Define company: company is an organizational unit in accounting, which represents a business

organization according to the requirements of commercial law in a particular country. A company can comprise one or more company codes Ex: Reliance Industries is a company Reliance Retail, Reliance securities, Reliance Mobiles, Reliance logistics are company codes under a company (Reliance Industries) Under company code have many business areas like Hyderabad B.A, Chennai B.A, Bangalore B.A, etc .. Under Business area some Functional areas is there are Admin Dept, Finance Dept, S&D Dept, R&D Dept etc Create a company DARI99 (DIRUBAI AMBANI RELIANCE INDUSTRIES LTDS)

Define Credit Control Area: The credit control area is an organizational unit that specifies and checks a
credit limit for customers. A credit control area can include one or more company codes. It is not possible to assign a company code to more than one control area. Within a credit control area, the credit limits must be specified in the same currency. RCCA (RELIANCE CREDIT CONTROL AREA)

Company code: It is an organizational unit used in accounting. It is used to structure the business
organization from a financial accounting perspective. If you do not wish to copy an existing company code, you can create a new company code and make all the settings yourself. You define your company codes by specifying the following information.

Company code key: It is a four-character alpha-numeric key as the company code key. RM99 (RELIANCE MOBILES) Define Business Area: A business area in SAP corresponds to specific business segments of a company
Exe: A company may have different specializations. RMHY (maximum 4 characters) RMCH, RMBL

Description: (Hyderabad bus area), RMCH (Chennai bus area), (Bangalore bus area)

Define Functional Areas: The functional area field appears in the documents of the applications FI, CO, Profit
Center Accounting (PCA), and Special Purpose Ledger (SL). Combined with the G/L account, the functional area determines the position of the value in the profit and loss statement. In order to define a financial statement version with functional areas, you must have defined the functional areas.

Functional areas: RMP, RMF, RMA, RMSD, RMRD (maximum 4 characters) Description: production, finance, sales & dist, R & D, Maintain consolidation business area: This is another controlling tool like Business Area, but on a much
larger scale. A consolidation business area is a consolidation of a number of business areas that satisfy certain geographic or demographic criteria (for example, belong to the same state, country, continent, etc. or belong to business areas in cities only/villages only etc.). This helps in a much more macro-controlling aspect as compared to business area.

RMBA (maximum 4 characters) Consolidation business area Maintain Financial Management Areas: Financial Management Area is a customization that helps to work
on Cash Flow & Funds Flow Management. Without this customization these features will not be activated.

RMF1 (maximum 4 characters), RMF2, RMF3, RMF4 Assign Company Code to company: In this step, we assign the company code we have created for our
company. This ensures that whenever the company code is required to be quoted for any transactions, the resultant entries get passed to our company

Assign company code RM99 to company DARI99 Assign company code to Credit control area: Assign each of the company codes to a credit control area
as you require. Ensure that the appropriate credit limit is specified for the credit control areas and/or for the individual customers. You determine the credit limits via the Accounts Receivable area menu.

Assign company code rm99 to credit control area rcca Assign Business areas to Consolidation Business Area: we assign the various business areas that we
want under a particular consolidation area under that particular consolidation business area. It must be

noted that a business area can be assigned to more than one consolidation business area in order to enable better reporting and controlling activities.

Business areas RMHY, RMCH, RMBL to consolidation business area RMBA Define Fiscal Year Variant: In day to day life, we are following the year starting from January to December.
This is called calendar year. But while maintaining financial records, some business organizations, maintain records from April to March, some January to December or some in other way. The period from which the financial records are maintained is called Fiscal year. Hence we need to define Fiscal year as per the need of our business organization.

FISCAL YEAR IS R3 Assign fiscal year variant to the company code: For every company code, you must specify which fiscal
year variant is to be used.

Assign fiscal year variant R3 to the company code RM99 Define posting period Variant: This controls which posting periods (normal and special) are applicable for
each company code. It is possible to have a different posting period variant for each company code. The posting period variant is independent of the fiscal year variant.

Posting period Variant: RMVT, posting period variant for RM99 Open and close posting periods: in this activity you specify for each variant which posting periods are
open for posting. Two intervals are available for doing this (period 1 and period 2). For every interval, enter a lower period limit, an upper period limit and the fiscal year. You close periods by selecting the period specifications so that the periods to be closed are no longer contained.

Assign Posting Period Variant to the company code: posting period s variant must have assign to
company code because we create fiscal year company code.

Assign Posting Period Variant RMVT to the company code RM99 Define field status variant: in this activity, you can create and delete field status variants. You must then
assign a field status variant to each FM area. You can use a field status variant for as many FM areas as you wish. By assigning field status variants and field status groups to field selection strings, you can achieve detailed control over document entry in your FM areas for the individual business transactions. The field

selection string determines which fields will accept input when you enter documents, which are required entries, and which are hidden.

Copy the Standard Field status variant 0001and change as to field status variant RMVT. Copy to all. Assign field status variant to the company code: In this activity, you assign the company codes in
which you want to use identical field status groups, to the same field status variant.

Assign company code RM99 to field status variant RMVT Define chart of accounts : chart of accounts list refers to the list of GL account numbers. It
defines the set accounts within which transactions of the company will take place. A chart of accounts list can be assigned to any number companies; however one company can have only one chart of accounts list. Group chart of accounts: RMGC, Operational chart of accounts: RMOP

Assign chart of chart of accounts to company code: in this step we specify which chart of
accounts we are going to use for our company. Since there are already a huge number of predefined chart of accounts, we can either choose from those, or assign one that we have custom- created only one chart of accounts can be assigned to one company. Company code: RM99 Chart of accounts: RMOP

Define document type and number ranges: in this activity you create number ranges for
documents. For each number range you specify a number interval from which document numbers are selected the type of number assignment you assign one or more document types to each number range becomes effective via the document type.

Define Account Group: Accounts groups control the master records. It controls the number
range of master record and field status group also SAP fallows a Grouping principle all throughout SAP to handle the Master records that may be in GL, AP, AR, any thing.

SAP fallows a maximum of 10 digits for an account number. However for the purposes of this tutorial we will only be using 6 digits, since that is sufficient for all practical purposes. The format we will be following is as follows Liabilities- 100000 series Assets- 200000 series Income- 30000 series Expenditure- 400000 series

COA RMGC RMGC RMGC RMGC RMGC RMGC RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP RMOP

A/C GROUP LIB ASST REV EXP CLR SCE Cap R&S SL Unsl Scr Accd Ocl Fxa Invt Ivst C&B Sdr Adv Oca Srev Grev Orev Mcon Prd Admin Fexp S&D Gexp

NAME LIBILITIES ASSETS REVENUE/INCOME EXPECNES CLEARINING ACCOUNTS SCOND. COST ELEMENTS Share Capital Reserves & Surplus Secured loans Unsecured loans Sundry creditors Accumulated Depreciation Other current liabilities Fixed assets Inventory Investment Cash & Bank Sundry debtors Advances Other current liabilities Sales revenue General revenue Other revenue Material consumption Production exp admin exp Financial exp Sales & dist exp General exp

FROM A/C 100000 200000 300000 400000 500000 600000 100000 110000 120000 130000 140000 150000 160000 200000 210000 220000 230000 240000 250000 260000 300000 310000 320000 400000 410000 420000 430000 440000 450000

TO A/C 199999 299999 399999 499999 599999 699999 109999 119999 129999 139999 149999 159999 199999 209999 219999 229999 239999 249999 259999 299999 309999 319999 399999 409999 419999 429999 439999 449999 459999

RMOP RMOP RMOP

Oexp Clr Sce

Other exp Clearing accounts Settlement cost elements

460000 500000 600000

499999 599999 699999

Define Retained Earning: Retained Earnings account defines the to be used for posting the expenditure
and incomes of the year. The balance of this account appears as Reserves & Surplus in the Balance Sheet for the year. P & l statement: X Account: 119999

Define Tolerance limits to the employs: this step helps us pre- determine various amount limits for the
employees with which we can set. The maximum document amount the employee is authorized to post, the maximum amount the employee can enter as a line item in a vendor/customer account. Company code: RM99 Amount /Document: 9999999999999 Amount/open item: 9999999999 Cash discount/ line item (A/R) Note: Don t fill up the field Group

Define Tolerance group for GL accounts: Tolerance group is used to maintain control over posting of
transactions and their clearing. Define G/C accounts Creation: Transaction code is fsp0 G/c accounts no: 119999 Chart of accounts: rmgc A/c group: lib Short text: retained earnings a/c

Trading partner: dari99 G/l account no: 100000 Coa: rmgc With template: 119999 Company code: rm99 Short text: capital G/l account no: 110000 With template: 100000 Short text: reserve & surplus G/l account no: 120000 With template: 100000 Short text: secured loans G/l account no: 130000 With template: 100000 Short text: un secured loans G/l account no: 140000 With template: 100000 Short text: sundry creditors G/l account no: 150000 With template: 100000 Short text: accumulated depreciation G/l account no: 160000 With template: 100000

Short text: other current liabilities G/l account no: 200000 Create A/c group: assets Short text: fixed assets G/l a/c no: 210000 With template: 200000 Short text: inventory G/l a/c no: 220000 With template: 200000 Short text: investments G/l a/c no: 230000 With template: 200000 Short text: cash & bank G/l a/c no: 240000 With template: 200000 Short text: sundry debtors G/l a/c no: 250000 With template: 200000 Short text: loans & advances G/l a/c no: 260000 With template: 200000 Short text: other current assets

G/l a/c no: 300000 Create A/c group: Revenues Short Text: sales revenue G/l a/c no: 310000 With template: 300000 Short text: general revenue G/l a/c no: 320000 With template: 300000 Short text: other revenue G/l a/c no: 400000 Create A/c group: Expenses Short text: material consumption G/c a/c no: 410000 With template: 400000 Short text: production exp G/c a/c no: 420000 With template: 400000 Short text: personal exp G/c a/c no: 430000 With template: 400000 Short text: financial exp

G/c a/c no: 440000 With template: 400000 Short text: Sales & dist exp G/c a/c no: 450000 With template: 400000 Short text: general exp G/c a/c no: 460000 With template: 400000 Short text: other exp G/l a/c no: 500000 Create A/c group: clr Short text: clearing accounts G/l a/c no: 600000 Create A/c group: Sce Short text: settlement cost of elements