SAP FI Training Material

SAP FICO Configuration Material by Amarnatha - 8686304727
SAP FICO Trainig Meterial by

Amarnatha Reddy
8686304727
Vasantha.amar@gmail.com
SAP FICO Configuration Page 1 of 67 ECC6

SAP Overview:
1. Introduction to ERP & SAP
2. History of SAP
3. Different Modules in SAP
4. Introduction to SAP FICO
5. Implementation Tools (ASAP Methodology)
6. System Land Scape
7. Types of Projects
8. Roles and Responsibilities of SAP FICO Consultant
Navigation:
1. Logging on to the R/3 System
2. Screen Elements
3. Creating Favorites
4. Adding Transaction to Favorites
Enterprise Structure:
1. Creation of Company
2. Define Company Code
3. Define Business Area
4. Define Functional Area
5. Define Segment Area
6. Define FM Area
7. Assignments
Financial Accounting Global Settings:
1. Fiscal Year Variants
2. Posting Periods
3. Document Types and Number Ranges
4. Posting Keys
5. Field Status Variants
6. Global Parameters
7. Additional Local Currencies for Company Codes
8. Tolerance
General Ledger Accounting and Global Settings:
1. Chart of Accounts
2. Account Groups
3. Retained Earnings Account
4. Assignments

New GL Concept Settings:

1. Difference Between Classic GL and New GL
2. Activate New GL Accounting
3. Maintaince of Leading and Non-Leading Ledgers
4. Activation of Non-Leading Ledgers
5. Scenario’s and Customer Fields for Non-Leading Ledgers
6. Ledger Groups
7. Document Splitting Concepts
8. Real Time integration of FICO
General Ledgers (FI-GL)
1. Creation and Maintaince of GL Master
2. Transaction Entry
3. Document Parking and Holding
4. Recurring Entry/Sample Document
5. Reports
Accounts Receivable & Accounts Payable
1. Preparations for Creation of Customer and Vendor Master Records
2. Creation of Customer/Vendor Master Records
3. Invoice Entry
4. Incoming/Outgoing Payments
5. Automatic Payment Program
6. Special GL Ledgers
7. Dunning
8. Payment Terms
9. Reports
Asset Accounting:
1. Organizational Structure
2. Integration with General Ledger
3. Valuation
4. Depreciation
5. Master Data
6. Transactions
7. Asset Data Transfer
8. Preparation for Production Startup
9. Reports
Integration with Other Modules:
1. FIMM
2. FISD

Other Topics:
1. Foreign Currency Valuations

2. With Holding Tax
3. Sales and Purchase Tax
4. Interest Calculations
5. Correspondence
6. Cash Journal
7. BRS
8. DME
9. LSMW
10. Financial Statement Version
11. Month End and Year End Closing Activities
12. GST

What is ERP?
 ERP is Enterprise Resource Planning
 ERP automates the tasks involved in performing a business process.
 ERP enables planning of all the resources (Men, Machine, Materials and Money) in an
organization
Why ERP is required?

To answer this let see one typical business scenario
 A customer approaches the Sales team for purchase product
 Sales team approaches the inventory team to check the availability of product.
 If product out of stock, then sales team approaches the production planning department to
manufacture the product
 The production planning team checks with Inventory team for knowing the availability of
Raw Material
 If Raw Material is not available within the inventory, then production planning team buys
the Raw Material from the vendor
 Then production panning team forwards the raw material to the production department or
shop floor execution department for manufacturing product
 Once the product is ready production department forwards the product to the sales them
who intend the delivery to the client
 Then the sales team will update the finance department with revenue generated by sale of
the product
 A Typical Enterprise has many Departments/Business Units (BU)

 There Departments/BU Continuously Communicate and Exchange Data Each Other

 The Success of any Organization is lie’s in Effective Communication and Data Exchange
within the departments/BU as well as Associated Third Party such as Vendors, Outsourcers
and Customers
Enterprise Software systems can classify in to 2 types

Decentralized Systems
Centralized Systems also called ERP
In A Company with Decentralized System of Data Management –
 Data is maintained locally at the individual departments
 Departments do not have access to data of another Departments/BU
 Numerous disparate information systems are developed individually over time
 Integrating the data becomes is time and money consuming.
 Inconsistence and duplication of data
 Lack of timely information leads to customer dissatisfaction, loss of revenue and reputation
 High inventory, Material and Human resource cost.
Solution?????????
Centralized Systems - ERP
In a company with Centralized System of Data Management –
 Data is maintained as Central Location and is shared with various Departments
 Departments has access information's/Data of Other Departments/BU
 Eliminates the Duplication, Discontinuity and redundancy in Data

 Provided information across departments in Real time
 Provided control over various business processes

 Increase productivity, better inventory management, promotes quality, reduced material

cost, effective human resource management, reduced overheads and boosts profit
 Better customer interaction, increased output and improve customer service.
 Hence, a centralized Enterprise management system is required.
 SAP is a Centralized Enterprise Management also known as “Enterprise Resource
Planning – ERP”
ERP advantages and disadvantages

Advantages
 Allows easier global integration (barriers of currency exchange rates, language, and culture
can be bridged automatically)
 Updates only need to be done once to be implemented company-wide
 Provides real-time information, reducing the possibility of redundancy errors
 May create a more efficient work environment for employees
 Vendors have past knowledge and expertise on how to best build and implement a system
 User interface is completely customizable allowing end users to dictate the operational
structure of the product
Disadvantages
 Locked into relationship by contract and manageability with vendor – a contract can hold a
company to the vendor until it expires, and it can be unprofitable to switch vendors if
switching costs are too high
 Inflexibility – vendor packages may not fit a company's business model well and
customization can be expensive and/or lead to version lock-in, since customized code may
not fit future versions and would then need to be redeveloped at great expense
 Return on Investment may take too long to be profitable
 Implementations have a risk of project failure

ERP products available in the Market are

 SAP
 ORACLE APPLICATIONS
 JDEDWARDS
 4BAAN
 PEOPLE SOFT etc.
SAP is having a market share of over 65%.
SAP
Systems Applications and Products in Data Processing
(German: Systeme, Anwendungen, Produkte in Der detenverarbeitung)
SAP History
 SAP – Systems Applications and Products in Data Processing
 Founded in 1972 by Wellenreuther, Hopp, Hector Plattner and Tschira
 Renamed in 1977
 Before 1977: Systems analysis and program Development
 SAP is both the name of the Company as well as their ERP Product
 SAP system comprises of a number of fully integrated modules, which covers virtually every
aspect of the business
 Three systems developed : R/1, R/2 and R/3
 The First releases were R1 and R2 which were Mainframe only applications
 SAP Started as R/2 that is Real Time Architecture with 2 Servers
 In 1979 SAP released SAP R/2 in to German. The First integrated, enterprise wide package
and was an immediate success
 This got changed in later years as R/3 that is Real Time Architecture with 3 Servers.
 The “R” was for “Realtime Data Processing”


SAP R/3 Architecture

The SAP R/3 Architecture can be divided into Three main divisions depending on their
functionality.
 Presentation Server/Layer
 Application Server/Layer
 Database Server/Layer
 SAP releases Up to ECC6 all versions are Non-Unicode Versions and form ECC6 Unicode
Versions
 That means ECC 6 SAP will run on any Data Base like Oracle, SQL and HANA.
 In Existing ECC 6 Data will be stored in Row Base Format.
Data Base Layer

 This Layer Stores All the Data that moves through the SAP Architecture. The data base layer
is further divided into
 Database Management System (DBMS)
 Database Server.
 Database management System or DBMS is a set of Software programs used to Store, Update
or Delete Data from the Server.
 The user van view and Organize information according to one’s Criteria
 Enable security features to prevent unauthorized access SAP is compatible with any
database system.

 In addition, SAP has developed its own database known as HANA, if needed. (High
Performance Analytic Appliance)
 The Data base layer may be combined with the application layer into a single host or both
layers may exist independently.
Application Layer
 Whenever user sends a request from the presentation layer, the logical operation is
provided by the Application Layer.
 The theory, only one application server is required to process requests.
 But in practice there will be “n” number of application servers running on various systems.
 The Load Distribution between the application servers is provided by the message severs.
 The message servers contain data of how many application servers are currently online and
the distribution of load between them.
Presentation Layer
 the Presentation layer consist of SAP GUI (Graphical user interface) which acts as an
interface between the user and other two layers.
 User sends request from the Presentation Layer which in turn, gets processed by the
Application Layer.
 Data is then retrieved from the Database Layer and passed back to the Presentation Layer in
the reverse order.
 The Control of a program switches from the one layer the another during each Operation.

 The Application Sever is used to connect the Presentation Layer with the Database Layer.
 Work process dispatcher all comes under this
 Application Server Communicates with each other using the message server
 A process initiated by the system, to execute user’s request
 There can be “n” number of work processes linked to running a program.
 Work process uses two memory areas. One is User Context, which contains information
about the use. Another is known as the Roll Area, which contains the data for program
execution.
 The request that reached the Application Layer first comes to the Dispatcher.
 From here, it is routed to different work processes depending upon their availability.
 The dispatcher operates on the principle of First Come – First Server basis.
 Gateway: Acts as an interface for communication medium. RFC protocol is used for
communication between SAP System.
 Shred Memory: Represents the common memory in Application Server. All work process
has access to this shared memory.
What is SAP Landscape?

Landscape: is the arrangement for the servers
IDES: is purely for education purpose and is NOT INCLUDED in the landscape.

DEVELOPMENT —> QUALITY —-> PRODUCTION
DEVELOPMENT: is where the consultants do the customization as per the company’s requirement.
QUALITY: is where the core team members and other members test the customization.
PRODUCTION: is where the live data of the company is recorded.
A request will flow from Dev -> Qual -> Prod and not backwards
 DEV would have multiple clients for ex: 190- Sandbox, 100- Golden, 180 – Unit Test.
 QAS may again have multiple clients for ex: 300- Integration Test, 700 to 710 Training.
 PRD may have something like a 200 Production.

DEVELOPMENT QUALITY PRODUCTION
Sandbox Testing Producti

on
Golden/DEV
Training
Unit Test
Now whatever you do in the Sandbox doesn’t affect the other servers or clients. Whenever you
think you are satisfied with your configuration and you think you can use it moving forward, you
RE-DO it in the golden client (remember, this is a very neat and clean client and you cannot use it
for rough usage). As you re-do everything that you had thought was important and usable, you get a
transport request pop up upon saving every time. You save it under a transport request and give
your description to it. Thus, the configuration is transported to the Unit Test client (180 in this
example).
You don’t run any transaction or even use the SAP Easy Access screen on the 100 (golden) client.
This is a configuration only client. Now upon a successful transport by the Basis guy, you have all
the configuration in the Testing client, just as it is in the Golden client. The configuration remains in
sync between these two clients.
But in the Testing client you cannot even access SPRO (Display IMG) screen. It’s a transaction only
client where you perform the unit test. Upon a satisfactory unit test, you move the good
configuration to the next SERVER (DEV). The incorrect or unsatisfactory configuration is corrected
in Golden (may again as well be practiced in the sandbox prior to Golden) and accordingly
transported back to 180 (Unit Test) until the unit test affected by that particular config is
satisfactory.
The Golden client remains the ‘database’ (if you wanna call it that) or you may rather call it the
‘ultimate’ reference client for all the good, complete and final configuration that is being used in the
implementation.
For every configuration you have to do Document for that and then rechecking the Configuration
you have to send it to the your Team Lead and he verify those changes and suggest if required he
will suggest any additional changes based on business requirement and then you will Transported
those changes to Test System for end to end testing. Once the Testing passed you need to get the
business sign off for those changes from the business and then you will move those changes to
Production Client with help of Basis Team.


What is a Transport Request?

 Transport Requests (TRs) – is a kind of 'Container / Collection' of changes that are made
in the development system. It also records the information regarding the type of change, the
purpose of transport, request category and the target system. It is also known as Change
Requests.
 Each TR contains one or more change jobs, also known as change Tasks (minimum unit of
transportable change). Tasks are stored inside a TR, just like multiple files are stored in
some folder. TR can be released only once all the tasks inside a TR are completed, released
or deleted.
 Change Task is actually a list of objects that are modified by a particular user. Each task can
be assigned to (and released by) only one user. However multiple users can be assigned to
each Transport Request (as it can contain multiple tasks). Tasks are not transportable by
themselves, but only as a part of TR.
Change requests are named in a standard format as: <SID>K<Number> [Not modifiable by system
administrators]
 SID – System ID
 K – Is fixed keyword/alphabet
 Number – can be anything from a range starting with 900001
Example: DEVK900030
Tasks also use the same naming convention, with 'numbers' consecutive to the number used in TR
containing them.
For Example, Tasks in the above mentioned TR Example can be named as: DEVK900031,
DEVK900032 …

 The project manager or designated lead is responsible to create a TR and assign the project
members to the TR by creating task/s for each project member.
 Hence, she/he is the owner with control of all the changes that are recorded in that TR and
therefore, she/he can only release that TR.
 However, assigned project members can release their respective change tasks, once
completed.
Workbench Request – contains repository objects and also 'cross-client' customizing objects.
These requests are responsible for making changes in the ABAP workbench objects.
Customizing Request – contains objects that belong to 'client-specific' customizing. As per client
settings, these requests are automatically recorded as per when users perform customizing settings
and a target system is automatically assigned as per the transport layer (if defined).
SE01 – Transport Organizer – Extended View

Create a Change Request

Change Request can be created in two ways:
 Automatic – Whenever creating or modifying an object, or when performing customizing

settings, the system itself displays the 'Dialog box' for creating a change request or mention
name of an already created request, if available.
 Manually – Create the change request from the Transport Organizer, and then enter
required attributes and insert objects.

Release the Transport Request (Export Process)
 Position the cursor on the TR name or a Task name & choose the Release icon (Truck), a
record of the TR is automatically added to the appropriate import queues of the systems
defined in the TMS.

 Releasing and importing a request generates export & import logs.
The Import Process

Importing TRs into the target system
 After the request owner releases the Transport Requests from Source system, changes
should appear in quality and production system; however, this is not an automatic process.
 As soon as the export process completes (releasing of TRs), relevant files (Cofiles and Data
files) are created in the common transport directory at OS level and the entry is made in
the Import Buffer (OS View) / Import Queue (SAP App. View) of the QAS and PRD.
 Now to perform the import, we need to access the import queue and for that, we need to
execute transaction code STMS -> Import Button OR select Overview -> Imports
 It will show the list of systems in the current domain, description, and a number of requests
available in Import Queue and the status.
Import Queue -> is the list of TRs available in the common directory and are ready to be imported
into the target system, this is the SAP Application View, at the OS level it is also known as Import
Buffer.

The Import Status

Import Queue shows some standard 'status icons' in the last column, here are the icons with their
meanings, as defined by SAP:
In case, a request is not added automatically in the import queue/buffer, even though the OS level
files are present, then we can add such requests by the following method, however, we should know

the name of intended TR:
Import History
We can also check the previous imports that happened in the system as follows:
Transport logs and return codes

After the transport has been performed, the system administrator must check whether it was
performed properly or not, for that SAP has provided us with the following type of logs (SE01 ->
GOTO -> Transport Logs):

 Action Log – which displays actions that have taken place: exports, test import, import and
so forth.
 Transport Logs – which keep a record of the transport log files.
One of the important information provided by logs are the return codes:
 0: The export was successful.

 4: Warning was issued but all objects were transported successfully.
 8: A warning was issued and at least one object could not be transported successfully.
 12 or higher: A critical error had occurred, generally not caused by the objects in the
request.
ASAP Methodology:
This document will help in getting basic understanding on ASAP Methodology.
We’ll discuss below points:
 What is ASAP Methodology?

 Phases of ASAP Methodology
 Brief explanation of each phase

What is ASAP Methodology?
 ASAP stands for Accelerated SAP.

 Its purpose is to help design SAP implementation in the most efficient manner possible.
 Its goal is to effectively optimize time, people, quality and other resources, using a proven
methodology to implementation.
Phase of ASAP Methodology
ASAP focuses on tools and training, wrapped up in a five-phase process oriented road map for
guiding implementation.
The road map is composed of five well-known consecutive phases
• Phase 1 Project Preparation

• Phase 2 Business Blueprint
• Phase 3 Realization
• Phase 4 Final Preparation
• Phase 5 Go-Live and support
All these phases are explained in detailed:
Project Preparation:
This is more related to gathering information and required resources. This is a very crucial time
where all the necessary components for implementation are gathered together. Some of the vital
milestones that needed to be completed in the project preparation phase are:
 Get approval and support from Stakeholder

 Seek Senior level management approval
 Identify and define clear project objectives
 Work on an efficient decision-making process
 Work in an environment which is robust and it is suitable for change and re-engineering
 Last but not least, work on building a qualified and smart project team.
Business Blueprint:
Within this phase, according to the SAP methodology, all suitable information on the company is
gathered so that based on the necessary information gathered, the implementation process will be
designed. Most of the time, these blueprints are in the form of surveys and questionnaires which
will yield information about how the company does business in general.
In addition to this, they also document this process.

In the Business Blueprint documentation, it outlines the future business processes and the business
requirements. These questions are categorized by only one business function. The following are
sample questions:
What type of information is captured on a purchase order?
What is the specific information that is required to complete the purchase order?
Realization:
This is the third phase of the process.
After successfully completing phase 1 and phase 2, “functional” experts will be available and start
configuring SAP systems.
This phase is broken into two parts:

1. The SAP consulting team will help you to configure a baseline system, which is officially called a
Baseline Configuration.
2. As per the standard process, the implementation team will start fine-tuning the existing
baseline configurations and make sure all the business needs and requirements are a part of the
fine-tuning process.
As per the requirement provided in the Business Blueprint phase, baseline configuration is
provided as per the Blueprint document. Further, the remaining 20% approximately is corrected
within the fine-tuning configuration.
Most of the time Fine tuning cannot be covered with the help of Baseline Configuration. Users have
to make sure all of the remaining fine-tuning process.
Configuration Testing:
With the help of an experienced SAP consulting team, you can separate the business process into
several cycles of related business flows. In turn, these cycles are referred to as independent units
which can be used to test specific parts of the business process.
In the process, you can also follow the standards mentioned in SAP implementation guide (IMG).
This is a tool that can be used to assist while configuring your SAP system in a step by step manner.
Knowledge Transfer:
Once the configuration phases come to an end, it is vital for the business or the project team to be
self-sufficient in terms of the configuration knowledge of the SAP system.

In order to get proper effective knowledge transfer, configuration team should be tasked with the
system maintenance team ( an i.e. post-production team that is allocated to Go-Live condition)
needs to be completed at this point of time.
In addition, end-user training should also be scheduled so that they will be productive in day-to-day
businesses purposes.
Final Preparation:
This is a crucial part of the overall implementation.
As the project team has gone through configuration steps and also the knowledge transfers phases,
it is vital for the team to concentrate on the SAP training and should be involved in rigorous
functional and stress testing. It should include both positive and negative process flow testing. This
will help them to go through the entire functional flow of the product and at the same time they will
be building up confidence over the tool.
As the team is involved in testing, it will be a stage where a lot of last minutes fine-tuning will be
designated and the configuration will be changed according to the needs. All this will happen before
Go-live and more importantly, the data migration is also another important task that one has to give
importance. Data migration from the old system to the SAP should be done effectively without any
latency.
Once the data is loaded it is vital for the team to conduct stress testing with actual valid data.
Testing with peak volume data, daily load, and other forms of stress testing is very important and it
is recommended. The integration and stress testing are important because it will validate the
stability of the new system and also make sure that the data flow is also accurate.
After all the data migrations and last minute fine tunings, it is time for preventive maintenance
checks this will help the team to make sure that the SAP system is configured for optimum
performance. After this activity, it is all about documenting the Go-Live strategy. At this point, it is
more about preparing yourself to answer most of the questions from end users who are actively
using the SAP system.
Go-Live and Support:

Go-Live activity will be smooth and breeze if all the previous phases have been executed under
strict monitoring process. If all the previous phases are not dealt with the way they were supposed
to be then it is altogether a different ball game.

Introducing a new system or tool or service to entire different individuals, in this case, preparation
is the key. Within this preparation, one has to make sure that they have answered all the What If
scenarios within the business processes and how is the tool or system is capable of answering or
supporting in those situations.
Further, processing maintenance contracts and documenting the overall Go-live process is vital in
this phase.
SAP Modules:
SAP FICO Navigation















SAP – Financial Controlling (FICO)

SAP FI (Finance): Finance Module will be considered as base Module.
It covers varies Sub Modules such as
 General Ledger (GL)
 Accounts Payable (AP)
 Accounts Receivable (AR)
 Banking (BA)
 Asset Accounting (AA)
SAP Controlling (CO): Controlling is kind of Sister Module of SAP FI.
Use for internal Controlling and Internal Reporting and Controlling consist of
 Cost Center Accounting (CCA)
 Profit Center Accounting (PCA)
 Internal Order (IO)
 Product Costing (PC)
 Profitability Analysis (COPA)
SAP FI (Finance)INTRODUCTION
Let’s get started. First, we will go through a bit of introduction about the SAP Finance
Module before we grind in further:
SAP FI (Financial accounting) is the basic module and very important module in SAP. SAP
FI module receives posting from the various other modules such as MM (Materials
Management), SD (Sales and Distribution), and HR (Human Resource) through various
integration points. All the posting from the aforesaid modules are posted real-time to FI
module. FI module feeds in data to CO modules such as Cost center accounting, profit center
accounting and the Profitability analysis module. SAP FI module is geared for external
reporting i.e. legal reporting, tax reporting.
Lets also touch base on some other organizational structures, which are important
a) The plants created in the logistics (General) module are assigned to the company
code. That means all transactions taking place in the plants are posted to the

attached company code in SAP FI.
b) The purchasing organization created in the MM module is attached to the

Company code.
c) The sales organization created in the SD module is attached to the company code.
d) A company code created is assigned to the Controlling area.
To help you understand the SAP terminologies we will go through a relevant example which
will help you configure the system more effectively.
In this SAP training, we will configure a company code 9100 (A Ltd) located in India. The
currency in India is INR; therefore, the currency of the company code will be INR. We
consider the reporting period in that country as Jan to December. We will also in this
document cover briefly the FI - MM integration, FI- SD integration.
The parent company of A Ltd is in Germany. Therefore, A Ltd is required to report figures in EURO.
We would therefore need to configure parallel currencies to have such reporting possible

Enterprise Structure:
Once a business has decided to use the SAP FI (Financial Accounting) Module, there are
several Configurations prerequisite steps that must be completed. Determining the
organizational structure is one of the first steps in setting up the business functions in SAP
as well as your reporting requirements.
The Organizational structure is created by defining the organizational units consisting of the
following:

These organizational units are associated with each other to form the foundation of the SAP
CO organizational structure. Let’s see how each of these units contribute to the
optimization of internal reporting and managerial accounting:
 Client: A client is a self-contained instance which comprises its own set of programs, tables,
master data and transaction records.

 Operating Concern: The operating concern is the highest organizational unit eligible for
profitability analysis (COPA). The prime aim of COPA is to provide profit and loss
information to support decision making, planning and controlling operations within an
organization. The segments are usually made up of a combination of characteristics
regarding the customer, product or sales channels of the organization which can be
analyzed in a multi-dimensional information cube. The operating concern is required to
facilitate additional reporting dimensions including customer group, product and country.
 Controlling Area: The controlling area refers to the highest level of an organization at
which costs and revenues are recorded. Each controlling area can have one or more
company codes assigned to it.
 Company Code: A company code represents a legal entity in SAP. A company code is set up
for every legal entity which records transactions and maintains its financial books (i.e. sub-
ledgers and GL) in SAP. These financial books enable the generation a complete set of
financial statements, including profit and loss, balance sheet and cash flow.
 Plant: This is one of the indispensable units in the organizational structure for a company.
It represents a facility where goods and services are produced according to production,
maintenance, procurement and material planning areas of the business. A company code
can possess the assignment of one or more plant. Generally, plants are defined within the
enterprise structure in the Materials Management module.
 Purchase Organization: This organizational unit coordinates the purchasing process for
the business. Each company code can have one or more purchase organizations assigned.
 Sales Organization: A sales organization is defined within the Sales & Distribution module.
Multiple sales organizations can be assigned to one company code depending on the
business requirement.
 Business Area is optional and is equivalent to a specific area of responsibility within your
company or business segment. BA (Business Area) also allows for internal and external
reporting.

Define Company:
T. Code OX15
Table T880
SAP SPRO  Enterprise Structure  Definition  Financial Accounting  Define Company
Path
Company is an independent Organizational unit for which we can draw independent
financial statement according to statutory requirement. A company can include one
or more company codes
Company is the highest organizational structure in FI Module. A company is an

organizational unit which can be used to roll up financial statements of several
company codes. Company can consist of one or more company codes.
All company codes within a company must use the same transaction chart of
accounts and the same fiscal year breakdown. Company code currencies, on the
other hand, can be different. A company code has one local currency in which its
transaction figures are recorded.
Company is used in the legal consolidation for all the company codes assigned to it.
In enterprise structure, companies are assigned to company code and company
codes are assigned to controlling area so that all can be linked together.
We can create a Company in SAP in two ways and we can maintain Company in 6
Alfa Numeric Code in SAP
1. Copy from existing one

2. Create our own new Company
Edit, Copy, Delete, Check Company Code:

T. Code OX02
Table T001
SAP SPRO  Enterprise Structure  Definition  Financial Accounting  Edit, Copy, Delete,
Path Check Company Code/Edit Company Code
Company Code is a Central Organizational Unit of external accounting for which we
can maintain complete and self contained set of accounts and all our financial
transactions must be posted and entered into this entity. So that for company code
we can draw legal individual financial statements such as Balance Sheet & P&L
Statements.

Unlike the definition of Company the definition of Company Code is mandatory in

SAP and we can represent Company Code with 4 Alpha Numeric Code in SAP.
We can define company code in 2 ways
1. Edit, Copy, Delete, Check Company Code

2. Edit Company Code
Define Credit Control Area

T. Code OB45
Table T014
Path
Customer wise Credit information is made and available within a Credit Control
Area for effective credit monitoring and management.
Define Business Area

T. Code OX15
Table T880
Path
Define Functional Area

T. Code OX15
Table T880
Path
Maintain FM Area
T. Code OX15
Table T880
Path
Assign Company Code to Company

T. Code OX15

Table T880
Path
Assign Company Code to Credit Control Area

T. Code OX15
Table T880
Path
Financial Accounting Global Settings

Maintain Fiscal Year Variants:
T. Code OX15
Table T880
Path
Assign Company Code to Fiscal Year Variants

T. Code OX15
Table T880
Path
Define Variants for Posting Periods

T. Code OX15
Table T880
Path
Open and Close Positing Periods

T. Code OX15
Table T880
Path

Assign Variants to Posting Periods

T. Code OX15
Table T880
Path
Define Document Types

T. Code OX15
Table T880
Path
Define Document Number Ranges

T. Code OX15
Table T880
Path
Copy to Company Code

T. Code OX15
Table T880
Path
Copy to Fiscal Year

T. Code OX15
Table T880
Path
Define Posting Keys

T. Code OX15
Table T880


Path
Define Field Status Variants

T. Code OX15
Table T880
Path
Assign Company Code to Field Status Variants

T. Code OX15
Table T880
Path
General Ledger Accounting

Edit Chart of Accounts List
T. Code OX15
Table T880
Path
Assign Company code to Chart of Accounts

T. Code OX15
Table T880
Path
Define Account Groups

T. Code OX15
Table T880
Path

Define Retained Earnings Account

T. Code OX15
Table T880
Path
Enter Global Parameters

T. Code OX15
Table T880
Path
New GL Concept Settings:

Difference Between Classic GL and New
GL:
Benefits of New GL:

Document Splitting in New General Ledger

In SAP ERP the document splitting is the most powerful tool is widely and most commonly used. With
this function the document splits the line items based on the “Characteristics” we define in system.
Often this function is used to get the financial statements correctly for segment reporting.
Back to the Basics –

Concept can be explained of document splitting with the help of one of the most basic business
transaction as “Vendor Invoice”. Suppose we have vendor invoice as below which consists of two
expense line items say 10,000 in total with 1,000 of tax component which sums to 11,000.
1. Expense Item 1 for 8,000 where it is assigned to PC – X

2. Expense Item 2 for 2,000 where it is assigned to PC – Y
Account Amount Profit Centre

Vendor A/C -11,000
Expenses 1 8,000 PC – X
Expenses 2 2,000 PC – Y
Input Tax 1,000
If any person is responsible for PC – X wish to analyze the transactions performed for PC – X, but
unfortunately the user can’t – because of, if you look at the transaction the “Vendor Balance” and
“Input Tax” is cumulative and hence is not assigned to any of the profit center either X or Y.
Now if you look at the transaction above it represents that the total expense is distributed in the ratio
of 80% and 20% and same of Profit Centre of X and Y. So base to this the Vendor Balance and Input
Tax should also have split according to 80%-20% rule.

As per the above image the system should have posted the document as per below financial
transaction entry in system –
Okay so the conclusion for whole exercise is, if the user can post the document as above, the reporting
will be pretty particuar and balanced and there won’t be a problem – issue is re-solved.
Its easily said that issue will be solved but why any user will separate the line item as per calculations
and split its bases always on its ratio, especially when there are 100’s of line items sometimes in any
document ! And what if system takes care of this?
Well the answer is Yes, and that’s what the document splitting is all about!

Now we will understand the Document Splitting elements and key concepts –
 Passive Splitting – This type of splitting is mostly occurs when the payment transaction is
posted for a vendor invoice. Now system splits the payment document bases on how the
vendor invoice was split in place already.
 Active Splitting – In Active Splitting the document is split according to mySAP ERP
predefined rules. SAP almost supports all the business process transactions but if it doesn’t
suit to any requirement the own splitting rules can be created.
 Zero Balancing Splitting – When the amounts within financial documents are not able to
balance out to Debit of Profit Centre and Credit of Profit Centre which does not Net Off as its
own, SAP then automatically generates new line item to balance the document. We will see
the example in following section of this scenario.
 Item Category – Item category categorizes the general ledger accounts for document
splitting. In the configuration each GL account is assigned to item category. Just to name a
few like 01000 – Balance Sheet Account, 02000 – Customer, 03000 – Vendor and so on.
 Business Transaction – Business transaction is real scenario of business processes happens

in organization such as vendor invoice, customer invoice etc.
 Business Transaction Variant – In the SAP, financial postings are derives the item category
for individual line item. Business transaction variant always works in conjunction with
business transaction where business transaction restricts the business processes to be
posted to. System validates a check all postings against the item category to validate if these
postings are allowed by splitting rule if not then understand this failed.
 Document Splitting Method – Document splitting method works in combination with

business transaction and business transaction variant it determines the document splitting
rule.
 Document Splitting Rule: Document splitting rule determines which item categories will be
split and from which item categories it will derive the account assignment.
Let us see the actual example from system of Document Splitting for vendor invoice –
If we are posting an invoice from FB60 with two different expenses line item as below with two
different cost centers assigned now system has derived the profit center from its cost centers
mentioned in line item.

Simulate this document to see pre-posting view with line item and associated assignments.
Now press F3 or Back button and come to main screen. Now go to Menu Bar Document –> Simulate
with General Ledger to see the ledger view of this document.

Once clicked on simulate with general ledger, document can be seen as below as “Document Split”
functionality.
Document Splitting – Zero Balancing

As discussed above when system is not able to balance out the transaction entry based on its own it
balances out by “zero balancing” account. System adds the zero balance account at its own to make
balance zero for transaction. We will see the example for this now –
We will post the transaction via FB50.

Now simulate this with General Ledger View as below
If you look at above and notice simulated “General Ledger View” system has automatically generated
the “Zero Balance Clearing A/C.”
Now let us look at the configuration of

document splitting
1. Classify GL Accounts for Document Splitting –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger
Accounting (New) –> Business Transaction –> Document Splitting –> Classify G/L
Accounts for Document Splitting
Here in this step GL’s are classified according to item categories according to business transaction
nature. It is recommended that instead of assigned item category to each individual general ledger
account try maintaining the item categories for “Range of General Ledger Accounts”.

2. Classify Document Types for Document Splitting –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger
Accounting (New) –> Business Transaction –> Document Splitting –> Classify
Document Type for Document Splitting
In this step the “Business Transaction” and “Business Transaction Variant” is assigned to document
types. Now almost every financial transaction in considered for document splitting.
3. Define Zero Balance Clearing Account –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting (New)
–> Business Transaction –> Document Splitting –> Define Zero Balance Clearing Account

In this step we have to define the zero balance clearing account which will be used to generate and
balance out financial entry when it is not possible to balance out at its own, as we have seen this
example earlier.
4. Define Document Splitting Characteristics for General Ledger Accounting –
–> Business Transaction –> Document Splitting –>Define Document Splitting Characteristics for
General Ledger Accounting
This is one of the most important configurations step in document splitting. In this step we have to
define the splitting characteristics. Additionally you can define whether this should be Zero Balance
and
Mandatory.

5. Edit Constants for Non assigned Processes –

–> Business Transaction –> Document Splitting –>Edit Constants for Non Assigned Processes
In this step the constants are defined which helps to assigned the default account assignment when
is not able to derive from any of the sources.

6. Activate Document Splitting

–> Business Transaction –> Document Splitting –>Activate Document Splitting
Finally the step to activate document splitting with additional settings like “Inheritance” and
Activation of Document Splitting.
Select check box “Document Splitting” and apply appropriate method. SAP Standard pre-delivered
method is “0000000012”.
Selecting the Inheritance signifies the line items which do not have account assignment will derive
the account assignment from other line item.
Selecting Standard A/C Assgnmnt means system will set the standard account assignment for non-
assigned line items. When this indicator is selected “Constant” needs to be maintained.

Activate of Document Splitting happens at client level but it is always possible to control of activation
and deactivation at company code level.
Experts guidance and comments / suggestions will be very helpful on this.

Activate New GL
Define Ledger for General Ledger Accounting

F/A (New) > FAGS/ (New) > Ledgers >Ledger > Define Ledgers for General Ledger Accounting
Define Currencies for Leading Ledger:

Financial Accounting (New)>FAGS (New)>Ledgers>Ledger>Define currencies of the leading ledger
Assigning Scenarios to Ledger

Financial Accounting (New)>FAGS (New)>Ledgers>Ledger>Assign scenarios & Customer fields to
ledger
Defining Segment
Enterprise Structure>Definition>Financial Accounting >Define segment
Activate Document Splitting:

FA(N)>GLA(N)Business Transactions> Doc.Splitting >Activate Doc Splitting
Classify G/L Accts for Document Splitting:

Financial Accounting (New)>General Ledger Accounting (New)>Business Transactions>Document
splitting> Classify G/L Accts for Document Splitting
Classify Document Types For Document Splitting:

Splitting> Classify Documents Types for Document Splitting
Define Zero Balancing Clearing Account:

splitting>Define Zero Balance Clearing Account
DEFINE DOCUMENT SPLITTING CHARACTERISTICS FOR GENERAL LEDGER ACCOUNTING:

splitting>Define Doc Splitting Characteristic for General Ledger Accounting
DEFINE DOCUMENT SPLITTING CHARACTERISTICS FOR CONTROLLING.

splitting>Define Doc Splitting Characteristic for Controlling
Financial Accounting (New)>FAGS (New) Docs >Define Doc types for General Ledger View.

Activating Non Leading Ledger

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SAP FICO Configuration Material by Amarnatha - 8686304727

SAP FICO Trainig Meterial by

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New GL Concept Settings:

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1. Foreign Currency Valuations

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Why ERP is required?

 A Typical Enterprise has many Departments/Business Units (BU)

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Enterprise Software systems can classify in to 2 types

 Eliminates the Duplication, Discontinuity and redundancy in Data

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 Increase productivity, better inventory management, promotes quality, reduced material

ERP advantages and disadvantages

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ERP products available in the Market are

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SAP R/3 Architecture

Data Base Layer

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What is SAP Landscape?

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DEVELOPMENT —> QUALITY —-> PRODUCTION

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DEVELOPMENT QUALITY PRODUCTION

Sandbox Testing Producti

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What is a Transport Request?

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SE01 – Transport Organizer – Extended View

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Create a Change Request

 Automatic – Whenever creating or modifying an object, or when performing customizing

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Release the Transport Request (Export Process)

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 Releasing and importing a request generates export & import logs.

The Import Process

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The Import Status

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the name of intended TR:

Transport logs and return codes

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 0: The export was successful.

This document will help in getting basic understanding on ASAP Methodology.

We’ll discuss below points:

 What is ASAP Methodology?

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What is ASAP Methodology?

 ASAP stands for Accelerated SAP.

Phase of ASAP Methodology

The road map is composed of five well-known consecutive phases

• Phase 1 Project Preparation

All these phases are explained in detailed:

 Get approval and support from Stakeholder

In addition to this, they also document this process.

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What type of information is captured on a purchase order?