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SAP Finance Configuration | SAP T Code | SAP FICO Tutorials
SAP Finance Configuration Steps

SAP Finance configuration step by step :-
Sub Modules of SAP FI :- Important Modules of SAP Financial Accounting are
1. General Ledger
2. Accounts Payable
3. Accounts Receivable
4. Asset Accounting
5. Bank Accounting
Enterprise SAP Finance Configuration :-

Below are the steps of Enterprise SAP Finance configurations
Step 1 :- Define Company
T Code :- OX15
Menu Path :- SPRO –> IMG –> Enterprise Structure –> Definition –> Finance
Accounting –> Define Company
Step 2 :- Define Company Code
T Code :- OX02
Menu Path :- SPRO –> IMG –> Enterprise Structure –> Definition –> Finance
Accounting –> Edit, Copy, Delete, Check Company Code
Step 3 :- Assign Company code to Company
T Code :- OX16
Menu Path :- IMG –> Enterprise Structure –> Assignment –> Finance Accounting –>
Assign Company Code to Company
Step 4 :- Define Business Area
T Code :- OX03
Menu Path :- IMG –> Enterprise Structure –> Definition –> Finance Accounting –
> Define Business Area
Step 5 :- Maintain Fiscal Year
T Code :- OB29
Menu Path :- IMG –> Finance Accounting –> Finance Accounting Global Settings –>
Fiscal Year –> Maintain Fiscal year variant
Step 6 :- Assign Fiscal Year Variant to Company Code
T Code :- OB37
Fiscal Year –> Assign Company Code to Fiscal Year variant
Step 7 :- Define Posting Period Varaint
T Code :- OBBO
Documents –> Posting Period –> Define variants for opening Posting period
Step 8 :- Define Variant for opening & Closing posting period
T Code :- OB52
Documents –> Posting Period –> open and close posting periods
Step 9 :- Assign Variant to Company Code
T Code :- OBBP
Documents –> Posting Period –> Assign Variants to Company code
Step 10 :- Define Field Status Variant
T Code :- OBC4
Documents –> Line Item –> Controls –> Define Field status variants
Step 11 :- Assign Field Status Variant to Company Code
T Code :- OBC5
Documents –> Line Item –> Controls –> Assign Company code to Field Status
Variants
Step 12 :- Define Document Types
T Code :- OBA7
Menu Path :- IMG –> Financial A/C –> Global Settings –> Documents –> Document
Header –> Define Document types
Step 13 :- Define Document Number Ranges
T Code :- FBN1
Menu Path :- IMG –> Financial A/C –> Global Settings –> Documents –> Document
Number Range –> Define Document number range
Step 14 :- Define Tolerance Group for G/L A/C
T Code :- OBA0
Menu Path :- IMG –> Financial accounting –> G/L Accounting –> Business transactions
–> Open Item Clearing –> Clearing Differences –> Define Tolerance Groups for General
Ledger Accounts
Step 15 :- Define Tolerance for Employee
T Code :- OBA4
Menu Path :- IMG –> Financial A/C –> G/L Accounting –> Business transactions –>
Open Item Clearing –> Clearing Differences –> Define tolerance for employee
Step 16 :- Define Retain Earning A/c
T Code :- OB53
Menu Path :- IMG –> Financial A/C –> G/L Accounting –> GL Accounts –> Master Data–
> Preparations –> Define Retain Earnings Account
Step 17 :- Define Posting Keys
T Code :- OB41
Documents –> Line Item –> Controls –> Define Posting Keys
General Ledger SAP Finance Configuration Steps :-

Below are the SAP Finance configuration steps of General Ledger
Step 18 :- Define Chart of Accounts
T Code :- OB13
Menu Path :- IMG –> Financial accounting –> G/L Accounting –> GL Accounts –>
Master Data–> Preparations –> Edit Chart of Accounts list
Step 19 :- Assign Chart of Accounts to Company Code
T Code :- OB62
Master Data–> Preparations –> Assign Company Code to Chart of Account
Step 20 :- Define Account Group
T Code :- OBD4
Master Data–> Preparations –> Define Account Groups
Step 21 :- Creation of GL Master Records
T Code :- FS00
Master Data–> Preparations –> GL Account Creation and Processing –> Edit G/L
Account
Accounts Payable SAP Finance Configuration

Below are the SAP Finance Configuration of Accounts Payable
Step 22 :- Define Account Group with screen layout
T Code :- OBD3
Menu Path :- IMG > Financial accounting –> Accounts Receivable and Accounts
Payable –> Vendor Accounts –>Master data –> preparation for creating vendor master
data –> Define Account Groups with Screen Layout (Vendors)
Step 23 :- Create Number range for Vendor A/C
T Code :- XKN1
Menu Path :- IMG > Financial accounting –> Accounts Receivable and Accounts
Payable –> Vendor Accounts –> Master data –> Preparation for creating vendor master
data –> Create number ranges for vendors account
Step 24 :- Assign Number ranges to Vendor Account Group
T Code :- OBAS
Menu Path :- Financial accounting –> Accounts receivable and accounts payable –>
Vendor Accounts –>Master data –> preparation for creating vendor master data –
> Assign Number Range to Vendor Account Groups
Step 25 :- Define Vendor Tolerance
T Code :- OBA3
Menu Path :- Financial accounting –> Accounts receivable and accounts payable –>
Business transactions –> Outgoing payments –> Manual outgoing payments –>Define
Vendor Tolerance
Step 26 :- Create Sundry Creditors
T Code :- FS00
Menu Path :- Accounting –> Finance Accounting –> General Ledger –> Master Records
–> Individual Processing –> Create Centrally
Step 27 :- Creation of Vendor Master Records
T Code :- XK01
Menu Path :- SAP Menu –> Accounting –> Finance Accounting –> Account payable –>
Master Records –> Maintain Centrally –> Create
Step 28 :- Define Payment terms for Vendor
T Code :- OBB8
Account Receivable SAP Finance Configuration

Below are the SAP Finance Configuration of Accounts Receivable
Step 29 :- Define Customer Account Groups
T Code :- OBD2
Menu Path :- IMG > Finance Accounting –> Accounts Receivable and Accounts Payable
–> Customer Accounts –> Master Data –> Preparation for creating customer master
data –> Define Customer Account Groups
Step 30 :- Create Number range for Customer
T Code :- XDN1
Menu Path :- Finance Accounting –> Accounts Receivable and Accounts Payable –>
Customer Accounts –> Master Data –> Preparation for creating customer master data –
> Create Number Ranges for Customer Accounts
Step 31 :- Assign No range customer
Menu Path :- IMG > Finance Accounting –> Accounts Receivable and Accounts
Payable –> Customer Accounts –> Master Data –> Preparation for creating customer
master data –> Assign Number ranges to Customer Accounts groups
Step 32 :- Create Sundry Debtors ( Reconciliation Account )
T Code :- FS00
Menu Path :- Finance Accounting –> Accounts Receivable and Accounts Payable –>
Business Transactions –> Incoming payments –> Manual incoming payments –> Define
Tolerance ( Customer )
Step 33 :- Creating Customer Master Record
T Code :- XD01
Menu Path :- SAP Menu –> Accounting –> Finance Accounting –> Accounts Receivable
–> Master Records –> Create Customer Master Record
Step 34 :- Define Tolerance for Customer
T Code :- OBA3
Menu Path :-Finance Accounting –> Accounts Receivable and Accounts Payable –>
Business Transactions –> Incoming payments –> Manual incoming payments –> Define
Tolerance ( Customer )
Step 35 :- Define Dunning Area
T Code :- OB61
Menu Path :- IMG > Finance Accounting –> Accounts Receivable and Accounts Payable
–> Business Transactions –>Dunning –> Basic Settings for Dunning –> Define Dunning
Area
Step 36 :- Define Bills of Exchange
T Code :- OBYN
Menu Path :- IMG –> Finance Accounting –> Bank Accounting –> Business
Transactions –> Bills of Exchange Transactions –> Bills of exchange receivable –>
Define Alternative recon a/c for bills of exchange
Tax on Sales /Tax on Purchases SAP Finance Configuration

Below are the SAP Finace Configuration of Taxes
Step 37 :- Define Condition Type
T Code :- OBYZ
Menu Path :- IMG > Financial A/C > Global Settings > Tax on sales/purchase > Basic
Settings > Check calculation procedure > Define condition type
Step 38 :- Assign Procedure to Country
T Code :- OBBG
Menu Path :- IMG > Financial A/C > Global Settings > Tax on sales/purchase > Basic
Settings > Check calculation procedure > Assign procedure to country
Step 39 :- Define Tax Codes
T Code :- FTXP
Menu Path :- IMG > Financial A/C > Global Settings > Tax on sales/purchase >
Calculation > Define tax codes
Asset Accounting SAP Finance Configuration

Steps of Assets Accounting SAP Finance Configuration
Step 40 :- Copy Reference Chart of Depreciation
T Code :- EC08
Menu Path :- Finance Accounting –> Asset Accounting –> Organisational Structure –
> Copy Reference Chart of Depreciation/ Depreciation Area
Step 41 :- Assign Chart of Depreciation Area to Company Code
T Code :- OAOB
Menu Path :- Finance Accounting –> Asset Accounting –> Organisational Structure –
>Assign Chart of Depreciation to Company Code
Step 42 :- Specify Account Determination
Menu Path :- Finance Accounting –> Asset Accounting –> Organisational Structure –>
Asset Classes –> Specify Account Determination
Step 43 :- Create Screen Layout Rules
Asset Classes –> Create screen Layout Rule
Step 44 :- Define Number Range Interval
T Code :- AS08
Asset Classes –> Define Number range Interval
Step 45 :- Define Asset Class
T Code :- OAOA
Menu Path :- IMG > Finance Accounting –> Asset Accounting –> Organisational
Structure –> Asset Classes –> Define Asset Classe
Step 46 :- Define Depreciation Methods
Menu Path :- IMG –> Finance Accounting –> Asset Accounting –>Depreciation –>
Valuation methods –>Depreciation Key –> Calculation methods
Step 47 :- Maintain Depreciation Key
T Code :- AFAMA
Menu Path :- IMG –> Finance Accounting –> Asset Accounting –>Depreciation –>
Valuation methods –>Depreciation Key –> Maintain Depreciation Key
Step 48 :- Create Asset Master record
T Code :- AS01
Menu Path :- SAP Menu –> Accounting –> Finance Accounting –> Fixed Assets –>
Asset –> Create Asset Master Record
Step 49 :- Depreciation Run
T Code :- AFAB
Menu Path :- IMG –> Finance Accounting –> Fixed Assets –> Periodic Processing –>
Depreciation Run –> Execute
House Banking SAP Finance Configuration

Below are the Steps of SAP Finance Configuration of bank Accounting
Step 50 :- Define House Bank
T Code :- FI12
Menu Path :- IMG –> Finance Accounting –> Bank Accounting –> Bank Accounts –>
Define house banks
Step 51 :- Create Bank Key
T Code :- FI01
Menu Path :- SAP Menu –> Accounting –> Finance Accounting –> Accounts Receivable
–> Master Records –> Bank –> Create bank Key
Step 52 :- Automatic Payment Program
T Code :- FBZP
Menu Path :- IMG –> Finance Accounting –> Accounts Receivable & Payable –>
Business Transactions –> Outgoing Payments –> Automatic Outgoing Payments –
> Payment method/Bank Selection for Payment program.
How to Create a Company in SAP | Define Company in SAP FICO

The following tutorial guides you how to define or create a company in SAP
step by step with screen shots. Let us discuss briefly about company.
Define Company in SAP

About Company in SAP:- Company is the organizational unit for which
individual financial statements can be drawn according to the relevant
commercial law. A company can comprise of one or more company codes.
A Company has local currencies in which its transactions are
recorded. All company codes within a company must use the same
transaction Chart of accounts and the same Fiscal Year. Creation of company
in sap is optional.
Path to Define Company in SAP :-

SAP IMG Path: – SPRO –> Implementation Guide for R/3 Customizing
(IMG) –> Enterprise Structure –> Definition –> Financial Accounting –
> Define Company
Transaction code to “Define Company in SAP” :- OX15
Steps for creation of a Company: –
Step 1 :- Enter Transaction Code SPRO in the commend field and press enter
on the Keyboard
Step 2 :- Next Customizing execute project screen select SAP Reference
IMG
Step 3 :- After Selecting SAP Reference IMG, a new screen IMG Path will be
displayed. Select Define company execute icon for creating a company
Next Screen will be displayed after selecting the define company execute
icon
Step 4:– Now Select New entries icon to create a new company and enter the company
details
The following details are to be entered for creating a new company

1. Enter 6 character alphanumeric code key that represents the group of
company
2. Enter name of your company.
3. In the Detailed information update the address – Street name, PO Box#,
Postal code, City.
4. Enter Country Code of the company
5. Enter language key
6. Enter local currency for the company (also known as Company code
currency)
7. Click on Save icon or CTRL+S after updating the required information
Thus new Company ADARSH is created in SAP.
The following video explains how to define company in SAP step by step.
How to Create Company Code in SAP | Define Company Code in FICO
The following tutorial guides you how to define company code in SAP FI step
by step with screen shots. After configuring company, next step is to configure
the company code. Let us discuss briefly about company code.
Define Company Code

About Company Code :– Company Code in SAP is the
smallest organizational unit of Financial Accounting for which you draw
individual financial statements like Balance Sheet and Profit & Loss Account
for purpose of external reporting. The Creation of company code in sap is
mandatory.
PATH :- IMG Reference –> Enterprise Structure –> Definition –> Financial
Accounting –> Edit, Copy, Delete Company Code
SAP Tutorials
Transaction code to Define company Code :- OX02
Steps to Define Company Code: –
Step 1 :- Enter Transaction Code SPRO in the commend field and press enter
Steps 2 :- In customizing
execute project screen select SAP Reference IMG
Step 3 :- In next screen

select Edit, Copy, Delete check Company Code
Step 4 :- The below screen displays after selecting Edit, Copy, Delete
Company Code ( Define Company Code )
we can create company code by selecting above two options. By selecting first
option copy, Delete, company code all the configuration and tables get
copied automatically along with assignments.
Here we are creating company code manually configure all the assignments by
selecting second option Edit Company Code Data . Double click on Edit
Company Code Data
Step 5 :- Click on New Entries and update the following details

1. Update new Company code key AD06
2. Give the company name Adarsh Technologies for identifying the company
code key
3. In Additional Data update the details of City, Country, local Currency of
company, Language.
Click on Address and Update the following fields
After updating Address
enter Click on Save icon Thus the company code AD06 is created in SAP.
Watch Video how to define company code in SAP.
Create New companies by copying Existing Company code
Creating new companies by copying existing company

code SAP
The following training tutorials guides how to create new company by coping existing
company code in SAP step by step. In our previous training tutorials we have learn how
to create new company code by using transaction code. In our previous configuration we
configured company code “AD06”.
Now we are going to configure company codes AD61, AD62, AD63, AD64 and AD65,
this company codes are configuring by copying existing company code AD06. Let check
how to configured new company codes.
You can define new company by copying existing company code by using one of the
following navigation method.
 SAP IMG Path: – SPRO >> IMG (F5) >> Definition >> Financial Accounting >>> Edit,
copy, delete, check company code >> copy, delete, check company code.
 Transaction code: – EC01.
Step 1: –Enter transaction code “EC01” in SAP command field and press enter.
Step 2: – On organizational object company code screen, click on copy as icon to copy
from existing company code.
Step 3: – A pop up box opens to enter the details, update the following details.
1. From company code: – Update the company code that you want to copy from
2. To company code: – Update the new company code that you want to create.
After updating the details, press enter. This transaction copies all the general and global
settings of existing company code “AD06” to new company code. Press enter to
continue.
Step 4: – Next step is to update company name and its address. Enter transaction code
“OX02” in SAP command field and enter.
Double click on company code “AD61”
Now change your company code name and additional data.

Click on “address button” (shift+f5) to update the address details. After updating the
company code address details, click on save button, Successfully new company code
“AD61″is created by coping existing company code “AD06”
How to Assign Company Code to Company in SAP
Assign Company Code to Company

Menu Path :-
SPRO –> IMG Reference –> Enterprise Structure –> Assignment –> Financial
Accounting –> Assign Company Code To Company
Transaction Code :- OX16
The following are the steps to Assign the Company Code to Company in SAP
FICO
SAP Tutorials
Step 1 :- Enter the T-Code SPRO in the commend field
Step 2 :- Click SAP Reference IMG
Step 3 :- Follow the Path as per below screen shot

Step 4 :- Click Position
Update company code for which you wants to assign and Enter
Step 5 :- Update Company ID in Company field and click on save icon
Thus company code AD06 was assigned to Company ADARSH.

Watch Video for how to assign company code to company in SAP step by step.
Define Business Area in SAP FICO | How to Create Business Area in SAP
Define Business Area in SAP

Definition of Business area :- Business area is a separate area of operations or
responsibilities of organizational units of financial accounting that is used for internal
and external reporting . Different divisions of each business with in a legal entity are
created as Business areas for reporting of each operational areas. So Financial
statements can be created for each business area and this financial statements can be
used for internal reporting purpose.
Business areas are not assigned to any company codes.
Transaction Code for Creation of Business Area in SAP :- OX03
Steps for the Creation of New Business Areas in SAP :-
Step 1 :- Enter transaction code SPRO in the commend field
Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )
Step 3 :- After selecting SAP Reference IMG, follow the below structure to configure the
Business areas
Step 4 :- After Selecting Define Business Area, Select new entries to configure new
Business areas
Step 5 :- Enter the 4 digit code in the business area field and enter the name
of business areas in the description field and save the settings.
Thus Business Areas ADKA, ADHY, ADMU are configured in SAP FICO .
Watch Video how the business areas area created in SAP step by step.
Configuration of Functional Area in SAP FICO | Define Functional Area
Functional Area in SAP

Definition of Functional Area in SAP:- Functional Area is a organisational unit
in accounting that classifies the expenses of an organisation by functions.
Uses of Functional Area :-

TheFunctional area in SAP is use to create P&L A/C in Financial Accounting using cost
of sales accounting and used to analyse the cost of sales accounting
Examples of Functional Area are :-

 Administration
 sales and distribution
 Manufacture
 Production
 Research and development
Steps for the Creation of Functional Area in SAP

Transaction code :- OKBD
SAP Menu Path :– SPRO > SAP Reference IMG > Financial Accounting > Financial
Accounting Global Settings > Company Code > Cost of Sales Accounting
> Activate Cost of Sales Accounting for Preparation
Step 1 :– Enter T-Code OKBD in the commend filed
Step 2 :– In the Next screen Click New Entries
Step 3 :- Enter four digits

Functional area code in the Functional Area column and update names of the Functional
Areas
Thus Functional Areas ADPR, ADSO are created in SAP.
Define Credit Control Area for Customer in SAP

The credit control area is an organizational unit that specifies and checks a credit limit
for customers. Credit control area can includes one or more company codes.
Steps to Define Credit Control Area

Transaction Code to Define Credit Control Area – OB45
IMG Menu Path :-
SPRO –> Implementation Guide –> Enterprise Structure –> Definition –> Financial
Accounting –> Define Credit Control Area
Step 1 :– Enter T-Code SPRO in the Command Field and press enter
Step 3 :- Follow the IMG Menu path

Step 4 :- In next screen click on new entries
Step 5 :– Update the required data

1. Credit Control area :- Enter four digits credit control area code
2. Currency :– Update currency of the credit control area.
3. Credit limit :- Update credit limit amount for the customers.
Step 6 :– Click on save icon to save the new credit control area
Thus credit control area in SAP was successfully configured.
Assign Company Code to Credit Control Area in SAP
Steps for Assign company code to credit control area

After creating of credit control, next step is to assign company code to credit control
area.
IMG Menu Path :-
SPRO > Implementation Guide > Enterprise Structure > Assignment > Financial
Accounting > Assign company code to credit Control Area.
Step 1 :– Enter T-Code SPRO in the Command field and press enter
Step 2 :– Click on SAP Reference IMG ( short cut key F5 )
Step 3 :- Follow the menu path for Assigning Company Code to Credit Control Area
Step 4 :– In next screen click on Position icon and update the company code and press
enter
Step 5 :- In next screen, update the credit control code in the CCAr field and
Step 6 :– After updating credit control code click on save icon
Thus company code successfully assigned to credit control area.
Create Fiscal Year Variant in sap | Fiscal year Accounting Period
Fiscal Year Variant in sap

Definition Fiscal year :-
A fiscal year is divided in to number of posting periods and each posting period in a
accounting period is defined by a start date and end date
Fiscal year in SAP can be defined as year dependent or Year Independent
Year independent – Same number and dates for the periods every year
year dependent – Periods can be different from year to year
Define Fiscal year Variant :- Fiscal year variant is used to define the fiscal year
A Fiscal year variant contains the 12 normal posting periods and 4 special periods. We
can define maximum 16 posting periods for each year. Special periods are used for Year
end activities
Steps for configure the Fiscal year variant :-

Step 1 :-
Enter SPRO Transaction Code in the SAP Commend field and press enter
Step 2 :-
In the next screen select SAP Reference Img
Step 3 :-
In the next screen Display Img , follow the Menu path
SAP Reference IMG –> Financial Accounting –> Global Settings –> Fiscal Year –
>Maintain Fiscal Year Variant
Step 4 :-
In the next screen select New Entries to create Fiscal year
Step 5 :–
New entries to Create fiscal year variant screen, update the following information.
1. In the field Fiscal year variant FV enter the two digits unique code
2. In the description field update the name of Fiscal year Variant
3. Select the year-Dependent option if the Periods are different from year to year
4. Select Calendar yr option if same number and dates for the periods of every year
5. Update 12 in the Number of Posting periods field
6. Update 4 in the No. of Special Periods Field.
After updating the required data and click on save icon
Step 6 :–
Block Fiscal Year Variant AD and Double Click on Periods folder
Step 7 :-
Select New Entries Button
Step 8 :- Maintain the Periods for the Fiscal Year

First Coloumn – Month
Second Coumn – Day
Third Column – Period
Fourth column – Year Shift
After Maintain Fiscal Year Variant Periods, Click and Save icon.
Thus the Fiscal Year Variant Ad is created
How to Assign Company Code to Fiscal Year Variant

This Tutorial Guides you How to Assign Company Code to Fiscal Year Variant
Single Fiscal Year Variant can be assigned for multiple company codes. The link
between Fiscal Year Variant and Company Code is established through the assigning
Company Code to Fiscal Year Variant.
Path for Assign Company Code to Fiscal Year Variant
SPRO > Implementation Guide for R/3 Customizing (IMG) –> Finance Accounting –
> Finance Accounting Global Settings –> Fiscal Year –> Assign Company Code to
Fiscal Year variant
Transaction Code for Assign Company Code to Fiscal Year Variant
T Code > OB37
Assign Company Code to Fiscal Year Variant Configuration Steps :-
Step 1 :-Type SPRO in the Command Field of the SAP Easy Access Menu Screen and
press enter key on the Keyboard.
Step 2 :- Click SAP Reference IMG Icon,
Step 3 :- In next screen follow the Path Assign Company Code to Fiscal Year Variant
Step 4 :– Click Position

Step 5 :- After selecting position, update the company code and press enter
Step 6 :– In next screen Update fiscal year variant field for the required Company Code
and Press enter on the keyboard.
Step 7 :- Click the Save Icon located at the upper left corner of the screen to save the
updated data.
Thus Company Code AD06 is successfully assigned to Fiscal year Variant AD .
How to Create Posting Period Variants | SAP PPV
This SAP Fico Tutorials guides you how to Create posting period Variants
Posting Period Variant is accountable for the opening and closing of periods in a
Fiscal Year for postings to take place. The Posting Period Variants ( PPV ) in SAP is
used to control which accounting period is open for postings and ensuring that closed
period remain balanced and reconciled. we can assign posting period variants to one
or more company codes.
Posting Periods are opened and closed for all company codes in SAP by the PPV.
Steps to Create Posting period variants in SAP :-
press Enter key on the Keyboard.
Step 2 :- Click SAP Reference IMG Icon
Step 3 :- In next screen follow the menu path to create posting period variant
IMG Menu Path :- SPRO > Implementation Guide for R/3 Customizing (IMG) –>
Finance Accounting –> Finance Accounting Global Settings –> Documents –>
Posting Periods –> Define variants for open postingperiods
Step 4 :- The define posting period variants screen is displayed, Click on new entries
to create SAP PPV
Step 5:- Enter four digit code in the Variant field, update variant name in the name
field. Here we created posting period Variant ADO6
Step 6 :- After updating posting period variant and name fields click on save icon to
save the data.
Thus Posting Period Variant AD06 is defined ..
Define Variant for Open and Close Posting Periods | SAP OB52
This FICO Tutorials Guides you how to Define Variant for Open and Close Posting
Periods
Purpose of Open and Close Posting periods Configuration:-

The posting periods can be maintained as per account type and the year which is to be
open & which is to closed. The Posting Period Variant is used to control which
accounting period is to be open for posting and ensuring that closed periods are remain
balanced and reconciled.
Path for Define open and close posting periods:-

Implementation Guide for R/3 Customizing (IMG) –> Finance Accounting –
> Finance Accounting Global Settings –> Documents –> Posting Period –> open and
close posting periods.
Transaction code open and close posting periods :- OB52
press Enter key on the Keyboard
Step 3 :- In next screen follow the menu path to Define Variant for open and close
posting periods
Step 4 :- Click on New entries to Define Variant for Open and Close Posting Periods.
Step 6 :- In Next screen update the required data as described below
1.Variant:– Enter four digits Posting Period variant Code

2. A:– Select Account Type ( A )
+ = Valid for all Account Types (masking)
A = Assets
D = Customers (A/R)
K = Vendors (A/P)
M = Materials
S = General Ledger Accounts.
3.From Account:- Keep Blank
4.To Account:– Update Account
5. From Period 1:– Enter Starting Period
6.Year:- Enter Year
7.To Period:– Enter Ending Period
8.Year:– Enter Year
9.From Period 2:– Enter First Special Period
10.Year:– Enter Year
11.To Period:- Enter Special Period
12.Year:- Enter Year
13.Authorization group ( AuGr ):- You can assign authorization groups in which some
periods can only be opened for particular users.
14. Click on save icon to save the defined open and close posting periods
Thus Open and Close Posting Periods are configured in SAP.
Assign Posting Period Variant to Company Code
This SAP Fico tutorials Guide you how to Assign Posting Period Variant to Company
Code
In this activity you assign the same Posting Variant Key to the company codes .
Transaction code for Assign Posting period Variant to Company Code :– OBBP
IMG Menu Path :-
SPRO > Implementation Guide for R/3 Customizing (IMG) –> Finance Accounting –
> Finance Accounting Global Settings –> Documents –> Posting Period –> Assign
Variants to Company code
Steps to Assign Posting Period Variant to Company Code

Step 1 :- Enter transaction code SPRO in the SAP Command field and press enter
Step 2 :- Select SAP Reference IMG
Step 3 :- In next screen follow the path

Step 4 :– Click on Position
Step 5 :- After clicks on position enter the company code and press enter on key board
Step 6 :- In next screen update Posting Period variant Code AD06 in the Variant field
Step 7:- After updating Posting period variant Click on Save icon.
Thus Posting Period Variant is Assigned to Company Code .
Define Field Status Variant in SAP | Field Status Group

SAP Fico Tutorials guides you how to define field status variant in sap
The field status group specifies which fields are ready for input, which are required entry
fields, and which are hidden when entering documents.
Description and Configuration values of Field Status Group
FStGroup Text
G001 General (with text, assignment)
G003 Material consumption accounts
G004 Cost accounts
G005 Bank accounts (obligatory value date)
G006 Material accounts
G007 Asset accts (w/o accumulated depreciation)
G008 Assets area clearing accounts
G009 Bank accounts (obligatory due date)
G011 Clearing accounts (with settlement per.)
G012 Receivables/payables clearing
G013 General (obligatory text)
G014 MM adjustment accounts
G017 Freight/customs provisions/clearing (MM)
G018 Scrapping (MM)

G019 Other Receivables/Payables
G023 Plant maintenance accounts
G025 Inventory adjustment accounts
G026 Accounts for down payments made
G029 Revenue accounts
G030 Change in stock accounts
G031 Accounts for down payments received
G032 Bank accounts (obligat. value/due dates)
G033 Cost accounts for external services
G036 Revenue accts (with cost center, PA)
G039 Accts for pmnts on acct made for assets
G040 Personnel clearing accounts
G041 Tax office clearing accounts
G045 Goods/invoice received clearing accounts
G049 Manufacturing costs accounts
G050 Central control clearing accounts
G052 Accounts for fixed asset retirement
G056 Amortization accounts
G059 Inventory accounting material stock acct
G062 Investment support accounts
G064 Other cost accounts (obligatory text)
G067 Reconciliation accounts
G068 Reconciliation accts (payables – Austria)
G069 Cost accounts (travel expenses)
G070 Clearing accounts (travel expenses)
Reconciliation accts ( KIDNO /Foreign

G071
payment)
Steps to Define Field Status Variant
Step 1 :-
Enter T-Code SPRO in the Command Field of the SAP Easy Access Menu Screen and
Step 2 :– In next screen click on Click SAP Reference IMG Icon
Step 3 :-
Implementation Guide for R/3 Customizing –> Finance Accounting –> Finance
Accounting Global Settings –> Documents –> Line Item –> Controls –> Define Field
status variants
Step 4 :– In Next screen block 001 Field status variant
Step 5:- After selecting 0001 field status variant click on copy as icon ( short cut Key
F6). In next screen update required new Field Status variant Code and Update Field
status variant Name
Step 6 :- After updating Field Status variant and Field Status Name, press Enter key on
the Keyboard. Select copy all button
Step 7:– We get a message number of dependent entries copied as 41

Step 8:- Enter and select save button or CTRL + S
We successfully configured Field Status variant
Assign company code to field status variants SAP FICO

This SAP FICO Tutorial Guides you how to Assign company code to field status
variants in SAP FICO
Transaction Code Assign company code to field status variants :– OBC5
IMG Menu Path :– Implementation Guide for R/3 Customizing (IMG) > Finance
Accounting –> Finance Accounting Global Settings –> Documents –> Line Item –>
Controls –> Assign Company code to Field Status Variants
Steps for Assigning company code to field status variants :-
Step 1 :-
Enter T-Code SPRO in the Command Field of the SAP Easy Access Menu Screen and
Step 2 :- In next screen click on Click SAP Reference IMG Icon
Step 3 :- In next screen follow the menu path

Step 4 :- In next screen Click on position and update the company code and press
enter
Step 5 :– In next screen update field statues variant in the Fld Stat.Var. field
Step 6 :- After Assign company code to field status variants, Click on save icon to save
the configuration settings
Thus Company code AD06 is successfully assigned to field status variants.
Define Posting Keys in SAP FICO | Account type SAP
Define Posting Keys

Posting Keys :– Posting key in SAP is a two digits numerical key that determines the
type of transaction entered in a line item
Posting Keys Determines :-
1. Account Types ( A, D, K, M, S )
2. Type of postings i.e Debit or Credit
Account Types in SAP :-
1. Assets
2. General Ledger
3. Customer
4. Vendor
5. Material
Account Type Customer posting keys :-

Posting Key Description Account Type Debit/Credit
1 Invoice Customer Debit
2 Reverse credit memo Customer Debit
3 Bank charges Customer Debit
4 Other receivables Customer Debit
5 Outgoing payment Customer Debit
6 Payment difference Customer Debit
7 Other clearing Customer Debit

8 Payment clearing Customer Debit
9 Special G/L debit Customer Debit
11 Credit memo Customer Credit
12 Reverse invoice Customer Credit
13 Reverse charges Customer Credit
14 Other payables Customer Credit
15 Incoming payment Customer Credit
16 Payment difference Customer Credit
17 Other clearing Customer Credit
18 Payment clearing Customer Credit
Account Type General Ledger Posting Keys

40 Debit entry G/L Debit
50 Credit entry G/L Credit
80 Stock initial entry G/L Debit
81 Costs G/L Debit
83 Price difference G/L Debit
84 Consumption G/L Debit
85 Change in stock G/L Debit
86 GR/IR debit G/L Debit
90 Stock initial entry G/L Credit
91 Costs G/L Credit
93 Price difference G/L Credit
94 Consumption G/L Credit
95 Change in stock G/L Credit
96 GR/IR credit G/L Credit
Account Type Asset Posting Keys

Posting Key Description Debit/Credit
70 Debit Asset Debit
75 Credit Asset Credit
Account Type Material Posting Keys

89 Stock inward movement Material Debit
99 Stock outward movement Material Credit
Account Type Vendor Posting Keys

21 Credit memo Vendor Debit
22 Reverse invoice Vendor Debit
24 Other receivables Vendor Debit
25 Outgoing payment Vendor Debit
26 Payment difference Vendor Debit
27 Clearing Vendor Debit
28 Payment clearing Vendor Debit
29 Special G/L debit Vendor Debit
31 Invoice Vendor Credit
32 Reverse credit memo Vendor Credit
34 Other payables Vendor Credit
35 Incoming payment Vendor Credit
36 Payment difference Vendor Credit
37 Other clearing Vendor Credit
38 Payment clearing Vendor Credit
39 Special G/L credit Vendor Credit
Posting key Configuration Steps :- Transaction Code – OB41

Step 1 :– Enter T-Code SPRO in the Command Field and press enter
Step 3 :- Follow the IMG Menu path

SPRO > Implementation Guide –> Finance Accounting –> Finance Accounting Global
Settings –> Documents –> Line Item –> Controls –> Define Posting Keys
Step 4 :– Click on Create Icon
Step 5:- Update two digits numerical key code in the Posting key field and update name
of the posting key in the name of the posting key field
How to define Document Types in SAP Fico | Document Types SAP

Tutorial guides you about document types and how to define Document types in SAP.
Define Document types :- Document types are defined at the client level so document
types are apply for all company codes. Document type key is used to classify
accounting documents and distinguish between business transactions to be posted
Document Types Determines :-

 Define Number ranges for documents
 It controls Account types allowed for postings e.g. Assets, vendor, Customer, Normal Gl
Account
 Document type that to be used for reversal postings.
SAP Tutorials
Document Types Description :-

Document Document Type
Type Description
AA Asset posting
AB Accounting document
AF Dep. postings
AN Net asset posting
DG Customer credit memo
DR Customer invoice
DA Customer document
DZ Customer payment
EU Euro rounding diff.
EX External number
KA Vendor document
KG Vendor credit memo
KN Net vendors
KP Account maintenance
KQ Transporter Invoice
KR Vendor invoice
KZ Vendor payment
KS Contract Invoice
KV Raw Material Payment
KW Contractor Payment
KX Transporter Payment
KY Stores Payment
ML ML settlement
PR Price change
RA Sub.cred.memo stlmt
RE Invoice – gross
RN Invoice – net
RV Billing doc.transfer
SA G/L account document
SB G/L account posting
SK Cash document
SU Adjustment document
UE Data transfer
WA Goods issue
WE Goods receipt
WI Inventory document
WL Goods issue/delivery
WN Net goods receipt
ZP Payment posting
ZR Bank reconciliation
ZS Payment by check
ZV Payment clearing
Document type configuration steps :-

Step 1 :– Enter T-Code SPRO in the Command Field of the SAP Easy Access Menu
Screen and press Enter key on the Keyboard
Step 3 :- In next screen follow the IMG menu path for defining Document types
IMG Menu Path :- SAP Customizing Implementation Guide –> Financial A/C –
> Global Settings –> Documents –> Document Header –> Define Document types
Step 4 :- In next screen click on new entries to create new document key
Step 5 :- Update the required data

1. Document Type :– Enter unique 2 digits code
2. Number Range :– Enter number range code
3. Reverse Document Type :- Enter reverse document type key code
4. Number Range Information :- Number ranges are maintained for the document
types
5. Accounts Types allowed :– Select account type for the document type i.e Assets,
Customer, Vendor, Material, G/L Account
6. Control Data:- Select control data for the document type
Step 6 :- After maintaining the required data, click on save
Step 7 :– After saving document type key, update the description of the document key
and click on save icon.
Thus document types are successfully configured.
Step 6 :- Update the following data

1. Debit/Credit indicator :– Select the debit or credit
2. Account Type :- Select appropriate account type
3. Other attributes :- Select appropriate attribute i.e Sales related or Special G/L
4. Reversal Posting Key :- Update the reversal posting key
Step 7 :- click on save icon
Posting key successfully configured in SAP

Posting Key Name Debit/Credit
70 Debit asset Asset Debit
75 Credit asset Credit
Interview Questions :-
What is posting key and what does it control?
How to define Document Types in SAP Fico | Document Types SAP

Tutorial guides you about document types and how to define Document types in SAP.
Define Document types :- Document types are defined at the client level so document
types are apply for all company codes. Document type key is used to classify
accounting documents and distinguish between business transactions to be posted
Document Types Determines :-

 Define Number ranges for documents
 It controls Account types allowed for postings e.g. Assets, vendor, Customer, Normal Gl
Account
 Document type that to be used for reversal postings.
SAP Tutorials
Document Types Description :-

Document Document Type
Type Description
AA Asset posting
AB Accounting document
AF Dep. postings
AN Net asset posting
DG Customer credit memo
DR Customer invoice
DA Customer document
DZ Customer payment
EU Euro rounding diff.
EX External number
KA Vendor document
KG Vendor credit memo
KN Net vendors
KP Account maintenance
KQ Transporter Invoice
KR Vendor invoice
KZ Vendor payment
KS Contract Invoice
KV Raw Material Payment
KW Contractor Payment
KX Transporter Payment
KY Stores Payment
ML ML settlement
PR Price change
RA Sub.cred.memo stlmt
RE Invoice – gross
RN Invoice – net
RV Billing doc.transfer
SA G/L account document
SB G/L account posting
SK Cash document
SU Adjustment document
UE Data transfer
WA Goods issue
WE Goods receipt
WI Inventory document
WL Goods issue/delivery
WN Net goods receipt
ZP Payment posting
ZR Bank reconciliation
ZS Payment by check
ZV Payment clearing
Document type configuration steps :-
Screen and press Enter key on the Keyboard
Step 3 :- In next screen follow the IMG menu path for defining Document types
IMG Menu Path :- SAP Customizing Implementation Guide –> Financial A/C –
> Global Settings –> Documents –> Document Header –> Define Document types
Step 4 :- In next screen click on new entries to create new document key
Step 5 :- Update the required data

1. Document Type :– Enter unique 2 digits code
2. Number Range :– Enter number range code
3. Reverse Document Type :- Enter reverse document type key code
4. Number Range Information :- Number ranges are maintained for the document
types
5. Accounts Types allowed :– Select account type for the document type i.e Assets,
Customer, Vendor, Material, G/L Account
6. Control Data:- Select control data for the document type
Step 6 :- After maintaining the required data, click on save
Step 7 :– After saving document type key, update the description of the document key
and click on save icon.
Thus document types are successfully configured.
Define Document Number Ranges in SAP

Document number ranges are defined at the specific interval with in which documents
should be created in SAP and document number ranges depends upon company code
and valid for the defined year. We can assign one or more document types to each
number range. The number range becomes effective by the document type specified in
document entry and posting
Steps to Define Document Number Ranges in SAP

T-Code to Maintain document number ranges :- FBN1
IMG Menu Path :-
Implementation Guide > Financial Accounting > Global Settings > Documents >
Document Number Range > Define Document number range
Screen and press enter key on the Keyboard
Step 2 :– In next screen click on Click SAP Reference IMG

Step 3 :- Follow the menu path as per below screen shot.
Step 4 :– In next screen update company code and click on change intervals
Step 5 :– Next Click on Insert Interval
Step 6 :- Lets create number range for document type “AA”

1. No :– Update the Number range code of document type AA
2. Year :- Enter Year
3. From Number :– Enter from number
4. To Number :- Enter To Number
5. Current Number :- By default the current number will be “0”
6. Ext :- Type of number assignment i.e for Internal or External
7. Save :- Click on save icon to save the settings
8. Interval :- Click on Interval to maintain the number range for another document type
Document number ranges are successfully configured in SAP
Define Tolerance Group for Employees in SAP

The Authorization given to the employees for the maximum amount permitted per
transaction in SAP.Tolerance group for Employees determines the maximum
document amount the employees is authorized to post and maximum amount can enter
as a line item in a Vendor account or customer account.
Tolerance group is created and assigned to the employees .
Steps to Define Tolerance group for employees :-

Transaction code for Define Tolerance Group for Employees :- OBA4
IMG Menu Path :- SAP Implementation Guide –> Financial A/C –> G/L Accounting –
> Business transactions –> Open Item Clearing –> Clearing Differences –> Define
tolerance group for employees
Screen and press enter key on the Keyboard
Step 2 :- Click on SAP Reference IMG
Step 3 :– Follow the navigation as per below screen shot

Step 4 :- Click on New entries
Step 5 :- In next screen update the following data for configure the tolerance group for
employees
1. Group :- Enter four digits unique code
2. Company code :- Enter appropriate company code that you wants to define
tolerance group and currency will be automatically updated
3. Amount per document :- Enter the maximum document amount the employees is
authorized to post
4. Amount per open item account item :– Enter the maximum amount the employees
is authorized to process the open items
5. Cash discount per line item :- Enter the maximum cash discount percentage the
employee can grant per line item
6. Permitted payment difference :- Enter the amount that is permitted for payment
difference in Revenue and expense field
7. Percentage :- Enter the percentage that is permitted for the payment difference.
Step 5 :- After maintaining all the required information click on save icon
Thus tolerance group for employees is successfully configured.
Define Tolerance Groups for G/L Accounts
Define Tolerance Groups For G/L Accounts

Menu Path :- SPRO > SAP Reference IMG –> Financial Accounting –> General Ledger
Accounting –> Business Transactions –> Open item clearing –> Clearing Differences –
> Define Tolerance Groups for G/L Accounts
Transaction Code: – OBA0
Click on “New entries” to maintain the entries
In new entries screen, update the following data.

 Enter the company code
 Update the tolerance group description
After updating data, choose save icon to save the configured data.
Assign Users to Tolerance Groups
Assign Users to Tolerance Groups

Access the transaction by using the following navigation method.
IMG –> Financial Accounting –> General Ledger Accounting –> Business
Transactions –> Open item clearing –> Clearing Differences –> Assign User
to Tolerance Groups.
Transaction code : OB57
On the screen, change view “Assign users –> Tolerance group “: Overview, click on new
entries
On the new entries screen, update the user name and tolerance group that you want to
assign users to tolerance group.
After assigning user to
tolerance group, click on save button to save the data.
Enter Global Parameters for Company Code OBY6
Enter Global Parameters

SAP IMG Path : – SPRO -> SAP Reference IMG (F5) -> SAP Customizing
Implementation Guide -> Financial Accounting -> Financial Accounting Global
Settings -> Company Code -> Enter Global Parameters.
Transaction Code: – OBY6
Double click on your company to enter global parameters
Update the following fields.

> Chart of accounts: – chart of accounts is a list of GL accounts master record
that are used by the organisation. A chart of accounts must be assigned to each company
code and it is defined at client level.
> Country charts/Accounts :-Enter country chart of accounts if the company
code that you configured has a special country or statutory chart of accounts.
> Company: – Company is the organisational unit for which individual financial
statements can be drawn according to the relevant commercial law. A company can
comprise of one or more company codes and it has local currencies in which its
transactions are recorded.
> FM Area: – Enter Financial management (FM) area key if you are using funds
management and it is used for function of the treasury module.
> Credit Control Area: – Enter your credit control area key for your company code. It
controls the credit limits for your customers.
> Fiscal Year variant: – Fiscal year variant is used to define the fiscal year ,
it contains 12 normal posting periods and 4 special periods. We can define maximum 16
posting periods for each year. Special periods are used for Year end activities.
> Company code is productive:- This settings is applicable for your production
client., it is not possible to delete transaction data from the SAP system after you set
your company code is as productive.
> Vat. Registration no: – Enter vat (value added tax) registration number here.
> Posting period variant: – The Posting Period Variant is used to control which
accounting period is to be open for posting and ensuring that closed periods are remain
balanced and reconciled.
> Propose value data:- Select this indicator to make the current date as default date
by the system. The valued date is used for accounts payable, accounts receivable and
treasury transactions.
> Max. Exchange rate deviation : – Enter maximum exchange rate percentage in
which a foreign currency transactions can deviate from the rates enter in the exchange
rate table.
After updating all the mandatory fields, click on save icon to save the configured data.
Define Additional Local Currencies for Company code
Define additional local currencies

The following SAP training tutorials guides how to define additional local currencies for
company code step by step. In our previous training tutorials we have learnt how to
enter global parameters for company code.
You maintain additional local currencies for company code by using one of the following
transaction navigation method.
 SAP IMG Path: – SPRO > IMG > Financial Accounting > Financial Accounting and
global settings > Company code > Parallel currencies > Define Additional local currencies.
 Transaction code: – OB22
Step 1: – Enter transaction code “OB22” in the SAP command field and enter.
Step 2: – On additional local currencies for company code overview screen, click on
new entries to create new parallel currencies as per organization requirements.
Step 3: – On new entries screen, update the following fields.

1. Company code: – Update the company code that you want to configure, after updating
company code press enter.
2. Ist local currency: – After updating your company code, the 1st currency field
automatically fills with all the details of your company code currency that you enter
during company codedefinition.
3. 2nd local currency: – Every company code can have two parallel currencies, you can
get here more details about currencies. Update the following details.
 Currency type: – Update the parallel currency type that you want to configure,
possible currency types are hard currency, group currency, index based currency and
Global company currency.
 Ex rate type: – Update the Ex rate type that determines how the foreign
currencies are valued at the time of currency translation and revaluation.
 Source currency: – Update the currency that determines the foreign currency
to be translated against the source currency.
 Translation date type: – Update the specific translation type as per
organization requirement. It determines the foreign currency to be translated based on
document type, posting date and translation date.
4. 3rd local currency: – Update the 3rd local currency for company, here we are updating
group currency as 3rd currency
After updating all the details of additional currency for company code, click on save
button and save the configured data.
How to Create New Chart of Accounts in SAP | Chart of Accounts in FICO
This Tutorials guide you how to create chart of accounts in SAP step by step. Let
discuss about chart of accounts and types of chart of accounts in SAP
Definition of Chart of Accounts :-

The chart of accounts in SAP ( COA ) is a list of GL accounts master record that are
used by the organisation. The master chart of accounts must be assigned to each
company code. Chart of Accounts is defined at client level.
Types of Chart of Accounts :-

 Operating chart of Accounts
 Country Specific chart of Accounts
 Group Chart of Accounts
SAP Tutorials
Operating chart of Accounts :-

The operating chart of accounts in sap contains the G/L accounts that uses for
posting in company code for daily activities and used in both financial accounting and
cost accounting. You have to assign operating chart of accounts to a company code
Country Specific chart of Accounts

The country-specific chart of accounts in sap contains the G/L accounts needed to
meet the country’s legal requirements. country specific chart of accounts are assigned
to company codes and this is optional.
Group Chart of Accounts :-

The Group chart of accounts in sap contains the G/L accounts that are used by the
entire corporate group and this COA is used to consolidate the reports for the entire
corporate group
we can use the following methods to Create new chart of accounts in SAP
1. Transaction Code :– OB13
2. SAP Menu Path :- IMG –> Financial Accounting –> General Ledger Accounting –>
G/L Accounts –> Master Data –> Preparations –> Edit Chart of Accounts List
Chart of Accounts in sap Configuration Steps:-
Step 1 :- Enter the Transaction code SPRO in the SAP commend field to get the
Implementation Guide
Step 2 :- Click on SAP Reference IMG
Step 3 :- Navigate the below Path and click on Edit Chart of Accounts List to create
new Chart of Accounts
Step 4 :- The Existing Chart of Accounts which are already created are displayed
below, Click on New entries button to create new Chart of Accounts in SAP
Step 5 :- Update the required data in new entries screen
1. Chart of Accounts :- Enter the 4 digit alphanumeric code of the Chart of Accounts
2. Description :– Enter the Description of the Chart of Accounts
3. Maintain Language :- Select the language of the Chart of Accounts
4. Length of G/L Account Number :– Update the length of Gl Account Number
5. Integration :- We can have controlling Integration Manual creation of cost of
elements or Automatic creation of cost of elements. It is advisable to have Manual
creation of elements in SAP
6. Consolidation :– Enter the Group Chart of accounts for the consolidation of Reports.
7. Status :- Under status Deselect the Blocked Check box.
After updating the required data click on save icon you will get message “Data was
saved”
Thus Chart of Accounts in SAP ADAR was created.
Related Interview Questions :-

What is a Chart of Accounts and types of COA ?
What are the Major Components of a Chart of Accounts?
Assign Company Code to Chart of Accounts in SAP

This tutorial guides you how to Assign Company Code to Chart of Accounts in SAP FI
IMG Menu Path :- Implementation Guide –> Financial accounting –> G/L Accounting –
> GL Accounts –> Master Data–> Preparations –> Assign Company Code to Chart of
Account
Transaction Code :- OB62
Step 1 :- Enter transaction Code SPRO in the SAP command field and press enter
Step 3 :- Follow IMG menu path and select Assign Company Code to Chart of Account
Step 4 :- Click on position
and update company code and press enter
Step 5 :- Update chart of account key in the Chrt/Accts field
Ste 6 :- Click on Save icon to save the configured data and message will be displayed ”
Data was Saved”
Thus Company code is successfully assigned to chart of account

How to Create Account Group in SAP
This Tutorial guides you how to Create account group in SAP FICO step by step with
screen shots. You can create new accounts group as per customer requirement.
Define Account Group :– Chart of accounts contains different types of accounts, In
order to manage and control a large number of G/L accounts better in SAP, they are
arranged in account groups. Account group must be specify while creating the G/L
account
Account Group Determines :-

 The interval in which the GL account number must be defined.
 Creation of the GL codes depends upon specified number range that is
assigned to the account group in sap
 Which fields are required and optional entries when creating and changing
master records
 Which fields are suppressed when creating and changing master data
Here we are configuring the following account groups
COA Account group Name From account To account
ADAR SCPL Share Capital 100000 119999
ADAR RSPL Reserves & Surplus 120000 129999
Current Liabilities and

ADAR ACDN 130000 139999
Provisions
ADAR SCLN Secured Loans 140000 149999
ADAR UNLN Unsecured loan 150000 159999
ADAR ACDP Accumulated Depreciation 160000 169999
ADAR FAAC Fixed Asset Accounts 170000 179999
ADAR CUAS Current Assets 180000 189999
ADAR LOAD Loans and Avances 190000 199999
ADAR SALE Sales & Operating Revenues 200000 219999
ADAR OTIN Other Income 220000 229999

ADAR INCR Increase / Decrease in stocks 230000 239999
ADAR RMCO Raw material consumption 240000 249999
ADAR PREX Personnel Expenditure 250000 259999
ADAR MFEX Manufacturing Expenses 260000 269999
ADAR ADMN Administration Expenses 270000 279999
ADAR INTR Interest 280000 289999
ADAR DEPR Depreciation 290000 299999
ADAR INTX Income Tax Expenses 300000 319999
Steps to Define Accounts group in SAP :-

T Code for Define Account Group :- OBD4
IMG Menu Path :- SAP Implementation Guide > Financial accounting –> G/L
Accounting –> GL Accounts –> Master Data–> Preparations –> Define Account
Groups
Step 1 :– Enter T Code SPRO in the SAP Command field
Step 3 :- Next Screen follow the menu path for define account group in SAP
Step 4 :- Select New entries to create new G/L account groups
Step 5 :- Update the following fields and press enter from Key board.
Chrts/Accts :- Enter Charts of Account Key
Acct Group :- Enter the Account group
Name :- Update the of account group
From Acct :– Enter from account number i.e starting account number of account
group in SAP
To Account :- Enter to account number i.e end of account number of Account group
in SAP
Step 6 :- After Updating the data save the data by clicking save icon
Thus Account groups are successfully configured in SAP

How to Define Retained Earnings Account SAP
This tutorial guides you how to define retained earnings account in SAP FI.
Retained Earning Account :– Account balances are carried forwarded from one
fiscal year to the next fiscal year by using the SAP standard carry forward program.
Retained earnings account is assigned to each P&L account by specifying a P&L
statement account type in the chart of accounts (COA).Each Profit & Loss account is
assigned to a Retained Earnings Accounts by key
For automatically carry forward the balance by the system to the retained earnings
accounts, you can define one or more P&L statement account types per COA and
assign them to retained earnings account.
Steps to Define Retained Earning Account :-

T Code for define retained earning account :- OB53
IMG Menu Path :- IMG > IMG –> Financial Accounting –> General Ledger
Accounting –> GL Accounts –> Master Data–> Preparations –> Define Retained
Earnings Account
Step 1 :-
Enter Transaction Code SPRO in the SAP command field and press enter
Step 3 :- Follow the IMG menu path for define retained earnings account
Step 4 :-
Next Enter Chart of Accounts key that you wants to define retained earning account
for COA and press enter
Step 5 :-
Update the following data and press enter
P&L Statement acct type :- X
Account :- Enter account 120000
We get a warning message account 120000 not created in chart of accounts ADAR
Step 6 :- Ignore the warning the message press enter. Press enter once again and save
the configured retained earnings account.
Thus Retained Earnings Account is successfully configured in SAP
efine Sample Account Rule Types in SAP
Sample Account Rule Types

The following training tutorials guides you how define sample account rule types in SAP
step by step. With the help of sample account you can define similar accounts with
central control procedures and values copied to company code.
Two steps to be configured before use of Sample accounts.
1. Sample account rule type

2. Define Transfer rules.
Let check how to configure sample account rule type in SAP.
You can configure account rule type by using one of the following navigation method.
SAP Path: – SPRO > IMG > Financial Accounting > General ledger accounting > G/L
accounts > Master data > Preparations -> Additional Activities -> Sample accounts ->
maintain sample account rule types
Transaction code: – OB15
Step 2: – On sample account rules variant screen, click on new entries to maintain new
entries as per your organization requirements.

1. Variant: – Enter the four digits alphanumeric key that identifies the sample account
rule variant in SAP
2. Long text: – Update the descriptive text of the variant.
After maintain the variants, click on save button and save the configured data.
Continue reading for how the sample account rule variant is link to data transfer rules.
Define Sample Account Rule Types in SAP
Sample Account Rule Types

The following training tutorials guides you how define sample account rule types in SAP step by
step. With the help of sample account you can define similar accounts with central control
procedures and values copied to company code.
Two steps to be configured before use of Sample accounts.
1. Sample account rule type

2. Define Transfer rules.
Let check how to configure sample account rule type in SAP.
You can configure account rule type by using one of the following navigation method.
SAP Path: – SPRO > IMG > Financial Accounting > General ledger accounting > G/L accounts
> Master data > Preparations -> Additional Activities -> Sample accounts -> maintain sample
account rule types
Step 2: – On sample account rules variant screen, click on new entries to maintain new entries as
per your organization requirements.

1. Variant: – Enter the four digits alphanumeric key that identifies the sample account rule variant
in SAP
2. Long text: – Update the descriptive text of the variant.
After maintain the variants, click on save button and save the configured data.
Define Data Transfer Rules
Data Transfer Rules

The following training tutorials guides how to define data transfer rules in SAP step by
step. In our previous ERP SAP tutorials we have learnt how to define sample account
rule type.
You can configure data transfer rules in ERP SAP Systems by using one of the following
navigation method
Transaction code: – FSK2
SAP IMG Path: – SPRO > IMG > Financial Accounting > General ledger accounting >
G/L accounts > Master data > Preparations -> Additional Activities -> Sample accounts
-> Define data transfer rules
Step 1: – Enter transaction code “FSK2” in the SAP command field and enter.
Step 2: – On determine work area screen, update sample account rules variant key and
press enter.
Step 3: – On rules for sample account overview screen, update the following fields.
1. Cannot be change if set: – Select this option for specific fields to transfer the data
from sample account and prevents the overwrite if the fields contains the data.
2. Cannot be changed if initial: – Select this option for specific fields to transfer the
data and prevent making an entry if the value of the field is blank
After enter the details, click on save button and save the configured data transfer rules.
Assign company code to Rule type
Assign company code to Rule type

The following training tutorials guides you how to assign company code to rule type in
SAP step by step. After configured sample account rule type and data transfer rules, you
have to assign company code to sample account variant.
You can assign company code to sample account rule type by using one of the following
navigation method.
SAP IMG path: – SPRO > IMG -> Financial Accounting -> General ledger
accounting -> G/L accounts -> Master data -> Preparations -> Additional Activities
-> Sample accounts => Assign company code to rule types.
Step 1: -Enter transaction code “OB67” in the SAP command field and press enter.
Step 2: – Click on position button and enter your company code to display.
Step 3: – Update sample account rule variant key for your company code and press
enter.
After assigning company code rule variants, click on save button and save the
configuring details. All the configuration steps are completely configured, now you can
create sample accounts.
How to Create sample Account in SAP
Create Sample Account

The following training tutorials guides you how to crate sample account in SAP FICO
step by step.
You can create sample account by using one of the following navigation method.
 Transaction code: – FSM1

 SAP Menu –> Accounting –> Financial Accounting –> General Ledger –> Master
records –> GL Accounts –> Sample Account –> Create (Create sample Account in
SAP )
SAP Training Tutorials
Menu Path for creation of Sample account in SAP.
Menu Path – Create sample Account

Step 1 : -Enter transaction code “FSM1” in the sap command field and enter.
Step 2: – On the initial sample account creation screen, update the following fields.
1. Sample account: – Enter the sample account key that you want to create
2. Chart of accounts: – Update the chart of account key that account belongs to COA.
Step 3: – On control screen, update the following details.
 Name of sample account: – Update the descriptive name of the sample account
 Field status group: – Update the field status variant from the drop down list.
After updating the details, click on save button and save the created sample account.
How to Create G/L General Ledger Account Master Record

Tutorial guides How to Create G/L General Ledger Account Master Record in SAP
FICO.
G/L General Ledger Account Master Record can be created at different levels
 Centrally (FS00 – Centrally)
 Chart of Account Level creation (FSP0 – In Chart of Accounts)
 Company Code Level Creation (FSS0 – In Company Code)
SAP R/3 Menu Path :- Accounting > Financial Accounting >General Ledger > Master
records > G/L Accounts > Individual Processing > Centrally
Transaction Code :– FS00
Steps to create New General Ledger Account Master Record
SAP Tutorials
Step 1 :- On the Edit G/L Account Centrally screen, update the following entries:
1. G/L Account :- Enter the account number of the G/L account that is being created
2. Company code :- Enter Company code ID Key
3. Choose Create icon to create a new General ledger Account.
Step 2 :- After click on Create icon update the following fields
Control in Chart of Accounts –

1. Account Group :- The account group determines the fields for the entry screens . The
account group determines which number interval the account must be GL account to be
created. Click the drop down menu and select appropraite account group for the GL
account
2. P&L statement account type :- If GL account is for P&L account, select this field
3. Balance sheet account :- If GL account is for Balance Sheet account, select this
field
Description :-
Short text :- Enter the Short description of the GL Account
G/L acct long text :- Enter the long description of the GL Account.
Consolidation Data in Chart of Accounts
Trading partner :– Trading Parting partner is used to prepare consolidated financial

statements
Step 3:- Choose the “Control Data” tab and update the following
Account control in Company Code :-

1. Account currency :- Update the currency in which the account will be managed
2. Only Balances in Local Currency :– This field used to update the balance only in local
currency when users post items to this G/L account
3. Exchange Rate Difference Key :– Use the drop down Menu and select Exchange Rate
Difference Key
4. Tax category :- Use the drop down menu and choose tax code key if account is tax
relevant
5. Posting with out tax allowed :- Select box if posting for the accounts is without tax
6. Recon. account for account type :- select the drop down menu and select Asset or
Customer or Vendor if account is for Reconciliation account.
7. Alternative account number :– It may be used to indicate the account number from the
legacy system.
8. Tolerance group :- Select this field for open item clearing differences
Account Management in Company Code :-
9. Open item management :- Select this field if account to be display as per open item
lines, open item management is used for only balance sheet accounts.
9. Line item Display :– Select this field if account to be display as per line item.
10.Sort key :- Select Drop down menu and select appropriate sort key for the account
Step 4:- Select Create/Bank/Interest” tab

Control of Document Creation in Company Code :-
1. Field status group :– FSG determines the screen layout for document entry. select
drop down button and select appropriate FSG Key.
2. Post automatically only :- Check box if account can posted by the system using
account determination table
Bank/Financial Details in Company Code :-
3. Planning level :- planning level field is used to control displays in Cash

Management.
4. Relevant to cash flow :– Relevant to cash flow field determines that the GL account
is a cash flow account
5. House bank :- click drop down menu and select if account is Indicator for the
company bank
6. Account ID :- Account ID field determines House Banks of account
Interest Calculation Information in company code :-
7. Interest indicator :- Click drop drop button and select interest calculation indicator if
the account is to be included in automatic interest calculation.
8. Interest calc. Frequency :– Click drop drpp button and select Interest calc.
Frequency if the interest is to be calculated automatically for this account at intervals
9. Key date of last int. calc :– Click drop drop button and select Key date of last int.
calc, that the date of last time interest calculation program processed for this account.
10. Date of last interest run :-The date of the last interest run calculation for this
account
Step 5 :– Click on Save icon to save the configured entries.

TAX Check Calculation Procedure SAP
Check Calculation Procedure SAP

The following tutorials guides you how to check calculation procedure in SAP step by
step
IMG Path :- SPRO > IMG > Financial Accounting > Financial Accounting Global
Settings > Tax on Sales/Purchases > Basic Settings > Check Calculation Procedure
The standard system comes with two tax calculation procedures.
 TAXINN – Condition Based
 TAXINJ – Formula Based
TAXINN :- TAXINN supports only condition based excise determination
TAXINJ :- TAXINJ support the condition based and as well as formula based excise
determination
The difference between TAXINN and TAXINJ procedure is, TAXINN is a condition
based and we have to maintain condition records for each condition type and TAXINJ
is a formula based for which we maintain a tax code by using FTXP
Tax calculation procedure configuration process :- Tax procedure can be defined by
coping existing procedure or by defining new entries
Select “Define procedure”
Select TAXINJ and click on copy as icon,
Update your new tax procedure key and press enter
Then select “copy all” , all the entries from TAXINJ copied to new tax procedure
TAXADE
Select Tax procedure and double click on control data

Next control data overview screen , check all condition type, add new conditional as
per company requirement
Click on save icon to save the configured data. Successfully you defined new
procedure.
Define New Condition types for Taxes
Condition types for Taxes

Standard SAP provides you condition types which are defined in the SAP System. You
can create new customized condition types as per your business requirements.
SAP IMG Path: – SPRO > SAP Reference IMG (F5) > Financial Accounting > Financial
Accounting Global Settings > Tax on Sales/Purchases > Basic Settings > Check
Calculation Procedure > Define Condition types
Transaction Code: – OBYZ
Step 1: – Click on condition type
Next change view “condition: condition types” overview screen, click on new entries to
define new condition types
Step 2: – Enter the following fields

 Maintain the condition class
 Maintain the calculation type
 Maintain access sequence for the tax condition type
 Select the condition category
 Select the group condition if it is applicable
 Update the fields “Changes which can be made”
After maintain the data, click on save icon to save the configured data. Successfully you
defined new condition types for taxes.
Similarly create new condition types for CST, VAT, Service taxes, Excise duties etc. After
creating new condition types, assign to tax procedure.
click on “define procedures” and in next screen select tax procedure and double click on
control data.
Choose “New entries” and update the following fields .
1. Enter step number

2. Enter condition type key
3. Enter the from number (tax to be calculate from step#)
4. Select account key( input tax, output tax etc.)
Choose save icon to save the configured data.
How to Assign Country to Calculation Procedure
The following tutorials guide you How to Assign Country to Calculation Procedure in
SAP step by step
IMG Path :- SPRO > IMG > Financial Accounting > Financial Accounting Global
Settings > Tax on Sales/Purchases > Basic Settings > Assign Country to Calculation
Procedure
Transaction code :- OBBG
After defining Calculation Procedure, next step assigning country to calculation
procedure
>> Select position and update country key
Update tax procedure key in the procedure field and press enter
Click on the save icon to save the data, successfully country assigned to calculation
procedure.
Specify Structure for Tax jurisdiction code

The tax jurisdiction specifies the different taxing authorities to which you submit
payments up to four levels representing State, country, City and other in your tax
jurisdiction structure.
Accounting global settings > Tax on sales/Purchase > Basic setting > Specify
structure for tax jurisdiction code
Transaction Code: – OBCO
Update the following fields

1. Enter the name of the tax jurisdiction code structure
2. Update the description of tax jurisdiction code structure
3. Enter the length of first level, second level, third level and fourth level of hierarchy
within your tax jurisdiction code structure.
4. Set the Tax ln indicator to determine taxes on a line by line.
Click on save icon icon to save the configured data .
How to Create tax codes in SAP – FTXP

The following tutorials guides you how to create tax code step by step in SAP. We are
creating output tax VAT 5%.
Create new tax code by using the following methods
Accounting Global Settings > Tax on sales/purchase > Calculation > Define tax codes
for sales and purchases
Transaction Code: – FTXP
Step 1: – A pop up screen will be open asking for country key that you are configuring
for. Enter country key and press enter to continue
Step 2: – Enter new tax code in the tax code field and enter
Step 3: – Update the following data.
1. Update the description of tax code
2. Enter tax type i.e V is for Input Tax and A is for output tax
Step 4: – Enter tax rate in the tax.percent.rate field
Choose save icon to save the data. A message will be displayed as ” Tax code was
created”
Assign Tax Codes for Non-Taxable Transactions
Assign Tax Codes for Non-Taxable Transactions

The following tutorial guides you how to Assign Tax Codes for Non-Taxable
Transactions in SAP.
SAP IMG Path :- SAP Reference IMG (F5) > Financial Accounting > Financial
Accounting Global Settings > Tax on sales/purchase > Postings > Assign tax codes
for non taxable transactions.
Transaction Code: – OBCL
Select position button and enter your company code
Update Input tax (V0 – 0% input tax) and output (A0 – 0% Output tax) indicator for
non-taxable transactions.
Choose save icon to save the data. Successfully you have assigned tax codes for non-
taxable transactions in SAP.
SAP FICO - Global Parameters
1.Define Account Group in SAP | What is Account Group

What is Account Group in SAP
An account group is a segregating or grouping the similar
accounts in to single group. Each account group in SAP is
assigned to a chart of accounts, so you can only use
account group if the controlling areas use the same chart
of accounts. The account groups in SAP specifies:
 The account number rage interval from which
the account number is selected when you are
creating general ledger master record.
Why Account Group
If you want to check current asset balances or prepare
P&L accounts, Balance sheets, you need to verify each
and every account and then you need to add and assign
to their respective accounts. This process may take lot of
time. So to overcome this issues SAP has has provided
account groups.
With in account group you can prepare accounts with in

number range. For example you can prepare cash
accounts with any account number for current assets
number range 200000 -200099.
In Real time business scenario, we suggest
 All Liabilities accounts to start with 1 series.
 All Asset accounts to start with 2 series.
 All income accounts to start with 3 series.
 All Expenditure accounts to start with 4 series.
Why we need to follow accounts within series – When the
user posting to salaries account, which is an expenditure
account. At the time of posting when he give *4, only
expenditure accounts appears in the list.
In this configuration we are going to define the following

account groups.
Acct To
Chrt/Ac Grou From accou
cts p Name Acct nt
Share 1000 10009

TKCA SCPL Capital 00 9
Reserves & 1001 10019

TKCA RSPL Surplus 00 9
Accumulate
d 1002 10029
TKCA ACBL Depreciation 00 9
TKCA SCLN Secured 1003 10039

Loans 00 9
Unsecured 1004 10049

TKCA UNSL Loans 00 9
Current
Liabilities & 1005 10059
TKCA CLPR Prov 00 9
2000 20009
TKCA FAST Fixed Assets 00 9
Current
Assets, 2001 20019
TKCA CAST Loans & Adv 00 9
3000 30009
TKCA SALE Sales 00 9
Other 3001 30019

TKCA OTHR Income 00 9
Increase /
Decrease in 3002 30029
TKCA INCR Stock 00 9
Raw Material
Consumptio 4000 40009
TKCA RMCN n 00 9
Personnel 4001 40019
TKCA PRSN Cost 00 9
Manufacturi 4002 40029

TKCA MFRG ng cost 00 9
Administrati 4003 40039

TKCA ADMN on cost 00 9
4004 40049
TKCA INTR Interest 00 9
4005 40059
TKCA DEPR Depreciation 00 9
How to create Account Group in SAP
SAP FICO Tutorial – SAP FI & SAP CO

Training Tutorials
SAP FICO Tutorial : Free SAP FI Training
SAP FICO tutorial – Learn how to implement and configure SAP FI (Financial
Accounting) and SAP CO (Controlling) module step by step with real time project
scenarios and issues. This SAP FICO training tutorials are designed for all
beginning and professionals learners that helps to boost your knowledge on SAP
FICO module.
SAP FICO stand for Financial Accounting and Controlling, it is one of the
important module of SAP R/3 system that handles all the financial activities of an
organization. SAP FI module maintains the day to day financial transactions on
real time basis and generates the reports for external purpose. SAP CO module
is used for organizational internal reporting purpose and provides the information
for the management for effective decision making.
SAP FICO module can be integrated with other SAP modules such as sales &
distribution module, Human resource management, Production planning, Material
Management, Project systems, etc. Posting that are made in these SAP modules
with financials implications that replicates the data in FICO module on real time
basis.
Important sub modules of SAP FICO:-
The important sub-modules of SAP Financial Accounting (FI) are
 General Ledger Accounting : – SAP FI-G/L records all the transactions that
posted in SAP and display the real-time status of the financial accounts of an
organization.
 Accounts Payable: – It is a sub ledger accounting that records all the
business transactions of vendor purchase activities and generate automatic
postings in general ledger accounting
 Accounts Receivable: – It is a sub ledger accounting that records all the
accounts of customer’s sales activities and generates automatic postings in
G/L accounting.
 Bank Accounting: – It controls and manages all the activities of bank
transactions of an organization
 Asset Accounting: – SAP FI AA sub-module manages and records the assets
of an organization.
2.How to create Retained Earnings Account in
SAP
In this SAP tutorials, you will learn what is retained earnings accounts and how to
create retained earnings account in SAP FICO step by step with real time
scenarios.
What is Retained Earnings Account in SAP

In the year end, retained earnings account enables to transfer all the profit & loss
account balances to surplus in profit and loss account. Same way all the balance
sheet account balances are carry forwarded to next fiscal year as opening
balance.
The implementation of retained earnings account in SAP is mandatory. If the

retained earnings account is not defined, in the year end you can not transfer the
P&L account balances to next financial year.
Scenario
Up to now we have not created any account, however we can assign on account
for retained earnings account. It is recommended to specify account from
respective account group i.e. reserve surplus account group.
P&L Statement Accou

account type nt
10010
X 0
The appropriate retained earnings encompasses

 Yearly net income carried forward
 Distribution of dividends
 Transfers to appropriations and deductions from appropriations
 Transfer to minority interest and deductions from minority interest.
3.Define Posting Period Variant in SAP |

Variants for Open Posting Periods
In this SAP tutorials you will learn how to define posting period variant that
determines which periods are to be open and close for postings in SAP.. In our
previous SAP tutorials we have created fiscal year variant T3 and assigned to our
company code TK01.
What is Posting Period Variant?

Posting period variant (PPV) is an variant that controls to open and close
the posting periods for entries.
Scenario
During fiscal year 2016, Company TK01 has declared the profitability to its
managements and public up to first quarter i.e 3oth June, 2016. After declaration
of profitability, the profit figures should not be changed.
If we open open periods April 2016 to March 2017, if users posts any
transactions with April date then the profitability figures declared will be changes.
So the SAP consultant close the posting periods from 1st April, 2016 to 30th
June, 2016 and open posting periods from 1st July, 2016 to 31st March, 2017.
 To open posting periods from July 2016 to March 2017, we represent in SAP as
4, 2016 – 12, 2016.
 So the users can post entries from July 16 to March 17, this is called as open
and close posting periods.
 Posting posting period variant enables to close and open posting periods for
all company codes at same time or individually by company code in SAP.
4.Assign Variants to Company Code in SAP

How to assign variants to company code in SAP
In this SAP tutorials, you will learn how to assign variants to company code in
SAP Financial accounting step by step. In our previous tutorials we have learn
how to define variants for open posting periods. After implementation of posting
period variant, we need to assign for company code.
The link between company code and posting period variant is established
through the assignment.
Procedure to Assign Variants to Company Code
CoC Company Varia

d Name City nt
TK0 TK Software Bangalo

1 Limited re TKPV
You can assign posting period variant to company code in SAP by using one of
the following navigation method.
5.Define Open and Close Posting Periods

Variant in SAP
In this SAP FICO tutorials, you will learn how to define open and close
posting periods variant in SAP.
What is Open and close posting periods Variant
In SAP, Open and close posting periods variant enables to open the
current posting periods and other posting periods remains in closed. It controls
what are the posting periods to open and close for entries. Through posting
period variant, you can determine which company codesare open for posting
period.
Scenario
 Current year: – April 2016 – March 2016 – Fiscal year 2016
 Companies Profitability released up to June 2016.
 We need to open posting periods in SAP from July 16 – April 17.
V A F T F Y T Y F Y T Y A
r r
r o o
o m m
m o o o
A p P p P
A cc e e e e
c o r e ri e r e ri e u
a c u . a o a . a o a G
r. t nt 1 r d r 2 r d r r
T 2 2 2 2
K 0 0 0 0
P 1 1 1 1 1 1 1
V 4 6 2 6 3 6 6 6
+
How to define open and close posting periods in SAP
This is one of the important job in real time and only authorised persons are
allowed to control open and close posting periods in SAP. This is a manager level
job and only authorised consultant allowed to perform open and close periods.
You can define variants for open and close posting period by using one of
6.Field Status Groups in SAP | Define Field

Status Variants in SAP
In this SAP tutorials, you will learn what is field status group and how to define
field status variants in SAP.
What is Field Status Group in SAP

During document entry, field status group controls which fields are required
for entry and which fields are set to optional and suppress. The field status
groups are available under field status variant and it will be assigned to company
codes in SAP.
Scenario
At the time of posting on the SAP screen, we get 70 fields approximately like
quantity, Text, Cost Center, profit center, value, date, etc.
For any postings we will have a debit entries and credit entries, so we will have
75 debit fields and 75 credit fields. It is not easy to update all the 150 fields and
post a document. In order to overcome this issue, SAP has provided the option to
make the fields as required, optional and suppress.
Example : – Quantity
Suppress: – If you choose quantity as suppress, at the time of posting this
quantity field will not visible on the screen.
Required: – If you choose quantity as required, at the time of posting quantity
field will appear on the screen and you have to give value in the quantity field.
Required means mandatory, so without quantity value you can not go to next
screen.
Optional: – If you selected quantity as optional, at the time of posting the
quantity field appears on the screen and it is your choice to update value or not.
Without giving value you can go to next screen.
The field selection is not common for all accounts, it varies from account to
account. For example for sales account quantity is required and for salaries
account quantity is not required.
Important Rules of Field Status Variant

 We need to assign field status group at the time of general ledger master
record creation.
 In field status group, we need to specify which field is required, optional and
suppress.
 At the time of postings, the users gives G/L account number. The fields
appears on the screen based on field status groups assigned to G/L.
How to define Field Status Variants
In system, SAP has already provided pre configured field status groups. As per
organizational requirements, we can copy and change the name of variant.
7.How to Check and Enter Company Code

Global Parameters in SAP
In this SAP tutorials, you will learn how to check and enter company code global
parameters in SAP.
Company Code Global Parameters

Global parameters control how a company code behaves in the SAP system,
these parameters influence the way system process the business transactions.
Global parameters are divided in to two categories.
 Accounting organization
 Procession parameters.
8.Define Tolerance Groups for G/L Accounts in

SAP
In this SAP tutorials, you will learn how to define tolerance groups for G/L
accounts in SAP. In our previous training tutorial you have learned how to define
field status variants and field status groups in SAP.
What is Tolerance Groups

In real time business scenario, tolerance groups allows the SAP system to
process and post the transactions beyond the tolerance groups limits. Tolerances
are referred as payment differences, it can be a amount tolerance, percentage
tolerance, and debit & credit tolerance.
Also Read: –
How to define tolerance groups for employees.
How to create retained earnings account in SAP
Implementation steps
You can maintain tolerance groups for G/L accounts by using one of the following
navigation method.
9.Define Tolerance Groups for Employees in

SAP
In this sap fico tutorials you will learn how to define tolerance groups for
employees in SAP. In our previous SAP training tutorial we have learned how to
define tolerance groups for G/L accounts in SAP.
Define Tolerance Groups for Employees
Tolerance groups for employees in SAP determines the upper limits for
postings as per
 Amount per document
 Amount per open item account
 Cash discount
 Payment differences.
Scenario: – If we have 10,000 users and we have create account for every
user which takes lot of time. In order to overcome this issue SAP has developed
tolerance groups. We can define as many as tolerance groups for employees as
per organizational requirements and assign with tolerance limits. The SAP
system doesn’t allow the postings beyond their limits.
For example
Group Group
-A B Group C
Amt per 1,00,0 10,00,0 1,00,00,

document 00 00 000
Amt per 1,00,0 10,00,0 1,00,00,

open item
account 00 00 000
Cash
discount 0 5% 10%
Payment
difference 0 0 0
10.What is Fiscal Year in SAP | What is

Financial Accounting Year
What is Fiscal year in SAP
According to SAP, financial accounting year is referred as “Fiscal Year”. In SAP
fiscal year contains total 16 posting periods, out of these 12 are normal posting
periods and 4 are special posting periods.
Every organization records business transaction in set of books and they have to
close the books in certain period. It may depends on the company and the
country’s policy. For e.g. all companies in US have to close their books on 31st
December every year and all companies in India have to close their books on
31st March every year.
 Indian companies follow fiscal year from April to March with 12 normal
posting periods and 4 special periods.
 US companies January to December with 12 normal posting periods and 4
special periods.
 Normal posting periods are used to post day to day company transactions
and special periods are used for the purpose of adjustments and auditors
rectification entries.
Fiscal year in SAP can be classified as
1. Year Dependent : – Year dependent fiscal year refer as the fiscal year is
only applicable to particular year such as 2015 or 2016. If you select year
dependent check box in fiscal year variant, than you need to create conversion
for every year.
2. Year Independent : – Year Independent fiscal year refer as the fiscal year is
applicable to all the financial account year.
3. Calendar Year : – In calendar fiscal year, posting period start from 1st
January and ends on last day of the year 31st December.
4. Shortened fiscal year: – Shortened fiscal year contains fewer normal
posting periods. Startup companies and new SAP implemented companies
may follow the shortened fiscal year
11.What is Fiscal Year Variant in SAP | How to

Create Fiscal Year Variant
What is Fiscal Year Variant in SAP
In SAP, Fiscal year variant (FYV) is a variant that controls parameters for a
financial year, such as managing financial accounting year and posting period
variants to open and close posting periods. Fiscal year is also known as
accounting year, for example accounting period April 2017 to March 2018 we call
as year 2017-18. In SAP we call as Fiscal year 2017.
–> Financial accounting period is also called as “fiscal year” which consists of 12
periods (1 month = 1 period).
–> Each period in a fiscal year is called as posting period
–> When you post the transactions in SAP R/3 system, than the transactions are
assigned and updated to a particular posting period.
How the companies maintain fiscal year variant

 Indian Companies follow 12 posting periods (April – March) with 4 Special
Periods – V3
 US companies follow 12 posting periods (Jan – Dec) with 4 Special periods –
K4
 Some other companies follow posting periods from July – June or October to
September with 4 Special periods.
12.Assign Company Code to Fiscal Year
Variant in SAP
How to assign company code to fiscal year
variant in SAP FICO?
In this SAP tutorials, you will learn how to assign company code to fiscal year
variant in SAP financial accounting module (SAP FICO) step by step. In our
previous tutorial we have learned what is fiscal year variant and how to create
fiscal year variant in SAP.
The link between company code and fiscal year variant is establish through the
assignment.
CoC Company Fiscal Year

d Name Variant Description
TK0 Tk Software April – March, 4 Spl

1 Limited T3 periods
Configuration steps
You can assign company code to fiscal year variant by using one of the following
method
13.What is Chart of Accounts in SAP | How to

Create COA in SAP
What is Chart of Accounts in SAP?
The chart of accounts in SAP (COA) is a group of general ledger (G/L) accounts
that records the organizational transactions in a structured way. Each general
ledger account consists account number, name and control information.
Types of Chart of accounts
1. Operative chart of accounts
2. Country specific chart of accounts
3. Group chart of accounts
Company codes can follow chart of accounts in two methods.
 All the company codes can use same set of accounts, that means account
coding is same for all company codes. For e.g. Salary account number. we can
easily compare and consolidate.
 If each company code following different set of accounts, than we can not
directly company and consolidate. By using group chart of accounts, we can
compare and consolidate the accounts.
How to create COA in SAP
In this configuration we define
1. Chart of accounts (COA) code

2. Description of chart of accounts
3. Maintenance Language
4. Length of account number.
14.Assign Company code to Chart of Accounts

in SAP
How to Assign Company code to Chart of
Accounts in SAP FICO
In this SAP tutorials, you will learn how to assign company code to chart of
accounts in SAP FICO step by step. In our previous SAP training we have
learned what is chart of accounts and how to create COA in SAP. After creation
of chart of accounts, it is mandatory to assign company code. The link between
company code and chart of accounts is established through the assignment of
company code to chart of accounts in SAP.
Configuration steps
Coc Company Chrt/Ac

d Name City cts
TK0 TK Software Bangalo TKCA

1 Limited re
You can assign company code to chart of accounts in SAP by using one of the
following method.
SAP FICO - Global Parameters
1. What is Chart of accounts and how to create COA in SAP?

2. Assign company code to chart of accounts
3. What is Fiscal year in SAP?
4. How to maintain fiscal year variant
5. Assign company code to fiscal year variant
6. Define account group in SAP
7. Define retained earnings account
8. Define posting period variant (PPV)
9. Assign variants to company code in SAP
10. Open and closing posting period variants
11. Define field status variant and field status groups in FICO
12. Assign company code to field status variant
13. Define Tolerance group for G/L accounts
14. Define Tolerance group for employees
15. Check company code global parameters
What is Chart of Accounts in SAP?

The chart of accounts in SAP (COA) is a group of general ledger (G/L) accounts
that records the organizational transactions in a structured way. Each general
ledger account consists account number, name and control information.
Types of Chart of accounts

1. Operative chart of accounts
2. Country specific chart of accounts
3. Group chart of accounts
Company codes can follow chart of accounts in two methods.
 All the company codes can use same set of accounts, that means account
coding is same for all company codes. For e.g. Salary account number. we can
easily compare and consolidate.
 If each company code following different set of accounts, than we can not
directly company and consolidate. By using group chart of accounts, we can
compare and consolidate the accounts.
How to create COA in SAP
In this configuration we define
1. Chart of accounts (COA) code

2. Description of chart of accounts
3. Maintenance Language
4. Length of account number.
You can create chart of accounts in SAP FICO by using one of the following
method.
How to Assign Company code to Chart of

Accounts in SAP FICO
In this SAP tutorials, you will learn how to assign company code to chart of
accounts in SAP FICO step by step. In our previous SAP training we have
learned what is chart of accounts and how to create COA in SAP. After creation
of chart of accounts, it is mandatory to assign company code. The link between
company code and chart of accounts is established through the assignment of
company code to chart of accounts in SAP.
Configuration steps
Coc Company Chrt/Ac

d Name City cts

1 Limited re TKCA
You can assign company code to chart of accounts in SAP by using one of the
following method.
 Transaction code: – OB62
What is Fiscal year in SAP
According to SAP, financial accounting year is referred as “Fiscal Year”. In SAP
fiscal year contains total 16 posting periods, out of these 12 are normal posting
periods and 4 are special posting periods.
Every organization records business transaction in set of books and they have to
close the books in certain period. It may depends on the company and the
country’s policy. For e.g. all companies in US have to close their books on 31st
December every year and all companies in India have to close their books on
31st March every year.
 Indian companies follow fiscal year from April to March with 12 normal
posting periods and 4 special periods.
 US companies January to December with 12 normal posting periods and 4
special periods.
 Normal posting periods are used to post day to day company transactions
and special periods are used for the purpose of adjustments and auditors
rectification entries.
Fiscal year in SAP can be classified as
1. Year Dependent : – Year dependent fiscal year refer as the fiscal year is
only applicable to particular year such as 2015 or 2016. If you select year
dependent check box in fiscal year variant, than you need to create conversion
for every year.
2. Year Independent : – Year Independent fiscal year refer as the fiscal year is
applicable to all the financial account year.
3. Calendar Year : – In calendar fiscal year, posting period start from 1st
January and ends on last day of the year 31st December.
4. Shortened fiscal year: – Shortened fiscal year contains fewer normal
posting periods. Startup companies and new SAP implemented companies
may follow the shortened fiscal year.
What is Fiscal Year Variant in SAP

In SAP, Fiscal year variant (FYV) is a variant that controls parameters for a
financial year, such as managing financial accounting year and posting period
variants to open and close posting periods. Fiscal year is also known as
accounting year, for example accounting period April 2017 to March 2018 we call
as year 2017-18. In SAP we call as Fiscal year 2017.
–> Financial accounting period is also called as “fiscal year” which consists of 12
periods (1 month = 1 period).
–> Each period in a fiscal year is called as posting period
–> When you post the transactions in SAP R/3 system, than the transactions are
assigned and updated to a particular posting period.
How the companies maintain fiscal year variant
 Indian Companies follow 12 posting periods (April – March) with 4 Special
Periods – V3
 US companies follow 12 posting periods (Jan – Dec) with 4 Special periods –
K4
 Some other companies follow posting periods from July – June or October to
September with 4 Special periods.
How to assign company code to fiscal year

variant in SAP FICO?
In this SAP tutorials, you will learn how to assign company code to fiscal year
variant in SAP financial accounting module (SAP FICO) step by step. In our
previous tutorial we have learned what is fiscal year variant and how to create
fiscal year variant in SAP.
The link between company code and fiscal year variant is establish through the
assignment.
CoC Company Fiscal Year

d Name Variant Description
TK0 Tk Software April – March, 4 Spl

1 Limited T3 periods
Configuration steps
You can assign company code to fiscal year variant by using one of the following
method

What is Account Group in SAP
An account group is a segregating or grouping the similar accounts in to single
group. Each account group in SAP is assigned to a chart of accounts, so you can
only use account group if the controlling areas use the same chart of accounts.
The account groups in SAP specifies:
 The account number rage interval from which the account number is selected
when you are creating general ledger master record.
Why Account Group
If you want to check current asset balances or prepare P&L accounts, Balance
sheets, you need to verify each and every account and then you need to add and
assign to their respective accounts. This process may take lot of time. So to
overcome this issues SAP has has provided account groups.
With in account group you can prepare accounts with in number range. For
example you can prepare cash accounts with any account number for current
assets number range 200000 -200099.
In Real time business scenario, we suggest

 All Liabilities accounts to start with 1 series.
 All Asset accounts to start with 2 series.
 All income accounts to start with 3 series.
 All Expenditure accounts to start with 4 series.
Why we need to follow accounts within series – When the user posting to
salaries account, which is an expenditure account. At the time of posting when he
give *4, only expenditure accounts appears in the list.
In this configuration we are going to define the following account groups.
Chrt/Ac Acct From To

cts Group Name Acct account
TKCA SCPL Share Capital 100000 100099
TKCA RSPL Reserves & Surplus 100100 100199
Accumulated
TKCA ACBL Depreciation 100200 100299
TKCA SCLN Secured Loans 100300 100399
TKCA UNSL Unsecured Loans 100400 100499
Current Liabilities &

TKCA CLPR Prov 100500 100599
TKCA FAST Fixed Assets 200000 200099
Current Assets, Loans

TKCA CAST & Adv 200100 200199
TKCA SALE Sales 300000 300099
TKCA OTHR Other Income 300100 300199
Increase / Decrease in
TKCA INCR Stock 300200 300299
Raw Material
TKCA RMCN Consumption 400000 400099
TKCA PRSN Personnel Cost 400100 400199
TKCA MFRG Manufacturing cost 400200 400299
TKCA ADMN Administration cost 400300 400399
TKCA INTR Interest 400400 400499

TKCA DEPR Depreciation 400500 400599
What is Retained Earnings Account in SAP

In the year end, retained earnings account enables to transfer all the profit & loss
account balances to surplus in profit and loss account. Same way all the balance
sheet account balances are carry forwarded to next fiscal year as opening
balance.
The implementation of retained earnings account in SAP is mandatory. If the

retained earnings account is not defined, in the year end you can not transfer the
P&L account balances to next financial year.
Scenario
Up to now we have not created any account, however we can assign on account
for retained earnings account. It is recommended to specify account from
respective account group i.e. reserve surplus account group.
P&L Statement Accou

account type nt
10010
X 0
The appropriate retained earnings encompasses

 Yearly net income carried forward
 Distribution of dividends
 Transfers to appropriations and deductions from appropriations
 Transfer to minority interest and deductions from minority interest.
What is Posting Period Variant?
Posting period variant (PPV) is an variant that controls to open and close
the posting periods for entries.
Scenario
During fiscal year 2016, Company TK01 has declared the profitability to its
managements and public up to first quarter i.e 3oth June, 2016. After declaration
of profitability, the profit figures should not be changed.
If we open open periods April 2016 to March 2017, if users posts any
transactions with April date then the profitability figures declared will be changes.
So the SAP consultant close the posting periods from 1st April, 2016 to 30th
June, 2016 and open posting periods from 1st July, 2016 to 31st March, 2017.
 To open posting periods from July 2016 to March 2017, we represent in SAP as
4, 2016 – 12, 2016.
 So the users can post entries from July 16 to March 17, this is called as open
and close posting periods.
 Posting posting period variant enables to close and open posting periods for
all company codes at same time or individually by company code in SAP.
How to assign variants to company code in SAP

In this SAP tutorials, you will learn how to assign variants to company code in
SAP Financial accounting step by step. In our previous tutorials we have learn
how to define variants for open posting periods. After implementation of posting
period variant, we need to assign for company code.
The link between company code and posting period variant is established
through the assignment.
Important configurations to read:
How to create chart of accounts in SAP
How to define fiscal year in SAP
Define account groups in SAP
Define retained earnings account in SAP
Procedure to Assign Variants to Company Code
CoC Company Varia

d Name City nt
1 Limited re TKPV
You can assign posting period variant to company code in SAP by using one of
What is Open and close posting periods Variant

In SAP, Open and close posting periods variant enables to open the
current posting periods and other posting periods remains in closed. It controls
what are the posting periods to open and close for entries. Through posting
period variant, you can determine which company codesare open for posting
period.
Scenario
 Current year: – April 2016 – March 2016 – Fiscal year 2016
 Companies Profitability released up to June 2016.
 We need to open posting periods in SAP from July 16 – April 17.
F F
F r r
r o o
o T m T m T
m o o o
A p P p P
A cc e Y e Y e Y e Y A
V c o r e ri e r e ri e u
a c u . a o a . a o a G
r. t nt 1 r d r 2 r d r r
A
T 2 2 2 2
K 0 0 0 0
P 1 1 1 1 1 1 1
V 4 6 2 6 3 6 6 6
+
This is one of the important job in real time and only authorised persons are
allowed to control open and close posting periods in SAP. This is a manager level
job and only authorised consultant allowed to perform open and close periods.
You can define variants for open and close posting period by using one of
What is Field Status Group in SAP
During document entry, field status group controls which fields are required
for entry and which fields are set to optional and suppress. The field status
groups are available under field status variant and it will be assigned to company
codes in SAP.
Scenario
At the time of posting on the SAP screen, we get 70 fields approximately like
quantity, Text, Cost Center, profit center, value, date, etc.
For any postings we will have a debit entries and credit entries, so we will have
75 debit fields and 75 credit fields. It is not easy to update all the 150 fields and
post a document. In order to overcome this issue, SAP has provided the option to
make the fields as required, optional and suppress.
Example : – Quantity
Suppress: – If you choose quantity as suppress, at the time of posting this
quantity field will not visible on the screen.
Required: – If you choose quantity as required, at the time of posting quantity
field will appear on the screen and you have to give value in the quantity field.
Required means mandatory, so without quantity value you can not go to next
screen.
Optional: – If you selected quantity as optional, at the time of posting the
quantity field appears on the screen and it is your choice to update value or not.
Without giving value you can go to next screen.
The field selection is not common for all accounts, it varies from account to
account. For example for sales account quantity is required and for salaries
account quantity is not required.
Important Rules of Field Status Variant

 We need to assign field status group at the time of general ledger master
record creation.
 In field status group, we need to specify which field is required, optional and
suppress.
 At the time of postings, the users gives G/L account number. The fields
appears on the screen based on field status groups assigned to G/L.
How to Assign Field Status Variant to Company

Code in SAP
In this SAP tutorials, you will lean how to assign field status variant to company
Code in SAP fico. In our previous training we have learned how to define field
status variants and field status groups in SAP. The link between company
code and field status variant is established through the assignment.
Define Tolerance Groups for G/L Accounts in

SAP
In this SAP tutorials, you will learn how to define tolerance groups for G/L
accounts in SAP. In our previous training tutorial you have learned how to define
field status variants and field status groups in SAP.
What is Tolerance Groups

In real time business scenario, tolerance groups allows the SAP system to
process and post the transactions beyond the tolerance groups limits. Tolerances
are referred as payment differences, it can be a amount tolerance, percentage
tolerance, and debit & credit tolerance.
Also Read: –
How to define tolerance groups for employees.
How to create retained earnings account in SAP
Implementation steps
You can maintain tolerance groups for G/L accounts by using one of the following
navigation method.
 Transaction code: – OBA0

Define Tolerance Groups for Employees
Tolerance groups for employees in SAP determines the upper limits for
postings as per
 Amount per document
 Amount per open item account
 Cash discount
 Payment differences.
Scenario: – If we have 10,000 users and we have create account for every
user which takes lot of time. In order to overcome this issue SAP has developed
tolerance groups. We can define as many as tolerance groups for employees as
per organizational requirements and assign with tolerance limits. The SAP
system doesn’t allow the postings beyond their limits.
For example
Group Group
-A B Group C
Amt per 1,00,0 10,00,0 1,00,00,

document 00 00 000
Amt per
open item 1,00,0 10,00,0 1,00,00,
account 00 00 000
Cash
discount 0 5% 10%
Payment
difference 0 0 0
SAP Implementation steps

 Transaction code: – OBA4
Company Code Global Parameters
Global parameters control how a company code behaves in the SAP system,
these parameters influence the way system process the business transactions.
Global parameters are divided in to two categories.
 Accounting organization
 Procession parameters.
Implementation Process
 Transaction Code: – OBY6

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SAP Finance Configuration | SAP T Code | SAP FICO Tutorials

SAP Finance Configuration Steps

Enterprise SAP Finance Configuration :-

Step 1 :- Define Company

Step 7 :- Define Posting Period Varaint

Step 16 :- Define Retain Earning A/c

General Ledger SAP Finance Configuration Steps :-

Step 18 :- Define Chart of Accounts

Accounts Payable SAP Finance Configuration

Step 22 :- Define Account Group with screen layout

Step 23 :- Create Number range for Vendor A/C

Account Receivable SAP Finance Configuration

Step 29 :- Define Customer Account Groups

Step 30 :- Create Number range for Customer

Step 36 :- Define Bills of Exchange

Tax on Sales /Tax on Purchases SAP Finance Configuration

Asset Accounting SAP Finance Configuration

Step 40 :- Copy Reference Chart of Depreciation

House Banking SAP Finance Configuration

Step 50 :- Define House Bank

How to Create a Company in SAP | Define Company in SAP FICO

Define Company in SAP

Path to Define Company in SAP :-

The following details are to be entered for creating a new company

Define Company Code

Step 3 :- In next screen

Step 5 :- Click on New Entries and update the following details

Create New companies by copying Existing Company code

Creating new companies by copying existing company

Double click on company code “AD61”

Now change your company code name and additional data.

How to Assign Company Code to Company in SAP

Assign Company Code to Company

Step 2 :- Click SAP Reference IMG

Step 3 :- Follow the Path as per below screen shot

Step 5 :- Update Company ID in Company field and click on save icon

Thus company code AD06 was assigned to Company ADARSH.

Define Business Area in SAP

Step 2 :- Select SAP Reference IMG ( Shortcut key F5 )

Configuration of Functional Area in SAP FICO | Define Functional Area

Functional Area in SAP

Uses of Functional Area :-

Examples of Functional Area are :-

Steps for the Creation of Functional Area in SAP

Step 3 :- Enter four digits

Thus Functional Areas ADPR, ADSO are created in SAP.

Define Credit Control Area for Customer in SAP

Steps to Define Credit Control Area

Step 3 :- Follow the IMG Menu path

Step 5 :– Update the required data

Thus credit control area in SAP was successfully configured.

Assign Company Code to Credit Control Area in SAP

Steps for Assign company code to credit control area

Thus company code successfully assigned to credit control area.

Create Fiscal Year Variant in sap | Fiscal year Accounting Period

Fiscal Year Variant in sap

Steps for configure the Fiscal year variant :-

Step 8 :- Maintain the Periods for the Fiscal Year

How to Assign Company Code to Fiscal Year Variant

Step 2 :- Click SAP Reference IMG Icon,

Step 4 :– Click Position

How to Create Posting Period Variants | SAP PPV

Purpose of Open and Close Posting periods Configuration:-

Path for Define open and close posting periods:-