or reset reconciliation
accounts (Tr code is OAMK)
Select company code
:AML
Double click on change control of reconciliation account folder
From the menu select Edit selections select all
Select set reconciliation indicators for all accounts button
Save
Press enter to save in your request
6 (A) To propose a statement showing each material match with trail balance.
Material
RM1
RM2
RM3

Qty
2000
7000
2500

Rate
20
5
10

Amount
40000
35000
25000
--------100000
======

6 (B) Creation of material masters (Transaction code MM01) and in accounting


view For moving average price
RM1
RM2

20
5

222

RM3

10

Use the transaction code MB1C


Movement type :561
RM1
RM2
RM3
Save

Qty
2000 Kgs
7000 Kgs
25000 Kgs

Accounting entry will be generated automatically


Inventory RMDr
1000000 BSX
To stock taking
1000000 GBB BSA
Closing procedure
In the year end what steps we have to do April 2008 March 2008 fiscal year
2008
In last week of March 2009
1. To carry forward Vendor and Customer balances to next year.
Path Accounting Financial accounting-Accounts payable Periodic
processing Closing Balance carry forwarded ( Tr code is F.07)
Give the company code
:AML
Carry forwarded fiscal year
:2009
Select , select customer check box
Select , select vendors check box
Deselect detail log check box
Execute
Ignore the warning message press enter
One time exercise for each year

2. To carry forwarded asset balances


We can open 2 years at a time
2007
2008
To open 2009 we have to close 2007
A)

To check which year is closed for asset accounting

Path :Accounting -Financial accounting Fixed assets Periodic processing


year end closing Undo-Entire company code (Tr code is 0AAQ)

223

Select position button


Give the company code
Enter

:AML

To close fiscal year 2008 (not mandatory step)


Up to periodic processing the path is same Year end closing Execute (Tr code
is AJAB)
Company code

:AML

Fiscal year to be closed 2008


Deselect text run check box
Form the menu select Program- Execute in back ground
Enter
Select immediately button
Select save button (down side)
We get a message Back ground job was scheduled for program RAJABS00
To check whether the job is processed or not
From the menu select System Services-Jobs Job overview
Select execute button
To view result of the job
Select job RAJABS00 check box
Select spool button
Select spool no .check box
Select display content button
To close only year for asset a accounting we have to post depreciation for all assets
and for all months
C) To open fiscal year 2009 for asset accounting
Path :Up to period processing the path is same Fiscal year change (Tr code
is AJRW)
Give the company code
New fiscal year

:AML
:2009

Deselect test run check box


224

From the menu select program execute in back ground


Enter
Select immediate button
Select save button
We get a message back ground job was scheduled for program RAJAWE_00
To check whether the job is processed or not
From the menu select System Services Jobs job overview
Select execute button
To view the result of job
Select job RAJAWE00 check box
Select SPOOL button
Select SPOOL no.check box
Select display contents button
3. To carryforward GL Balances
Path :Accounting Financial accounting General Ledger Periodic
processing Closing Carryforward-Balances carryforward new Tr cod is
FAGLGVTR
Ledger

:select OL leading ledger

Company code

:AML

Carryforward fiscal year

:2009

Deselect test run check box


Select output list of results check box
Select balances in retired earning check box
Execute
Select retired earning accounts button
Select back arrow
Select Balances sheet accounts button
To copy number range interval for next year

225

Path :SPRO-Financial accounting Financial accounting global settings


Document Document number ranges copy to fiscal year (Tr code is OBH2)
Ignore the message press enter
Company code
:AML
To fiscal year details under source fiscal year
To fiscal year under target fiscal year details
Execute
Select Yes button

:2008
:2009

To open periods for next year


April 2009-March 2010
April 2009-April 2009 Fiscal year 2009
1st 1, 2009-1,2009
April 2008-March 2009

|
|

Mandatory

2nd March 2009-March 2009


12, 2008-12,2008

Optional

Path :Up to document the path is same Posting periods Open and close
posting periods
Select position button
Posting period variant

:AML

Enter
For AML
From period 1 is 1 (April )
Year
To period

:2009
:1

Year

:2009

From period

:2

Period

:12

Year

:2008

To period

March to March

:12

226

Year

:2008

Select save button or Ctrl+S


Save in your request
How to open special periods
On 15.04.2008 Accounts Dept Finalized profitability management, management
adjustment entries.
To post in special periods
April 2009 March 2010 Fiscal year 2009
April 2009 April 2009
1st 1, 2009 -1, 2009
April 2008 March 2009 Fiscal year
March 2009-March 2009
13,2008 -13,2008
Same path :OB52
For variant
:AML
From the period2
:13
Year
:2008
To period
:13
Year
:2008
Save
How to post to special periods (F-02)
(Adjustment of management entries )
Document date & Posting date

:28.03.2009

Type

:SA

Company code

:AML

Posting key

:40

Account no.

:400100 Salaries A/c

Enter
Change the period to 13
Enter
Ignore the warning message press enter
Amount

:500000

Business area

:AMLH

227

Text

:Salaries provision

Posting key

:50

Account no.

:100500 Outstanding exp

Enter
Amount

:*

Business area

:AMLH

Text

:+

Select document Simulate and Save


Go and see the GL A/c FS10N
Give the GL A/c No.
:400100 Salaries A/c
Fiscal year
:2008
Business area
:AMLH
Company code
:AML
Execute

228

BANK RECONCILIATION
Check Deposit
|
-------------------|
|
Manual Electronic

Bank statement
|
-----------------|
|
Manual
Electronic

Manual check deposit /manual bank statement


For each current account we have to create accounts
1.
2.
3.
4.
5.

Main bank account


Check issue account
Check deposit A/c
clearing account
Bank Changes

Account no. should with


0
Open item
1
Open item
2
Open item
3

If we have 100 Bank current accounts instead of assigning accounts 100 times we
assign only one time using masking.
1. Main bank account
+++++++++0
2. check issue account
+++++++++1
3. check deposit a/c
+++++++++2
4.clearing account
+++++++++3
Always main bank account balance and bank statement balance will be same.
Flow:
Sales:

229

1. Sales invoice posting F-22


Customer A/c
Dr
To Sales
2. Check deposit
A) Bank key
B) Bank account
C) Pay slip no.
D) Transaction type
E) Customer
F) Bill no.
G) Amount and Save

100000
100000

IDBI Check deposit a/c Dr


100000
To Customer with clearing 100000
3. Enter manual bank statement
A) If the check deposit credit is not there open items in bank check deposit A/cChecks
Deposited but not credited
B) If the check deposit credit comes in bank statement
A) Pay slip no.
B) Bank key
C) Bank account
D) Transaction type
E) Amount and save
IDBI main bank A/c Dr
100000
To IDBI Check deposit a/c 100000
(with clearing)
Purchases :
4. Purchase invoice posting F-43
Inventory RM Dr
200000
To Party A/c
200000
5 Outgoing payment with clearing F-53
Party A/c Dr with clearing 200000
To IDBI check issue A/c 200000
6. Manual check creation
Assign check no.to payment doc.no.
7. Enter manual bank statement

230

A) If the check debit is not there open items in bank check is issue A/c check
issued but not presented.
B) If the check issue debit is there
A) Bank key
B) Bank account
C) Transaction type
D) Check number
E) Amount and save
IDBI check issue Dr with clearing 200000
To IDBI Bank a/c
200000
Bank charges direct debits
8. Enter manual bank statement
A) Bank Key
B) Bank account
C) Transaction type
D) Amount and save
Bank charges
Dr
To IDBI main bank a/c
IDBI main bank A/c
3

5000
5000

IDBI bank statement

10000 7 B) 20000
8) 500

7 B) 20000
8)

3 B) 100000 Cr
500
DR

IDBI check Dept A/c


2.
100000
3. 100000
IDBI Check issue A/c
7 B) 20000

20000

1. Creation of GL masters (FS00)


Give the GL A/c no.

:200130 Wages A/c

Company code

:AML

Select with template button


Give the GL A/c no.200105 SBI A/c
Company code

:AML

Enter
Change short text and GL Account long text to IDBI main bank

231

Save
GL A/c No.

:200131

Company code

:AML

Select with template button


Give the GL A/c NO.200130
Company code

:AML

Enter
Change short text and GL A/c long text to IDBI check issue
Select control data tabs
Select open item management check box
Save
GL A/c No.

:200132

Company code

:AML

Select with template button


Give the GL A/c No.

:200131

Company code

:AML

Enter
Select type/description tab
Change short text and GL A/c long text to IDBI check deposit
Save
GL A/c No.

:400304

Company code

:AML

Select with template button


Give the GL A/c No.

:400300 Rent A/c

Company code

:AML

Enter
Change GL A/c short text and GL A/c long text to Bank charges
Save
Define House Bank (FI12)
Give the company code

:AML

232

Enter
Select new entries button
House bank

:IDBI

Bank country

:IN

Bank key

:AMLIDBI1

Save
Give the name IDBI bank limited
Street

:Bank Street, Koti

City

:Hyderabad

Bank branch

:Main branch

Enter
Press enter to save in your request
Double click on bank accounts folder
Select new entries button
Account ID

:IDBI1

Description

:IDBI current no.1

Bank account no.

:AMLIDBI1234

Currency

:INR

GL A/c No.

:200130 IDBI Main bank

Save
3. Creation of Check lots (Tr code is FCHI)
Give the paying company code

:AML

House bank

:IDBI

Account ID

:IDBI1

Select change status button


Select create button (shift+F5) beside details button
Lot no.

:1

Check no.

:100001

To no.

:100100

Select non-sequentional check box

233

Short information

:IDBI bank

Purchase date

:Todays date

Enter and save


Define posting keys and posting rules for check deposit
Path :SPRO-Financial accounting Bank accounting Business transactions
Check deposit Define posting keys and posting rules for check deposit
Chart of accounts

:AML

Enter
Select new entries button
Accounts symbol

:AMLA

Text

:Main Bank

Accounts symbol

:AMLB

Text

:check issue

Accounts symbol

:AMLC

Text

:Check deposit

Accounts symbol

:AMLD

Text

:Bank charges

save
press enter to save in your request
double click on assign accounts to account symbol folder
select new entries button
accounts symbol

:AMLA

Account symbol
Currency
GL A/c
AMLA
INR
+++++++++0 (9 times plus)
AMLB
INR
+++++++++1 (9 times plus)
AMLC
INR
+++++++++2 (9 times plus)
AMLD
INR
400304 Bank Charges A/c
Save
Double click create keys for posting rules folder
Select new entries button
Posing rule
AML1

Text
Check receipt Clear customer
234

AML2
AML3
AML4
Save

Check deposit clearing in Bank


Check issue clearing in Bank
Bank charges direct debit by banks

Double click on define posting rules folder


Select new entries button
Notes:
Check receipt clear customer
AML1-Check receipt clear customer
IDBI check deposit Dr
GL
To Customer with clrg
SL
Doc.Type

DZ

Posting rule
Posting area
Debit posting key
Account symbol
Document type
Posting type

:AML1
:select 2 sub ledger accounting
:40
:AMLC (check deposit)
:DZ
:select 8 sub ledger a/c

Select next entry button


Posting rule

:select AML2 (check deposit clearing in bank)

Notes:
AML2

:Check deposit clearing in bank

IDBI1 Main account Dr


GL
To IDBI check deposit with clearing GL
Doc .type
:SA
Posting area
:select 1 Bank accounting
Debit posting key :40
Accounts symbol :AMLA main bank a/c
Document type
:SA (GL account document)
Posting type
:select 5 clear credit GL Account
Select next entry button
Posting rule :AMLB check issue clearing in bank
AML3 Check issue clearing in Bank

235

IDBI check issue with clrg DR


To IDBI main bank A/c
Doc .type :SA
Posting area
Debit account symbol
Credit posting key
Account symbol
Document type
Posting type
Select next entry button
Posting rule

:select 1 bank accounting


:AMLB
:50
:AMLA Main bank
:SA
:select 4 clear debit GL Account
:AML4 Bank charges :Direct debit by bank

Bank charges
Dr
To IDBI Main bank A/c
Doc type :SA
Posting area
Debit posting key
Account symbol
Credit posting key
Account symbol
Document type
Posting type
Save

GL

GL
GL

:select 1 Bank accounting


:40
:AMLD
:50
:AMLA
:SA
:select 1 post to GL A/c

Create and assign business transactions :


Path :Up to business transactions the path is same Check deposit Create and
assign business transactions (Tr code is OT53)
Select new entries button
Transaction

:AML1

+/-

:+

Posting rule

:AML1

Text

:Check receipt clear customer

Transaction

:AML1

+/-

:- (for posting revenues)

Posting rule

:AML1

Text

:Check receipt clear customer reversal

Select save button

236

Select cancel button


Select Yes button
Save
Press enter to save in your request
Define variants for check deposit
Same path ( Tr code is OT45)
Select create button
Variant
:AML1
Name
:check deposit variant for AML
Enter
From the possible fields column
Double click on reference document no.(selection)
Enter
Column
1
2
3
4

Offset
3
20
37
52

Length
16
4
10

Save
Select create request button
short description
:Work Bench request for AML
Enter
press enter to save in your request
kept the customer on AML1
select activate button
create and assign business truncation for manual bank statement
path :up to business truncation the path is same Payment transactions manual
bank statement Create and assign business transactions
select new entries button
Transaction
+/-

Posting rule

AML2
AML2

+
-

AML2
AML2

AML3

AML3

237

Interpretation Text
algorithm
Check deposit
Check deposit
clearing in
bank reversal
011 (Outgoing Check issue

AML3

AML3

AML4

AML4

AML4

AML4

check :Check
no. different
from payment
doc.no.
11

Save
Press enter to save in your request
011- Check no. different from payment doc.no. purchases

1.

Purchase invoice posting F-43


Inventory RM
DR
To Party A/c
Doc no.1

200000
200000

2. Outgoing payment with clearing


Party A/c DR with clearing
To IDBI Check issue A/c
Doc no.200001
3. Manual check creation

F-53
200000
200000

FCH5

Assign check no. to payment doc no.


Assign check no.100001 to payment
Doc no.200001
Check no. and payment Doc no. are different
Define variants for manual bank statement

238

clearing in
Bank
Check issue
clearing in
bank
(Reversal)
Bank charges
direct debit by
bank
Bank charges
direct debit by
bank
(reversal)

Same path (Tr cod is OT43)


Select create button
Variant

:AML2

Name

:Manual bank statement variant for AML

Enter
From the possible fields column double click on reference doc .number (selection)
Enter
4the column (20+16) :36
From the possible field column double click on bank reference
Enter
From the possible fields column double click on business area
Enter (53+13+4):67
Save
Press enter to save in your work bench request
Keep the cursor on AML2 :select activate button

To make text field optional field for field status groups G001 and G005 (Tr code is
OBC4)
Select field status variant :AML
Double click on field status group folder
Double click on G001
Double click on general data
Text make it optional entry field
Save
Press enter to save in your request
Double click on G005
Double click on General data
Text make it optional entry field
Save
SALES

239

Sales invoice posting (F-22)


Give the document date

:Todays date

Type

:DR

Company code

:AML

Posting key

:01

Reference bill no.

:2345

Account

:6600001

Enter
Amount

:100000

Business area

:AMLH

Text

:Sales invoice posting

Posting key

:50

Account no.

:300000 Sales a/c

Enter
Amount

:*

Business area

:AMLH

Text

:+

Document simulate & Save


Manual check deposit
Path :Accounting financial accounting Banks Incomings check deposit
manual entry (FF68)
From the menu select settings Specifications
Start variant

:select AML1

Enter
Bank key

:AMLIDBI1

Bank account
Currency
Group
Transaction

;AMLIDBI1234
:INR
:1 (paying slip no.)
:select AML1 (check receipt clear customer )

240

Posting date

:Todays date

Value date

:Todays date

Currency

:INR

Enter
Amount

:100000

Reference no.

:2345 (bill no.)

Business area

:AMLH

Customer no.

:6600001

Enter & save


Save once again
From the menu select System >services Batch input Sessions select session
name :IDBI-IDBI1
Select process button
Select Display errors only radio button
Select process button
We get a message processing of batch in put session completed
Select exit batch input button
Go and See the customer A/c FBL5N
Give the customer no.6600001
Company code
:AML
Select cleared items radio button
Select normal items check box
Execute
Double click on type DZ
Select column document overview button
Check deposit credit in bank statement
Path :Accounting Financial accounting Banks-Incoming Bank statement
manual entry (Tr code is FF67)
From the menu select settings specifications
Start variant

:select AML2

Enter

241

Bank key

:AMLIDBI1

Bank account
Currency

:AMLIDBI1234
:INR

Give the statement no.

:1

Statement date

:Todays date

Opening balance

:0

Closing balance

:100000

Posting date

:Todays date

Enter
Ignore the warning message press enter
Transaction

:select AML2 check deposit in bank

Value date

:Todays date

Amount

:100000

Give the reference doc no. :1 (That is paying slip no.)


Business area

:AMLH

Enter & Save


Save once again
From the menu select System Services Batch input session
Select session name

:IDBI IDBI1

Select process button


Select display errors only radio button
Select process button
Ignore the message and exit batch input button
Go and see the IDBI check deposit A/c (FBL3N)
Give GL A/c No.

:200132

Company code

:AML

Select cleared items radio button


Select normal items check box
Execute

242

Double click credit 100000


Select call up document overview button
1.

Purchases

Purchase invoice posting F-43


Give the document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Give the amount

:20000

Business area

:AMLH

Text

:Purchase invoice posting

Posting key

:40

Account no.

:200120 Inventory RM

Enter
Amount

:*

Business area
Text

:AMLH
:+

Document Simulate and Save


2.

Outgoing payment with clearing (Tr code is F-53)

Give the document date

:Todays date

Type

:KZ

Company code

:AML

Clearing text

:Outgoing payment

Account under bank data

:200131 (IDBI cheque issue date)

Business area

:AMLH

Amount

:20000

243

Text

:Outgoing payment

Account under open item selection :4200001


Select process open item button
Double click on payable amount :20000
From the menu select Document --Simulate & Save
3.

Manual check creation (FCH5)

Give the check no.100010


Save
4.

Enter manual bank statement (FF67)

Select overview button (F8)


Keep the cursor on AML IDBI Bank Ltd
Select new statement button
Closing balance (100000-200000)=800000
Posting date

:todays date

Enter
Transaction

:AML3 check issue clearing in Bank

Value date

:todays date

Amount

:20000 with minus

Bank reference

:100010 (cheque no.)

Business area

:AMLH

Enter
Select save button , save once again
From the menu select System Service Batch input Sessions
Select session name

:IDBI-IDBI

Select process button


Select Display errors only radio button
Select process button
Ignore the message exit batch input button

244

Go and see IDBI cheque issue account (FBL3N)


Give the GL account
Company code

:200131 IDBI cheque issue account


:AML

Select cleared items radio button


Select normal items check box
Execute
Double click on debit 20000
Select call up document overview button
Bank charges Direct debits
Enter manual bank statement FF67
Select overview button
Keep the cursor on AML IDBI Bank Ltd
Select new statement button
Give the closing balance

:79500

Posting date

:Todays date

Enter
Transaction

:AML4 Bank charges direct debits

Value date

:Todays date

Amount

:500-

Business area

:AMLH

Enter & Save


Save once again
From the menu select System Services Batch input Session
Select session name :IDBI IDBI-1
Select process button
Select display errors only radio button
Select process button
Ignore the message and select exit batch input button
245

To view the document posted (FB03)


Enter
To view bank statements in SAP FF67
Select overview button
Double click on AML IDBI Bank Ltd
To view the transactions in the statement
Double click on statement no.

CASH JOURNAL
1) To view daily cash and ban opening balances, Receipts , Payments and closing
balance
2) GL Cash account accepts negative cash balance Cash Journal will not accept
negative cash balance
3) For petty cash purpose
1. Creation of GL master Petty cash account Current assets-Loans &
Advances (FS00)
Give the GL A/c No.
:200101
Company code

:AML

Select with template button


Give the GL A/c No.

:200100

Company code

:AML

Enter
Change short text and GL a/c long text to Petty Cash A/c
Select create /bank /interest tab
Select post automatically only check box
Save
Define number rage intervals for cash journal documents

246

Path :SPRO-Financial accounting bank accounting Business transactionsCash journal Define number range intervals for Cash journal Documents
(FBCJC1)
Give the company code

:AML

Select change intervals button


Select interval button
No.range

:01

From no.

:500001

To no.

:600000

Enter & Save


Ignore the warning message press enter

Setup cash journal (FBCJC0)


Same path
Select new entries button
Company code

:AML

Cash journal no.

:0001

GL A/c No.

:200101

Currency

:INR

Document type for GL A/c

:SA

Document type vendor payment :KZ


Document type vendor receipt

:KZ

Document type customer payment

:DZ

Cash Journal name,

:AML HYD petty cash

Save
Press enter to save in your request
Create ,Change delete business truncations (FBCJC2)
Same path

247

Select new entries button


Company code

:AML

Business transaction type

:select R Revenue

G/L A/c

:300000

Cash journal business transaction

:Revenue

Select account modifiable check box


Company code

:AML

Business transaction type

:select E Expenses

GL A/c No.

:400100 Salaries A/c

Cash journal Business transaction :Expenses


Select account modifiable check box
Save
Press enter to save in your request
Setup print parameters for cash journal
Select new entries button
Company code

:AML

Cash journal print program name :RFCASH00


Report variant

:DEMOEN (Demo English)

Correspondence

:select SAP18 Cash document

Save
Press enter to save in your request
Posting to Cash journal
Path :Accounting Financial accounting General ledger Posting Cash journal
posting (FBCJ)
From the menu select Extras Change Cash journal
Give your company code

:AML

Cash journal

:0001

Enter

248

Select cash receipts tab


Business transaction

:select Revenue

Amount

:5000

Business area

:AMLH

G/L A/c

:300000 Sales A/C

Text

:Cash sales

Save
Select post button
Select print cash journal button
Ignore the message press enter

WITH HOLDING TAX (TDS


TDS: Tax deducted at source on Vendors/ Contractors/Local and professional charges
TCS: Tax collected at source on Customers/ scrap sale /waste sale
TDS is part of CIN (Country India Version)
TDS two types
Classic with holding Tax
Up to 4.6 C SAP CIN from 4.7 EE on
words CIN is part of SAP
SAP was released in India 1995 SA
and CIN
February 1996 Finance Budget Govt.
made changes to TDS for the changes
in Budget.
SAP releases Patch (program)
February 1997 finance budget changes
February 1998 Finance budget
changes
February 1991 Finance budget
changes

Extended withholding tax

Released extended with holding tax


Original CIN program modified with the
budget changes
Number changes

249

A) Education cess
B) Higher and Secondary Education
cess
C) Return Contractors annual Return
form 26C
D) Changed to annual return Form 26
E) Changed to quarterly return Form
26Q
F) ETDS
TDS on contractors/Professional
charges /Rent/Interest other than
salaries

TDS on contractors (Income Tax Section 194C)


1 Status Company /Partnership firm
2. TDS Rates
Basic
2%
Surcharges 10% on 2%
ED 3% on (basic +Surcharges )

Individual
10% on 2% contract value in the
whole year exceed 10 Lakhs other
wise NIL
3% on Basic +Surcharge
(Note :contract value in the whole
year exceeds 1 core other wise NIL)

4. TDS is to be deducted at the time of invoice posting or advance payment posting


whichever is earlier
5. If each contract value is less than 20000 and all contract value in the whole year
is less than 50000 No TDS is to be deducted.
6. To create only one code for invoice postings and one code for advance postings
(Max codes can be created 99)
7. If the contractor does not have taxable income he for lower rate of deduction or
NIL rate of deduction . Company has to deduct at lower rate or Nil rate
Exemption certificate will be given by Income Tax Dept for each year.
8. In the bill amount includes material cost and conversion charges (composite
contacts) To deduct TDS only conversion charges.

250

9. TDS deducted should be deposited within 7 days from the month end incase of
year end credits TDS to deposit within 2 months from the year end.
If 7th day comes on public holiday choice to make the payment day before or
after.
10. Issue TDS certificate in form 16A to the contractor It can be a monthly certificate
or consolidated certificate for the whole year.
11. File quarterly return in form 26Q earlier annual return Form 26
12. Permanent Account Number (PAN) will be allotted at company code level where
as Tax Deduction at Source (TDS No./TAN can be obtained at company code
level/Business area level/Business places level.
Maintain calendar
Path :SPRO-SAP Net weaver General settings Maintain calendar
Select public holidays radio button
Select change button
Select create button
Select with fixed date radio button
Select create button
Day

:1

Month

:select 05 May day

Short holiday name

:May day

Long holiday name

:May day

Enter
Ignore the message select Yes button
Ignore the message press enter
Select back arrow
Select holiday calendar radio button
Select change button
Select create button
Calendar ID

:A1

(AML HYD Factory Holiday calendar)

Select assign holiday button


251

Select May day check box


Select assign public holiday button
Save
Ignore the message press enter
Select back arrow two times
Select factory calendar radio button
Select change button
Select create button
Factory calendar ID

:A2

Description

:AML HYD Factory calendar

Holiday calendar ID

:A1

Work days select Monday to Saturday check boxes


Save
Ignore the message press enter
Check withholding tax countries
Path :SPRO-Financial Accounting Financial accounting global settings-With
holding tax-Extended withholding tax-basic settings-Check with holding tax
countries
Select new entries button
Country

:IN

Withholding tax country

:IN

Description

:India

Select save button or Ctrl+S


Save in account payable customization request
Define withholding tax keys
Same path
Give the country key :In for India
Enter
Select new entries button
Official withholding tax :194C
Name
:TDS contractors
Save
Press enter to save in your request

252

Define Business places (section code )


Path :Up to extend with holding tax the path is same -Basic settings India
Define business places
Select new entries
Company code

:AML

Section code

:AMLF

Name

:AML HYD factory

Save
Give the name

:AML HYD Factory

Press enter to save in your request


Assign factory calendars to section code (Business places)
Same path
Select new entries button
Company code

:AML

Section code

:AMLF

Factory calendar ID

:A2

Rule

:select day before

Save
Press enter to save in your request

Define business place


Path: Form the menu select System Services Table maintenance Extended
table maintenance (Tr cod is SM30)
Table/view

:J_1BBRANCV

Select maintain button


Give the company code

:AML

Enter
Select new entries button

253

Business place

:AMLF

Description

:AML Hyderabad factory

Save
Give the name

:AML Hyd factory

Press enter to save in your request


Assign section code to business place (Tr code is SM30)
Table /View

:V_seccode

Select maintain button


Give the company code

:AML

Enter
For section code

:AMLF

Business place

:AMF

Save
Press enter to save in your request
Define withholding tax type for Invoice posing:
Path: Up to Extended with holding tax the path is same Calculation With
holding tax type Define with holding tax type for invoice posing
Give the country key

:IN

Enter
Select new entries button
With holding tax type

:D1

Description

:section sec 194C contractors Invoice posting

Select gross amount radio button


Select with holding tax commercial rounding radio button
Select post with hold tax amount check box
Select no accumulation radio button
Save
Press enter to save in your request

254

Define withholding tax for payment posing


Same path
Give the country key

:IN

Enter
Select new entries button
With holding tax type

:DA

Description

:Sec 194 C contractors Advance posting

Select gross amount radio button


Select withhold tax commercial rounding radio button
Select no accumulation radio button
Select post with holding tax amount check box
Select central invoice propitiate radio button
Select save button or Ctrl+S
Press enter to save in your request
Why to select central invoice proportionate for advance payments
2.266%
1. Advance payment
F-48
20.11.2008
Party special GL (A)
Dr
100000
To Bank
97734
To TDS (To deposit before 07.12.2008) 2266

2. Purchase invoice posting F-43


14.12.2008
Conversion charges
Dr
300000
To party
293202
To TDS (to Deposit before 07.12.2009) 6798
3. Transfer of advance from special GL to normal by clearing special GL -54
14.12.2008
Party Dr
97734
TDS Dr
2266 auto debit
To Party special GL (A)
100000
TDS payable on 07.12.2008 on 07.12.2008 2266
TDS payable on 07.12.2009
4532
(6798-2266)
255

Define withholding tax codes


Path :Up to extend with holding tax the pat is same Calculation With hold
tax codes Define with holding tax codes
Give the country key

:IN

Enter
Select new entries button
With holding tax type

:D1

With hold code

:D1

Description

:section 194C contractors Invoice (2.266%)

Official with holding tax

:section 194 C

Base amount percentage subject to tax

:100

With holding tax rate

:2.266%

Posing indicator

:selection 1 (standard posting :Bank /Vendor


/Customer line item reduced

Save
Press enter to save in your request
Select back arrow
Select with holding tax type

:D1

Select copy as button


Change with holding tax type :D1 to DA
Change with hold tax code

:from D1 to DA

Description

:sec 194 C (contractors Advance 2.266% )

Enter and Save


Check recipient type
Path :Up to extended with hold tax the path is same Basic settings Check
recipient types
Give the country key

:In for India

Enter

256

Select new entries button


With holding tax type

:D1

Recipient type

:CO

Text

:company

One more
With holding tax type

:DA

Recipient type

:CO

Text

:Company

Save
Press enter to save in your request

Maintain tax due dates


Path :Up to extend with holding tax the path is same Basic settings India
Maintain tax due dates
Select new entries button
Country
Official with holding tax key
Recipient type
No.of days unit tax due date
Save

:IN
:194C
:CO
:777

Assign withhold tax types to company code


Path :Up to Extend with holding tax the path is same company code
Assign with holding tax types to company code
Select new entries button
Company code

:AML

Withholding tax type

:D1

Recipient type

:CO

Select with hold tax agent check box


Withholding tax obligated firm :01.04.2008
Obligated to with hold tax until

:31.03.2009
257

Save
Press enter to save in your request
Select back arrow
Select company code AML with tax type D1
Select copy as button
Change the With holding tax type to DA
Enter & Save
Activate extended withholding tax :
Same path
Select position button
Give the company code

:AML

Enter
For company code AML select extended with holding tax check box
Save
Ignore the warning message press enter
Press enter to save in your request
Combined with holding tax code
Path : up to Extend with holding tax the path is same Calculation India
surcharges Maintain surcharge rates (Surcharges combined with basic
withholding tax codes)
Select new entries button
Company code

:AML

Withholding tax code

:D1

Recipient type

:CO

Surcharge rate

:10

Company code

:AML

Withholding tax code

:DA

Recipient type

:CO

Surcharge

:10

Save
Press enter to save in your request
258

Creation of 2 GL masters (FS00)


1. Conversion charges under manufacturing group
2. TDS on contractors under Current Liabilities & Provision group
FS00
Give the GL A/c No.

:400200

Company code

:AML

Select with template button


Give the GL A/c

:400100 Salaries A/c

Company code

:AML

Enter
Change the A/c group to manufacturing expenses
Change short text and GL A/c long text to Conversion changes
Save
One more
Give the GL Account no.

:100510

Company code

:AML

Select with template button


Give the GL A/c No.100500 out standing exp.
Company code

:AML

Enter
Change short text and GL account long text to TDS on Contractors
Save
Assignment of accounts for Automatic postings:
Path :Up to Extended with holding tax the path is same Posting Accounts for
withholding tax Define accounts for withholding tax to paid over
Give the Chart of Accounts :AML
Enter
Select with holding tax code check box

259

And with withholding tax type check box


Save
Withholding tax type

:D1

Withholding tax code

:D1

Account

:100510

Withholding tax type

:DA

Withholding tax code

:DA

Account

:100510

Save
Press enter to save in your request

Maintain company code settings


Path :SPRO-Logistic- General Tax on goods movement India Basic settings
Maintain company code settings
Select new entries button
Give the company code AML and Save
Press enter to save in your request
Specify document type for remittance challans
Remittance challans TDS on contractors
1
2
3
4
5

CO
OT
CO
CO
TO

1000 (Company)
2000 (Individual)
3000
4000
5000

When we make TDS payment we have to prepare two challans


1 for Companies
2 for Individuals
In remittance challan screen
recipient type
1
3
4

Company (CO)
CO
CO
CO

1000
3000
4000

260

TDS on contractors Dr-With Clg 8000 GL


To Bank
8000 GL
Doc .Type :SA
Path :Up to Extended with holding tax the path is same Posting India
Remittance challans Document types Specify document type (Accounts
payable)
Select new entries button
Company code

:AML

Remittance challan document type

:SA

Save
Press enter to save in your request
Maintain number groups:
Same path
Select new entries button
Company code

:AML

Section code

:AMLF

Official withholding tax key

:194C

Number group

:08

Save
Press enter to save in your request
Assign number ranges to Number groups: ( Tr code is J1INO)
Same path
Select new entries button
Internal number range group :08
Internal challan
:08
Save
Maintain number ranges:(Tr code is J1INUMBER)
Same path

261

Select maintain groups button


Select group without tax having 08 check box
From the menu select Interval Maintain
Give the company code

:AML

Enter
Select interval button
Year

:2008

From no.

:1

To number

:100000

Enter & Save


Ignore the message press enter

Assign remittance challan number group to Business place


Tr code is (SM30)
Give the Table /View

:J_1IEWTNUMGR

Select maintain button


Select new entries button
Company code

:AML

Business place

:AMLF

Official with holding

:194C Tax key

Number group

:08

Save
Assign remittance challan number group to section code :(SM30)
Table /view

:J_1IEWTNUMGR_1

Select maintain button


Select new entries button
Company code

:AML

Selection code

:AMLF

Official withholding

:194C Tax key

262

Number group

:08

Save
Press enter to save in your request
Maintain number groups and SAP script forms
Path :Up to Extend with holding tax the path is same Postings India
Withholding tax certificates for Vendors and Customers Maintain number
groups as SAP script forms
Select new entries button
Company code

:AML

Section code

:AMLF

Official withholding tax key

:194C

Form

:J_11EWT_CERT

No group

:09

Save
Press enter to save in your request
Assign number ranges to number groups
Same path
Select new entries button
Number group
:09
Internal number range
:09
Save
Press enter to save in your request
Maintain number ranges
Sam path
Select maintain groups button
Select group without text having 09 check box
From the menu select interval maintain
Company code

:AML

Enter
Select interval button
263

Year

:2008

From number

:100001

To number

:200000

Enter & Save


Ignore the message press enter
Assign withholding tax code in Vendor master
Path :Accounting Financial accounting Accounts payable Master recordsMaintain centrally change (Tr code is XK02)
Give the vendor no.

:4200001

Company code

:AML

Select with hold tax check box


Enter
Give the withhold tax country :IN (India)
With holding tax type

:D1

Withholding tax code

:D1

Select liable check box


Recipient type

:CO

Withholding tax type

:DA

Withholding tax code

:DA

Select liable check box


Recipient type

:CO

Select CIN details button


Ignore the warning message press enter
Select withholding tax tab
Give the PAN of vendor

:AP4C12345C

Select back arrow


Save
END USER AREA
Conversion charges posting (F-43)

264

Document type

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Give the amount

:100000

Business area

:AMLH

Business place /section code

:select AMLF

Enter
Text

:Conversion charges posting

Posting key

:40

Account

:400200 conversion charges account

Enter

Conversion charges
Option 1
If the bill value is less
than 20000 and whole
year contract value is
less than 50000
No TDS

Remove D1 and DA

Option 2
If the value consists of
material 30000 and
conversion charges
70000
A) For D1 with holding
tax base amount enter
70000 TDS will be
deducted on 70000
B) Remove DA

Remove with hold tax code


:DA
Enter
Amount
:*
Business area
:AMLH
Text
:+
From the menu select Document Simulate and Save

265

Option 3
If the bill amount is only
for conversion charges
A) Remove DA

Note : If you get a error message once check it Activate extended withholding tax /
Document splitting
Create remittance challan
Path :Accounting Financial accounting Accounts payable With holding tax
India Extended with holding tax Remittance of withholding tax-Create
remittance challan (Tr code is J1INCHLN)
Company code

:AML

Fiscal year

:2008

Business plane/ Second code

:AMLF

Posting date

:01.01.2009 to 31.01.2009

Section

:194 C

Recipient type

:CO

Document date

:07.02.2009

Posting date

:07.02.2009

Bank account

:200105 SBI CA

Execute (F8)
Enter
Business area

:AMLH

Text

:Conversion charges amount

Double click on all open items (by default one rupee can not see in SAP zero)
Select document overview button
Double click on the line item
SBI current A/c with one rupee
Amount

:*

Save
Select clearing document button
Select back arrow
Enter Bank challan
Path: Same path ( Tr code is J1INBANK)

266

Give the company code

:AML

Fiscal year

:2008

Challan clearing number

:select document no.37

(Once we select challan clearing number, Internal challan number and internal challan
date will be update automatically)
Base challan no .

:789

Bank challan date

:07.02.2009

Bank key

:select SBI

Execute
Print TDS Certificate
Path :Up to extend with holding tax the path is same Certificates Print
(J1INCERT)
Company code

;AML

Fiscal year

:2008

Business area /Section code

:AMLF

Section

:194C

Posting dates

:01.04.2008 to 31.03.2009

Bank challan dates

:01.05.2008 to 30.04.2009

Certificate date

:30.04.2009

Signatory

:Mr X

Designation

:Manager

Place of printing

:Hyderabad

Execute
Select print button
Output device

:LP01

Select print button


To view the print out
From the menu select System Services Output control
Select execute button
267

Select spool no.check box


Select display contents button
Quarterly return
( Tr code J1INQEFILE)
Path for Entering acknowledgement numbers.
In TDS certificate we have to specify acknowledgment number for each quarterly return
field.
Path :System Service Table maintenance Extended table maintenance (Tr
code is SM30)
Table /View J_1IET_ACKN_N
Select maintain button
Select new entries button
Company code
:AML
Year
:2008
Section code
:AMLF
Period
:select second quarter
ACK No.
:123
Save
Note: Quarterly return not working in pirated softwares patches updated in genuine
SAP software
Advance posting:
1. Advance payment posting F-48
15.12.2008 50000 1133 TDS to deposit before 07.01.2009
2. Conversion charges posting F-43
02.01.2009 200000
4532
3.

Transfer of advance from special GL to normal by clearing special GL F-54


02.01.2009 1133 Auto debit will come before 07.02.2009 to deposit
45321133=3399

268