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SAP FI-SD Documentation Overview

The document provides detailed documentation on SAP's financial processes, including sales and distribution, accounting entries, and asset management. It outlines various transaction codes, accounting entries for processes like billing and payment, and explains asset acquisition, retirement, and depreciation. Additionally, it covers integration rules, controlling aspects, and year-end closing procedures in asset accounting.

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Uday Kumar
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22 views8 pages

SAP FI-SD Documentation Overview

The document provides detailed documentation on SAP's financial processes, including sales and distribution, accounting entries, and asset management. It outlines various transaction codes, accounting entries for processes like billing and payment, and explains asset acquisition, retirement, and depreciation. Additionally, it covers integration rules, controlling aspects, and year-end closing procedures in asset accounting.

Uploaded by

Uday Kumar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Made detailed documentation based on the all the

requirement received from initial brainstorm/workshop


sessions, project manager had identified the dates and
schedule plan.

FI-SD- Flow
SAP OTC Sales & Distribution
OTC Process Steps Transaction Code Accounting Entries
Inquiry VA11 No
Quotation VA21 No
Sales Order VA01 No
Post Goods Issue (PGI) - VL01n Yes
Delivery VL01n Yes
Billing VF01 Yes
Receipt of Money FB50 Yes

2. PGI done (Post Goods issue)

Cost of Goods Sold (COGS) Dr

To Inventory Account (Configured in OBYC GBB T-Key)

3. Billing document released to Accounting (Sales Invoice - F22/Fb70)


Customer Account Dr

To Sales Revenue Account Cr (ERL T-key in pricing procedure)

Note: The GL account is assigned to this ERL in VKOA

4. Payment Received

(Incoming Payment Invoice – F-28)

Bank Clearing A/c Dr

To Customer A/c

Movement types: Similar to posting keys in FI –

101 Material receipt against purchase order /production order, etc

Difference between 201 and 261

Material issue is identifiable to production orders use movement type 261

Material issue is not identifiable to production orders use movement type 201

Transaction key /process key

a) BSX Inventory postings

b) WRX Goods receipt /Invoice receipt (GR/IR)

c) PRD Price difference /Production order differences

d) GBB Offsetting entry for inventory postings

(i) VBR consumption

(ii) VNG Scrapping

(iii) BSA Opening stocks

(iv) ZOF Production receipt without production order

(v) AUF Production receipt with production order

(vi) VAY Delivery where sales account is created as revenue element (CO implemented)

(vii) VAX Delivery where sales account is not created as revenue element (Co not implemented)

(viii) AUA production order differences

Valuation class:

Valuation class determines the GL accounts to be posted automatically.


FI-MM
PRPOGRIR IR Verification  PAYMENT Bank clearing

GR:

Inventory account DR - BSX - OBYC

TO GRIR account - WRX – OBYC

IR verification:
GR/IR A/c Dr – WRX - OBYC
To Vendor A/c –
Now the goods are moved from GR/IR A/c and Vendor is credited. Now you got the final entry of
Goods to Vendor Account i.e.
Inventory A/c Dr
To Vendor A/c

Payment:
Vendor account dr
To bank account

Bank clearing
Bank Clearing A/c Dr
To Bank Main A/c

Integration rules

A) In material master we specify valuation class

B) For valuation class we assign GL accounts based on the nature of transaction

C) At the time of material receipt/Issue stores person enters movement type, material number
and quantity. Our

Accounts will be up dated automatically based on accounts assignment to valuation class which
is specified In material master

Controlling
We can’t make cost center required in field status for balance sheet accounts

Report co line items: Business transaction RKU3

Transfer document wise /line item wise, transfer line item wise

Repot costs (Business transaction RKU1)

This is used when we split a cost center in to number of cost centres or wrong cost center postings.

Cost center report KSB1

Path : Accounting-Controlling-cost center accounting –Actual postings-manual reporting of costs –


Enter

(Transaction code is KB11N)

Actual comparisons –Cost centers: Actual /Plan/Variance (Tr code is S_ALR_87013611)

Creation of assessment cycle: (Tr.codeS_ALR_87005742)

Internal order

Orders will be of 2 types

1) Real orders - Order is real (Automatically cost center will be statistical )

Settlement is possible
We can settle order

2) Statistical orders - Order is statistical (Automatically cost center will be real)

settlement not possible


statistical orders are used for decision making

When we transfer from Internal order settlement.

Eg. Telephone expenses Dr 50000 Cost center Dept

Order Tel no.66110883


To Bank 50000

The cost will be allocation to production orders from CO


In the production order valuation we can’t take.(50000+50000)
We have to take only one time 50000

Profit center:

To view variance report profit center wise for balance sheet items: (Tr code
S_ALR_87013336)
Asset accounting is a submodule in SAP which manages companies fixed asset.

What are the kinds of Assets in SAP?


Asset can be simple asset or complex asset, based upon the requirement assets are
maintained with main asset and sub asset. Complex one may have more sub assets.

5. What is Group asset in SAP? When you will use


this?
A ‘Group Asset’ in SAP is almost like a normal asset, The concept of group asset becomes necessary
when you need to carry out depreciation at a group level, for some special purposes such as tax
reporting. Remember that SAP’s way of depreciation is always at the individual asset level.

What is a Chart of Depreciation? How does it differ


from a Chart of Accounts?
The chart of accounts can be global, country specific, and industry specific based on the needs of the
business. The chart of depreciation is only country specific. The charts are independent of each other.

A chart of depreciation is a collection of country specific depreciation areas. The chart of accounts is a
list of GL accounts used in a Company Code.

Depending on the requirement you may have an ‘operating chart of accounts,’ ‘country specific chart
of accounts,’ ‘global chart of accounts,’ etc. One Company Code uses only one chart of depreciation

How do You Create an Asset Accounting Company


Code?
i. Define the Company Code in FI configuration, and assign a chart of accounts to this Company
Code.
ii. Assign a chart of depreciation to this Company Code in FI-AA configuration.
iii. Add necessary data for the Company Code for use in FI-AA, and your ‘asset accounting Company
Code’ is now ready for use.

What is Depreciation? Explain the Various Types?


Depreciation’ is the reduction in the book value of an asset due to its use over time. The depreciation
can either be planned or unplanned.

In SAP, you will come across three types of depreciation:


1. Ordinary depreciation, which is nothing but ‘planned depreciation.’
2. Special depreciation, which is over and above ‘ordinary depreciation,’ used normally for taxation
purposes.
3. Unplanned depreciation, which is the result of reducing the asset value due to the
sudden occurrence of certain events
Define Depreciation Areas?
Fixed assets are valued differently for different purposes (business, legal, etc.). SAP manages these
different valuations by means of ‘Depreciation Areas.’ There are various depreciation areas such as
01-book depreciation, tax depreciation, and depreciation for cost-accounting purposes, etc

11. How do You Set up Depreciation Area postings to FI


from FIAA?
It can be any one of the following scenarios:

Post depreciation through ‘periodic processing.’


Post both the APC (Acquisition and Production Costs) and depreciation through periodic processing.
Post the APC in ‘real time’ but depreciation through periodic processing.
No values are posted.

Describe Transfer of Legacy Asset Data to SAP?


One of the challenges in the implementation of FI-AA is the transfer of ‘Legacy Asset Data’ from your
existing systems to SAP FI-AA. Though SAP provides multiple options and appropriate tools to carry
out this task, you need a carefully planned strategy for completing this task. You may have to transfer
the old asset values through any one of the following ways:
􀂃 Batch data inputs (large number of old assets)
􀂃 Directly updating the SAP Tables (very large number of old assets)
􀂃 Manual entry (few old assets)

. What is Periodic Processing in FI-AA?


‘Periodic Processing’ in FI-AA relates to the tasks you need to carry out at periodic intervals to plan
and post some transactions.
The tasks include:
􀂃 Depreciation calculation and posting.
As you are aware, SAP allows automatic posting of values from only one depreciation area (normally
01 -book depreciation). For all other depreciation areas, including the derived ones, you need to
perform the tasks periodically so that FI is updated properly.
􀂃 Planned depreciation/interest for CO primary cost planning.
􀂃 Claiming and posting of ‘investment support’ (either ‘individually’ or through ‘mass
change’).

What is a Depreciation Key?


Depreciation is calculated using the ‘Depreciation Key’ and Internal Calculation Key in the system.
Depreciation keys are defined at the chart of depreciation level, and are uniform across all Company
Codes, which are attached to a particular chart of depreciation. The depreciation key contains all the
control amounts defined for the calculation of planned depreciation. The system contains a number of
predefined depreciation keys (such as LIMA, DWG, DG10, etc.) with the controls already defined for
calculation method and type. A depreciation key can contain multiple internal calculation keys.
Explain the Various Steps in a Depreciation Run?
1. Maintain the parameters for the depreciation run on the initial screen of the Transaction AFAB
(Company Code, fiscal year, and posting period).
2. Select a ‘reason’ for the posting run (repeat run, planned posting run, restart run, or
unplanned run).
3. Select the appropriate check boxes in the ‘further option’ block if you need a list of assets, direct FI
posting, test run, etc. Please note that it is a good practice to select the ‘test run’ initially, see and
satisfy the outcome of the depreciation run, then remove this ‘check box’ and go for the ‘productive
run.’
4. Execute the test run (if the assets are less than 10,000, you may then do the processing in the
foreground; otherwise execute the run in the background).
5. Check the results displayed.
6. Once you are convinced that the test run has gone as expected, go back to the previous screen,
uncheck the ‘test run’ check box, and execute (in the background).
7. Complete the ‘background print parameters,’ if prompted by the system. You may also decide to
schedule the job immediately or later. The system uses the ‘depreciation-posting program’
RABUCH00, for updating the asset’s values and generating a batch input session for updating FI-GL.
The ‘posting session’ posts values in various depreciation areas, interest, and revaluation, besides
updating special reserves allocations and writing off, if any. If there are more than 100,000 assets for
depreciation calculation and posting, you need to use a special program, RAPOST00.
8. Process the ‘batch input session’ created by the system in step-7 above. You may use the
Transaction Code SM35. Again, you have the option of processing the session in the foreground or in
the background.
9. System posts the depreciation in FI-GL.

48. Explain Year Closing in FI-AA?


The year-end is closed when you draw the final balance sheet. But, to reach this stage, you need to
ensure that the depreciation is posted properly; you can achieve this by checking the ‘depreciation list’
and also the ‘asset history sheets.’ After this is done, draw a test balance sheet and profit and loss
statement and check for the correctness of the depreciation. Correct the discrepancies, if any, with
adjustment postings. You need to re-run the depreciation posting program if you change any of the
depreciation values. When you now run the ‘Year-End Closing Program,’ the system ensures that the
fiscal year is completed for all the assets, depreciation has fully posted, and there are no errors
logged for any of the assets. If there are errors, you need to correct the errors before re-running the
year-end program. When you reach a stage where there are no errors, the system will update the last
closed fiscal year, for each of the depreciation areas for each of the assets. The system will also block
any further postings in FI-AA for the closed fiscal year. If you need to re-open the closed fiscal year for
any adjustments postings or otherwise, ensure that you re-run the year-end program so that the
system blocks further postings.

ASSET ACQUISITION

The entry that gets generated on processing this transaction is as follows:


Dr Asset a/c

Cr Vendor a/c

The asset value dates are mentioned at the time of purchase. The asset value dates determine the
date from which the depreciation would be calculated.

2) RETIREMENT/SALE OF AN ASSET

The entries that get generated are as below: (with notional figures)

 When asset is sold


Dr. Accumulated Depreciation A/c

Dr. Loss on Sale of Asset A/c (if applicable)

Dr. Clearing Account from Asset Sale

Cr. Asset (APC Value) A/c

Cr. Profit on Sale of Asset A/c (if applicable)

 When the asset sold is cleared against the customer invoice


Dr. Customer A/c

Cr. Clearing Account from Asset Sale

 At the time of payment,


Dr. Bank Incoming A/c

Cr. Customer A/c

3) WRITE-UP OF AN ASSET

The accounting entry that gets generated is:

Dr Accumulated depreciation a/c

Cr Depreciation

4) DEPRECIATION POSTING RUN

The entries that get generated are as below:

Dr Depreciation a/c

Cr Accumulated Depreciation a/c

Common questions

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SAP manages different asset valuations through the use of depreciation areas, which are essential for recognizing various financial assessments of assets for different purposes such as legal requirements, tax reporting, and business analysis. Each depreciation area can be configured to reflect a distinct valuation basis, such as book depreciation, tax depreciation, and cost-accounting depreciation. This system allows for comprehensive asset management that aligns with regulatory standards and business needs. By using different depreciation areas, a company can generate financial reports that cater to different stakeholder requirements while maintaining the integrity and consistency of financial data across multiple evaluation criteria .

Real orders in SAP are used for actual financial transactions and can be settled, which means costs incurred under these orders are transferred to other controlling objects like cost centers, production orders, etc. This is useful for controlling and monitoring expenses for specific purposes or projects. On the other hand, statistical orders are mainly for reporting purposes and cannot be settled; they are used internally to aid in decision-making. Statistical orders allow organizations to track costs against budgeted amounts without the need to transfer costs away from the order level, providing managerial insight without affecting the financial statements .

In SAP, the asset acquisition process begins with the entry generated by the transaction: Dr Asset a/c and Cr Vendor a/c. The asset value dates, which are specified at the time of purchase, determine when depreciation for an asset commences. Once the asset is procured, it moves into the depreciation phase, where values are calculated and posted according to pre-set depreciation methods. This structured approach facilitates accurate tracking and management of fixed assets, ensuring that asset accounting aligns with financial reporting requirements .

The valuation class in SAP plays a critical role in the integration of the Financial Accounting (FI) and Materials Management (MM) modules by determining the General Ledger (GL) accounts to which transactions are posted automatically. It serves as a link between material management and financial accounting by associating materials with certain GL accounts based on the type of material and transaction. This automatic account determination occurs because the valuation class allows the system to select the appropriate GL accounts when transactions such as goods receipt, inventory posting, or invoice receipt occur. This setup is crucial as it ensures that the financial implications of material movements are accurately reflected in the financial accounts without manual intervention .

The transfer of legacy asset data to SAP during the implementation of FI-AA is critical as it ensures continuity and accuracy in asset management. SAP provides various methods to transfer old asset values, such as batch data inputs, direct updates to SAP tables, or manual entry, based on the volume and complexity of assets. This process is crucial because it involves bringing historical asset-related financial data into the SAP environment, which forms the foundation for accurate asset accounting, reporting, and compliance in the new system. Proper planning and execution of this transfer is necessary to avoid discrepancies and ensure a smooth transition without data loss or inaccuracies .

In SAP inventory management, General Ledger (GL) accounts and transaction keys are vital for ensuring that inventory-related transactions are accurately and automatically reflected in the financial accounts. GL accounts record the value of inventory transactions, such as goods receipt or issue, by linking transactions to specific financial accounts. Transaction keys, assigned to various inventory movements like BSX for inventory postings or WRX for goods/invoice receipt, help determine the correct accounting treatment for each transaction. This automated linkage facilitates efficient financial reporting and compliance, ensuring that all inventory movements have corresponding entries in the financial ledgers, thus maintaining accurate financial statements .

Year-closing activities in FI-AA are critical to finalizing the fiscal year's financial data on fixed assets accurately. These activities include ensuring all depreciation is posted correctly by reviewing depreciation lists and asset history sheets. Any discrepancies must be corrected through adjustment postings before the year-end closing program is run. This program ensures that the fiscal year is finalized with all assets' depreciation fully posted, and it checks for errors which must be resolved. By preventing further postings after closing, the system maintains data integrity, helping to avoid errors or discrepancies in the financial statements, thereby ensuring reliability in financial reporting .

Cost centers and profit centers in SAP are interrelated yet serve different purposes within management accounting. Cost centers are primarily used for tracking expenses and are involved in internal reporting for budget compliance and cost control. They help in identifying where costs are incurred. Profit centers, on the other hand, are mainly used to evaluate the profitability of various business units within a company, essentially tracking both income and expenses. The relationship between the two lies in their complementary roles—while cost centers focus on expenses and aid in cost management, profit centers provide insight into the financial results and profitability of different parts of an organization. This dual approach allows for detailed financial analysis and enhanced strategic decision-making .

The SAP depreciation run involves several critical steps: 1) Set parameters for the depreciation run in Transaction AFAB, including company code, fiscal year, and posting period. 2) Select a 'reason' for the posting run, such as planned or unplanned posting. 3) Optionally conduct a test run to preview the results. 4) Execute the depreciation run, choosing between foreground or background processing. 5) Review results for accuracy. After verification, uncheck test run options and perform the productive run. This structured process helps ensure that depreciation is accurately computed and reflected in financial statements, minimizing discrepancies and supporting financial compliance .

Using group assets in SAP is beneficial in situations where depreciation needs to be managed at a consolidated level for purposes like tax reporting. Group assets in SAP allow for the aggregation of individual asset values to calculate depreciation collectively rather than individually. This approach is particularly useful for simplifying financial management and reporting of similar or related assets that require synchronized depreciation calculations. Despite SAP's standard view of depreciation being at the individual asset level, group assets provide an alternate approach to address specific accounting scenarios that require comprehensive asset valuation and uniform application of depreciation methods across a set of assets .

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