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CHAPTER 1
Introduction to sap

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Introduction:
In the process of organizational evolutionary changes, computers play a
vital role. To achieve the organizational plans, goals, and targets,
computerization of its activities is inevitable. In the early computerization
days, organizations are used to select the individual soft wear products.
These products were replaced the manual environment and helped to
improve the performance of an organization in all spheres. The
independent soft wears were developed to meet the specific requirement
of an organizational activity. The growing requirements prompted for
designing new tools. Consequently, an organization with multifaceted
activities bundled with many independent computer packages. Hence
development and maintenance of individual soft wears has become a
white elephant for the organizations. In addition to the cost concept, the
globalization and growing concept of global village, required more than
the present set up of individual soft wear applications. In the present
Global environment, the soft wear should support cross country
functionalities, with the diversified activities.
To meet such demands of the industry, independent soft wear era has
taken a new turn with integrated soft wears. The integrated soft wear
supports the cross functionalities, multiple languages, and cross-country
activities, without changing the existing environment and organizational
set up as well. The new Integrated Soft wear is coined as an ERP Product
or Standard Soft wear products. The Standard soft wear is developed as
flexible and universal product to meet the requirement of as many
companies as possible. Standardization can be achieved by incorporating
the accepted business common laws, international accounting standards,
and scientific knowledge of business processes. The Enterprise Resource
Planning product caters the requirements of an organization, with a tight
integration among all the business processes.
In my own experience, I would like to say the Banking industry in India is
too slow to accept the technological changes in the before 90s. There
may be so many reasons in the past. However, Now the Banks in India
are ahead to imbibe the technological changes happening around them.
Privatization, globalization and liberalizations have brought the drastic
changes in the facet of Indian Banking industry. The Big Bank i.e. State
Bank India and its associates are the front runners in implementing the
ERP product. Now Each Bank in India is following the foot steps of state
bank. However, Banks ERP product is an Industry solution Product.
The implementation of Core Banking solutions (ERP>industry specific
solution) is taking place in many of the Indian Banks. Many of the banks
which are implemented the ERP product are deriving the benefits.

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Now our discussion is relating to cross country application soft wears.
There are several ERP products are available in the Market. They are
mainly
SAP
ORACLE FINANCIALS
JDEDWARDS
BAWN
EPICORE
PEOPLE SOFT etc.
However, at present the most familiar product is SAP only. Hence, in the
coming chapters I will discuss about SAP Standard soft wear product SAP
only. In the available products, some are cross functional products and
some products are industry specific solutions (banking soft wear).
Industry Specific Products are designed to meet the business processes
of unique business. More or less this type of industries will follow the
similar business processes wherever they exists Example Banking
industry, insurance, retail solutions etc. Cross functional products are
developed as standards soft wears to meet the different type of industry
requirements, throughout the world. The standard soft wears can not be
used as its status. The Soft wear has to be tailored to the requirement of
different industries with the cross-country functionalities and with the
cross-industry business processes. The standard integrated product has
to be customized or configured with the specific industry requirements.
We have to set some pre activities to the standard soft wear, before
using called Parametrization or so-called Customizing. The organizations'
requirement is to be compared with the capabilities and adaptabilities of
the standard soft wear before taking up the Customization task. Many
organizations do not understand how to represent their organization
structures and business processes in the standard soft wears. To take up
the requirement definition task and Customization of Business processes,
requires a specialist organization i.e. called Implementation Company.
The implementation company selects and forms group with an expert
people. This group of People is called a Consultant group. This consultant
group has not only expertise in the standard software definitions but also
to understand the organization’s structures and business processes.
They will map the structures and business processes of the legacy
system to ERP environment. Hence the main role of a consultant is to
map up the business processes with the standard soft wear processes
and customize the additional requirements if required by the
organization. The pre parameterization activities and customization
activities are put together is called as an Implementation of Project.

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The Implementation of the project is more or less similar for all standard
soft wears. In SAP environment also the process of Implementation is
similar. Implementation of a project is so easy to discuss but involves a
lot complexity and cost. Hence has to be properly planned and monitor
project in a systematic procedure. The Consultant team and core team
has to define the Deliverable Milestones and accordingly monitor the
project. Definition of Milestones in the project is a tough task for
reconsulting and senior executives of the company. Then only we can
complete the Implementation task successfully. The total activities and
programmers are to be document in a proper way. This document is a
guide for implementation of a project. This document is called as ASAP
METHODOLOGY OR SOLUTION MANGER. It is road map for the consultant,
to customize the business processes. The success or failure mainly
depends on the methodology we have adopted during the project
implementation. The implementation road map is primarily based on
sequential methodology and consists of five phases that are to be
executed sequentially. Those are

1)Project 2) Business Blue 3)Realization

preparation prints
5)Go live and support 4)Final preparation

While preparing the above road map the consultants has to meet the core
team members and interact with the people ascertain the required
information relating to the existing process and their requirement in
environment. (Core team is the group of expert people from various
functional activates, to represent the company or the front-line
information providers to the consultants during the project
implementation. For the Project purpose generally, the participating
companies forms a Steering Committee. The steering committee vested
with the executive powers to define the new process or modify the
process if required. It consists of the people from consulting company as
well as implementing company. The steering committee is responsible for
the successful implementation of the project. In Each Stage or Process
certain activities are defined with time bound intervals. If you follow the
pre set time norms in each stage there will not be” analysis in paralysis
“in implementation project. There are no hard and fast common time
bound intervals for each project. These are different from one industry to
industry and country to country also. Generally, the road map is prepared
basing on the Principle of Business processes or so called As Is Processes.
The new processes are defined in the project as “To Be Processes” with
proper authorization from the steering committee or from the vested
authorities. The consultants do not make the configurations beyond the
scope document without proper authorization.
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1. Project Preparation: This is the first phase of implementation of
project. In the phase the core component is Project Implementation
Planning will be done. The Planning consists of all round activities relating
to the implementation activities. Those are mainly defining existing goals
and the new goals in the new environment. This is called as a project
charter. There will not be any changes to the project charter unless and
until the changes are approved by the competent authorities. Besides to
the project charter, we have to define the implementation strategy,
project standards for procedures and documentation procedures are
defined. Apart from the project budget, and project resource planning
(hardware requirement planning, technical requirement planning,
defining system land scopes in new environment, human resources
planning, etc.) is also defined in the project preparation. The project goals
and objectives, and other requirement definitions and planning and
strategies to achieve the defined goals will be approved in the Kick off
meeting. Kick Off meeting is the exact starting of implementation of the
project. By this time all the members in the implementation team are
fully aware
The Each of theofscope
phase document
the road objectives.
map concludes at predefined milestones. The
quality checks to be made to the objectives defined for the phase. If the
results are properly met with the set objectives, then the project manager
from the company side will close the phase and confirms the results. He
signed off the phase document having completed in all respects. Then we
can go for the 2nd phase i.e. blue print preparation.
2. Blue print preparations: The objective of the second phase of
implementation road map is preparation of Business Blue prints. It is
called as a design document for the future r/3 system. Business blue
prints are the basic requirement for the 3rd phase of implementation
(realization). There is no 3rd phase without Business Blue prints. The blue
print for each task will put together as blue print for the project. The
project manager will ascertain the status from each consultant member
and evaluate to the steering committee, at regular intervals. The time
interval for meetings with the members, attending the steering
committee meetings, and other project analysis depend on the size of the
project.
In the Blue print stage a proper knowledge transfer with core team
members is must for effective implementation of the project.
In this phase as is process definition and to be process definition will be
made. Accordingly change management to the new type of environment
also initiated. System land scopes will also be determined. This is a
comprehensive phase. Each area of scope document will be meticulously
examined and prepares the best available business process and evolve
the training methodologies to under stand the new business process
environment is developed.
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Last but not the least activity in the 2nd phase of blue print preparation is
quality check for blue print preparations. For this purpose SAP provides
separate tool for check.

3. Realization phase: As per the business blue print requirement, and

design decision, the activities are realized in the new environment. The
realization phase can be concluded in two phases. The Base line and the
final configurations. In this stage parameterization or customizations will
takes place and ensure its authenticity and finally confirms the
realization. Sap enhancements, script forms, and other developments can
takes place in this phase of implementation. In this phase structure of an
organization will be created and ensures its quality checks with the blue
prints, and preliminary testing by using some test cases also will be done.
With the completion of this realization, we can see the silhouette or an
organization in the r/3 environment.
In this phase with the help of system administrator proper authorizations
check limits, dual control set ups and also defined. Final intra module
integration test, and training classes for the end users, and training
material will be prepared. Finally, the routine activity of quality check will
be conducted to know whether the milestones definitions are properly
met or not. It ensures final acceptance and correctness of the
configurations and accepted by the project management.

4. Final Preparation: The fourth phase is to create a company in new

environment in the production system. In this phase further enhancement
for user programmers, system administration activities, and Cut- over
dates for new environment is defined. As usually, the status and steering
committee meetings will be conducted as before. Extensively end user
training programmers will be conducted in the form of seminars, work
shops, user master records creation and testing data will be processed.
And further the system management will be also analyzed extensively.
Final activity testing will be done in the production system. Generally, no
changes can be made in production system. However, if any minor
changes any made must be documented it properly for future reference.
Quality checks will also take up in respect of achievement mile stones. In
this Phase the Cut-over is the important activity. This will decide the go
live and support phase.
5. Go-live and support: Once the go live i.e. last phase is completed,
as consultant, we must provide support in the production run for the end
user till the system stabilizes. In this phase the main activity is to extend
support to the end user and guiding them to check the data and reports
for the requirement and other day to day problems in the new
environment.---
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For this purpose, we can keep “Hand holding” to give the support for user.
Once the system stabilized, the project management prepares for the
acceptance of the productive environment by the steering committee or
the company management.
End Project: the project should be ended officially at the completion of
implementation of project. The project team will be relieved of its
responsibility when all outstanding problems were cleared up or passed
on to the help desk.
At finally the end results and business process results are compared and
critical assessment of the complete project. These are only gist of the
Implementation Road Map or Methodologies for Project implementation.
The above methodology is applicable for all types of standard soft wear
implementations. Hence the understanding the methodology
comprehensively, is said to be completed half of the implementation job.
Before going to configuration or customization we need to under stand
the R/3 architecture. The R/3 architecture is the future silhouette of an
Organization after implementation of the SAP standard software.

R/3 Architecture
Before entering into project implementation activities every one of the
project related, should at least know the R/3 architecture. It gives an
immense knowledge over the implementation activities. The Sap system
environment is called as Client Service approach. There are different
views to understand the client server approach. The client server may be
embedded in a single system or in different systems. As per the
requirement of the project we can decide the system environment.
Basically, there are 3 types of clients are used in the project
implementation. The first one is development client, the quality client,
and the production client.
[Link] [Link] box
[Link] testing.

1. Quality testing

[Link] or permanent
client for users.

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The three clients are specified for different activities. The development
client is used to do the configurations by the Jr consultants as per the
business blue prints. We can make and define the configurations as per
the requirements. The configurations will be tested in another client
(depending on the system environment) i.e. Quality client. The
configurations made in development client will be transported to the
quality client with the help of transport management (dealt by basis
administration). And the configurations will be checked and ensure that
they are in tuned with business blue prints. Once the quality checking is
completed, the configurations will be transported from development
client to Production client. This is client of end user. Generally, no
changes can be made to the configurations in this client. In exceptional
cases if any changes made has to be documented perfectly ‘as the
changes made in Production client’ However, SAP discourages to make
changes in Production client, make the changes in development client
and test it quality then again transport to production. This is best
business practice of the Implementation. The R/3 architecture can be
viewed as the following way. This type of R/3 view is considered as a
development view. We can have a birds view over the total development
activities in implementation process. Generally, a client is considered a
work area where the user master data is available or configured.
With a view to remember the work areas or the clients, SAP suggested to
name the client with 3-character Ids. There are no had and fact system of
number of clients. We can name it as per the convenience of the project.
However, to maintain the standardization SAP suggests the consultants
000 client name should be accredited to Production client only.
As an application consultant we do the configurations in development
client, and ensure the initial quality checking of the configurations as on-
going process. All configurations have to pass through the quality testing
phase in quality client. Here in the quality client all types of testing, like
intra module testing, business process tests, integration testing, will be
done and finally confirms the customization and integration. Then the
customized settings will be transported to production client. Before
transporting into production client, the final test called User Acceptance
Test will be done.

Hard ware view of R/3 Architecture:

The above is called a development view, the view of the R/3 architecture,
is hard functionality, or we can the process functionality of information
with in the sap environment.

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The above diagram is flow chart in R/3 structure. The end user queries
first of all processed in the application server (with the help of ABAP) and
sent to data base.(understands only SQL language) In turn the data base
server responds the queries and sent back the necessary information
again to application server in turn to Presentation server. This also can be
considered a Client server system with in a client. The flow of information
in the diagram is defined with the numeric numbers.
I think the readers of this book, might have got an overview functionality
of R/3 architecture by this time. The most complex activity for a
consultant is to under the Organizational structure in the legacy system
and mapping up with the Organizational units in SAP environment. This is
the hard-core problem for the [Link]. Hence mapping of
organizational units and mapping of business process are generally dealt
by the senior consultants.
The Implementation approach vs. learning approach:
The implementation approach in real time is some what different from
the learners approach. However, the end product is same for the two
approaches. The Implementation Approach is coined by me as Parallel
approach. The Learners Approach is called as Horizontal Approach. If you
take up the Implementation approach in the class room may cause a little
bit confusion among the students. Hence, I am taking up the Horizontal
Approach for the students who have attended for work shops or training
classes.

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CHAPTER 2
Organizational
Structure
SAP Financial Accounting Global
Settings

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SAP Financial Accounting - Global Settings
Configuration

These settings are required before you begin with transaction postings
and [Link]-by-Step Configuration Overview

[Link] Company – T-code: OX15

Define Company Code – T-code: OX02
Assign Company Code to Company – T-code: OX16

[Link] Chart of Accounts – T-code: OB13

Assign CoA to Company Code – T-code: OB62

[Link] Fiscal Year Variant – T-code: OB29

Assign Fiscal Year Variant to Company Code – T-code: OB37

[Link] Posting Period Variant – T-code: OBBO

Assign Posting Period Variant – T-code: OBBP
Open and Close Posting Period Variant:OB52

[Link] Document Types – T-code: OBA7

Define Number Ranges – T-code: FBN1

[Link] Field Status Variants – T-code: OBC4

Assign Field Status Variant to Company Code – T-code: OBC5
Define Tolerance Groups – T-code: OBA3, OBA4

[Link]/Assign Currency – T-code: OB22, OBBS

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🏢 1) Company
•Definition: The parent/holding company in SAP that represents the
group at the highest level.
•Purpose: Used mainly for consolidated financial statements
(group reporting).
•Legal status: May or may not be a legal entity itself, but it holds all
company codes.
•Example:
•IN00 – Indigo Group (Head Office, New Delhi)

🏢 2) Company Code
•Definition: The smallest legal organizational unit in SAP for which
you can prepare a Balance Sheet & P&L.
•Purpose: Each legally registered company must have one
Company Code.
•Legal status: YES – must be a separate legal entity (with PAN, GST,
CIN, etc. in India).
•Example:
•IN11 – Indigo Paints Pvt Ltd (Delhi)
•IN12 – Indigo Chemicals Pvt Ltd (Mumbai)
•IN13 – Indigo Exports Pvt Ltd (Chennai)
🏢 3) Branch (Plant/Location)
•Definition: A sub-unit or location of a company code.
•Purpose: Represents physical offices, factories, warehouses, or sales
branches.
•Legal status: NO – branches are part of the company code.
•Example (within IN11 – Indigo Paints Pvt Ltd):
•DELH – Delhi HO
•MUMB – Mumbai Branch
•CHEN – Chennai Branch
•HYD – Hyderabad Branch

🏢 4) Business Area
•Definition: A division of operations (product line or service line)
for internal financial reporting.
•Purpose: Helps in preparing Balance Sheet & P&L by division, not
by legal entity.
•Legal status: NO – internal reporting only.
•Example (IN11 – Indigo Paints Pvt Ltd):
•INPA – Decorative Paints
•ININ – Industrial Paints
•INEX – Export

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🏢 5) Consolidation Business Area
•Definition: A way to combine the same business area across
multiple company codes for group-level reporting.
•Purpose: Consolidated reporting of divisions that exist in many legal
entities.
•Example (Indigo Group):
•Export Division (INEX) exists in:
•IN11 – Indigo Paints Pvt Ltd
•IN12 – Indigo Chemicals Pvt Ltd
•IN13 – Indigo Exports Pvt Ltd
•Consolidation Business Area → INEX – Exports (Group Level)
🏢 6) Profit Center
•Definition: The smallest unit in Controlling (CO) used for
profitability analysis (branch, plant, or department).
•Purpose: To measure Profit/Loss of each branch/segment within a
company code.
•Legal status: NO – management/internal reporting only.
•Example (IN11 – Indigo Paints Pvt Ltd):
•DELH-PC – Delhi Branch Profit Center
•MUMB-PC – Mumbai Branch Profit Center
•CHEN-PC – Chennai Branch Profit Center
•HYD-PC – Hyderabad Branch Profit Center

Only Company Code is legal Others (Branch, Business Area, Consolidation

Business Area, Profit Center) are internal reporting tools.

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 Learners Approach or Horizontal
Approach
Transactional End User Miscellaneous
Content Master Data
Data Activities Activities
Map up with the
legacy system
Organizationa
-------- -------- -------- and to create
l Units
org. units and
global settings.
2. Define
3. Data
number ranges,
General postings, 4. Any activity
1. Creation of tolerances,
Ledger ensure the related to GL
GL master data posting keys,
Accounting correctness of accounting
doc. type, and
settings
so on
Define doc.
type, number
Definition of
Accounts ranges, Processing the
groups, number
Payable and tolerances, data to ensure Miscellaneous
ranges, and
Accounts payment terms, the activities
creation of
Receivable automatic configurations
master records
determinations
into calculations
Definition of
Define check
house banks,
Creation of management
Bank account IDs, Miscellaneous
bank master and ensure the
Accounting and related activities
record correctness of
activities into
settings
calculations
Chart of
depreciation,
valuation
Creation of Posting the data
methods,
Asset asset classes to ensure the Miscellaneous
depreciation
Accounting (including pre- correctness of activities
key and
act) the data
automatic
determination
of accounts
Define tax
Defining tax
codes, and
General procedures, And
automatic Post the data
Configuration condition types, miscellaneous
determination for correctness
s jurisdiction activities
of accounts of
codes
tax

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In Horizontal approach each component wise master data, transactional
data and end user data and related activities will be configured, this
methodology is more reachable for the students in class room
environment.
Implementation Approach in real time:

In real time the implementation of the project is slightly differs with the
horizontal approach. The methodology is mentioned under the table.

Accounts
General Payable
Asset
Organizati Ledger and
Particulars Accountin
onal Units Accountin Accounts
g
g Receivable
& Bank
Creation of Creation of
all masters Creation of all masters
Definition of in GL all masters in Asset
organization accounting in AR, AP, Accounting.
units, and and creation and Bank And
1. Master
global of all module. creation of
Data
settings, in masters Creation of all master
each simultaneou all master records
module sly by all records in simultaneou
module all modules sly in all
consultants modules

Transaction
Definitions al data Transaction Transaction
2. are definition al data in all al data in all
Transactio simultaneou will be done modules modules
nal Data sly in all simultaneou simultaneou simultaneou
modules sly in all sly sly
modules

Processed Processed Processed Processed

simultaneou simultaneou simultaneou simultaneou
sly in all sly in all sly in all sly in all
modules, for modules, for modules, for modules, for
testing testing testing testing
3. End
purposes purposes purposes purposes
User Data
and ensure and ensure and ensure and ensure
the flow is the flow is the flow is the flow is
taking place taking place taking place taking place
in all in all in all in all
modules modules modules modules

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In the implementation approach is suitable for real time project
implementations, all the master records, will be defined simultaneously
and useful for automatic assignments and default assignment purposes.
And further it is good methodology to ensure the end-to-end tests and
integration tests. Hence this methodology is followed in real time
projects. However, the Horizontal Approach is exclusively useful for the
class room environment for better understanding of the concepts
If you familiar even with the horizontal approach method also, we can
easily under stand the implementation approach in real time. Hence, I
used to take the classes in Horizontal approach for the students. Now you
are equipped with enough overview for taking up the project
configurations as defined below.

NARENDRA PROJRCT
FICO MODULE

CUSTOMIZATIONS

As a part of the implementation of ERP we have to choose an experienced

implementation partner for a project. The selection of implementation
partner will be dealt separately. As far as the implementation of the
project, the client company has formed a group of people (Core team) to
look after the implementation of the project. This group is called core
team vested with predefined goal of project implementation. The Group
or Core team (down the line) members are rich in experience in various
activities of an organization. The core team represents the organization in
the transformation business processes into ERP environment in the
organization. These core team will not only interact with the consultant
teams but also interact with people within the organization .They will
create the suitable environment for change management and smooth
sailing of transformation to SAP environment. They are the best resources
from the organization to finalize the best business practices and internal
business process functionalities of our business. They exclusively deputed
for this implementation of the project. The core team is headed by the
project manager who has 25 years of experience in cross functionalities.
He will be assisted by the IT manager, as far as the IT requirements of the
project. The Core team members are also having good functional
knowledge in various activities of the company. They can represent the
company’s requirements while customization and configuration of
business processes in SAP environment.

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The success of an implementation mainly depends on the integrity and
involvement of the people in the organization. They should try to extract
the exploit the required business processes from the consultant team. If
they in show any laxity in proactive, the end results of the new product
will not come the organization. Besides they have to face lot of problems
while dealing with the business transactions in the new environment. It
may some times lead to chaos in the organizational work flow.
The consulting company prepares business blue prints by coordinating
with the core team. Accordingly, the configuration will begin. In the
process of configuration every one of the core team members must know
the functionalities of sap screens and also the Jr. Consultants ensure the
familiarity of sap screens as under. The first screen is the entry screen
through which we enter in SAP environment.
There are two types of screens are there in SAP. One is easy access
screen and the other one is IMG screen. Easy access screen is designed to
process the day-to-day business transactions. IMG screen is the purpose
of configurations and customization of the business processes. We have
to mention the client's name in which we are working. This is most
important. Generally, the configurations will be done in Development
client. Hence give the client ID. Give the user's name and maximum 8-
character pass word. And press enter. You will be taken to new screen

Give USER

Enter
Password

Client: an organizational unit, in which the master data and tables are
stored. Username: this is the name of the person who wanted to enter
into sap. It should be predefined by the basis consultant. Password:
personal secret code with which user is identified by the system.
Language: the language in which the user works on.
Note: we can change the pass word by clicking new pass word option.
This can be possible after giving the old pass word only.
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The above screen is called Easy Access Screen. This is the screen from where the end
user begins his routine transactions
The screen prompts will be depending on the roles assigned to the user or the defined
job to the user in the real time environment. All the options are not displayed to all.
This is for security reason and authorization role played by the user in the organization.
This is the screen from where the end user performs his roles.

In the Office Menu:

We can set the end user important information as a ready reckoner.
Besides that, we can setup organizational information, business
documents, reports, and personal information useful to discharge the
roles effectively, and organization unit’s information. This is a tool box for
the user to discharge his duties efficiently and accurately without much
help from the out-side environment.
Creation of Favorites: go to menu item favorites>click on either folder
or insert transaction give name of the folder or transaction code. Those
will appear as in the screen.
The familiarity of the screen
settings:
1. White band is called command field where we have to give the
transaction code.
2. Title bar: where the screen name generally appears.
3. Application tool bar: where the different tools are used to process the
information.
4. Status bar: this is the bar on help for the screen or messages will be
displayed.

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This setting knowledge enables the consultant to execute the work
efficiently. These are not directly related to configurations; however, act
as helping aid to the consultants in real time.
However, it is not pertinent to the consultant to take up the configuration
settings as per the project requirement definitions. The screen from which
the consultant will work is called Implementation guide screen i.e. IMG
screen. The following are the ways to reach the area of operation.
There are two ways to enter into other work areas: [Link] method
[Link] method
Navigation method: tools>customizing>IMG>SPRO edit project>sap
reference IMG> display IMG (implementation guide)
Transaction code method: In SAP every screen is identified with
transaction code(T-code). We have to give the transaction code in
command field. Example: SPRO is the transaction code for entering to
sap reference IMG screen and press enter it will take directly to sap
reference IMG screen.
Creation of favorites: Go to menu item favorites>select create: create
folder or transaction. Select the required option. Selected one will be
displayed as above.
General information: [Link] transacting in sap the system used to
give 3 types of messages in 3 different colors. 1. Red: error message:
[Link]: warning message: 3. Green: ok message.
If you got yellow messages, you can skip that message by pressing enter
button. But if you got error messages, you have to identify the mistake
and rectify it, and then only the system allows further information.
To go to IMG screen, we can use either navigation method or transaction
code SPRO. It will take to edit project screen. In real time the project
manger prepares the project details and objects in the sap environment.
The screen will appear as under.

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In the IMG information we will find the sap releases up to the date
information. In the project analysis we can maintain the project details for
the information. SAP reference IMG is defaulted with the soft wear which
includes all modules whether you implement in the project or not. We can
prepare own IMG for project requirement. Those are Enterprise IMG and
Project IMG. Enterprise IMG refers all the modules which are going to be
implemented as a whole. The Project IMG refers the exact the modules
implementing during this implementation. However, we can configure
from any of the IMGs. Once you double click on the reference IMG, takes
you to the IMG screen. in the IMG screen we first ensure the general
settings as under
ENSURE GENERAL SETTINGS:
Before proceeding further customization we have to ensure general
settings available in the system. If any changes you want set you can set
it as per the requirement of the project.
1. Set countries: click on position button give country code IN and
continue. You will be prompted with country details. Ensure them and
save it. If you want configure the regions you can define regions in sap
environment.

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Alternative country key is the used to identify the country by SAP. ISO
code is the code accredited by the international standard organization to
identify the country.
Procedure is the tax calculation procedure for the country. We can the
alternative currencies
Maintain for the country. In the country definitions we can set hard
currency and indexed based currency if the project requires.
Set specific country specific checks:

in this configuration generally we set the postal length and bank

account number and bank key Digits, these are important checks to
ensure before start up the real time projects.

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2. Ensure currencies in the system: Path: general settings-set
currencies

Currency key is 3 characters key

If no validity is mentioned treated as maximum validity period.
Define regions: general settings-set countries-insert regions: We can
define the regions, states, or province as per the requirement of the
project. These
Regions are more useful in defining the tax jurisdiction codes in the tax
structure:
Mapping of the Organizational units: And configuration of
organizational units.
This is one of the complex activities of the consultant. If you map the
legacy system organizational units to SAP environment properly paves a
smooth way for the configuration in the later stages of the project.. While
going for the actual configuration we must understand the organizational
units and structure of an organization well. Then only we can configure
into sap environment. For that purpose, we have to discuss with the
company core team and finalize the structure of an organization in sap
environment. Then only we can begin the configuration. The first step in
the project implementation is define a company as under

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Path: enterprise structure>definition>financial
accounting>company: TC 0X15
In the process of implementation of the project we have to begin with a
definition of a company i.e. group company. It is a six-character code.
1. Give company code: 5501(six character code)
2. Company name:SONY Group pvt ltd(it is considered as Group Company
) it is optional only.
3. If second name is there for a project give otherwise make it as blank
only
4. Under detailed information give the street name,
Give the P.O box number and street
(optional)
City: Give city name
Country: Give the name of the country in which the project is being
implemented, the country which are mentioned is called as local country
or home country
Language key: give the language key (for help press f4 for possible
entries list display) select the language from it
Currency: give the currency in which the transactions are being
maintained for the group company [Link] follow (INR) USA ($).
After the details select control+s or save button. Data was saved.
Message will be displayed. The screen will appear as under.
Definition of the group company is optional only. The next step is to
create a company code. The definition of company is code is an
independent organizational unit which has its own set accounting books
and obliged to prepare financial statement under statute of law. The
definition of the company code is mandatory. It is 4-character key or
code. The screen appears as under

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PATH: enterprise structure>definition>financial accounting> edit copy
delete company code: TC: OX02.
A small window will be displayed and double click on edit company code
data: select new entries button to create a new company code for which
you are taking the implementation.

1. Company: give 4-character code of the company ex:5500

2. Name of the company: give the name of the company: Sony
Electronics Pvt .ltd
3. Under additional data give city Name Hyderabad
4. Currency: INR the currency what we are mentioning is called home
currency or local currency 20
5. Language: give the language key: EN
For above 3 to 5 columns press f4 to get the help of possible entries.
You can select the code form the list. After giving the details save the
data. After saving the data the system prompts for another screen for
full address details of the company. Give all the details and select
continue button. The screen will appear as under
Give the company code and other details. After saving the data the
system displays address data screen in which you have to give the full
details of the company in all aspects.
Define credit control area: path: financial accounting-definition
enterprise structure- defines credit control area: TC: OB45
Credit control area configurations are commonly shared by the sales
and distribution consultants and fico consultants. Some of the
configuerations are to be made in SD module. Hence it may be
considered as mixed concept of FI and SD consultants.
Click on new entries button;

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Give 4-character code: 5500 description: credit control area for: 5500
Update: with this data the system updates the credit limits of customer.
For example to update the credit limits at order delivery or billing
documents. We can select any option as per the request of the company.
Give the fiscal year variant:V3 the screen appear as under:

Risk category: we need to define the risk category of different nature

and assign them to the credit control area.
Credit limit: we have to maintain the credit limits for customers
individually.
If you select all company code check box the credit control area is
applicable for company codes.
And save the data.
Define Functional Area: path: enterprise structure-definition-
financial accounting-define functional area:
Functional area is the concept of knowing the organizational
expenses incurred basing the activities. The activities may be
administration, production, and marketing, like those. This concept is
useful to know the profits basing on the cost of sales accounting
concept. If the company is following the cost of sales accounting
concept we need to define the functional area and assign properly in
the various masters.

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Define the various functions with 4-character ids and save the data.
Define financial management area: path is same as above:
Financial management is useful in funds management and to forecast the
cash budgets for the organization. If the organization is following up the
treasury module to manage their funds efficiently, we need to define this
organizational unit.
Click on new entries button Give 4-character id for the financial
management area; and give the description and save the data.

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Give the financial management area currency.
Define business area:
Path: same is above: TC: OX--: business area is the area of responsibility,
within the company code
Give the business area code: 4-character code: 5500(alpha numeric you
can give)
Give the description of the business area: Business area for the company
code: 5500

The filled screen will appear as under. Save the

data

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The definition of business area is an independent organizational unit
which has its own area of responsibility within the organization, which
can prepare financial statement for internal purposes. The classification
of business area is either geographical or product wise as per the
requirement of the company. We can define any number of business
areas as per the request of the company for which we are taking up the
project. If the organization if following the consolidated business area
approach, we have to define the consolidated business area other wise
we can skip the option. If you define the consolidated business area, we
have to assign the business areas to consolidated business areas without
fail. Hence consolidated business area functionality is optional for
customization. With this simple definition of FI organizational units is
completed. Now we can go for assignment of organizational units what
we have defined. We can treat this job as internal integration within FI
module. The first Assignment of company to company code. The
Path is as under:
Enterprise structure>assignment>financial accounting>assign company
to company code TC: OX16.
1. Click on position button.
2. Give company code:5500
3. Give the company to which you want to assign. Save. The screen will
appear as under

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The assignment of business area is not required because the
business areas can be used cut across the company codes. Hence we
need not assign the business area to any company code. However, if you
define the consolidated business areas, we have to assign the business
areas to consolidated business areas. In this project we have not defined
the consolidated business areas hence no assignment is required for
business areas.
Assign credit control area to company code: path is same as
above: Click on position button give the company code (5500)And give
the credit control area code and save the data.
Assign the financial management area to company code: path is
same as above:
Click on position button, give the company code(5500)
Give the financial management area code and save the data.
The functional area concept is different concept; we need to activate the
functional area by separately, no necessity of assignment task.

Variant principle
The next step in customization is Define Variant Principle. Under variant
principle there are 3 variants. They are [Link] year variant(FYV)
[Link] period variant (PPV)[Link] status variant (FSV). The
first customization is fiscal year variant. The variants defined under
variant principle are at client level.
(1)FISCAL YEAR VARIANT: The fiscal year means a general year in
common. No company can maintain the books for indefinite period. They
have to close the books for certain period. That depends on the company
and the country’s policy. Suppose in India all the companies have to close
their books on 31st march every year. But other countries may follow the
different approach.
The fiscal year is classified as

1. Calendar year
2. Non calendar year.

As far as customization is concerned definition of calendar is so simple.

We have to select one check box. For non calendar year definition we
have to define the open and close the fiscal year and also the end days of
the periods.
Period: is generally is called a month. The fiscal year variant screen
appears as under
Path is as under: spro>rimg>financial accounting>financial accounting
global settings>fiscal year>maintain fiscal year variant TC: OB29
Select new entries button. (If the fiscal year variant is calendar
year)
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1. Give FV (fiscal year variant): 2-character code (alpha numeric)
2. Give description of the year: January to December calendar year
3. Select the check box of the calendar year.
4. Give normal periods: 12 special periods: maximum 4 only i.e. total
periods are 16 and save the maximum periods for financial
accounting usage are 16. The maximum special periods are 4.

We can define any special periods within the maximum limit. Special
periods are used to post any information after the close of normal
periods. The special periods are not considered specially but as a part
and parcel of last normal period only.

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For non calendar year variant we have to define the variant first (don’t
select the calendar year check box) give normal posting periods: 12
Special posting periods: 4 maximum. Save

Double click on the period’s button to make customization. Select new

entries. The screen appears in suppressed mode again select new entries
button and complete the table as under.
[Link]: calendar month
day: end of the calendar month
2. Period: corresponding period of the non calendar year.
3. Shift key: -1 for only for the months of January to march. The shift key
will adjust the calendar month of the next following year as the 10 month
of the present non calendar year. After completing the table save the
data, the screen will appear as under.

In fiscal year definition we define the no of posting periods in a year only.

And also the special periods. The special periods may be used for the
purpose of either audit adjustments, tax adjustments, or for declaring the
quarterly results. The periods may be some times defined more than 16
periods also. This is in case of Special Purpose ledger only. The fiscal year
with more 16 periods is not used in finance module. However, we can use
for reporting system in special purpose ledger. Example: in case of
weekly reporting of sales; we can create the report as every week is a
period. This is exclusively for reporting purpose only.
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Year shift key:
This used to change following or previous year calendar months to non
calendar year period as specified. We can define with -1 or +1 also if
required. This Key is called as Annual Displacement Key also. In the
example in the picture the first month of the calendar month is changed
as the 10th period of the Non Calendar Year with the help of Year shift
key.

For defining the shortened fiscal year we need to select the check box
only. Shortened fiscal year means the defined periods are less than the
normal fiscal year periods.
Year dependent fiscal year and Year Independent fiscal year:
If the fiscal year and the period start date and end dates does not change
with the fiscal years is called as year independent fiscal years. Calendar
year and non calendar may be called as the independent fiscal years.
Year Dependent fiscal year changes the start and close dates from year
to year.

ASSIGNMENT OF COMPAY CODE TO FISCAL YEAR VARIANT ( PATH

IS SAME) TC: OB37
Click on position button.
Give company code: 5500
Give fiscal year variant: V3(we can assign any variant i.e. calendar
variant or non calendar variant)
Save the data. The screen will appear like this.

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Posting period variant: Path: SPRO>RIMG>fa>fags>document>define
posting period variant TC: OBBO
Select new entries button.
1. Give the posting period variant name: 4 character cod (ex.5500)
2. Give the description of the posting period variant
3. Save the data the Screen will appear as under. (For this project we are
using the same company code as the posting period variant to
maintain uniformity and to remember the codes easily)

Define open and close of posting periods: This is the important job in
real time environment. This particular job is entrusted to any authorized
persons only. This job is a part of period end closing job. We can make so
many restrictions depending on the account type and Gl account no wise
also in real time. But to facilitate easy functionality I am configuring the
most liberal functionality (by selecting the option (+) in account types. It
indicates all types of account types are allowed to post in all posting
periods. This is the prerequisite step. Hence I am creating this
configuration. Basing on this we can make restrictions as per the
requirement of the company. This job can be done by the users only,
hence made available in easy access screen also. After making the
customization the screen appears like this.
Path: same as above TC: OB52.
Give posting period variant: 5500
Give (+) in account type
Need not give any account numbers
Give the period you want to open (from 1 to 12 and13 to 16 in 2025 year)
this is most flexible configuration to facilitate all types of postings in all
periods. The last column authorization group is the authorized person to
handle this job.

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ASSIGN THE POSTING PERIOD VARIANT TO COMPANY CODE:
Path: same as above the TC: OBBP.
Click on position button
Give company code:5500
Give the posting period variant:5500
Save the data
The screen will appear as under

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Maintain field status variant Path: spro>IMG>financial
accounting>financial accounting global settings>document>line
item>control>maintain field status variant: TC OBC4
The main purpose of the field status variant is to defining the screen
templates for the users to process the business transactions in real time.
The requirement of the input levels is different for different business
transactions. Accordingly sap already preconfigured the screen outlays.
We can copy them and change the name of variant as we required. Here I
request the [Link] to go for copy function rather than creation.
Select the FSTV 0001 select the copy as button and change the code as
you require. Here I have changed the variant as 5500. (While copying the
variant the system asks to copy all and only entry. I request you to select
the button copy all. Then the system prompts one pop up box with the
message all dependant entries 41 coped.) the field status variant is
defined at client level. We can use any of the field status variant.
However, we need to ensure the status of various fields before assigning
to our company code.

There are 41 field status groups. In finance module we use 5 or 6 groups

only those are as under
1.G001
2.G005
3.G029
4.G067
The remaining groups are used in other modules functionalities
requirements. Select the variant and double click (on right side) field
status groups, system displays all 41 groups.
Double click on the G001 group and there are 10 subs groups and double
click on the any of the sub group and see the status of the fields. You can
change the status of the fields as per the requirement of the client. The
status of the fields is three [Link] [Link] 3. Required.
Suppressed: If any field is suppressed it will not at all appear for end
user screen
Optional: If the field is optional, it will appear on the screen for the end
user but the keying the data is optional
Required: If any field is said to be required the system will prompt for
keying the related data while processing the transaction by the end user.

You can make filed status settings as per the requirement for the project,
but we must doubly ensure while setting any field as required entry. The
required entry status stops the end user to input the relevant information
while processing the documents. The screen shot of the FSTV is as under:

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Note: you are requested to take up all the groups which are mainly used
fin module do the same process and ensure no fields are set as required
entry. The exception is the G005 the Value date is defaulted as required
entry. Keep that as it’s only

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Narendra 38
Assign the field status variant to company code: Path is same as above
TC OBC5
Click on position button.
Give company code: 5500
Give the field status variant: 5500 and save the data

The screen appearance for this company will be prompted as per the filed
status of the variant.
DOCUMENT TYPES AND NUMBER RANGES:
Document types are used to identify the business transactions. Sap has
already defined the document types for various transactions; we can use
those document types. Otherwise, we can create the document types as
per the request of the client. But, make all possible efforts to make use of
the defaulted document types. Every document type should subscribe
with the reverse document type.
Account type
The following are the important document types for finance
module. The other document types will be discussed latter.

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Every document type should be assigned with a number range (which
was defined by sap). For that number range we have to assign the
number range interval. With the help of number range interval, the
system stores the data in serially. The screen appearance of the
document type is as under. The number range can be given in the
following screen itself by selecting the number range information button
or if we want to give separately we can go the transaction code: FBN1.
Select the document type and click on details button. You will be
displayed with the attributes of the document type. You have observed
the main points as follows.
1. Account types which can be allowed with this type of document.
2. Whether it allows the negative posting or not?
3. The foreign exchange rate type applied with the document type.
4. The field status of the header data of the document.
5. And other control functions can be allowed for this document type.
Document type controls the field status of the document header data.
It controls the reference number and document header text. If you
select any
check box while creating, the systems promts those field as ready for
input mode while entering the document.
We can restrict the document type for specific purpose by selecting the
special usage check boxes. Accordingly system controls the applicability
of the document. You can not use the document except for the specified
purpose.
Document type controls the exchange rate type to be applied with the
document type. Specify the exchange rate type in the provided column.

PATH: SPRO>IMG>Financial Accounting> Financial accounting global

settings> DOCUMENT>DOCUMENT HEADER> DEFINE DOCUMENT TYPE:
TC OBA7.
We can define the document type by clicking the new entries button.
Give two characters ID: document type and description Give the number
object: two-character id and always mention the reverse document type
also. Select the account types to be allowed with this document type and
select the required control data and save the document type. Generally
SAP advised to use the defined document types or create the document
types with copy function to keep the defaulted settings in tact. Otherwise
ensure all the settings carefully.

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To give the number range interval click on number range information give
company code: 5500
Click on change interval button
Click on insert interval button (top left corner)
Give no: 03 (which is the number range for sa document type)
Give the year: current year Give the from number to number
Click on insert button (bottom left) and save the data. A message will be
displayed click on continue button and save .The screen appearance will
be as under.
Other wise we can give the number ranges through navigation also. The
transaction code is FBN1. We can copy these number ranges from year
to year sometimes from company code to other company code also. The
number ranges are defined to store the business transaction in the
system serially. It is useful to identify the documents posted in the
system. While configuring the number range intervals we must assign the
number object invariably.

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if you want continuous number rage irrespective of the years give the
year up to which you want the number range interval is applicable.
Otherwise, you want year specific number range give the present year
only. If you select the external check box you have to maintain the
striatum manually, if you don’t select that check box the system
maintains the striatum as per the request of the client we have to
configure. The current number displays the number of documents posted
so far.
Posting Keys: Posting keys are used either to debit the account or credit
account. With definition of posting keys, we can also control field status
of accounts. Sap has already defined the posting keys we can use those
as it is. Otherwise, if the client specifically requests you to create defined
postings we can define them as per the request. The following are the
important posting keys.

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I suggest you to verify the attributes and convince the client to use the
default posting keys. The screen of the posting keys will appear as under.
If you want to know the attributes select any posting key and click on
details button or double click on the posting key.
Path: spro>img>financial accounting>financial accounting global
settings>document>control> line items>define posting key: TC OB41

DEFINE CHART OF ACCOUNTS: The chart of accounts is nothing but

list of GL accounts used by the company. There are three types of chart
of accounts.1.)Operative chart of accounts 2)Country specific
chart of accounts 3)Group chart of accounts. Generally, we use the
chart of accounts to process the regular business transactions is the
Operative chart of accounts. We can post in this chart of accounts only.
The remaining chart of accounts is used for different business scenario.
As per the request of the client we can define other chart of accounts.
The customization path is as under
Spro>img>financial accounting>general ledger accounting>GL
accounts>>master records> preparations>edit chart of accounts list: TC
OB13
Select new entries button to create new chart of accounts.
Give: chart of accounts code: 5500(4 character) Give description of chart
of accounts.
Give the language in which you want to maintain the chart of accounts.
Give the length of GL account number you want to use in your company
code. The maximum length of GL account number in sap is 10 digits.
(With in that we can give any number)
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By default, the integration with controlling manually only and save the
data
Note: do not select the Blocked check box:
The appearance of the screen after giving the details will be as under.

In case of group company concept define one chart of account as group

chart of accounts and give the group chart of accounts name while
defining the operative chart of accounts.
After definition of the chart of accounts we have to assign this chart of
accounts to our company code.
Path: same as above: TC OB62.
Click on position button.
Give company code (5500)
Give chart of accounts and save the data
DEFINE ACCOUNT GROUP:
Generally the company is used to maintain number of general ledger
accounts to process the business transactions. To make them properly
identified we have to segregate the similar accounts into one group.
There by it is easy to identify the accounts. For this purpose SAP suggests
to define the account group the account group means the similar
accounts are made into single group. Sap suggested you to maintain any
number of groups but the minimum account groups are two. However, in
this project I am defining the account group’s requirement as 4 groups.
The path is same as above (chart of accounts)

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TC: OBD4
Select new entries button
Give chart of accounts: 5500 (same as company code)
Account group code: (any four character code)
Give description the group.

Number range interval: from number and to number (this number

interval is in no way related to earlier number range)?.The screen
appearance of the account groups after giving the data will appear as
under.

We can give different number interval for different groups otherwise we

can give the same interval to all account groups. The system allows
overlapping here. But I advise you to give different internal to different
groups. (If the same number is given creation of GL accounts latter stage
may be confusing you)The account groups also determine the field status
of the gl master record in respect of company code data details. We you
want to controls field status of the master click on field status button do
the rest of the things as desired by you. The field status need not be
common to all account groups. Depending on the nature of the account
groups we can set the field status.

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DEFINED RETAINED EARNINGS ACCOUNT: This step is prerequisite
step to open the general ledger accounts latter. If you don’t define this
step the system will not allow creating the general ledger account.
Path: same as above: TC: OB53
Give the P&L statement account type as: X
Give any account number in the liability account group: 199999(herein
this step we are presuming that this account is our retained earnings
account only. Hence the system gives a warning message: the particular
account is not opened in chart of accounts. Ignore the message pressing
button. And save the data. The appearance of the screen will be like this.

The above three customization requirements are prerequisites to open a

general ledger account in sap system. Now we can open general ledger
accounts.
CREATION OF GENERAL LEDGER ACCOUNTS: There are different
ways to create general ledger accounts. In fact the creation GL account
is duty of the core team members rather than consultants. Hence the
SAP has provided the option of creation of GL accounts in both img
screen and easy access screen. We can open the accounts form any of
the opting. The creation can be done in following ways in real time.
1. Uploading the data from existing legacy system.(with the help of
lsmwr bdc, with or without help of technical consultants)
2. 2. Copy the general ledger accounts from any of the template GL
accounts used in the country.
3. Creation of general ledger accounts by creating sample accounts.
4. Creation of general ledger accounts manually.

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In real time most of time we upload the data form legacy system, which
reduces the implementation time of the project. The creation of general
ledger accounts depends on the clients accounting system they follow. If
they are following centralized accounting system we can open the
account in chart of account level first and set the company code
customization requirement latter. If the company is following
decentralized system of accounting we can open the general ledger
accounts in centrally option. Depending on the requirement of project
we can adopt any suitable method of opening the GL accounts.
For the purpose of opening GL account, we need bi-furcation of all
accounts as under and select the minimum configuration requirements
made in the following box. For opening the GL account the Path is:
spro>img>fa>gla>gl accounts>master data>preparations>gl account
creation and processing>edit gl account (individually)>edit GL account
centrally.
TC: FS00 or you can access the screen through easy access
screen also. General ledger accounts groups for the purpose of
creation only (do not compare with account groups)
1. All expenses will be formed into group (because the master data
requirements are similar to all expenses accounts hence made
expenses. You open one account in expenses; with the help of those
expenses we can create any number of accounts as required.
2. All incomes
3. Clearing accounts (expenses payable and income receivable gr/ir
clearing accounts cash clearing accounts)
4. Reconciliation accounts :( accounts payable account, accounts
receivable account, asset acs)
5. Bank accounts (all cash accounts, bank accounts, including loan
accounts)
6. General liabilities (share capital, misc) 1. Opening of expenses
accounts: give the company code and give the account number you
want to open and select the create button give details as in the second
box.
1. Opening of expenses accounts: give the company code and give the
account number you want to open and select the create button give
details as in the second box.

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For opening of many expenses accounts you can select with template
button and give account number as reference number and company
code. System copies all details into the new account and change short
description and long description and saves. (Need not change other
details)
2. All income accounts

3. Clearing accounts: these accounts have different nature in

compared to other accounts.

4. Reconciliation accounts: these accounts have distinctive

character in definition.

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5. Bank accounts:

6. General liabilities and general assets (other than above and

fixed assets)

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[Link] Year GL Account Year Account Description
1 2006 100000 2025 share capital account
2 2006 140000 2025 accounts payable account
3 2006 141000 2025 expenses payable account
4 2006 142000 2025 sbi term loan account
5 2006 142500 2025 sbi foreign currency loan account
6 2006 143000 2025 cross company clearing account
7 2006 144000 2025 bill of exchange payable account
8 2006 145000 2025 check/bill of exchange account for payables
9 2006 146000 2025 down payments received account
10 2006 147000 2025 bank bill discounting account
11 2006 150000 2025 excise duty payable account
12 2006 151000 2025 edu cess payable account
13 2006 152000 2025 vat payable account
14 2006 153000 2025 tds payable account
15 2006 160000 2025 stocks clearing account
16 2006 170000 2025 GR/IR clearing account
17 2006 171000 2025 special reserves account
18 2006 200000 2025 bank account
19 2006 222000 2025 interest clearing account
20 2006 223000 2025 transformers account
21 2006 240000 2025 accounts receivable account
22 2006 241000 2025 down payments made account
23 2006 242000 2025 tax on down payment clearing account
24 2006 243000 2025 cash discount clearing account
25 2006 245000 2025 check/bill of exchange account for payables
26 2006 246000 2025 bill of exchange receivable account
27 2006 250000 2025 vat paid account
28 2006 251000 2025 educational cess paid account
29 2006 252000 2025 excise duty paid account
30 2006 260000 2025 finished goods inventory account
31 2006 270000 2025 raw material inventory account
32 2006 271000 2025 interest clearing account
33 2006 280000 2025 land account
34 2006 281000 2025 building account
35 2006 282000 2025 plant and machinery account
36 2006 283000 2025 assets under construction account
37 2006 283500 2025 assets under construction (investment purpose)
38 2006 284000 2025 low value assets
39 2006 284100 2025 leased assets a/c
40 2006 285000 2025 accumulated depreciation account

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S.N GL
Year Year Account Description
o Account
41 2006 300000 2025 sale revenue account
42 2006 317000 2025 sale of asset account
43 2006 320000 2025 profit on sale of asset account
44 2006 321000 2025 purchase of raw material inventory account
45 2006 401000 2025 manufacturing expenses account
46 2006 402000 2025 exchange dif account
47 2006 403000 2025 interest account
48 2006 404000 2025 administrative expenditure
49 2006 405000 2025 cash discount a/c
50 2006 406000 2025 payment dif account
51 2006 407000 2025 bank charges account
52 2006 410000 2025 raw material inventory changes
53 2006 411000 2025 cost of goods sold account
54 2006 412000 2025 cost/price differences account
55 2006 413000 2025 inventory difference account
56 2006 414000 2025 stock transfer loss/profit account
57 2006 415000 2025 changes in stock account
58 2006 416000 2025 raw material consumption account
59 2006 417000 2025 depreciation account
60 2006 417100 2025 loss on asset sale account
61 2006 417200 2025 special depreciation account
62 2006 418000 2025 asset scrapping account loss
63 2006 420000 2025 reconciliation account
64 2006 421000 2025 bonus
65 2006 422000 2025 telephone expenses a/c
66 2006 423000 2025 welfare expenditures a/c
67 2006 424000 2025 warehouse expenses account
68 2006 425000 2025 job fair expenses account
69 2006 426000 2025 repairs to property (capitalization)
70 2006 427000 2025 sales commission

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General notes:
1. System by default the account currency as local currency. If you want to open any
account with other than local currency, you can mention the currency. However, the
account opened with other than the local currency will allow the transactions in that
particular currency in which you have opened the account.
2. If you open the account with local currency, the system allows postings in any
currency and converts into local currency also. The screen shot of one account is as
under
The above list is the list of chart of accounts created for the requirement of the
project.

Click on create button and give the account group (select from the list)
Select account type and give the short text and long text and press enter
to go the company code data.

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* Account currency: automatically defaulted from company code currency
you can change the currency if required. If the account currency is local
currency, we can post the transaction in any currency to this account. If
you defined other than local currency, we need to post the transactions in
the respective currency only.
* Only balances in local currency: with a view to maintain the balances
only in local currency, select this check box other wise not required. Only
some clearing accounts needs this definition.
* Exchange rate difference key; is used to valuate the foreign currencies
* Valuation groups are used in parallel valuations
* Tax category, and post without tax allowed. This will enable the type of
tax to collect with this account. The second selection is used to post the
transactions without tax allowed.
* Reconciliation account type: determines the account as a reconciliation
account* discussed in latter chapters
* Alternative account numbers: is used to define and integrate with the
country specific chart of accounts.
* Accounts maintained in external system: it is applicable for
decentralized accounting systems in the organization.
* Inflation key: is used to maintain the index based accounting in the
system. We need to define the inflation keys.
* Tolerance group: if you mention the group, allow the differences set in
the tolerance amount for general ledger accounts.
* Open item and line item: this will indicate the account maintenance as
general or as open item (discussed later) line item displays the individual
transactions for display
* Sort key: will sort the transaction and create the reference or allocation
number according to this field.
* Authorization group and accounting clerk: it will restrict the account to
be used by the authorization group and accounting clerk named in.
*Recovery indicator: specifies the sharing pattern of this account
balances in joint account business transactions.

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* Field status group: the end user screen will be prompted as per the filed
status group assigned to the master record.
* If you select the post automatically, no manual postings are allowed in
this account
* If you select the reconciliation account ready for input: allows the
change of reconciliation account during the postings.
* Bank financial details are used for treasury module: we can main the
account is maintained with the house bank and the account id of the
account with house bank
* Commitment item shows the commitment details for the account in
commitment accounting.
* Interest indicator is used to calculate the interest on this account
* Key date and other last run date shows the interest calculated up to the
period and date of calculation is displayed in the master record.
* Key data and translation: is used to translate the particular general
ledger account in the other languages
* Information details reveals the user name created this account and the
other information in company code.

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DEFINE TOLERANCE: These tolerances are 3 types
1. Tolerances for GL accounts
2. Tolerances for Employees
3. Tolerances for Vendors and Customers.
In real time the system does not allow the users to process and
post transactions beyond these limits set according to the tolerance
groups. The screen shot of the GL tolerances after giving the input is as
under.
Note: Don’t give the tolerance groups in your individual systems. Null
group permit all users. If you mention the user group it allows the
particular group only. For lab environment. It is advisable to process with
null group. Other create the groups and assign the users to groups
Path: spro>img>financial accounting>general ledger accounting>business
transactions>open item clearing>clearing diff> define tolerance for gl accounts.
T-Code: OBA0
Give company code Give description of the tolerances Give debit
absolute amount credit absolute amount and Dr % and Cr %. Save. If
you assign this group to particular general ledger master the tolerances
mentioned for this group applicable for the GL account

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Tolerances for employees: path: same as above: TC: OBA4.
* Select new entries button
* Give company code
* Give the description of the tolerances
* Give the maximum of amount per document: 99999999
* Give the maximum amount per line items: 999999999
* Give the maximum cash discount as: 5%
* Give permitted differences revenue: 500 expenses: 500 and Dr% and Cr
% * Give cash discount adjusted to: 100
Tolerances groups are created basing on the authorizations vested with
the employees in the organization. We can create as many as employee
tolerance groups and assign them the tolerance limits. Accordingly,
system will not allow the user beyond their limits. It is exclusively for a
security and a sense of discipline while discharging the duties in the
organization.

Save the data. The screen would appear as under

With the above configurations we have completed the basic settings like
as organizational units, general ledger accounting, tolerances, and other
Global settings required for posting entries by the user in GL accounting.
Amount per document: this is the maximum amount for the user groups
to deal with the document limits.

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Maximum line item or open item: this is maximum amount to make the
payment of line item while doing the clearing function.

Maximum discount: the discount allowed by this user group while dealing
with the incoming and outgoing payments.

Permitted payment difference either income or revenue in absolute

amount or percentage of line item (lower of the two will be considered) as
payment difference. The last column amount of difference up to the
amount automatically considers as the cash discount.
Business process: 1: The client is used to post similar transactions at
frequent intervals. The volume of such transactions is high in nature. The
user asked to configure the sap functionality to reduce the work burden
to post the same information at frequent intervals in stead of repeated
postings.

SAP FUNCTIONALITY: To meet such requirement we can configure the

reference documents. With the help of such reference documents, we can
post transactions as and when we require or in some cases at regular
intervals also. There are three types of reference documents in sap
system.

They are [Link] doucments [Link] documents [Link]

assignment model documents. These reference documents can also be
deleted, modifiable, amount also can be changed.

Sample documents: They are model documents. We can use these

documents as reference to post the information. The special feature of
the sample document is, it will not update the GL balances till it is posted.
To create a sample documents the prerequisite condition is

1. Define number range interval for number range: X2(no object) in fbn1
transaction
Creation code. document: f-01 Path: accounting-financial accounting-
of sample
general ledger-document entry-reference documents-sample document.f-
01

Give the header data

Give the line one data and amount text and the related information and
give the line item two data and save the entry.

Note: system stores the document with special number assigned to

number object X2.
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To post the sample document, go general posting screeF-02 and give the
header data and go to menu item document>post with reference, and
give the sample account number and press enter, and save the data.
Now the system updates the document in the general ledger accounts.
Change of sample document: FBM2
Display of sample document: FBM3
Delete sample document: F.57
Note: Any Posted document can be treated as a sample document can be
posted if desired changes.
Recurring document: These documents are used to post transactions at
frequent intervals with certain start date and close date .i.e. payment of
interest on borrowed funds, payment monthly rents, or any nature of that
type. The prerequisite condition to open the recurring document is as
under.
1. Define number range interval for number range: X1(number object) in
FBN1 transaction code.
2. Creation of recurring document: without run schedules:
3. Path: Accounting-financial accounting-general ledger accounting-
document entry-reference documents-recurring documents FBD1
4. Give the first run on date: 010406
5. Last run on date: 010307
6. Interval: 01 monthly (selection help available)
7. Run date: 30 actual run dates. Give the document type and select the
other options if required. And give the general ledger account line
item one and line item two and save the recurring document. We can
post the transactions as a part of period end closing 56 operations
either manually or through schedule manger.

Posting of recurring entries: Accounting-financial accounting-periodic

processing-recurring entries-F.14 execute.
Give the company code: 2006
Document number:
Fiscal year: 2006: settlement period is mandatory entry give date and
select the other general selections from the entry screen.

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Narendra 59
You can select the other parameters to block the session to certain date
by giving the block date. up to the date it will lock the session. We can
execute after the lock date.
By selecting the hold data option we can retain the faulty processed
session without deletion.
And click on execute button. System creates a session with SAPF120; go
to menu item system>>batch input>services>sessions. Select the
session sapf120 and click on execute process button select display errors
only and again enter.

Go and verify the accounts.

Change of Recurring document: FBD2
Display of Recurring document: FBD3.
Deletion of recurring document: F.56
The creation of recurring document is two types. With run schedules:
path: financial accounting-fags-document-recurring entries-define run
schedules:

Click on new entries button and give the details as appear in the screen.

Run schedule id was created for the project.

Enter run dates: path: same path: give the run schedule id: and
continue
Click on new entries button
Give the run dates

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Run dates entered as per the requirement and save the data now create
the recurring document in FBD1. (As same as the previous process)

Do not give the first run and last run instead give the run schedule in the
column provided. Remaining processes are similar to the previous one.

Recurring document also cannot update the balances till they posted.

To know the recurring entry data, go display of recurring document i.e.

FBD3. Give recurring document number

Go to menu item select recurring entry data. The system displays the
data
This is another type of reference document. It is generally used to post
the amount with different business areas and among various general
ledgers with % share. It useful to distribute some expenses among
various general ledgers. The creation of Account Assignment Model
template is two types;

1. With equilance numbers and without equilance numbers.

Note: we can create our own template the account assignment model or
we can use the default template and create the document.(creation of
template is in IMG screen>fa>fags>document>account assignment
template)

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From the possible fields select the field and double click (it will go to
current field box)
Like the way select the template fields and save the template for your
purposes. (The maximum length if 85 fields only (within the limit we can
select any fields for template) save it
Keep the cursor on the template and click on activate button to activate
for the template.
Creation account assignment model document: with equilance.
Path: accounting-financial accounting-general ledger-document entry
reference document-account assignment document: FKMT
Give the account assignment template number: 2006
Click on create option

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Give the currency and chart of accounts if you want calculate the tax on
the items processed through this template select the tax check box and
give the details as under

And save the template

Post the account assignment model template: F-02 give the header data:
Click on account Model button system
Give the debit distribution amount and credit distribution amount in the
template
And post amount
You can create another template in the fkmt screen also
SAP enjoy screen for General Ledger posting: TC: FB50
In this screen first we need to change the company code to post the
transaction by clicking on the [Link] company code:

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Give the general ledger number and dr/cr indicators amount and give the
required information in the screen variant. No posting keys are required
in this screen. We can post multiple debits and multiple credits as per the
requirement. We can observe the whether the dr/cr balance is equal while
posting itself. This is easy for posting in day-to-day processing.

Business scenario: 2
The client requested to advise the easy processing of documents to their
end users while doing the day-to-day transactions.
SAP Solution: to make the end user job easy, and avoid the delay and
inconvenience sap suggests opting for HOLD AND PARK DOCUMENT
process.
HOLD DOCUMENT: This is one of the required and regular functionality;
while processing the day to day operations. It will help to temporarily
suspend the work without losing the data which already entered. The
requisite condition is assigning the temporary number to hold the
document.
How to hold document: Post the transaction as usually in F-02 general
posting, go menu item Document>simulate>Hold or Document>hold
How to post the hold document: Go to F-02 general posting, Give header
data, click on held document button or go to menu item document>get
held document. System asks for the temporary number and give the
number and press and post the transaction.
PARK DOCUMENT: This is one of the other functionality used in daily
transactions. It will not also update the general ledger balances till final
posting is completed. It can be used when there are no proper
authorizations to the user and has to send the document to other user for
confirmation of the document.
1. Park document can also be deleted, modifiable, and can be rejected
by the user.
2. The main differences between the hold document and park
document are park document is parked with the regular document
number where as the hold document held with temporary number.
3. The main feature of the Park Document is, we can change the
header data details including the posting date and document type.
This is the only area we can change the posting date, and document
type in SAP environment.
How to park the document: go to normal posting i.e. f-02 and give the
header data and line item data as usual. Go to menu item document click
on . Document will be parked with original number. Or we can park the
general ledger document in separate posting screen. Transaction code: F
65. Usual posting screen but exclusively for parking of document.
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Posting of Parked document: Accounting>fin.
Accounting>general ledger>document entry>parked
document> FBV0 post/delete park document. Give the
company code: [Link] the parked document number

Give the fiscal year: 2006

Press enter and to post save the document. Document

will be posted.

We can change the details of parked document, reject,

modify, and delete the parked document.

Note! We can change the posting date of the parked

document and other header details also. This is the only
area we can change the header data details.
BUSINESS SCENARIO: In Satya InfoTech the end-users are not trained
enough in sap environment. If they posted the entries wrongly, what is
recourse available for rectification of that posted entries. Please guide the
users in this regard.

REVERSAL OF DOCUMENT: To meet the above scenario, sap suggests only

reversal of document we can not change the certain parameters of the
original document, like posting date amount and account numbers. The
reversal functions are two types in sap environment. The first one is
standard reversal and the second one is negative reversal.

Pre requisites: The prerequisite to reverse any entry (a) define the reason
code for reversal
Path: spro>img>financial accounting>general ledger
accounting>business transactions>adjustment posting/reversal:
Give the reversal reason: two character code
Give the description: standard reversal and negative reversal
Select the Alternative posting date for the both the codes
Select Negative posting check box for negative reason code.

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If you want to do the negative reversal the following conditions should be
met.
1. Reason code must be selected with negative posting check box
2. 2. The company should also permitted with negative posting
3. 3. The document type should also permit with negative posting. The
reversals are four types.
3.1. Individual reversal
3.2. Mass reversal
3.3. Reversal of clearing document
3.4. Reversal of reversal document
The reason code screen will appear as under Satya info Tech Company
has created two reversal reasons as appearing in the screen

Individual reversal of an entry:

The path: accounting> financial accounting> general ledger>
document> reveres> FB08 individual reversal FB08

For Mass reversal the Transaction code: F.80

Give the document no: you want to reverse(if you do not know the
number select document list button and give selection parameters and
select the number to reverse) Give reason code: 20 or 21 (We have
created
Give posting date: xxxxxx
Save the data
Entry will be reversed

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Narendra 67
Mass reversal functionality will be done to reverse the multiple entries. To
reverse the clearing entries, we have to reset the clearing document in
TC FBRA
We can reset and reverse the clearing document in the same screen it
self.

To reverse the reversed document we have to change the message

control as warning. Then the system will allow the reversal of reversed
document.

(Pre requisite for reversal of reversal document)Change message control:

path: financial accounting-document-default values for document
processing-change message control for document processing:
Give application area: f5 (document editing)

Click on new entries button; select the message number change the
online and batch input option fields as warning: there by the system give
the warning message. We have to define it once for a client.

Accrual/Deferral documents
In real time accrual nature of either income or expenditure is
common. Every organization has to consider this type of income and
expenditure accurately for period it belongs. Then only the balance sheet
or profit and loss account reflects as correctly in the financial statements.
Hence this of activities is as important as a mater of practical in real
time. Hence as a consultant we have to guide the end user properly in
this regard.

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Accrual/Deferral:
Expenses or Revenues posted in one period may sometimes pertain to
either previous periods or future period also. In this scenario, we have to
consider this income or expenditure, relating to this period only. The
remaining amount has to be considered as accrual/deferral. ACCRUAL
means adjusting the amount relating to the past period received/paid in
present period is called as accruals. DEFERRAL means adjusting of the
future period amount received/paid in the present period is called
deferral. In the both instances, we have to adjust and post the correct
amount in the present period accurately. For this purpose, we need to
define the accrual/deferral document.
Pre requisite: define reversal reason code:
Financial accounting-general ledger accounting-business transactions
adjustment posting/reversal-define reasons for reversal.
Click on new entries button
Give two character codes: and description.
Select the alternative posting date check box and negative posting check
box and save. The screen is as under

05 is the code defined by SAP. We can use it for the project requirement.
Accounts required: expense and revenue accounts.
Accrued income and pre paid expenses account as clearing account or
we can use
Expenses payable or income receivable accounts also.

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BUSINESS SCENARIO:
Post the expenditure in F-02(insurance for the quarter).15000/- per month
5000/- each. However, actual expenses for this month are 5000/-only the
remaining 10000/- expenses paid in advnces. We need the bifurcation of
insurance expenses as above. Other wise the total 15000 amount reflects
in profit and loss account
Define Accrual/Deferral Document: accounting-financial accounting-
general ledger-periodic processing-closing-valuate-FBS1 accrual/deferral
document.
Give the document date: 31.10.2006
Posting date: 31.10.2006: document types. SA
Give the reversal reason: 05 accrual
Give the reversal Date: 01.11.2006 (next month on which it has to be
reversed)
Posting key: 40 General ledger accounts: pre paid insurance account Give
the amount and text second posting key 50 general ledger account:
insurance exp account simulate and save the transaction

Reverse the accrual document on 01.11.2006.

Path is same the transaction code: F.81 reversal of accrual document.
Give the company code: 2006 document number: 100052
Period: and posting date and document type details and deselect the test
run button and

Execute the reversal.

Accrual document can be posted with the help of recurring document
also.

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CLEARING FUNCTION:
This function is used to clear the outstanding entries in the general
ledger accounts. Example: outstanding amounts in expenses payable and
income receivable accounts. To clear the amounts we can do three types
of clearing functions.
1. Standard clearing
2. Partial clearing
3. Residual clearing.

To do the residual clearing we have to define reason codes and accounts

for clearing difference account

While doing the clearing function we can select the additional selections
to make the payments.
If you want to make the payment document number we can select this
option and give the Document from number and to number to clear the
items. Other wise if you want to make the Payment basing on the option
of dunning area wise we can make the payment like that.
We can see the other accounts of the same customer/or vendor by
selecting the particular option.
Can see the items with special GL heads also can be viewed from this
screen.
The clearing function is one of the excellent functionality in SAP
environment.
The main difference between the partial clearing and the residual clearing
is the former one display the original open item amount and partial
payments as open items until the account is settled in full.

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The final settlement will convert all the entries as cleared item. In case of
the latter one, the it clears the original open item as cleared item and
creates a new open item with the residual amount. If you mention the
reason code in residual clearing function the residual amount
automatically posted to Payment diff ac (automatic determination should
have been done in the chart of account level). If no Reason code is
assigned it will credit/debit to the same account.

Automatic Clearing: This is one of the functionality used to clear the

accounts with open and clear items. And further used group the open
items basing on some criteria and clears them according to the criteria.

Prepare Automatic clearing: path: financial accounting-general ledger

accounting-business transactions-open item clearing-prepare automatic
clearing: TC: OB74.

Click on new entries button

Give chart of accounts :2006
Give account type:K,D,S
Give the account numbers from number and to number
Give the clearing criterion or group criterion and save the data.

Post the transaction in open item accounts. And clear it with partial
clearing option. There by both the items appear as open items. Now
execute the Automatic clearing Programme as under:

Accounting-financial accounting-general ledger-automatic clearing- F-

13 automatic clearing with or without specifying the currency

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Give the details and select the accounts for executing the programme
It automatically clears the open items. This programme is useful for
clearing the open items with automatic posting transactions.i.e. GR/IR
clearing account.

This programme is used to clear the account with huge volume of

accounts with numerous line items either on line or as background
processing as batch input. And further it is useful clear the GL accounts
with post automatically option is set. The individual accounts will be
cleared by manual clearing of an account in F-03 clear functionality.
The automatic clearing functionality is quiet different form the automatic
payment programme used in accounts receivable and accounts payable
component. The Automatic payment programme is defined to clear the
open items in customer and vendor accounts, and post the entries in bank
accounting and issues the cheques for paid amounts simultaneously.
Automatic clearing function is simply to clear the open items basing on the
grouping criterion.

FOREGIN EXCHANGE TRANSACTIONS: BUSINESS SCENARIO: Satya

Info Tech engaged in extending the services foreign customers and avails
service from foreign consultants at frequently. The transactions have to be
made in foreign currency also. Hence requested the consultants to
customize the foreign exchange transactions in US dollars separately. For
this purpose the want to maintain separate foreign currency i.e. US dollar
account and valuate the outstanding amount in foreign currency at regular
intervals. Hence the company is requesting to customize the same in SAP
environment.
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SAP ENVIRONMENT FOR FOREGIN EXCHANGE TRANSACTIONS: To
meet the above scenario SAP provided the functionality as under. We can
customize the requirement in the following process and steps.

1. Set the foreign exchange quotations in the sap system:

Path: financial accounting>general settings>currencies>set
quotations for foreign exchange transactions TC: ONOT
2. 2. Check exchange rate types in the system: SAP has already
provided the different exchange rate types with the software. We can
use those rate types. The main important rate types are as under
1. B: bank selling rate
2. G: bank buying rate
3. M: average rate.
4. Historical rate.
If the company accepts we can use those rate types or we can define
new rate types as per the request of the company.

Give the 4 character key for the exchange rate type and give the
description of the rate type. TC: OB07

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3. DEFINE TRANSALATION RATIOS FOR CURRENCY TRANLATION: In
this step we have to define the translation ratio for each currency pair for
which we want to take up the foreign exchange transactions. In the
present case it is US dollars against Indian Rupee.

The Path: same as above the TC: OBBS. The screen will appear as under.

Select new entries button

Give exchange rate type B
Give from Currency: usd
Give to currency: INR Give valid date: 010406
Give ratio from (1) to (1) @if you want to use alternate currency give alt currency
Save the data

ENTER EXCHANGE RATES: FOR EXCHANGE RATE TYPES: We have to enter the
exchange rates to all exchange rate types if necessary or if you are following one type
of rate, we can maintain the rates for that type only. Give the details as under

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Give exchange rate type :B
Give valid from date:010406
Give ratio from:1
Give currency: USD
Give rate: applicable
Give ratio 1
Give to currency: INR
Save
We can maintain different rates for different exchange rate types with
different validity periods. Generally these rates will be downloaded from
everyday from RBI. These data will be maintained in currency table.

While posting the foreign exchange transactions, the system by default

considers the Average Rate Type i.e. M rate type and assigns the rate on
the particular date on which the transactions are posted. Otherwise we
can assign any exchange rate type; accordingly the system considers the
rate and rate type as well. The posting will be made in F-02 General
posting only (for gl accounts) or otherwise respective screens.

With a view to consider the exchange rate fluctuations we have to define

the accounts for exchange rate differences accounts. And make the
automatic determinations accounts for exchange rate differences.

Path: financial accounting>general ledger accounting>business

transactions>open item clearing> define accounts for exchange
differences: TC OB90
Give chart of accounts: 2006
Select new entries button:
Give the account number: GL account (the ac for which considers
exchange diff)
Give the ex. rate diff realized accounts: ex. diff account (either single or
two diff A/Cs)

We can maintain the number of accounts basing the currency type, gl

account type separately or single account for all types of currencies and
currency types also.

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Valuation of foreign exchange balances on key date:
Path: financial accounting>general ledger accounting>business
transactions>closing>valuating>foreign currency valuation>define
valuation method

TC OB59

Select new entries button

Give valuation method code: 2006
Give description: fe valuation for: 2006
And the remaining things as under in the screen

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Valuation group: It is used to group the all customer, vendor, and general
ledger accounts into group and apply the same exchange rate type as a
group as a whole
Valuation area: It is applicable legal reporting the financial statement
as per the different accounting principles.i.e. Indian accounting
standards, and GAAP, in such cases we have to create valuation areas, to
valuate the foreign currency and customer and vendor balances

Lowest value principle: if you select this check box the system calculates
the exchange rate difference valuation basing the lowest rate of the two.

If you select revalue check box only revaluation as income will only be
considered for revaluation and devaluation will not be considered for the
purpose of valuation.
If you set any minimum difference amount in the column provided the
system will not revaluate the currencies up to this amount of difference.

If you want to select whether the exchange rate to be considered for

revaluation either from account balance or form the invoice reference.

Execute the foreign exchange valuation method n transaction

code: F.05
While executing the foreign exchange valuation if you want posts the
entries for balance sheet purpose don’t select the Reverse Posting
check box. For regular monthly valuation purpose select reverse
posting check box.

Business process: Satya info tech uses every month ie 01.01.06 to

30.06.06 as per the average rate type M. The value for the entire
month is RS.40 per dollar. However, on 28.10.06 the company decided
to valuate the foreign currencies at the average rate 45.(this 45 is only
exclusively for foreign currency valuation purpose only) for the regular
transactions, the old rate is applicable for their regular business
transactions. How can you configure this business process in SAP
environment?

SAP Business Process: We can configure the above scenario in sap. We

have to define one average rate type and rate for regular business
transactions. To take up the foreign currency valuations, we need to
define another rate type and rate @45. And accordingly do the foreign
currency valuations with out disturbing the applicable rate for regular
business transactions.

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BUSINESS SCENARIO: Satya info tech has availed a Bank term loan
from State Bank of India, Pimpri Branch. Bank is charging every month
interest on the term loan. Like the way Satya InfoTech has availed
different other loans and given loans to some of its employees@10%.
How to calculate the interest on the term loans? Bank is charging 12%on
the outstanding. Make the customization in SAP environment.
SAP ENVIRONMENT FOR CALCULATING INTEREST: SAP has provided
with the interest calculation methods. There are two types of methods are
available. One is Balance Interest calculation and another one is Item
interest calculation. Balance method is applicable to interest calculation
on gl balances and item interest will applicable to vendor and customer
balances. The customization process is under:

1. Define interest indicator: spro>img>fa>gl accounting>business

transactions>bank account interest calculations>define interest
indicator: TCOB46

Select new entries Button:

Give indicator: two character (alphanumeric):20

Give description: Balance into calculation
Interest calculation type: “S“Balance into cal type
Save. The screen shot is above.
If you want to consider the account number itself is the indicator for
calculation of interest select the relevant check box and proceed
further.

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PREPARE ACCOUNT BALANCE INT CALCULATION (GENERAL
SETTINGS) TC OBAA
Path is same:
Select new entries
Give interest indicator

Interest cal frequency: 1 monthly (help press f4)

Settlement day: 31 (the day on which interest is applied by the bank)
Calendar type: G (German calendar) press f4 for help
Select the Balance plus interest check box
Save the data the screen is as above
Month end indicatory specifies the number of days for the February is 30
days not 28 it is applicable in case of certain calendar types only.
If you select the Round IC numerators, system displays the Product
(amount*no days) on which the interest is calculated.
If we select the option interest rates depend on the amount: system
calculates interest on the total amount instead of graduate interest
scale is there also.
If the amount mentioned in amount limit column the interest amount is
restricted to this amount only
If you select the no interest payment check box the system will not
calculate the interest for the accounts carrying the indicator.

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Define reference interest rates :( separately for debit into and credit
into)

Give the above details and select next entry button. Give the ref into rate
for cr balances. Save the data the screen will appear as above

Enter interest values: TC OB83(path is same)

Select new entries button:

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Give ref into rate: 2001
With effect from: 010406
Interest Rate: 12
And do the same process for rest of the reference interest rate also. The
screen will appear as inthe figure.
Enter Time Dependant terms (path is same) TC: OB81

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Give the into indicator: 20 currency key: inr eff from: 01.0406 sequential
no:2 term:cr. Bal. int. cal
Ref into rate: 2002 like the way create for dr balances, ref into rate 2001
also. The screen is above.
If you mention any percentage in the premium column, system considers
this rate as additional rate specified in reference rate. The effective would
be reference rate plus premium rate if any.
In the amount from column, if you specify any amount the system
considers the over and above amount at this rate. This configuration is
required for any graduated interest rates applicable for the different
amount scales.
For automatic posting of interest we have to make automatic
determination of accounts in transaction code: OBV2.

Give chart of accounts: 2006

Select accounts button
Give account symbol: 0001 currency inr general ledger no: 403000
(interest expenses ac)
Give account symbol: 0002currency inr general ledger no. 403000
(interest income ac)
Give account symbol: 1000 currency inr give Masking with symbol (+)
(as above)
Give account symbol: 2000 currency inr give masking with symbol (+)
as above)

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Note: masking is done to take care of all general ledger accounts for the
purpose of calculation of interest rather than mentioning any single
account(single ac no. will apply the interest on that ac only)
2. Account symbols are defined by sap do not change it.
3. Open the loan account with (bank account conditions) and give the
interest indicator in loan account master
4. Post the loan transactions and go for executing of interest application
in F.52 balances(under periodic processing in general ledger folder.
5. For posting of interest select post interest settlement check box and
update the interest details select the update master record check box. A
programme is created with name RFSZIS00 Now go menu item
system>services>batch input>sessions> select the above session and
click on process button select display errors only click on process button.
System will apply the interest to loan ac go and verify the document in
FB03.
OTHER IMPORTANT BUSINESS SCENARIO CUSTOMISATION:
Deletion of General ledger account: in this connection I would like to
advise deletion is not possible once the data was posted into the
accounts. Then the option only to block the particular account .Before
posting the transactional data we can delete the accounts by selecting
deletion flag for the accounts to be deleted. The deletion of gl account in
IMG screen only. Path: a>gla>master records>deletion>deletion of gl
account TC: OBR2.
Give required details
Delete the test run button
Execute.
The programme name for executing the gl account is SAPF019

DELETION OF CHART OF ACCOUNTS: TC: OBY8 Programme name to

delete the chart of accounts: SAPMFKM8. We can check the deletion
capability of the chart of accounts in advances.

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Transport the chart of accounts from one client to another client or
another system. For this purpose we have create the correction request,
and with the help of this correction request we can transport the chart or
accounts from one client to anther client. (We have to select the areas to
copy to transport) the transaction code: OBY8 the Programme name:
SAPMFKM

COPY OF GL ACCOUNTS:
Copy of gl accounts can be done either for chart of accounts level or
company code level:
Path: financial accounting>general ledger accounting>master
records>general ledger account creation and processing>alternative
methods>copy gl accounts>copy chart of accounts TC: OBY7 and copy
company code accounts: TC: OBY2
Give the chart of accounts in which you want to copy:
Give the reference chart of accounts from which you want to copy the gl
chart of account level
Click on copying capability, once it is completed save. Programme name:
SAPMFKM8
CREATION OF GL ACCOUNTS WITH REFERENCE :( GL account
creation and processing)
Select creation of gl account with reference:
Give the chart of accounts to which the accounts to be copied down
Give the chart of accounts from which you want to copy the gl accounts
Click on details button
Click on account reference button; give from gl account and to gl
account (range to be copied)
Select all the gl accounts to be copied
Check the check button (for consistency of the data to be copied down)
Create gl accounts button and account determination button also
System copies all accounts and automatic determinations also
Finally check the Check button for verification.
THE PROGRAMM NAME FOR COPY OF GL ACCOUNTS WITH
REFERENCE IS SAPLGL_ACCOUNT_MASTER_REFERENCE. CHANGE
OF GL ACCOUNTS MASS MAINTAINENCE:
Path is same:
We can change the general ledger data collectively in 3 levels. The first
one is chart of account level and company code level and account name
level also
The programme name for change gl account collectively is:
SAPLMASSINTERFACE
Creation sample account: TRANSACTION CODE: OB15
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Path: financial accounting>general ledger accounting>general ledger
accounts>master records>preparations>additional activities> sample
accounts
Maintain sample account rules;
Select new entries.
Give: 4character code (2006) description. Save. The screen as
under

Define data transfer rules: same path TC: FSk2

Give the sample variant code: 2006
Select the master data company code level fields which can be transferred
from sample account while opening the account (we can select the cannot
be changed check box if required)
Save the data with the selected rules.
Assign the company code to sample account rules:
Click on position button,
Give the company code and give the sample account rule code: save
CREATE SAMPLE ACCOUNT: path is same and the TC: FSM1 Give the
account number (outside range of OBD4 for identification):500000
Give the description: sample account: 2006
Select the fields you want to copied to the accounts with ref to sample
account
Save it. While opening accounts the system asks for sample account from
which you want to create the company code data and copies the fields
what

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we set in sample account. Accordingly we can create any number of
sample accounts and keep as reference further creation of accounts.

TEXT IDs CREATION: These are helpful to quicken the process of creation
of gl master records and the ids can be stored in the system for further
processing.
Path: Fa>gla>gl accounts>master records>preparations>additional
activities>creation of text ids for chart of accounts and company code
master data. TC: OBT6and OBT7

We can also define the text ids for documents also in transaction code:
OBT8.

Select create button

Give text ID no: and give description save

INDIVIDUAL LAYOUT PROCESSING: These are helpful for setting up the

page tab buttons for the creation of individual general master record. We
can create the page tab buttons and their fields according to our
requirement.

Path: spro>img>financial accounting>general ledger accounting>

general ledger accounts>master records>preparations>individual layout
processing Define layout TC: OB_GLACC21.
Select new entries button:
Give 4-character name of the lay out: z006
Give description and save
Select the tab page titles: we can set as per our requirement
Page groups: we can set page groups also as per the lay out requirement.
Assign the layout to the chart of accounts and account groups if you are
to use for user master record.
Define screen lay out for each transaction:
Path: spro> reference img> financial accounting> general ledger
accounting> general ledger accounts> master records> preparations>
additional activities> define screen layout for each transaction TC: OB26

We can set the required screen lay out for activity wise or general ledger
account wise. We can take the print out of the field status of the activity
by clicking print field status

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DEVELOPMENT OF ENCHANCEMENTS FOR CREATION OF GL
ACCOUNTS: These enhancements are useful for creation additional
actions to be used for the specific request of the client or the project
requirements. For this purpose we have to create the project name create
the enhancements with the help of user exists.
DEFINE SORT KEYS: We can define the sort keys as the requirement of
the project. Path: spro>[Link]>financial accounting>general ledger
accounting>general ledger accounts>master records>line items>line
item display>define sort variant TC: OB16
Select new entries button
Give 3 character sort key variant name and description
Give 3 fields which are to used as allocation fields
Save
CREATION OF WORK LISTS: These are helpful for view the reports as a
whole instead of individual. Example, if we want to see all the bank
accounts balances we can see the balances of all bank accounts by
creating work lists. We can create as many as work lists, and used for
user master record. TC: OB55
Path: spro>[Link]>financial accounting>general ledger accounting
General accounts>master records>balances> creation of work list

Select the required option or double click

Click on create option
Give the work list name and description
Give the account numbers you want to group them in the work list and
save the data.
AUTOMATIC CLEARING OF GL ACCOUNT: TC: OB74 (img, gla,
[Link], open item clearing, prepare automatic clearing) In this
activity you enter the criteria for grouping an account’s open items for
automatic clearing. The clearing program clears the open items that are
grouped together if their total balance equals zero in local and foreign
currency.
You must enter the following standard criteria:
Account type
Account number or a number interval
You can also enter a further five criteria.
EXECUTION OF AUTO CLEARING:
ACCOUNTING> FINANCIAL ACCOUNTING> GENERAL LEDGER>
PERIODIC PROCESSSING> AUTOMATIC CLEARING> F.13 WITH
OUT SPECIFYING THE CURRENCY OR F13E

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SAP QUERIES:
These queries are used by the functional people to prepare the reports
basing the cross information embedded in the tables. BY using these
queries we will create a report basing on the information available in
different tables, and combine them for the purposes of reporting. For this
purpose we have to first set info set queries, and assign them to user
groups and create sap queries. These reports are called sap list viewer
reports. These can be prepared by the users even without the help of
technical support.

CROSS COMPANY CODE TRANSACTIONS: In real time, sometimes one

company will make the payments on behalf of other group company and
settle their internal accounts at defined intervals. Such scenario can be
customized in sap environment as Cross company code transactions. For
this purpose we have to open clearing accounts in the companies in
between the cross-company code transactions are going to be happening

The path for defining the cross company code transactions is

Path: spro>rimg>financial accounting>general ledger
accounting>business transactions>prepare cross company code
transactions: TC NO: OBYA.
Give company code one: 2006
Give company code two: 6900
Give the posting keys of debit and credit and clearing of the company
code one and the same way give the account number of the other
company code and save the data.
Post the Transaction in general posting screen by selecting the
expenditure of the one company is paid by debiting to the other
company bank account. Go and verify the accounts, the system
generates two documents for the both companies as per the number
range assigned to the document types what you have posted.

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System stores the same number in the header data of the document also.
We can change the cross company code documents also reverse the
documents also. Transaction code for reversal of cross company code is
FBU8.
Enter Global Parameters:

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Enter Global parameters: spro> rimg> financial accounting> financial
accounting global settings> company code> enter global parameters.
TC:OBY6
Click on position button
Give company code
Select company code
Click on details button
See the parameter check boxes; select the check boxes you require:
example:
1. If you want business area financial statement select that check box
2. If fiscal is to be defaulted to you select
3. If value date is posting date to be defaulted select
4. Maximum ex rate deviation set any percentage you require as per the
client requirement
5. Select the negative posting allowed check box

Note: if you want to know the field information keeps the cursor
on the field and press F1.
Maximum exchange rate deviation: if you set any percentage here the
system gives a warning message while posting a document with
deviation beyond the percentage.

Tax base is net value: If you want to consider that the tax is to be
collected on the net off discount value select this check. Otherwise the
system calculates the taxes on the total invoice value.

Discount base is net value: if you want to collect the cash discount after
deducting the tax select this check box. Other wise the system
calculates the discount on the invoice value i.e. inclusive of tax.
No exchange diff when clearing in Lc: If you select this check box
the system will not consider the exchange diff while clearing the
amounts.

The Global settings, can be configured here, otherwise while doing the
respective component we can do the customization individually also.

If you select the company code is productive; means the customization

changes can not be done. Generally this check box is selected for the
production clients only. It ensures that no changes can be made by the
users.
External company code: the company has external company code and
data processing is taking place from the external source to sap
environment, we can define the external company code.
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Global company code: if the company maintaining the separate company
code for reporting on various parameters, example: global shoes division
reporting produced by different company codes with in a group. This will
useful when a company dealing with multiple products globally by
different company codes.
PARALLEL VALUATION METHODS:
If the company is obliged to prepare the financial statements as the
requirement of the two accounting principles i.e. as per the company
code (India) requirement(IAS) and as per the requirement of Global
company code requirement i.e. US GAAP. To meet such requirement SAP
provided the functionality of Parallel Valuations methods. Parallel
valuation methods can be defined even with more than two or three
valuation methods also. The parallel valuation can be done in 3 ways.
1. By depicting additional accounts
2. 2. By depicting additional ledgers
3. 3. By depicting additional company code:

Under first method, posting are made into either single additional
account or joint account (defined for this purpose) for all valuation
methods, evaluation will be done at the time year end closing process

As per the second method different ledgers will be defined for different
valuation methods, and the data will be stored in the respective ledger.
The definition of ledgers will be generally done in Special purpose
Ledgers. The data in respect of one Ledger will be used for the purposes
of controlling; the particular ledger data is called LEADING ACCOUNTING
PRINCIPLE DATA. The additional ledger data cannot be used for the
purpose of controlling.
In the Third method we have to define separate company code and store
the data relating to additional valuation data in the company code. This
scenario will support by only financial accounting application component
and asset accounting component only. No other component will support
this functionality.

When we have adopted the parallel valuation methods the following areas
will be affected by the method of valuation.
1. Regrouping of receivable and payables
2. Value adjustments
3. Foreign exchange valuations
4. Accruals.

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MULTIPLE CURRENCIES: Like the way of, maintaining additional
valuation methods for meeting various reporting requirement, we can
define multiple currencies in SAP system. We can maintain additional two
currencies in sap. The system will update the balances in all the
currencies in real time. The selection of other additional currencies will
depend on the company requirements. We can define any currency type
as our additional currencies.

Path: spro>[Link]>financial accounting>financial accounting global

settings>multiple currencies TC: OB22.
Give company code: 2006
1st local currency is defaulted from company code currency: INR
2nd local currency is: we can select from any currency type
3rd local currency is also can be selected from any currency type :
Save the data.

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DOCUMENT ARCHIVING This is the methods adopted to keep the data
aside from the data base. When the data base is in high volume and
some data relating to old fiscal years, we can keep the old data
separately. For that purpose we have to define the archiving rules. Once
the archiving rules were defined, the system checks data base and
archive it. We can delete the archiving data for this purpose we have to
set deletion flag in Master records.
Path: financial accounting>financial accounting global
settings>document>document archiving:
TAX ON SALES AND PURCHASES: Every country has its own tax
calculation procedure. It is the main revenue source for the Government.
Government can levy the taxes and changes the procedure from time to
time as per the tax plan for the nation. There are two tiers in tax
jurisdiction.
1. Country level
2. 2. State level.
Or some times at both levels also. Generally tax procedure not in sap
system it is a separate soft wear and made generic interface with the soft
wear. SAP supplies country version tax system. Accordingly we will follow.
As far as customizing is concerned, major part of the customization will
be done by the material management people and sales and distribution
people. However, we as a finance consultant we should know about the
outline configuration of the taxes.(for India we have Country India
Version,5.0 to meet the country requirements)
There are two types of taxes:1. Input tax and [Link] put tax.
Input tax is defined with code: V
Out put tax is defined with code: A

Business Scenario: Satya InfoTech is supposed to pay the input tax i.e.
excise tax on purchases @16%, educational cess 2% and supposed to
make the payment of VAT12%.like the way supposed to collect the output
tax i.e. excise duty 16% educational cess 2% and 12% VAT.

In the process of customization of taxes we have to begin definition of

condition types: The condition types defines base values on which the
different taxes are to be collected. There are different values for
calculation of different taxes.
Path: fa>fags>tax on sales and purchases>check calculation
procedure>define condition types: TC: OBYZ
Click on position button: give input tax key: MWVS
Select the input tax key and copy the same, change the condition type:
4 characters
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(We are changing for this project as I200: excise duty paid)
Again select the I200 copy function change the name as I201:
educational cess paid.
Again select the I201and copy function change the name as I202: vat
paid and save.
We have created three input tax keys. Like the way select output tax key:
MWAS
Copy the same and change the name as O200: excise duty payable
Select the O200 and change the name as O 201 educational cess payable
and save
Select the O201 and change the name as O 202 vat payable and save

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CHECK AND CHANGE SETTINGS FOR TAX PROCESSING: In this step
we have to define the process keys or account keys. These account keys
or process keys are used to determine general ledger accounts and
posting keys for tax line items. SAP advice not to change the keys and
use the defaulted keys only. If you want to change the account keys copy
down the defaulted keys and change the name of the account keys and
used for your project.

For this project we are using the processing keys or account keys as
under:
I10: excise duty paid
I11: [Link] paid
I12: vat paid
O10: excise duty payable
O11: [Link] payable
O12: vat payable

With the help of the above keys the system will credit the respective
amounts in determined accounts either as debit or credit.

Define the calculation procedure for the country:

Path: spro>[Link]>financial accounting>financial accounting global

settings>tax on sales and purchases>check calculation
procedure>define procedure.
Select new procedure,

Define 4character procedure and description and keep the cursor on the
procedure double click on control data button (in the left side of the
dialogue structure box)
Select new entries button. Give the table contents with the condition
types and respective process keys.
Define the input tax conditions step 10 base amounts. This is the base
amount to calculate the excise duty
2. Educational cess is to be collected on excise duty hence in step 20:
condition key I201 base value for calculating the edu cess is excise duty,
hence made as from 20 to 20 in the column

Like the way we have to define for all types of taxes and also the account
keys in the extreme right of the screen (not visible in the screen).

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Now the calculation procedure for your country is ready for use. To make
account for the same to our customization we have to assign the same to
country. TC: OBBG

The next important step in the configuration of taxes is defining tax

codes: path: spro>rimg>financial accounting>financial accounting global
settings,>tax on sales and purchases>calculation>define tax codes: TC:
FTXP

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Give country name
Give tax code: 2 character name:I0 (input tax with 0%)
Description.:0% tax for input tax and continue

In the next screen give all input tax as all zero and keep the cursor on
output column and click on deactivate line button and save. The system
creates the I0 tax.

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Repeat the same process for all output tax codes also
Output tax code: o0 (o zero)
Output tax code o1 (excise duty payable educes payable+vat)

While creating out tax codes give tax rates in output tax column and keep
the cursor on input column and select the deactivate line and save .
Accordingly now for this project we have created 4 tax codes as per the
requirement
Tax procedure: requirement of general ledger accounts: To take of
about the automatic determination of tax amounts we need to define
accounts for tax.
In put tax accounts:
1. Excise duty paid
2. Educational cess paid .
3. Vat paid account
4. As asset group and allowed only input tax

Out put tax accounts:

5. Excise duty payable
6. Educational cess paid
7. Vat paid account
8. As liability group and allowed only output tax
Change the tax options in the tax relevant accounts: means that these
accounts are subject to levy of taxes.

Purchases account and accounts payable ac : allowed only input tax

Sales revenue account and accounts receivable : allowed only output
tax

We need not to define any adjustments in respect of no tax accounts.

These accounts do not attract any taxes at any time. Hence these
accounts are called as no tax accounts.

To post the interest the prerequisites:

1. Post the loan transaction in old date (with value date also old data)
2. Automatic determination of accounts for interest. Path:
spro>rimg>fa>fags>tax on sales and purchases posting TC: OB40.
Select the process key what we have defined
Select the tax code check box and save
Give the tax and GL accounts as mentioned in the figure and save.

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NOTE: for input tax only vat paid account will be displayed
because we have given the posting indicator as 2(separate line
item for that only) rest of the input tax account keys having
indicator as 3(distribute to respective expenses/revenues)

Execution of Interest: F.24

To post the interest select post interest settlement of transactions and
update the master record. Execute. System creates batch input session
RFDUZI00. Execute the programme in sm 35.

Business scenario: satya info tech is having branches in USA and

Germany also. The company is following group company code currency is
$usd. And all the branches are using the same chart of accounts. How
you will configure the Business process for USA and Germany and India.
And also Group Company results in us dollars.

Solution:
1. Since the satya info tech is following group concept. We have to define
the Group chart of accounts maintaining language is English. While
defining the chart of accounts for individual company we will assign the
group chart of accounts. And assign the each general ledger account to
group account.( we can assign any number of accounts to one group
account)
2. We will define one of the additional local currency is group
currency i.e. Us dollars.

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3. We will define country specific chart of accounts to meet the
requirement of countries and assign it company code along with the
operative chart of accounts. Then the system prompts the account
number while creating the accounts in operative chart of accounts.
4. Give the account number in alternative account no field of the gl
master record. However, we have to assign the account numbers in 1:1
ratio only. 5. If you do this functionality, the rest of reporting can be taken
by the system.
GENERAL LEDGER PLANNING: Planning can be done for general ledger
wise in financial accounting exclusively. For that purpose we have to
define the plan periods for the variant.

Path: spro> [Link]> financial accounting> general ledger accounting>

general ledger accounts> business transactions> planning> define
planning period:
Give the posting period variant
Give posting periods and save

Define plan versions for general ledger planning:

Give the general ledger: 0 version 0 select manual planning and
integrated planning check boxes.
Manual planning allow the planning manual and integrated planning
allow the planning figures captured from CO-PA and other application
components. Define the distribution keys. Or otherwise select the
defaulted keys.
ENTER THE PLAN DATA FOR GENERAL LEDGER: PATH:
Accounting>financial accounting>general ledger>periodic
processing>planning>enter plan data TC: FSE5N.
Give particulars as under:
Give the details and click on enter button system displays the financial
statement version of the company code keep the cursor on the assets
column and click on enter button. The system displays all the accounts
under that group. Give the plan figures for general ledger ac wise and
save the data .

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Narendra 102
PERIOD END CLOSING IN FINANCIAL ACCOUNTING:
As part of period end closing job we have to perform the following
functions.

Day end closing: Ensure all the posting are made properly
Ensure the cash balance is tallied.
Ensure the bill of exchanges payment or list of bill of exchange

Month end closing: Open and close of posting period.

List of open items and bill of exchange items
Monthly reconciliation of Gr/IR clearing account
Monthly valuation of foreign exchange balances
Allocation of costs to respective cost centers.

Year end closing: Posting of accrual documents

Foreign currency valuations,
Define accounts for gr/ir clearing accounts for regrouping
Regrouping of receivables and payables.
Generating audit trail
Carry forward of balances of outstanding entries in general ledger
accounts.
Opening of new fiscal year and transferring of balance sheet items to New
Year.

General Ledger reports : Each application component in SAP,

exclusively mentioned the reports required for end user in separate folder
as Information system. General ledger reports>general ledger
information system>master data reports:
1. S_alr_87012326: Give the general ledger numbers or account groups
and execute list of chart of accounts will be displayed. We can get the
print>menu item>list>print.
2. 2. S_alr_87012328: In this option we have general ledger master
fields as criteria for selection and reporting purpose; it is more
comprehensive report than the previous report.
3. 3. S_alr_87012333: This is also general ledger report with various
selection parameters with save in word files option.

Document Reports: document>document journal:

4. S_alr_87012287:To
2. S_alr_87012289: Give
seethe
thecompany
list of all code:2006 fiscal with
document types year:2006 and
balances:
other selection parameters
3. S_alr_87012291: and execute
To see the document type wise line items;
4. S_alr_87012293: To see the display of changes to documents:
5. S_alr_87012341: To see the invoice numbers allotted twice

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6. S_alr_87012344: To see the posting totals with document type and
debit and credit and [Link] items.
7. S_alr_87012347: To see the period wise line items account type wise.
8. S_alr_87012282: to see the general ledger accounts with open items
accounts or parked item selection.
9. S_alr_87012332: to print the account statements with selection
parameters.
10. S_alr_87012277: to verify the general ledger balances with period
wise and currency wise and balance wise also.
11. S_alr_87012301: to verify the month wise, account wise, debit and
credit totals with balances;
12. S_alr_87012279: structured balances sheet report:
13. S_alr_87012336: to verify the assets and liabilities with local currency
and transaction currency report.
FSIB: to execute the balance sheet reports in back ground environment

S_alr_87012249 to compare actual/actual comparison of balance sheet

items.

INTEGRATION of general ledger accounting component:

In this concept we can know the areas of integration of financial
component with (general ledger accounting concept) with other
components of R3 system. The general ledger accounts have the
integration with the following components.

1. Asset Accounting: 1. General Ledger accounting has direct

integration with the asset accounting component. This can be done by
defining the general ledger accounts to asset transactions in transaction
code:
2. [Link] posting keys for auto posting of asset transaction
Defining

2. Over head cost controlling: Defining accounts for overhead cost

controlling in preparation of Reconciliation ledger.
3. Material Management: Define accounts for material management
transactions
TC: OBYC
4. Sales and Distribution: Prepare Revenue accounts determination. In
TC: VKOA
5. Pay roll accounting: Definition of general ledger accounts for symbolic
accounts:
TC: OBYE AND OBYG.
6. General ledger accounting: [Link] of accounts for automatic
determination of accounts of General ledger accounts
TC: OBL1 AND OBL2.

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End user important reports in general ledger accounting:

Chart of accounts list:

Path: information systems-accounting-financial accounting-general

ledger-information system-f.10 chart of accounts.
Give the chart of accounts: 2006.
And other selection parameters and execute.

Balance sheet: F.01 path is same

Give company code
Chart of accounts and financial statement version and execute.

Account balances with debit and credit items: F.08

Give the chart of accounts, company code and execute.
To know the account balances as structured format: F.54
Give the company code; chart of accounts and financial statement
version and execute.

Display of individual line items: F.51 line items.

Display of balance sheet and profit and loss account reports in different
views: path: unto- Information system is same >balance sheet and profit
and loss statements>general:

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THA
END
RTOR

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