Fico configuration step-by-step Real-time

Miscellaneous
 Define Countries | OY01 & OY07
 Setting Country-Specific Checks | OY17
 Create a New Currency | OY03
 Set Decimal Places for Currencies | OY04
 Check Exchange Rate Types | OB07
 Ratios for Currency Translations | OBBS
Enterprise Structure
 Define Company | OX15
 Create Company Code | OX02
 Assign Company Code to Company | OX16
 Define Credit Control Area | OB45
 Assign company code to credit control area | OB38
 Maintain Controlling Area | OX06
 Assign Company Controlling Area | OX19
 Define Functional Area | FM_FUNCTION
 Create Operating Concern | KEP8
 Define Segment for Reporting | S_AL0_19000003
 Define Sales Organization | OVX5
FI – Financial Accounting
Global Settings
 Define Fiscal Year Variant | OB29
 Assign Company Code to a Fiscal Year Variant | OB37
 Define Posting Period Variant | OBBO
 Assign Posting Period Variant to Company Code | OBBP
 Activate Cost of Sales Accounting | S_ALR_87009606
 Enter Global Parameters for Company Code | OBY6
 Define Field Status Variants | OBC4
 Assign Company Code to Field Status Variant | OBC5
 Define Document Types for Entry View | OBA7
 Define Document Number Ranges for Data Entry View | FBN1
 Define Posting Keys | OB41
 Document Change Rules, Document Header | S_ALR_87003720
 Document Change Rules, Line Item | OB32
 Define Tolerance Groups for Employees | OBA4
 Assign User/Tolerance Groups | OB57
 Change Message Control for Document Processing | OBA5
 Assign Tax Codes for Non-Taxable Transactions | OBCL
 Check Calculation Procedure | OBYZ
 Assign Country to Calculation Procedure | OBBG
 Define Tax Codes for Sales and Purchases | FTXP
 Activate New General Ledger Accounting | FAGL_ACTIVATION
 Define Ledgers for General Ledger Accounting | SM30_V_FAGL_T881
 Define Currencies of Leading Ledger | OB22
 Assign Scenarios and Customer Fields to Ledgers | S_ELN_06000019
 Display Scenarios for General Ledger Accounting | S_ELN_06000018
 Define Ledger Group | S_AL0_19000001
 Define Variants for Real-Time Integration | S_ELN_06000002
 Assign Variants for Real-Time Integration to Company Codes |
S_ELN_06000003
 Define Rules for Selecting CO Line Items | S_ELN_06000004
 Define Account Determination for Real-Time Integration | OK17
 Define Intercompany Clearing Accounts | OBYA
 Define and Activate Non-Leading Ledgers | S_AL0_19000016
General Ledger
 Define Chart of Accounts | OB13
 Assign Company Code to Chart of Accounts | OB62
 Define Account Group | OBD4
 Define Profit Center Standard Hierarchy in Controlling Area |
S_E38_98000135
 Create Dummy Profit Center | KE59
 Define Retained Earnings Account | OB53
 Define Document Types for Enjoy Transaction | OBZO
 Define Financial Statement Versions | OB58
 Define Document Splitting Characteristics for General Ledger Accounting |
S_AL0_19000071
 Define Zero-Balance Clearing Account | S_ALR_87008933
 Edit Constants for Nonassigned Processes | S_AL0_19000017
 Activate Document Splitting | S_ELN_06000009
 Define Document Splitting Method | S_PL0_86000049
 Define Document Splitting Rule | S_PL0_86000050
 Assign Document Splitting Method | S_AL0_19000075
 Define Business Transaction Variants | S_AL0_96000709
 Classify G/L Accounts for Document Splitting | S_ALR_87008943
 Classify Document Types for Document Splitting | S_ALR_87008944
 Define Valuation Methods | S_AL0_19000081
 Define Valuation Areas | S_AL0_19000080
 Assign Valuation Areas and Accounting Principles | S_PL0_86000071
 Prepare Automatic Postings for Foreign Currency Valuation | OBA1
Accounts Receivable and Accounts Payable
 Define Default Document Type and Posting Key | OBU1
 Define Account Groups with Screen Layout (Vendors) | OBD3
 Define Screen Layout per Company Code (Vendors) | OB24
 Define Screen Layout per Activity (Vendors) | OB23
 Create Number Ranges for Vendor Accounts | XKN1
 Assign Number Ranges to Vendor Account Groups | OBAS
 Define Accounting Clerks | OB05
 Define Sensitive Fields for Dual Control (Vendors) | S_ALR_87003179
 Define Reconciliation Accounts for Customer Down Payments | OBXR
 Define Alternative Reconciliation Account for Down Payments | OBYR
 Define Tolerances (Vendors) | OBA3
 Define Reason Codes (Manual Outgoing Payments) | S_ALR_87003271
 Define Accounts for Payment Differences (Manual Outgoing Payment) | OBXL
 Define Payment Block Reasons | OB27
 Define Default Values for Payment Block | OBBC
 Set Up All Company Codes for Payment Transactions | S_ALR_87100687
 Set Up Paying Company Codes for Payment Transactions | S_ALR_87100688
 Set Up Payment Methods per Country for Payment Transactions |
S_ALR_87100689
 Set Up Payment Methods per Company Code for Payment Transactions |
S_ALR_87100690
 Set Up Bank Determination for Payment Transactions | S_ALR_87100691
 Check Search Fields for (Customer) Matchcodes | OBB2
 Define Account Groups with Screen Layout (Customers) | OBD2
 Define Screen Layout per Company Code (Customers) | OB21
 Define Screen Layout per Activity (Customers) | OB20
 Create Number Ranges for Customer Accounts | XDN1
 Assign Number Ranges to Customer Account Groups | OBAR
 Enter Accounting Clerk Identification Code for Customers | OB05
 Define Tolerances (Customers) | OBA3
 Define Reason Codes | OBBE
 Define Risk Categories | OB01
 Define Credit Representative Groups | OB02
 Define Dunning Areas | OB61
 Define Dunning Block Reasons | OB18
 Define Dunning Procedures | FBMP
 Define Interest Calculation Types | OB46
 Prepare Interest on Arrears Calculation | OB82
 Prepare Item Interest Calculation | S_P6B_12000174
 Define Reference Interest Rates | OBAC
 Define Time-Based Terms | OB81
 Enter Interest Values | OB83
 A/R: Calculation of Interest on Arrears | OBV1
 Define Value Adjustment Key | S_ALR_87002693
 Define Accounts AR Valuations | OBB0
 Maintain Terms of Payment | OBB8
BANK Accounts
 Define House Banks | FI12
 Create G/L Account for Cash Journal | FS01
 Amount Limit – Cash Journal
 Define Document Types for Cash Journal Documents | OBA7
 Define Number Range Intervals for Cash Journal Documents | FBCJC1
 Set Up Cash Journal | FBCJC0
 Create, Change, or Delete Business Transactions | FBCJC2
 Make Global Settings for Electronic Bank Statement | FMLGD_H_ELKO
Asset Accounting
 Copy Reference Chart of Depreciation/Depreciation Areas | S_ALR_87009194
 Assign Chart of Depreciation to Company Code | OAOB
 Specify Number Assignment Across Company Codes | AO11
 Specify Account Determination | S_ALR_87009195
 Create Screen Layout Rules | S_ALR_87009209
 Define Screen Layout for Asset Master Data | S_ALR_87009044
 Define Asset Number Range Intervals | AS08
 Define Asset Classes | OAOA
 Define Depreciation Areas | OADB
 Specify Transfer of APC Values | OABC
 Specify Transfer of Depreciation Terms | OABD
 Determine Depreciation Areas in the Asset Class | OAYZ
 Deactivate Asset Class for Chart of Depreciation | AM05
 Define How Depreciation Areas Post to General Ledger | OADX
 Maintain Depreciation Key | AFAMA
 Define Base Methods | S_ALR_87015147
 Define Declining-Balance Methods | AFAMD
 Define Multi-Level Methods | AFAMS
 Maintain Period Control Methods | AFAMP
 Change the Field Status Variant of the Asset G/L Accounts | S_ALR_87009121
 Activate Account Assignment Objects | S_AL0_96000020
 Specify Account Assignment Types for Account Assignment Objects | ACSET
 Assign G/L Accounts | AO90
 Set Up Areas for Parallel Valuation | S_PL0_86000183
 Specify Document Type for Posting of Depreciation | AO71
 Define Transaction Types for Acquisitions | AO73
 Define Transaction Types for Retirements | AO74
 Define Transaction Types for Transfers | AO76
 Define History Sheet Groups | OAV9
 Define History Sheet Versions | OA79
 Define Validation Asset Accounting Master Data | OACV
 Define Substitution Asset Master Data | OACS
Materials Management
 Maintain Default Values for Tax Codes | OMR2
 Set Check for Duplicate Invoices | OMRDC
 Configure Automatic Postings | OMWB
Sales and Distribution
 Define Automatic Credit Control | OVA8
 Materials: Account Assignment Groups | OVK5
 Customers: Account Assignment Groups | OVK8
 Assign G/L Accounts | VKOA
Payroll
 Define Symbolic Accounts
 Define Posting Characteristics of Wage Types
 Assign Accounts
 

CO – Management Accounting/Controlling
General Controlling
 Activate Controlling Area Submodules | OKKP
 Maintain Number Ranges for Controlling Documents | KANK
 Maintain Versions | OKEQ
Profit Center Accounting in CO
 Maintain Controlling Area Settings | 0KE5
Cost Element Accounting
 Make Default Settings | OKB2
 Create Batch Input Session | OKB3
 Create Cost Elements | KA01 / KA06
Cost Center Accounting
 Define Cost Center Categories | OKA2
Internal Orders
 Define Order Types | KOT2
 Maintain Number Ranges for Orders | KONK

What is ‘Configuration’ in SAP?

 ‘Configuration’ is the process of maintaining settings (parameters) in the system to
support specific/customized business requirements. Remember SAP is an ‘all-
encompassing’ application which needs to be ‘configured’ to meet your specific
requirements.

68. What is the ‘IMG’?

The ‘IMG (Implementation Guide)’ in SAP provides you with the various configuration
steps in a tree- like structure for easy access with the nodes at the bottom
representing the configuration objects. This is the central repository for customizing,
providing a step-by-step guide for carrying out various activities. Besides the
steps/activities, the IMG also contains explanations concerning the order in which you
need to make the customizations. When you execute an activity from the IMG, you are
indirectly changing the values (parameters) in the underlying table
What are ‘User Parameters’?

SAP provides a way of lessening your day-to-day data entry operations by

facilitating default entries for fields, and bringing out the most suitable Display
Variant for document display, document entry, open/line item processing, etc.
The user parameters, also known as ‘Editing Options,’ are a boon as they save
time and result in greater accuracy as data entry errors are eliminated with the
default values.

What do You mean by ‘Organizational Units’ in SAP?

The ‘Organizational Units’ in SAP are the elements or structures representing

business functions, and are used in reporting. For example, Client (across the
various modules) Company Code (FI), Controlling Area (CO), Plant (logistics), Sales
Organization (SD), Purchasing Organization (MM), Employee Group (HR), etc.

What are the Important ‘Organizational Units’ in FI?

Company

Company Code
What is a ‘Line Item’?

The ‘Line Items’ contain information relating to account number, amount, debit/
credit, tax code, amount, etc. SAP allows a maximum of 999 line items in a single
document. Besides the one entered by you during an document entry, the system may
also create its own line items called ‘system generated line items,’ such as tax
deductions, etc. Irrespective of the number of line items entered, ensure that the total
of these is always zero (that is, total debits should equal total credits). Otherwise, the
system will not allow you to post the document.

What is a ‘Posting Key’?

A ‘Posting Key’ in SAP is a 2-digit alphanumeric key that controls the entry of line items. SAP
comes with many posting keys for meeting the different business transaction requirements: 40
(GL debit), 50 (GL credit), 01 (customer invoice), 11 (customer credit memo), 21 (vendor credit
memo), 31 (vendor payment), etc

1. What is SAP S – Systems A – Applications P – Products SAP, started in 1972 by five

former IBM employees in Mannheim, Germany, states that it is the world's largest inter-
enterprise software company and the world's fourth-largest independent software
supplier, overall. SAP have a very high level of integration among its individual
applications which guarantee consistency of data throughout the system and the
company itself
2. 2. SAP History The 1970s: A Real-Time Vision In 1972, five former IBM employees
launch a company called Systems, Applications, and Products in Data Processing in
Mannheim, Germany. One year later, the first financial accounting software is
complete, forming the basis for the continuous development of other software
components in what later came to be known as the "R/1 system. The 1980s: Rapid
Growth The SAP R/2 system attains the high level of stability of the previous generation
of programs. The 1990s: A New Approach to Software and Solutions SAP R/3 is
unleashed on the market. By 1996, the company has earned 1,089 new SAP R/3
customers. At the end of the year, SAP R/3 has been installed in more than 9,000
systems worldwide. The 2000s: Innovation for the New Millennium With the Internet,
the user becomes the focus of software applications. Currently, more than 12 million
users work each day with SAP solutions. There are now 121,000 installations
worldwide, more than 1,500 SAP partners, over 25 industry-specific business solutions,
and more than 41,200 custo
3. ASAP Methodology 1. Project Preparation, in which the project team is identified and
mobilized, the project standards are defined, and the project work environment is set
up; 2. Blueprint, in which the business processes are defined and the business
blueprint document is designed; 3. Realization, in which the system is configured,
knowledge transfer occurs, extensive unit testing is completed, and data mappings and
data requirements for migration are defined; 4. Final Preparation, in which final
integration testing, stress testing, and conversion testing are conducted, and all end
users are trained; and 5. Go-Live and Support, in which the data is migrated from the
legacy systems, the new system is activated, and postimplementation support is
provided.
4. Company Definition: The smallest organizational unit for which individual financial
statements can be drawn up according to the relevant commercial law. A 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. The
 company code currencies can be different. A company has one local currency in which
its transaction figures are recorded.
5. Company Code Definition: The smallest organizational unit of Financial Accounting
for which a complete self-contained set of accounts can be drawn up for purposes of
external reporting. This includes recording of all relevant transactions and generating
all supporting documents required for financial statements. The process of external
reporting involves recording all relevant transactions and generating all supporting
documents for financial statements such as balance sheets and profit and loss
statements.
6. Business area: are used to differentate transations that come form different lies of
business in a company .big company which runs mulitipal business let us assume it
had therr different like sals,marketing,manf.
7. Functional Area Definition: The functional area is required to create a profit and loss
account in Financial Accounting using cost-of-sales accounting. The following are
examples of structure criteria: o Manufacture o Administration o Sales o Research and
development
8. Credit Controlling Area: fi is used to check the credit limit for the customer and it can
use one or more company cods
9. Fiscal Year: is nothing but a way of stor financial data .in sap for both quarterly and
monthly data organization. there are 12 periods and 4 special periods

Fiscal year variant: Fiscal Year Variant consists 12 periods starting from April to March.

4 special periods can be maintained for closing purpose.

;:
Posting Periods: In every financial yearbooks are opened on 1st April and closed on 31st
March. Books are closed in every month and balances are carried forward to next month.

So, Posting period variant is created. Posting Period Variant CSCL is used.

10. 4 Field Status Variant

11. Field Status Variant is copies from standard SAP with 47 field status groups.
Field Status group defines the status of the fields while making posting to the GL
accounts.

Tolerance Groups

Tolerance group for GL Account is created in each Company Code. In Tolerance

groups the permissible amounts for accounts and for line items are specified

With reference to the key, tolerances for the entry of documents and the granting of
cash discounts can be determined for all employees of the group for payment
settlement.

Document Types

Every transaction is recorded in Journal at the first and separate journals are
maintained for cash, sales daybook, sales returns, and purchase daybook, purchase
returns.

Standard SAP Document Types are used to classify the transactions.

Document number intervals are maintained for each document type. From this number
interval, system picks and assigns a number to each transaction in SA.

No. No. Intervals

Doc.type Description

Range From To

SA GL account document 01

Asset accounting
AA document 01

100000 199999

AB Reversed clearing 01

document

DR Customer invoice 18 200000 299999

KR Vendor invoice 19 300000 399999

DZ Incoming payment 14 400000 499999

KZ Outgoing payment 15 500000 599999

DG Customer memos 16

DA Reversal/Clearing Doc. of 16 600000 699999

customers

KG Vendor memo 17

KA Reversal/Clearing Doc. 17 700000 799999

Of vendor

AF Depreciation posting 04 800000 899999

Number range Definition: Number which identifies the number range for the number
assignment. The process by which numbers are allocated to business objects. There are
two types of number assignment: o Internal number assignment occurs automatically
in the R/3 System. o External number assignment is performed either by the user or an
external system.

Posting Keys Definition: The posting key describes the type of transaction which is
entered in a line item. For every posting key, you specify properties which control the
 entry of the line item or are noted in the line item itself. The most important properties
which are derived from the posting key are: o The account type o The allocation to the
debits or credits side o The possible or necessary specifications which are to be entered
in the line item.

Account Type Definition: A key that specifies the accounting area to which an
account belongs. Examples of account types are: o Asset accounts o Customer accounts
o Vendor accounts o G/L accounts The account type is required in addition to the
account number to identify an account, because the same account number can be used
for each account type.

Posting Keys and Account Types

Line Item Definition: The part of a document containing information on a single item.
This information includes the: o Amount o Account number o Whether the item is a
debit or credit o Additional information depending on the transaction to be posted.

Chart of Account: is the list of GL accounts used in one or more Company Codes. All
the GL accounts in a chart of accounts will have an account number, account name, and
some control information. The control information decides how the GL account can be
created.

1.operative coa: gl accounts that use for posting in companu code for dailu activities
and used in both financial accountinf and cost accouts
2.country coa: gl accounts need to meet the countrs legal requirements assigned to
company code.
3.group coa: a list of all the gl accounts that are used by the entire company.

What is a ‘Local Currency’?

When you define a Company Code, you also need to mention in which currency
you will be maintaining the accounts/ledgers in financial accounting. This
currency is called the ‘Local Currency.’ This is also known as ‘Company Code
Currency.’

What is a ‘Parallel Currency’?

When defining the currencies for a Company Code, it is possible to maintain, for each
of these company Codes, two more currencies in addition to the ‘Local Currency.’
These two currencies are called the ‘Parallel Currencies,’ which can be the:

Group Currency
Hard Currency

Global Company Currency

Index-based Currency

To translate the values from one currency to the other, you will need to maintain an
exchange rate for each pair of the defined currencies in the system. When parallel
currencies are defined, the system maintains the accounting ledgers in these
currencies as well, in addition to the local currency.

Account Groups

• General ledger accounts are maintained under various heads like Capital,
Liabilities, Assets, Income, Expenditure, Creditors and Debtors ledger

• List of General Ledger Accounts, Account Groups and Document Posting

• Same List of General Ledger Accounts is used for each company.
• Account groups and number ranges to be created based on the nature of account
• GL Account numbers shall be externally assigned.
• Field status groups shall be created for controlling transaction processing.
• Reconciliation accounts shall be identified.
• Open items accounts shall be identified.
• Accounts where line items display is required shall be identified.
• Cost elements for P&L accounts shall be created in controlling module.
• GL account is recognized by description and Number Range.
• The ‘Account Groups’ for creation of GL Accounts:

• The ‘Account Group’ is a summary of characteristics that control the creation of

master records. The following are the Account groups.

Assets:Fixed Assets, Investments, Current Assets, Loans & Advances.

Liabilities:Share Capital, Reserves & surplus, Secured Loans, Unsecured Loans,

Current Liabilities & Provisions;

Number Ranges Definition: The number of the G/L account identifies the G/L
account in a chart of accounts. The number of this G/L account determines the lower
and upper limit of the G/L account interval.

Retained Earning Account: are used to carry forward the balabce from one ficial year
to the next fiscal year you can assign a RE account to each P&L account assign

GL Master Records

G/L Master record is maintained for each General Ledger account.Each G/L master
record is recognized by a number and text

GL master record consists of two segments chart of account segment and company code
segment.

T Codes in General Ledger Accounting

1. To view posting documents - FB03

2. To view GL master record - FBL3N

3. To view GL master record Line items - FS10N
 4. To change Line Items of a document - FB09
5. To Change Document - FB02
6. To park GL Account - F-65
7. To view parking documents - FBV3
8. To Delete, Edit, Clear Parked Document - FBV0
9. Clear GL Account - F-03
10.Reverse GL Document - FB08

Financial statement version: is a reporting tool,which canbe used to getout the final
accounts from sap such as balance sheet, profit and loss account. Exernal purpose
using fsv.

Hold document: G/L document or temporarily save the doc in the following
conditions:
1.when gl doc is not complete
2. in –complete or in-correct information in the document.

Park document : option with limited authorization amount for posting. Accountant hs
an authority to post doc to amount 2000. Now he has to feed a doc with an amount
5000 for which he docs not have the authority

Sample document : this is for onth end activities like ,salaries ,rent. Sample doc save
the time.

Open item management : at the end of the month we make the provision at the time of
payment we adjust the provision line payable amount it out-standing amount.

Reversal document: when we post a wrong entry in sap we have to go for revesal or
pass rectification entry .individual doc, mass reversal doc, accrual, cleard item.

One time-vendor : vendor with only a few transaction and there is no need to maintain
their master records separately such cases .you can create on time vensor with G/L
information such as name, address, phone….etc.

Ap
Vendor Account Groups Definition: The account group is a classifying feature within
vendor master records. The account group determines: o the number interval for the
account number of the vendor, o whether the number is assigned by the user or by the
system, o which specifications are necessary and/or possible in the master record.

Number Ranges for Vendor Account Groups Definition: Identifies a number range
interval within an object or sub object. A unique number is assigned to each business
partner master record. You can use this number to access the master record, or to refer
to the business partner when processing business transactions. A number range can be
valid for more than one account group. You can use the number range to assign
different numbers to a head office and subsidiaries. The number for a business partner
master record can be assigned in one of the following ways: Externally: You assign the
 number. In this case, you define a number range that allows for alphanumerical
number assignment. The system checks whether the number you enter is unique and
within the number range defined by the account group. Internally: The system assigns
a consecutive number automatically from a number range defined by the account
group.

Vendor Tolerance Group:Freely definable group code for customers and vendors, or
G/L accounts. Tolerance groups are unique within a company code. Each tolerance
group contains settings that affect cash discount and payment difference processing.
These settings become effective during payment entry.

Vendor Recon Account Definition: The reconciliation account ensures the integration
of a Sub ledger account into the general ledger. When you post items to a subsidiary
ledger, the system automatically posts the same data to the general ledger. Each
subsidiary ledger has one or more reconciliation accounts in the general ledger. We
can’t use reconciliation account for direct posting

TERMS OF PAYMENTS

Key for defining payment terms composed of cash discount percentages and payment
periods. It is used in sales orders, purchase orders, and invoices. Terms of payment
provide information for:

Sundry Creditors

A 60 days credit limit is generally obtained for the Vendor payments.

Payment is done by cheques to Vendors.

9.2 Sundry Debtors

Customer’s payments received by cheques only.

On order the customers pay 30% of the invoice Amount in Advance.

The company allows 30 days of credit limit for the remaining amount.

If the invoice amount is paid completely in advance, the customer is eligible for
2%discount.

Alternative Recon Account Definition: The reconciliation account in G/L accounting is the
account which is updated parallel to the sub ledger account for normal postings (for
example, invoice or payment). For special postings (for example, down payment or bill of
exchange), this account is replaced by another account (for example, 'down payments
received' instead of 'receivables'). The replacement takes place due to the special G/L
indicator which you must specify for these types of postings.

Automatic Posting Definition: When you post special G/L transactions, the system
generates automatic postings. To make automatic postings, the system requires
specifications on the accounts to post to and the posting keys to use. This information is
also already defined in the standard system. You need only make changes if you do not
use the standard chart of accounts or if you want to use other account numbers, posting
keys or account determination rules. You must also decide which automatic postings you
want to have carried out.

Automatic Payment Program

The payment program is designed so that both outgoing and incoming payments can be
processed. These functions are supported for payment transactions with vendors and
customers and between bank accounts.

1. set up all company codes

2. set up paying company codes

3. payment method per country

4. payment method pe country code

5. bank selection

House Bank Definition: is a money transaction from 5 characters alphanumeric code

you canhave number of house bank available in the bank dictory

-each house bank in the system is associated with a country key .where the bank located
unique country specific code is called bank key.

-house bank you can maintain mor than on bank account each account is identifiably by
an account id

-account id you will also specify the bank account number max 18 characters

- bank account number designed the house bank uou need to create a G/L account
master record

Check Lots Definition: Checks supplied by a bank or a printing shop are usually divided
into lots, since they may be written (issued) or printed at various different locations. In
the SAP System, a check number range represents a batch (lot) of numbered checks. In
the Financial Accounting Configuration menu, you must define check lots (number
ranges) that correspond to the actual check lots (in the printer, the safe, or your
employees' desks). The print program uses this number range to link the check with the
payment.

Vendor Payment Posting

1. Payment after Due date (F-53) 2. Payment before Due date (F-53) 3. Advance payment
(F-48)

Important T Codes in Accounts Payable

1. Vendor Document Posting - F-43
2. Vendor Document Posting (One screen) - FB60
3. Vendor Credit Memo - F-41
4. Vendor Credit Memo 9One Screen) - FB65
5. Vendor Invoice Parking - FV60
 6. Vendor Credit Memo Parking - FV65
7. Document Reversal - FB08
8. Clear Vendor Transactions - F-44
9. To view Vendor Document - FB03
10. To view Vendor master record Line items - FK10N
11. To view Vendor Master Records - FBL1N
12. Post Outgoing payment posting - F-53
13. Post Down payment Posting - F-48
14. Automatic payment Run - F110

Dunning Procedure

The dunning procedure determines how business partners can be dunned. It contains the
number of dunning levels, dunning frequency, minimum amounts and dunning activities.

Dunning Level indicates how often an item or an account has been dunned and
describes the steps to be maintained for a dunning procedure. Dunning levels control the
dunning process.

Dunning Area is an organizational unit within a company code from which dunning is
conducted. The dunning procedure is controlled and the dunning notices are sent
separately per dunning area.

A dunning area can represent the following:

Business Area

Sales Organization

Distribution Channel

Division

11.2 Dunning Notices

Weekly reminders are sent to customers with regard to overdue more than
Rs.30000/-.

Fortnightly reminders are sent to customers with regard to overdue less than
Rs.30000/-Yearly once Balance confirmation statement is sent to vendors
Dunning charges will becharged.Interest notice send to the customers on overdue

Bill of Exchange Definition: Bills of exchange are handled as special G/L transactions
in the SAP System. These transactions are thus maintained independently of other
transactions in the subsidiary ledger and are posted to a special G/L account in the
general ledger. This affords you an overview of bills of exchange receivable and bills of
exchange payable at any stage. Transfer postings are not usually necessary to display
these items on the balance sheet

T Codes in Accounts Receivable

1. Customer Document Posting - F-22
2. Customer Document Posting (One screen) - FB70
 3. Customer Credit Memo - F-27
4. Customer Credit Memo 9One Screen) - FB75
5. Customer Invoice Parking - FV70
6. Customer Credit Memo Parking - FV75
7. Document Reversal - FB08
8. Clear Customer Transactions - F-32
9. To view Customer Document - FB03
10. To view Customer master record Line items - FD10N
11. To view Customer Master Records - FBL5N
12. Post Incoming Receipt posting - F-28
13. Post Down payment Posting - F-29
14. Post Bill of Exchange - F-36
15. Post Bills Discounting - F-33
16. Post Reversal for Bills Discounting - F-20
17. Dunning Run - F150

Asset Accounting: company fixed assets right from acquisition to retirement/scrapping

.all accounting transaction relating to depreciation insurance

Chart of Depreciation Definition: The account group is a classifying feature within

customer master records. The account group determines: o in which number range the
customer account number should be; o whether the number is assigned by the user or
by the system; o which specifications are necessary or possible in the master record.

Depreciation Area :Depreciation area, which is managed in the system as a real

depreciation area (not a derived depreciation area). Each depreciation area is set up to
handle depreciation for a particular purpose (e.g. book depreciation, tax depreciation,
group depreciation, cost-accounting depreciation, etc.)

Screen Layout Rule Definition: Screen layout for maintaining asset master data.
Using the screen layout rule, you can define: o which fields are - required - optional -
suppressed o the maintenance level in the asset hierarchy o which fields are copied,
when creating an asset using another asset master record as a reference. You can
define screen layout rules for general master data and for depreciation parameters
within depreciation areas.

Number Range Interval Definition: Identifies a number range interval within an object
or sub object. The Number Range Interval contains Two digit ID, From Number, To
Number and Check box for External Numbering or Internal Numbering.

Asset Classes

Asset classes are used to structure fixed assets. Asset classes are applied to all
Company Codes. Asset classes provide default values for all asset master records
For each asset class, control parameters and default values can be defined for
depreciation calculation and other master data. Each asset master record must be
assigned to one asset class.

Account Determination
GL accounts for acquisition, retirement, profit or loss on sale of assets, accumulated
depreciation; depreciation and special reserve are specified in account determination.

Depreciation Posting Intervals: Depreciation posting runs, which result from changes
to valuation due to year-end closing and take place after the end of the fiscal year, can
be posted as unplanned depreciation posting runs in the special periods of the given
fiscal year version.

Depreciation Posting Rules Definition: Monthly : Depreciation of fixed assets is

posted in each Financial Accounting posting period. Bi-Monthly : Depreciation of fixed
assets is posted in every second Financial Accounting posting period. The field is not
ready for input if the number of Financial Accounting posting periods is not '12'.
Quarterly : Depreciation of fixed assets is posted each quarter, that is in every third
Financial Accounting posting period. The field is not ready for input if the number of
Financial Accounting posting periods is not '12'. Semi-Annually : Depreciation of fixed
asset is posted semi-annually, that is in every sixth Financial Accounting posting
period. The field is not ready for entry if the number of Financial Accounting posting
periods is not '12'. Annual : Depreciation for fixed assets is posted once a year.

Base Method Definition: Base method of the depreciation key for calculating
depreciation or imputed interest.

Declaiming balance Method Definition: Declining-balance method of the depreciation

key for calculating depreciation or imputed interest. The multiplication factor is used in
determining the depreciation percentage rate for declining-balance depreciation. The
system multiplies the depreciation percentage rate resulting from the total useful life by
this factor.

Multi level Method Definition: Multi-level method of the depreciation key for
calculating depreciation or imputed interest.

Period Control Method Definition: Period control method of the depreciation key for
calculating depreciation or imputed interest.

Depreciation Key Definition: The depreciation key (valuation key) controls the
valuation of the asset in the particular depreciation areas. The depreciation key consists
of the following: o Calculation method for the automatic calculation of interest, ordinary
and special depreciation o Possibly a cutoff value key o Various control indicators

Asset Master Definition: The asset master record contains all information relating to
an asset that remains unchanged over a long period of time: Technical master data
Organizational allocations (usually time-dependent) Depreciation terms The system
stores all the values and transaction data per each asset master record. You can
differentiate between different types of assets in the FI-AA component. The structure of
the master record is identical for all asset main numbers, asset sub-numbers and
group assets. Therefore, the basic procedure for creating any of these objects is
essentially the same.
 T Codes in Asset Accounting
1. Asset Purchase Posting - F-90
2. Asset Transfer (Within Company Code) - ABUMN
3. Asset Transfer (Inter Company Asset Transfer) - ABT1N
4. Asset Retirement - F-92
5. Asset Scraping – ABAVN
6. Reverse the Document - AIST
7. Asset Master Creation - AS01
8. Sub-Asset Master Creation - AS11
9. Asset Group Creation - AS21
10. Sub-Asset Group Creation - AS24
11. Change Asset Master - AS02
12. Change Sub-Asset Master - AS22
13. Depreciation Run – AFAB
14. Recalculate Depreciation - AFAR
15. Asset Explore - AW01N
16. Upload Asset Balances – OASV

Integration with SD (VKOA)

The integration with SD happens through T Code- VKOA, a combination of

particulars of customer Account Assignment group, Material Account Assignment group
and Account key in an access sequence. The related GL accounts are assigned to
Condition types (The condition type denotes the discount offered on the net / gross price
on sales), The Account assignment group (The customer account assignment group
denotes the type of customer, the material account assignment denotes the type of
material), and Account keys - ERL, ERS, ERF, MWS (The account keys denotes the
respective G/L accounts for the transactions involved in sales) map up the FI – SD
integration.

Integration with MM

The data integration happens through Account Determination Linkage of Account Key
with General Ledger Accounts by the following.

1. Movement Types: The Posting and Updating of the stock fields in the Material
Master.

2. Valuation Class: The assignment of G/L Accounts use to determine the respective
G/L Accounts, which is to be updated as result of goods movements.

3. Transaction / Events Key: It differentiates various transactions such as goods

movement that occurred in inventory.

 4.Material Type: Each material should be assigned material type in material master
record. Which in turn updates the changes made in quantity and values in stock
account.

Tax Procedure:

A calculation procedure is defined for each country INDIA, containing the

specifications required to calculate and post tax on sales/purchases. Calculation
procedure contains tax types, which are called condition types in the procedure.

The system defaults condition types when you define a tax code. The condition
type (such as input or output tax) specifies the base amount on which the tax is
calculated and the account key that is used to post the tax. The specifications necessary
for calculating and posting tax have been defined for the condition type and account key.

Tax Codes

The tax code represents a tax category, which must be taken into consideration
when making a tax return to the tax authorities. Tax codes are unique per country.The
tax rate calculation rules and further features are stored in a table for each tax code.

LSMW

The Legacy System Migration Workbench (LSMW) is a tool recommended by SAP that you can
use to transfer data once only or periodically from legacy systems  
into an R/3 System.

The LSM Workbench covers the following steps:

(1) Read the legacy data from one or several files (e.g. spreadsheet tables, sequential files). 
(2) Convert the data from source format to target format. 
(3) Import the data using standard interfaces (Batch Input, Direct Input, BAPI, IDoc).

The Steps for LSMW are:

Example: Customer Master upload:

LSMW to Update Customer Master Records with Transaction Recording 

Call Legacy System Migration Workbench by entering transaction code LSMW. Every
conversion task is grouped together as Project / Subproject / Object structure. Create a Project
called LSMW_DEMO and a Subproject as CUSTOMERS and Object as CUST_REC 

Step 1: Maintain Object attributes

In this example, you will be updating the customer master records with the help of recording a
transaction (XD02). Choose radio button Batch Input Recording and click on the recording
overview icon to record the R/3 transaction. Enter the Recording name as XD02_REC, the
description as Customer Master Updates Recording, and the transaction code as XD02.
Step 2. Maintain Source Structures

Give a name and a description to the source structure.

Step 3. Maintain Source Fields

In this step, you need to list what fields are present in the source structure. The easiest way is
to click on ‘Table Maintenance’ icon to enter Fieldname, Type and Length for each field.

Step 4: Maintain Structure Relations

Execute a step to ‘Maintain Structure Relations’. Since, there is only one Source and Target
Structure, the relationship is defaulted automatically.

Step 5: Maintain field mapping and conversion rules

Field RF02D-D0310 represents that you chose ‘Sales view’ for the customer Master screen
accordingly its value should be set to X. Keep your cursor on field  
RF02D-D0310 and click on Constant rule icon to choose the constant value of ‘X’.

If your source file already has the field value, you choose rule ‘Source Field’.  Keep cursor on
field ‘KUNNR’ and click on ‘Assign Source field’ icon to choose source field CUSTOMER from
structure XD02S 

Step 6: Maintain fixed values, translations, user-defined routines

You can also maintain re-usable translations and user-defined routines, which can be used
across conversion tasks. In this case, that step is not required.

Step 7: Specify files

In this step, we define how the layout of the input file is. The input file is a Tab delimited with
the first row as field names. It is present on my PC (local drive) as C:\XD02.txt. 

Step 8: Assign files

Execute step ‘Assign Files’ and the system automatically defaults the filename to the source
structure.

Step 9: Read data

In this step, LSMW reads the data from the source file (from your PC’s local drive). You have
the option to read only selected rows and convert data values to Internal format.

Step 10: Display read data

This step is optional. If required, you can review the field contents for the rows of data read.

Step 11: Convert data

This is the step that actually converts the source data (in source format) to a target format.
Based on the conversion rules defined, source fields are mapped to target fields.

Step 12: Display Converted data

Again this is an optional step to view how the source data is converted to internal SAP format.

Step 13: Create batch input session

Once the source data is converted in an internal format, you can create a batch session to
process updates. 

Step 14: Run Batch Input Session

You can execute the BDC session by Run Batch input session. Executing a batch input session
is a standard SM35 transaction for managing BDC sessions. Once you have successfully
executed the batch input session, the customer master records are updated in the system. You
can confirm this by viewing the customer master records (XD03).

What is the ‘New FI-GL’ in FI in ECC?

The traditional or ‘Classic FI-GL accounting’ in FI has been focused on providing

comprehensive external reporting by recording all business transactions in the system.
However, to meet modern-day requirements, this has now been enhanced, called the
‘New FI-GL,’ and includes the following:

Parallel accounting: Maintaining several parallel ledgers to meet different

accounting principles.

Integrated legal and management reporting: Unlike the traditional GL, the
‘New FI-GL’ enables you to perform internal management reporting along with legal
reporting. So you are in a position to generate Financial Statements for any
dimension (for example, profit center) in the business.

Segment reporting: With the introduction of the Segment dimension, SAP now
enables you to produce Segment Reports based on IFRS (International Financial
Reporting Standards) and the GAPP (Generally Accepted Accounting Principles)
accounting principles.

Cost of sales accounting: It is now possible to perform cost of sales accounting

in the ‘New FI-GL.’

However, the following functions are not yet supported in the ‘New FI-GL’:
Transfer Price
SKF (Statistical Key Figure)
Euro Translation
AIS (Audit Information
System) Archiving
Data Retention Tool

The ‘New FI-GL’ needs to be activated in the system before you start using the IMG
Menu Path:>Financial Accounting (New)->Financial Accounting Global Settings
(New)/General Ledger Accounting (New).
 In the standard system, the tables from ‘classic general ledger accounting’ (GLT0) are
updated as well as the tables in ‘New FI-GL’ during the activation. This enables you to
perform a ‘ledger comparison’ during the implementation of ‘New FI-GL’ to ensure that
your ‘new GL accounting’ has the correct settings and is working correctly. To
compare ledgers, in Customizing choose Financial Accounting Global Settings (New)-
>Tools->Compare Ledgers.

It is recommended that you ‘deactivate’ the update of tables for ‘classic GL accounting’
once you have established that ‘New FI-GL’ is working correctly. To do this, in
Customizing choose Financial Accounting Global Settings (New)-> Tools->Deactivate
‘Update of Classic General Ledger.’

What are ‘Special GL Transactions’?

‘Special GL Transactions’ are not directly posted to the GL (Reconciliation Accounts)

though these are related to subledger accounts such as AR/AP. The transactions to these
accounts are shown separately in the balance sheet. There are specific posting
keys/indicators defined in the system to regulate the postings to these items. You need to
specify a Special GL Indicator (such as a F-Down Payment Request, A-Down Payment)
for processing such a transaction. And the system will make use of the specially defined
posting keys (09-customer debit, 19-customer credit, 29-vendor debit, and 39-vendor
credit) for posting these special GL transactions.

There are three types of Special GL transactions:

Free Offsetting Entries (Down
Payment) Statistical Postings
(Guarantee)

Noted Items (Down Payment Request

What is a ‘Lean Implementation’ in FI-AA?

A ‘Lean Implementation’ is the scaled-down version of the regular FI-AA configuration in

IMG, with minimal configuration required to enable asset accounting. This is suitable for small
companies using the standard functionalities of asset accounting, and also in situations where
the Asset Catalog is not that large

Explain ‘Asset Transfer’ in SAP.

There are two types of ‘Asset Transfers,’ namely:

Inter-company asset transfer

Intra-company asset transfer

Inter-company Asset Transfer is between Company Codes, resulting in the creation of

the new asset in the target Company Code (the receiving one). The transaction posts the
values per the ‘posting method’ selected during the transfer. In doing so the system:

Retires the asset in the source/sending Company Code by asset retirement.

Posts acquisition in the new/target Company Code by asset acquisition, and

creates the new asset in the target Company Code.
Posts inter-company profit/loss arising from the transfer. Updates FI-GL automatically

Intra-company Asset Transfer is the transfer of an asset within the same Company
Code. This would be necessitated by:

Change in the asset class or business area, etc. Settlement of an AuC to a new asset

What is a ‘Standard Hierarchy?

A tree-like hierarchy structure grouping all the cost centers (of all the Company Codes
belonging to a single controlling area) so defined is known as the ‘Standard Hierarchy’
in CO. This is the SAP method of grouping all the cost centers in a controlling area,
which helps in analyzing the cost summary at the end of the nodes of the hierarchy (cost
center or cost center groups or at the top level). A cost center can be attached to any
number of cost center groups, but you cannot assign the same cost center more than
once within a cost center group.

Sort Keys: Sort Keys are used to populate the Assignment number field in the line items of
customers or vendors or general ledgers. The content of this Assignment number field can be
populated in a customer or vendor or general ledger document when the document is
created: either manually. or automatically by the 

n 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.

You can define a second and third parallel currency for your leading ledger for each
company code. Non-leading ledgers are parallel ledgers to the leading ledger. They
can be based on a local accounting principle of a country, ex: You have to activate
a non-leading ledger for the individual company codes.

When BRS is prepared?

At the end of every month entries in the cash book are compared with the entries in the pass
book. The causes of differences in balances of both the books are scrutinized and then
reconciliation statement is prepared. This statement isprepared for a special purpose and once
in a month.