SAP FI

NOTES

SAP FI NOTES
INDEX
PARTICULARS
Introduction
Enterprise Structure
1. Chart of Accounts
2. Accounts groups customization
3. Open and Close Posting Periods
Sales Tax Procedures
1. Tolerance Groups
General Ledger Accounts (GL Accounts)
1.Negative Postings
2. Creation of GL Masters
3. Parked document
Foreign Currency Transaction (FCT)
1. Reversal of Reversed document
2. Mass Reversal
3. Balance Interest calculation
4. Accounts Principles
Accounts Payable (AP)
House Bank
1. Link between sundry creditors and Advance to vendors
2. Purchase Invoice Posting
3. Term of Payments-Maximum Cash discount
4. Automatic payment Program(APP)
5. Check printing
6. Credit Memo
Accounts Receivable (AR)
1. Sales Invoice Posting
2. Incoming payment
3. Link between sundry debtors and advance from
customers
2

Page No.
3
11
15
19
27
36
36
41
41
43
54
72
77
78
87
92
99
106
115
116
119
128
130
132
134
135
142
144

4. Advance Receipt posting

Bill of Discounting (Bill of Exchange)
1. Define dunning areas
Sales Tax
Asset Accounting (AA)
1.Chart of Depreciation
2. Asset Classes
3. Asset Sale /Transfer/Scrapping
Reports
1.Chart of Accounts List
2.Trail balance / Ledger /Vendors List
3. Data Takeover
4.Up loading of master in SAP (LSMW)
5.Balances uploading
Bank Reconciliation Statement (BRS)
1.House Bank
2.Check Lots
3.Sales and Purchase Invoices posting
Cash Journal (CJ)
Withholding Tax(TDS/TCS)
1.Maintain Calendar
2.Withholding tax codes
3.Create Remittance Challan
4.Print TDS Certificate
5.Quaterly Return

144
148
156
162
170
172
176
199/201/202
204
204
205/206
209
212
217
228
231
232
241
245
248
249
254
264
265
266

INTRODUCTION
SAP stands for System Application and Products in data Processing
FI stands for Financials
CO stands for Controlling
Version : ECC6
ECC stands for ERP Central Component
SAP was released in 1972 It head quarters in Germany
What is ERP?
ERP stands for Enterprise Resource planning, it is integrated all functions in one
system.
Organization
|
-----------------------------------------------------------------------------------------|
|
|
|
Purchase Dept.
Store Dept. Production Dept.
Accounts Dept.
Will have no of departments in organization. ERP integrate all the functions into one
system.
It will facilitate free flow of data among the departments.
Advantages:
Once stores person updates in the system It can be shared by account person.
No mismatch in reporting Data Source is only one once updation.
Store Department at Factory: Where the material is received are updates his records
send the bill to account person.
Accounts department at City office : Pass an entry in the books

Disadvantages:
Duplicate job
Time gap.
ERP Packages:
SAP, Oracle, Financials, Peoples soft, BAAN , J.D.Edwards
1972- SAP R/1 Real time data processing
1980-SAP R/2 Included no.of countires and no.of currencies
1990 SAP R/3- R/3 stands for
Data Structure
1.Application Server
2.Data based server
3.Presentation
1999 My SAP.com Web baed
2004 Net weaver Integrates information, people and process.
Areas to be covered under FI /CO
FI:
1. General Ledger accounting
2. Accounts payable
3. Accounts receivable
4. Asset accounting
CO:
Cost element accounting
Cost center accounting
Internal orders
Profit center accounting
Product costing
Profitability analysis

1.
2.
3.
4.
5.
6.

Integration of:
1.
2.
3.
4.

Material Management Module to Financials (MM to FI)

Sale & Distribution module to Financial module integrate (SD to FI)
Data take over(From Non-SAP to SAP)
Closing procedure

Reports:
In all the module systems gives around 2000 reports
You can attach the reports to favorites

Some important reports you can attach the reports on desk top.
Cross company code transactions:
India version: TDS , Excise and sales tax
Companies Act:1956: as per Schedule VI Balance sheet and Profit & Loss A/c

What are difference between SAP EE 4.7 and ECC 6.0?

SAP EE 4.7
Stands for Enterprise Edition
No Netware concept (Offline)
Segment wise report is not possible
Only one currency

SAP ECC 6.0

Stands for Enterprise Central Compound
Netware concept (Online)
Is it possible
Multiple ledgers in currencies
Document splitting
Foreign currency revaluation based on
accounting principles

Role of FI /CO Consultant

1.
2.
3.
4.
5.
6.

Project Manger
Senior Consultant
Junior consultant (Each project 3 to 6 members)
Support Consultant (Eg.IBM, Accenture)
Core Team Members
End User

How to Open SAP

Open: Double lick on SAP Logon Icon
Double Click ECC 6 Server
First Screen:
First Field : Client :2 Clients
1. Development client
2. Production client
In the implementation SAP
1. Consultants
2. Company staff (Core Team Members)

The consultant they do the customization in development client

The company staff will do the testing.
The customization will be transferred to client through transport requests.
In the production client you enter day to day transaction.
Some companies they will give 3 clients:
1. Development client
2. Testing client
3. Production client
Client:

800/000/810 You can copy and give any number

User:

Cost of package will depend on the no.of users licenses.

100 users license used by 1000 employees
It fixes the responsibility on employee.

User ID: SAP user: You can use small or capital letters (Its not case sensitive)
Password: The length of password Min3 Max 8
(it can be numeric, Alpha Numeric , Alphabets, and Special characters.)
Password is not case sensitive
Not possible to change password more than once in a day
Latest 5 passwords can not be used
Password can not be restored

Money is the password.

What is client?
Aravind Group
(Aravind Industries Ltd)
(Aravind Steel Ltd)

Wipro
(Consluting Firm)

To Purchase Sap Package From Sap India Bangalore Wipro Will Customize(Map)
Aravind Requirement In SAP
ARAVIND
Project Manager
Core team accounts manager
Cost accountant
Purchase Manager
Sales Manager
It staff

WIPRO
Project manager
FI Consultant
CO Consultant
MM Consultant
SD Consultant
ABAP programmer
BASIS Administrator

Aravind :Core Team As is Process_What Is Requested From SAP

Wipro :To Be Process What Should Be Done In SAP
Development
Client

Production
Client

Wipro Customization

- Transport Request

Aravind Core Team

- Testing

After testing by Aravind core team customization will be transported to production client
through transport request
Production client is live client where we enter day to day transactions
If the consultant do customization once again in production client, if they commit any
mistake all the postings will go wrong where as development client customization is
tested customization by the Aravind core team and corrected by Wipro team.
We will not get any mistakes in the development client customization.
In live environment we should have minimum 2 clients some companies they keep 3
clients

Development Client

Testing quality Client

Wipro Customization

Transport Request

Aravind Core Team

->

Testing

Production Client
->

"When SAP is purchased from SAP India we get clients like 000,001,067 and 800"
Basis consultant copies 000 client and give the number required by Aravind care team

Client :800

(Development Client)

User : Cost of package will be based on number of user licenses

User Id Creation Is The Job of BASIS Administrator
A) Cost Factor

B) User Id Fixes Responsibility on Employee

SAP User:

It Is Not Case sensitive (Capital Letters Or Small Letters)

Password:

Password Is Case Sensitive (From Ecc 5 Onwards)

Length of Password: Minimum 6 Maximum 40

"We can use alphabets, Numerical, alphanumeric, special characters-like"
Not possible to change password more than once in a day.
System will not permit to use latest previous 5 passwords
EG:

1.09.2008
ABC123
5.09.2008
XYZABC
12.09.2008 ABC123

system will not permit

Password can not be restored

BASIS Administrator deletes old password and gives a new password : oracle
Language

: 41 Languages

If we do not specify any language it takes English by default or we can use EN for
English
If we user id : The menu will be in German

Client: 800
User: SAPUSER
Password: oracle
Press enter
Now open SAP
Select and choose the radio button depend on necessity.

1st Radio button

2nd Radio button
3rd Radio button

Employee1
Can not work
Work
Can work

Employee2
Can work
Can work
Can not work

In training institutes we have to select 2nd radio button

Enter
1st raw is called menu bar
Menu Edit ,Favorites ,Extras
2nd raw is called standard tool bar
3rd row is called in title bar
4th is called application tool bar
5th & last is called status bar
The second row the tick is called enter, beside tick box is called is command field."
One employee can work in number of sessions (windows) at a time -the maximum is 6
sessions
How to create a new session?
Path: From the menu bar - Select system- Create session
To move from one session to another session (alt+tab)
How to end session?
Path :From the menu bar - select system- End session

To view which version we are using?

Path : From menu bar - Select system- Status-Sap system data

How to use transaction codes (T/C)?

We want posting of transaction.
option-1
Go through the path and post
the transaction

option-2
Use transaction code in command field
and press enter

Path: Accounting --> Financial accounting

-> General ledger-->Posting ->General posting
To go back to SAP easy access screen:
Use: /n

in command field and press enter.

10

we can create our own transaction

codes they should start with Y or Z

For Posting Transaction:

Document (Voucher) entry
(F-02)

Account display (FS10N)

After posting we want to view the ledger.

a) Use:/n (changing) in command field and enter - to back to sap easy access screen
b) Use FS10N in command field and press enter- to go to account display
Instead
use:/NFS10N in command field and press enter change session with new transaction
code.
use /OFS10N in command field and press enter- create session with new transaction
code.
./N for change
./O for create

How to activate transaction codes in sap menu?

Path :From the menu bar - select extras - Settings - Display technical namesEnter
HOW TO SET A START TRANSCTION?
To make one screen as beginning screen
Path: From menu bar select extras - set start transactions (transaction code is
F-02)
Enter
Give a message transaction F-02 set as start transaction
HOW TO CLOSE SAP?
Path: From the menu bar select system - log off - select yes button for the
message to logoff
Select yes button to log off

HOW TO UNLOCK THE TRANSACTION CODE?

11

At the time of customization -screen will come with display mode not enter mode
Path:Tools-Administrator- Monitor-Lock entries (tr.code is SM12)
Select list button- Message - No lock entries found
Path: From the menu bar select lock entry- Delete all-select yes button for the
message
Delete all lock entries - Enter.
Organization structure:
SAP
---------|
|
Group
Company
|
|
Company
Company code
|
|
Units
Businesses Area
Creation of Project: Group --> Companies Units
In SAP Group is called as company
Company is called as company code
Unit is called as Business area

ARAVIND GROUP(AVG)
|
---------------------------------------------------------------------------------|
|
|
Aravind Mills Ltd(AML)
Aravind Steels Ltd(ASL) Aravind Industries ltd(AIL)
|
|
|
|
|
|
HYD
BGL
HYD
BGL
HYD
BGL
FI consultant will do customization at company code level -company or group is only for
information.
We do customization for Aravind Mills Ltd after words we copy customization including
accounts to other company codes in one step and make modifications where ever
required.

12

ENTERPRISE STRUCTURE
DEFINE COMPANY:
Path: Tools - Customizing IMG (implementation guide) - Execute project
(trns.code SPRO)
SPRO stands for SAP Project Reference Object

Select SAP reference IMG button : This is called customization area or configuration
area or implementation area
Path:SPRO- Enterprise structure - Definition - Financial accounting - Define
company ( Tr code is OX15)
It we select IMG activity documentation button: It gives description part about company
To select IMG activity button: To do customization
Select IMG activity button
Select new entries button
Company

: AVG

Company name

:Aravind group

name of company2 :blank

street

:Ameerpet

postal code

:500034

country

:For country select dropdown(pull down) button, select in for india"

Language key

:select drop down button select EN for English

Currency

:For currency select drop down button here 218.

Select INR for Indian rupees

Select save button or Ctrl+s

Development client
production client
|
consultant Customization
Transport request

13

By default it gives the latest request we have to create our own request and afterwards
to transport to production client
For each step we need not create separate request.
For Basic settings
:1st request
For General ledger
:2nd request
For Account payable
:3rd request
For Accounts receivable :4th request
For Asset accounting
:5th request
For Controlling
:6th request
Select create request button (F8)
Give the short description :FI basic settings for Aravind Mills Ltd
Press enter
Press enter once again to save in the request. We get a message data was saved: Data
was saved in two places:1.Development client 800 2. In Transport request

2.DEFINE COMPANY CODE:

( Tr code is OX02)

Path: Tools - Customizing - IMG- executive project (SPRO)

Select sap reference button IMG
SPRO - path upto select sap reference IMG button is same.
SPRO
Consultant job

No SPRO
End user

job

Note the path SPRO

Path: Enterprise structure - Definition- financial accounting - edit, copy, delete,
check company code
Edit company code data
Select new entries button
Give company code :AML
City
:Hyderabad
Country
:IN
Currency
:INR
Language
:EN
Select save button or Ctrl+S

14

Title
Name
Street
Post code
City
Country

:Select company
:Aravind mills ltd
:Ameerpet
:500034
:Hyderabad
:IN

Press enter
To select our request number select dropdown button beside request number.
We can see here number of requests.
Select request number by seeing the description.
Press enter to save in the request.
Description can be same should be different

3.ASSIGN COMPANY CODE TO COMPNAY

Path: SPRO - Enterprise structure - Assignment - Financial accounting - Assign
company code to company ( Tr code is OX16)
Select position button give the company code AML enter
For company AML assign company AVG
Select save button or Crtl+S
Select dropdown beside request number
Select your request number
Press enter to save in the request
4.Define Business Areas
path: SPRO- Enterprise structure- Definition -financial accounting- define
business area ( Tr code is OX03)
Select new entries button
Business area:
AMLH
Description
:Hyderabad AML
Bangalore business area link this number
Select save button or C trl+s
Press enter to save in your request

15

*Assignment of business areas to company code is not required

Aravind Mills Ltd

|
HYD BGL

Aravind Group
|
Aravind Steels Ltd
|
HYD BGL

Aravind Industries ltd

|
HYD
BGL

AML accounts person

ASL accounts person

At the time of posting

Company code
Business area

:
:

AML
HYD

ASL
HYD

* Without giving company code we can not pass to business area

At the time of request generation:
Company code
AML
Business area
HYD
We get HYD data of company
Code AML only

ASL
HYD
HYD data of company
code ASL only

Some business area can be used by number of company codes in the client assignment
of business area to company code is not required.
HYD incharge for AML, ASL and AIL in the report
Company code
AML +ASL+AIL
Business area
HYD
Hyderabad data for all company codes we have Hyderabad business area separately
for each company code.
HYD Hyderabad business area
HYD1 Hyderabad business area
HYD2 Hyderabad business area
AML accounts person
Company code
Business area

:AML
:HYD/HYD1

ASL
HYD1/HYD2

There will be a mixup

16

CHART OF ACCOUNTS:
Company Codes:
Option-1
when we want to compare or consolidate
we can have same set of accounts
(chart of accounts) -i.e.,

AML

ASL

AIL

Conveyance account no.

400000

400000

400000

Option-2
Each company code has their on
set of accounts conveyance account no.

400000

400000

400000

400000

300000

200000

400000
100000

300000
100000

100000
100000

Accounts coding will be same.

Compare or consolidate by using group

Chart of Accounts
when we create conveyance account no
we use 2 numbers
Company code no.
Group no.

We are comparing or consolidating by using group account number.

Companies following option1
Chart of Accounts name
Description of chart of accounts
Maintenance language English
Length of account number most 10 digits (we are using 6 digits)

CREATION OF CHART OF ACCOUNTS)

path: SPRO - Financial accounting- General ledger accounting - GL accounts Master Data-Preparation - Edit chart of accounts list (TR.CODE.OB13
The other way to give transaction code is from the menu bar -> Select system - Status
Select new entries button.
Chat of accounts
Description
Maintenance language

:AML
:Chart of Accounts for Aravind group
:English

17

Length of GL account no.

Controlling integration
Group chart of accounts

:6 (min 6 max 10)

:select manual creation of cost elements
:Blank

Under status deselect blocked check box (do not select blocked check box)
Select save button or Ctrl+S
Select your request and press enter to save in your request

Controlling integration: select manual creation of cost elements.

FI (Financials)

CO (Controlling)
expenditure

When we past to expenditure accounts in FI it updates, CO automatically provided. We

create expenditure accounts as cost elements.
All expenditure accounts need not be cost elements expenditure accounts like interest,
Depreciation, Non-operating expenses -will not be consolidated for costing -they are
debatable.

Cost elements creation

Manual
Automatic
When we select manual, when expenditure account is created and posted in FI, we
want that expenditure to update co-create that expenditure account as CO element. If
we do not want to update co-records that expenditure create expenditure account only
and not to create as cost element -here we have flexibility. If we choose automatic,
when we create an expenditure account automatically cost element will be created.
When we post to that expenditure account in FI, automatically CO records will be
updated-no flexibility.
UNDER STATUS DESLECT BLOCKED CHECK BOX:
Accounts creation is at end user area, users at the time of posting, they will not check
whether account is there as not they create new account and post accounts.
We will have number of duplicate accounts in SAP once we create an account and past
transaction-IT can not be deleted
In live environment after up leading accounts - select blocked check box. No body can
create any account whether original account or duplicate account. When there is a
necessity to create a new account an authorized person say accounts manager

18

deselects the blocked check box, create the account and afterwards select blocked
check box.
We have to create the accounts now. We are deselecting the blocked check box.
ASSIGN COMPANY CODE TO CHART OF ACCOUNTS
path: SPRO- Financial accounting - General ledger accounting- GL AccountingMaster data-Preparation-Assign company code to chart of accounts. (Tr.code
OB62)
Select position button
Give the company code
Enter

AML

For company code AML assign chart of accounts AML

Select save button or Ctrl+S
Press enter to save in your request.
Accounts groups
100000
100001
100002
100003

Equity share capital

Cash account
Preference share capital
SBI current Account

We have created 1000 accounts

We want to view current assets balance or transaction.
We can not get directly-we have to verify each and every account and add the
respective accounts- in this example account no.100001 and 100003
We are preparing balance sheet on liabilities we have items like share capital, Reserves
& surplus-We have to verify each and every account and assign to the respective itemsit takes so much time to assign accounts.
To get account balances directly or to assign accounts easily SAP has given account
groups.
Chart of accounts
|
Accounts groups
|
Accounts

AML
Share capital (100000 - 100099)
|
Current assets (200000-200099)

19

When we create the accounts, we create within the range. Cash account will be created
within the range of 200000-200099."
Equity share capital will be created within the range of 100000-100099.
When we want to see current assets balances-we give current assets or at the time of
crating balance sheet for Share capital-we give the range 100000-100099
While crating account groups we take client's balance sheet and crate the groups-after
implementation also we wants to see the way he used to get.
WHILE CREATING THE ACCOUNTS GROUPS:
1 Series for liabilities
2.Series for assets
3.Series for income
4.Series for expenditure
We have 1000 accounts the user at the time of posting to expenditure account he need
not see all accounts he gives 4 only expenditure accounts will appear.

CUSTOMIZATION (TR.CODE.OBD4)
path: SPRO-Financial accounting-General ledger accounting- GL accountsmaster data-preparations-Define account group
select new entries button
Chart of
accounts
AML
AML
AML
AML
AML
AML

Account
group
SCPL
RSPL
ACDN
SCLN
UNSL
CLPL

AML
AML

FAST
CAST

AML
AML
AML

SALE
OTHER
INCR

AML

RMCL

Name
Share Capital
Reserves & Surplus
Accumulated depreciation
Secured Loans
Unsecured loan
Current Liabilities and
Provisions
Fixed Assets
Current Assets loans &
Advances
Sales
Other Income
Increase / Decrease in
stocks
Raw material consumption

20

From
account
100000
100100
100200
100300
100400
100500

To
account
100099
100199
100299
100399
100499
100599

200000
200100

200099
200199

300000
300100
300200

300099
300199
300299

400000

400099

AML
AML
AML
AML
AML

PRSN
MFRG
ADMN
INTR
DEPR

Personnel cost
Manufacturing Expenses
Administration Expenses
Interest
Depreciation

400100
400200
400300
400400
400500

400199
400299
400399
400499
400599

Select save button on Crtl+S

Select your request and press enter and save in your request
6 digits
1000000

100099

share capital 1000-1099 100000000-1000000099

Reserves & Surplus
Accumulated Depreciation
Unsecured loans
Current Liabilities & Provision
Fixed Assets

Afterwards we require liabilities account groups with 1 series 10 account groups.

How many groups we can crate with 1sries . available accounts (1999-1599)=400
accounts. New account groups with 1series we can create 400/100=4 groups .
Now we have to go for 5 series .
The user at the time of posting first the will give 1*
If the account is not there then he will check with 5*
When we use 6 digits:
Afterwards we require liabilities account groups with 1 series to 10 account groups. How
many groups we can create with 1 series available accounts (199999-100599=99400)
accounts.
For each account group we are assigning 100 accounts new account groups with 1
series. We can create 99400/100=944 accounts groups. 5/6/7/8/ digits.
Retained earnings accounts:
In the year end: P & L account balances transfer to surplus in P & L A/c Reserves &
Surplus (100100-100199) Balance Sheet A/c balances carry forward to next year as
opening balance.
This is required in the year end and not during the implementation. SAP has made
mandatory this step during the implementation. If the consultant does not do this step,
we will have problems in the year end.

21

Though accounts are not yet created assign on account for retained earnings account
purpose. We can specify retained earnings account any account number which is with
in range 100100-100199.
Generally we specify the first account i.e.100100 as Retained earnings account and
when we start creating the accounts the first account to be created is 100100 surplus in
P & L Account.
Path: SPRO Financial accounting General ledger accounting GL Accounts
Master Data Preparations Define retained earnings account.
Give you chart of accounts AML enter. The transaction code is OB53 .
Account assignment
P & L Statement type X
Account 100100
Select save button or Ctrl+S
We get a warning message account 100100 not created in chart of accounts AML.
Ignore the warning the message press enter. Press enter once again to save in the
request.
Accounts creation is at end user area and the transaction code is FS00

400300

P & L type

Account No.

100100

Rent Account

P & L A/c
Balance Sheet A/c.

In the year end the balance will go to account no.100100

100000 Equity share capital
P & L A/c
Balance Sheet A/c. Select
In the year end the balance will go to the same account as opening balance 1 and 2
series for Balance Sheet Accounts 3 and 4 series for P & L Accounts.
a)
b)

Net operating profit (operating income operating expenses.

Net non-operating profit (non-operating income non operating expenses)
400300

Rent account

P&L

22

Account No.

P & L Statement A/c type

Balance Sheet A/c.

Select
X

Type
100100
100101

X
Y

Net operating profit

Net non operating profit
Profit

In the year end the balance will go to account no.100100

300100 profit or sale of shares.
P & L A/c.
P& L Statement A/c. type Y
In the year end the balance will go to account no.100101.
Fiscal year

Fiscal year variant

Indian companies periods

US Companies

April to March +4 special periods

Jan to Dec.+4 Special Periods
July to June+4 Special periods
Oct. to Sep+4 special periods

April 2007 March 2008 Accounting year 2007-08.

In SAP we will call it as fiscal year 2007.

July 2007-June 2008

Oct.2007 Sep.2008

April 2007-March 2008

July 2007-June 2008
October 2007-September 2008

Fiscal year 2007

Fiscal year 2008

2007

2008

Fiscal year

9
6
3

3
6
9

2007
2007
2008

It is above 6 months in next year take next year otherwise same year.
April 2007 March 2008
1
12
(Normal periods)

Fiscal year 2007

13
14
15
(Special periods)

16

For year end adjustment purpose SAP has given special periods .
Special periods are part of March
March will have total 5 periods 1noraml period 4 special periods.
To get the profitability and different stages SAP has given special periods.

23

V3
K4
V6
V9

Why special periods are required:

20th March 2008 we have declared profitability upto February 2008 to the management
profitability figures should not be changed.
Users should be allowed to post transactions only for March 2008.
April 2007-March 2008 Fiscal year 2007.
Open periods
For posting

March 2008-March 2008

12,2007
- 12,2007

No user can post transaction before March 2008 and after March 2008.

30.03.2008 April 2007- March 2008

April 2008- March 2009
Open periods

Fiscal year 2007

Fiscal year 2008.

March 2008-March 2009

12,2007
-12,2008

15/04/2008 accounts dept. finalized profitability for the year ended 31/03/2008

Management adjustment entries

Entry Date 05/05/2008
Periods date 31/03/2008 to update last year ledger.
We get profitability finalized by management audits by Auditors.
20/05/2008 No.of ratification entries
Entry Date
22/05/2008
Posting date
31/03/2008 to update last year ledger.
We get profitability finalized by auditors. To day we want to see profitability finalized by
accounts department . we can not got March 2008 includes normal entries .
Management adjustments and auditors rectification entries.
Auditor is asking to show rectification entries list we can not get the list separately.
To get profitability separately or to get the rectification entries list separately SAP has
given special periods.

24

Usage of special periods is optional.

Special periods can come in the same month or different months.
Here stage means department profitability, Management profitability and Auditors
profitability the state can come in the same month or different months.
Accounts Dept. profitability

April 2008

Management adjustments and

Auditors rectification entries

May 2008

How special periods will be used:

April 2007-March 2008

Fiscal year 2007

20th March 2008 open periods for posting

March 2008-March 2008

12,2007.12,2007
No user can post transactions

before March 2008 and after March 2008.

April 2007-March 2008 F.Y 2007
April 2008-March 2009 F.Y.2008
15/04/2008 accounts dep. finalized profitability for the year end 31/03/2008
Management adjustment entries.
05/05/2008
Open periods

March 2008..March 2009

13,200712,2008

Entry date :05/05/2008

Posting date :31/03/2008 to update last year ledger period 13
We get profitability finalized by Management audit by a auditors.
22/05/2008 no.of rectification entries.
Open periods

Entry date
Posting date
Periods

March 2008 . March 2009

14,2007 12,2008

:22/05/2008
:31/03/2008 to update last year ledger
14

We get profitability finalized by auditors.

Accounts dep. Profitability :
1-12
Management Profitability
1-13

25

Auditors finalized profitability

List of auditors rectification entries

1-14
14-14

SAP known only calendar year periods we have to convert calendar year periods to
our accounting year periods.
Month
1
2
3
4
5
6
7
8
9
10
11
12

January
February
March
April
May
June
July
August
September
October
November
December

Days
31
29
31
30
31
30
31
31
30
31
30
31

Periods
10
11
12
1
2
3
4
5
6
7
8
9

April 2008
April 2008 March 2009 F.Y.2008
In which year it is coming 2008
As which year we are calling in SAP 2008
Year shift

Year shift
-1
-1
-1
0
0
0
0
0
0
0
0
0

January 2009
In which year it is coming
As which year we are calling in SAP
Year shift
Posting 05/01/2009 update 2008
Ledger not 2009 ledger

Month
1
2
3
4
5

Days
31
29
31
30
31

2009
2008
-1

Oct.2008-Sep 2009 F.Y.2009

Periods Year shift
October 2008
4
0
In which year it is coming as which 2008
5
0
year we are calling in SAP 2009
6
0
year shift
+1
7
0
8
0
January 2009

26

6
7
8
9
10
11
12

30
31
31
30
31
30
31

9
10
11
12
1
2
3

0
0
0
0
0
0
0

in which year it is coming

as which year we are calling
in SAP
year shift

2009
2008
+1

posting 05/10/2008 update 2009 ledger

not 2008 ledger

Path : SPRO Financial accounting Financial accounting Global settings

Fiscal year Maintain fiscal year variant (Maintain shortened fiscal year)
(Trs.code is OB29
Select position button fiscal variant V3
Enter
Select fiscal variant V3
Double click on periods folder
Select back arrow
Select new entries button
FV

B1

Description April to March 4 Special periods

Do not select year depend check box
If we select year depend check box when we save it will ask for year when we give
year 2008 The conversion is applicable only for the year each year we have to create
the conversion.
If we deselect year dependent check box The conversion is common for all years.
Deselect calendar year check box
If we select calendar year check box It takes
Month 1 (Jan)will be as period 1
Month 4(April ) wil be as period 4
Where as we require month 4(April) should be as period 1 so deselect calendar year
check box.
No. of posting periods
:12
No.of special periods
:4
Select save button or Ctrl+S

27

Select your request press enter and press enter save in your request.
Select Fiscal year variant :B1
Double click on periods folder.
Select new entries button
First column
Second column
Third column
Last column

Month
1
2
3
4
5
6
7
8
9
10
11
12

Month
Day
Period
Year shift

Day
31
29
31
30
31
30
31
31
30
31
30
31

Period
10
11
12
1
2
3
4
5
6
7
8
9

Year Shift
-1
-1
-1
0
0
0
0
0
0
0
0
0

save
Assign company code to a Fiscal year variant
Path: SPRO Financial accounting Global settings Fiscal year Assign
company code to a Fiscal year variant (Tr.code is OB37)
Select position button
Give your company code:AML
Enter
For company code:AML
Assign fiscal variant :V3
Select save button
Ignore the warning message press enter and press enter to save in the request.

28

OPEN AND CLOSE POSTING PERIODS

Fiscal year : April 2008 March 2009 F.Y 2008
August 2008 March 2009
5,2008 12,2008
Open means: from

August 2008

Close means: to

March 2009

Company codes

: AML

ASL

AIL

All company codes

Fallow the same
Open and close periods
Option 1
A)
Define posting periods
Variant X
B)
Assign posting period
Variant to company codes
X.AML
X.ASL
X.AIL
C)
Define open and close periods for variant X
For X,5 2008 12,2008
Option-2
Each company code
having separate open
And close posting period variant

Assign posting period variant to company codes

X to AML

Y to ASL

Z to AIL

Period for variant

July 2008-March 2009 April 2008 to March 2009
For X
04,2008

For Y
12,2008

Sep. 2008 to Sep. 2008

For Z
06,2008

In this step we are defining which periods are open for posting.
Define variants for open posting periods:

29

Path : SPRO Financial accounting global setting Document posting periodsDefine variants for open posting periods
Select new entries button
Variant
AML

Name
posting period variant for AML

Ctrl+S, press enter in save

Assign posting period variant to company code:
Path : SPRO-Financial Accounting- Financial accounting global settingsDocument posting periods assign posting period variant company code.
Select position button
Give the company code
AML
For company code AML assign variant AML select save button or Ctrl+S
Press enter to save in your request.
Define open and closed posting periods for variant::
Path: SPRO Financial accounting Global settings Document Posting
periods- open and close posting periods.
Select new entries button.
Vare
: Select AML
Account type (A): Select + (valid for all accounts type)
From Account
Blank
To account
Blank
From period one (1)
1
Year
2008
To period
12
Year (Fiscal year)
2008
From period2
13
Year
2008
To period
16
Year
2008
Second column is option (from period 2)
Authorization group (Au.Gr):
Blank
Select save button or Ctrl+S

30

Select your request and press enter to save in your request.

Authorization Group:
This screen is required every month in production client nobody will have access for
customization areas.
The same screen is given at user level when it is available at user level, the users will
misuse.
SAP has given authorization group.
BASIS Administrator gives authorization group say X and X will be assigned to user IDs
manager accounts and deputy manager accounts.
When we open the system with the above user IDs then only we can change the
periods at the user level.
Posting periods entry at end user area:
Path: Accounting Financial accounting General Ledger - Environment Current
settings-open and close posting periods ( Transaction code :S_ALR_87003642)

Select position button

Posting period variant: AML
Enter

Document type and no. ranges

In normal accounting, account person only will pass all the entries. He will get voucher
nos continuously. In SAP voucher we call it as document.
FI Accounts Person
Material Receipt
Payment
Sales
Receipt

MM Stores Person
1

SD Sales Person

2
3
4

To get document number serially SAP has given document type

Doc.type
No.Range

SA
01

No.Range interval 1-100000

RE
02

RV
03

100001-200000

200001-300000

31

We are getting the document nos continuously by seeing the document number we can
tell where it is generated.
In a year 100000 vouchers are consumed system gives a message we give available
numbers 300001-400000
Path:SPRO-Financial accounting-Financial accounting Global settings
Document Document Header-Define Document Types (Tr.code:OBA7)
Select position button
Document type select

: SA

GL Account document
Enter
Select type

:SA

Select details button (Ctrl+Shift+F2)

Number range

:01

Select number range information button

Give the company code

: AML

Select change intervals button ()

Select interval button
No.range

:01

Year

:2008

From number

:1

To Number

:100000

Current number

:0

Deselect external(Ext) check box

If we select external check box, we have to give at the time of posting what should be
the document number.
Select press enter.
Select save button or Ctrl+S
Ignore warning message press enter
Number range interval cant be transported to production client what ever number for
development client for testing.
1. Consultant is an outsider he does not know how many document
numbers are required for each area.

32

2. All the departments want to have 1100000 which is not possible. In live
environment, before going live all the department heads sit together and
decide for production client.
What should be FI document number
What should be MM document number
What should be SD document number.
SAP have given two options.
Opetion1: Year specific

Option 2: Common to all years

01-2007-1-100000 500000 500001

01-2008-1-100000 3000
3001

01-9999-1-100000
53000-53001-53002

1st Entry
Date:24.09.2008
Posting date:24.09.2008

9999 means any year

in 2nd option we dont know how many

2nd Entry
Entry date:29.09.2008
Posting date:31.03.2008

Documents we have posted for each year

Note: companies follow 1st option.

Field status variant and field status groups

At the time of posting on screen we get around 70 fields. Fields are quality, text
(Narration), business area, value date
Debit
Credit

70
Filed
70
Filed
-----140 Filed
====
If we start filling up all the fields it takes so much time to post one document.

SAP has given a facility to make any filed as

1.

Suppress

2.

Required

3.

1.

Suppress: The filed will not be visible on screen a the time of posting.

33

Optional

2.

Required: We have to enter values to the field compulsory. The field value will
appear with question mark or tick mark-without entering the values we can not go
to next screen.

3.

Optional: The field will be visible on screen our choice to enter values or not the
fields selection is not common to all accounts. It depends on the account what
we are using. In case of sales account quantity filed is required. In case of
repairs account quantity filed is not required, we have 1000 accounts we have
to create 1000 scenarios. In stead of creation of 1000 scenarios SAP have given
field status groups.
Filed status Group

Repairs A/c
Equity share capital
Sales A/c
Purchase A/c
Cash A/c
Bank A/c

Suppress required optional

General

materials quantity select

Bank Accounts
cost Accouts

1. When we create accounts we have to assign field status group.

2. For filed status group we is field is suspected and which filed is optional.
3. At the time of posting by the user-he gives the account number the screen will
appear based on the fields selection to the field status group which is assigned in
account number.
4. Filed status groups are created under field status variant and field status variant
is assigned to company code / codes.
Afterwards:
Cash account
Dr
To Equity share capital
Bank accounts
|
Value date text Business area
|
Required Entry
General
^
Text
Business area
|
Required entry

34

Screen layout at the time of posting

Path:SPRO- Financial accounting Financial global settings Document Line
item-Controls- Define filed status variants
Select field status variant 1000 that is IDES group
Select copy as button (F6)
Change filed status variant (FSTV) to AML
Change field status name to field status VAR for AML
Press enter
Select copy all button
We get a message number of dependent entries copies 47
Enter
Select save button or Ctrl+S
Select your request and press enter to save in your request.
Select field status variant :

AML

Double click on field status groups folder

Double click field status on G001 that general (with,text, allocation)
Double click on General data
Text make it required entry filed
Select next group button
Select next page or page down button two times.
Business areas make it as required entry field
Save
Double click on field status group G005
That is Bank A/c obligatory value date
Double click on General data
Text make it as required entry field
Select next group button
Select next page or page down button two times.
Business area make it as required entry field.
Select next group button two times,

35

Value date make it as required entry filed.

Save.
Value date( Effective date):
Term loan from IDBI
Deposit by us in our bank
Document date
Posting date

:20.09.2008
:22.09.2008
:22.09.2008
:22.09.2008

In SAP we have interest calculations, Interest calculations in our book from 22.09.2008
where as IDBI calculates from 20.09.2008. There will be mismatch.
Interest calculations:
Value date
:Required entry filed
Document date
:22.09.2008
Posting date
:22.09.2008
Value date:
20.09.2008 field is modifiable after posting .
In our books also interest will be calculated from 20.09.2008
Value date
DOC & POS

:31.08.2008

Assign company code to field status variant :

Path: SPRO-Financial accounting-Financial accounting Global settingsDocument Line time-Controls-Assign company code to field status variants.
Select position button
Give the company code

:AML

Enter
For company code

:AML

Assign field status variant :AML

Select save button or Ctrl+S
Press enter to save in your request

36

SALES TAX PROCEDURE

General ledger, Accounts payable, Accounts receivable and Assets accounting
Basic
Excise
VAT /CST
To do normal posting also, sales tax procedure is required.
A) Create procedure
B) Create tax codes
C) Create accounts
D) Design accounts
Assign for country in-tax US ( Sales tax USA)
Tax IN (sales tax India) Temporary assignment
For our company any code: Country IN
Note the path this one
SPRO-Financial accounting Financial accounting global settings-Tax on sales /
Purchases - Basic settings - Assign country calculation procedure
Select position button
Give the country IN for India
Enter
For country IN assign procedure TaxUS
Sales Tax USA
Select save button or Ctrl+S
Press enter to save in your request.
TOLERANCE GROUPS:
This is two types
1.GL Accounts

2.Employee

a) Receipts / Payment transactions

b) Mandatory area
Retained area called open item management.

37

This is used for vendors, customers and balance sheet accounts where clearing is
required.
Outstanding expenses A/c
Salaries

500000

Bank 15000 Rent

Wages

15000
100000

If we see the account in the month end or year end-we will have no of credits and no. of
debits. We dont know which item is pending and how much is pending.
As per SAP open item management At the time of making payment System will as
against which provision we are making the payment. When we specify the payment is
being made against rent provision. It clears the transaction.
The advantage is we can see the account in 3 ways.
1) If we select open items payable Eg.Salaries and Wages.
2) If we select cleared items :paid Eg.Rent and bank
3) If we select all items: Payable + paid
The same way we use for vendors and customers and also.
Vendors X A/c
Bank For 1
100
Bank For 2
200
Bank-For3
300
Bank for 4
400
Bank for 5
500

1
2
3
4
5

1000
2000
3000
4000
5000

Bill wise out standings we can see for vendor.

We can have tolerances (payment differences). It can be amount tolerance or
percentage tolerance or both it can be debit amount or credit amount.
Outstanding expenses A/c
Salaries
Rent

500000
15000

Bank 15000 Wages

Bank 100000
Commission

100000
100005

There is difference of Rs.5 in the account for commission which need not be paid.
We can difference tolerances.

38

Tolerance
Group
A
B

Amount
100

percentage
5%

A) We have to assign tolerance group in account in outstanding expenses A/c we

have assigned tolerance group A
B) At the time of making payment system checks
Provision
100005
Payment
100000
Difference 5
If the difference of Rs.5 is within tolerance group amount. i.e.100 system will
clear the provision and transfer to sundry balances written off account at time of
making payment.
Disadvantages:
1. Tolerance group is given at account level and not at the transaction level.
Outstanding expenses A/c.
Salaries

Bank

Bank

15000

100000

500000

Diff to give
200

Rent

15000

15

Wages

100000

500

Commission 100005

100

2. There is not flexibility amount percentage tolerance group.

A
100
B
5%
C
0
Outstanding Expenses A/c.

Bank 15000
Bank 100000

Salaries
Rent
Wages
Commission

500000
15000
100000
100005

39

If we give tolerance group A in outstanding expenses account if the difference is less

than tolerance group amount and transferring sundry balances written of account
automatically.
When we give tolerance group C instead of A in outstanding expenses account.
Outstanding expenses A/c.
Bank
Bank
Bank
Provision
Payment
Difference

100000
15000
100000
100005
100000
----------5
=======

Not payable
Transfer 5

Salaries
500000
Rent
15000
Commission 100005

payable
Now Rs.100000 as part payment

To sundry balances off a/c and clear the transaction.

This is mandatory area.

Bank

Tolerance Group
A
B
C

Amount
100

Percentage
5%

Instead of crating group C - keep the filed blank and give amount zero.
While creating 1000 GL accounts, Vendor accounts and customer accounts.
Keep tolerance group field blank, system expects we have created blank
Tolerance group and already assigned.
For our company code: we are creating bank tolerance group wit amount zero so that
no need to assign.
Tolerance group while creating the accounts.
Path :SPRO Financial accounting General Leger Accounting Business
transactions-open item clearing clearing difference- Define tolerance groups for
G/L Accounts
Company code
Tolerance group
Description
Debit posting

: AML
:Blank
:Tolerance group for AML
:0

40

Credit posting
Debit percentage
Credit percentage
Save

:0
:0
:0

Select your request and press enter and save in your request.
Tolerance group for employees.
User wise upper limits for posting
Tolerance Group A
100000
100000

B
100000
100000

C
10000000 Amount per document
10000000 Amount per open item
account item
0
5
10
Cash Discount
0
0
0
Payment Differenced
We have 1000 users distance we have to create 1000 scenarios (short cut method)
Accounts Dept:
1. City office cashier
2. Factory cashier
3. Branch cashier
4. Account 1
A
5. Account 2
6. Deputy Manager Accounts
7. Manager Accounts
8. DGM Accounts
In live environment / training institutes
SAP User
SAP User
SP user

AML
XYZ
ABC

B
C

A
Use only
Use only

Blank
A
A

Path: SPRO-Financial Accounting General Ledger Accounting Business

transactions Open Item clearing - Clearing differences Define tolerance
groups for employees.
Select new entries button
Group
: Blank
Company code
: AML
Upper limits for posting
Amount per document (Maximum Amount 9999999999)
Amount per open item account item 9999999999 cash discount per line item 10
Permitted payment difference
: Blank
Save

41

Press enter to save in your request.

ENTER GLOBAL PARAMETERS:
Path :SPRO-Financial accounting -Financial accounting global settings-Company
code-Enter global parameters
Select position button
Give the company code
Enter
Select company code
Select details button (F2)

:AML
:AML

Select business area financial statements check box

Select propose fiscal check box
Select define default value date check box
Select negative posting permitted check box
Select addition data button
Company code
: AML
Business Area
: HYD
BGL
Business place
:City factory
City office Factory
Permanent Account No.
(PAN) At company
Code level(Form 49A)
10 Digits Alpha numeric code
Tax Deduction at Source No (In SAP TDS No. / TAN) Form 49B -10 Digits alpha
numeric code
At company code level / business area level / at business place level
(GIR No.: General Identification Number)
TDS No.ABCDE 35467N
PAN NO.BBBBB5678N
Select back arrow, then
Save
Press enter to save in your request

Negative postings:
In case of reversals if we select negative postings check box it reduces from the same
side.
In SAP, when we post a wrong entry, we cant change the document. We have to go for
reversal or pass rectification entry.
1. Equity share capital receipt:

42

Cash account
Dr
To Equity share capital

400000

2. Preference share capital receipt:

Cash account
Dr
To Equity share capital

Reversal
3. Equity Share capital
To Cash account

400000

Doc.No.1

100000

Doc No.2

100000

Doc.No.3

100000

Doc No.4

100000

Doc.No.3

100000

Dr

100000

4.Cash Account
Dr
To Preference share Capital

100000

Rectification
3. Equity share capital
Dr
To Preference Share capital

100000

Account No.100000
Company code
Fiscal year

Ledger summary
AML
2008

Period
1
2
3
4
5
6
7

Debit Amount

Credit Amount

Balance

100000

500000
-100000

400000 Cr

1
Cash flow statement Reversal without
selecting negative
postings
Opening cash and
0
bank balances
Add: Inflows Equity
share capital
500000

2
Reversal by
selecting negative
postings
0

Preference share
capital
Less:Out flows
Equity share capital

100000

100000

Cumulative Balance

400000 Cr

3
Rectifications

500000

100000

43

500000

Closing Cash and

bank balances

50000

500000

500000

wrong

correct

Wrong

To check transport request::

Path: Tools ABAP work bench-Overview-Transport Organization (Tr.Code
:SE09)
Enter
Select find request (Ctrl+F)
Execute
Find company code (Ctrl+F)
Double click on define company code
GENERAL LEDGER MASTERS CREATIONS
1
Chart of Accounts level
1
2

GL Account Number
Company code

3
4.
5

Account group
Whether it s P & L Account
Whether it is a Balance Sheet A/c

6.

Description
a) Short text Max 20
b) Long text Max20

2
Company code
level
Account currency
Only balances in
local currency

3
Centrally

Tolerance group
Line item display
Open item
Management
Sort key

+
Company code fields

Field status group

Accounts to be created:
1. Surplus in P & L Account Reserves & Surplus
2. Equity share capital Share capital
3. Cash account current assets, loans & advances
44

Chart of accounts
fields

To check accounts groups for giving account numbers.

Path: SPRO Financial Accounting General ledger accounting GL Accounts
Master Data- Preparations- Define Account group (Tr.Code:OBD4)
Select position button
Give your chart of accounts AML
Enter
Reserves & Surplus

100100-100199

Share capital

100000-100099

Cash account-current assets

200100-200199

1. To check account-Group for giving account numbers.

2. Creation of General
CREATION OF GENRAL
Path : Accounting-Financial accounting General Ledger-Master records GL
Accounts-Individual Processing Centrally (Tr. Code is FS00)
Give the GL account 100100
Company code AML
From the menu select -> GL Account create
Account group: select reserves & surplus
Select balance sheet account radio button
Short text: surplus in P & L Account
GL Account Large text: Surplus in profit & Loss Account
Select control data tab
Select only balances in local currency in check box
We have
Tolerance group: Blank
Select line item display check box
Short key select 001 posting data
Select create / bank / interest
Field status group G001 General (with text, allocation)

45

Save
GL Account

:100000

Company code

: AML

Select with template button

GL Account

:100100 (Surplus in P & L Account)

Company code

: AML

Enter
By mistake save button
Your can not save
Change account group to Share capital
Select balance sheet a/c radio button
Change short text to equity Share capital
Change GL account long text to Equity share capital
Other filed common select save button
GL Account 200100
Company code

:AML

Select with template button

Give the GL Account 100100 surplus in P & L account
Company code

: AML

Enter
Change account group to current assets, loans & advances
Change short text to Cash account
Select balance sheet a/c radio button
Change GL account long text to Cash account
Select create / bank / interest tab
Change filed status group to G005 bank accounts (Obligatory value date)
Select relevant cash flow check box,
Select save button or Ctrl+S
To view the accounts created
Select drop down button beside GL account

46

Match Code:
Give the company code
Enter
Short text
GL account long text

: AML
: At the time of entry
: At the time of General ledger display

Posting of transactions
Path: Accounting Financial Accounting General ledger posting General
posting (Tr.Code is F-02)
Posting transaction

:10/07/2008

Document date

: In case of purchases document date will be party bill date-

we can enter manually 30.09.2008 or select F4- It gives calendar and select F-2 It
selects todays date .
Posting date

: Ledger updation will be based on posting date period will

appeal automatically based on

Posting date

: 30.09.2008

Reference

:Party bill No.

Doc No

:1

Normal cases
Document date (F4)

:30.09.2008

Posting date: will come automatically this is server date.

Type

:SA

Company code

:AML

Currency

: INR

System does not know debits and credits to differentiate between debit and credit SAP
Has given posting keys
Posting key

40

GL account Debit

Positing key

50

GL Account Credit

Posting key: Select 40

Account select the drop down button
GL long text

:*Cash*

47

Company code

: AML

GL Account

: Z*

Enter
Select account No.200100
Enter
200100 Cash account Filed status GRP-G005
Text

Business Area

Value date
Required
In enter global parameters select define default value
date check box
Amount
:400000
Business area
:AMLH
Text
: Equity share capital receipt
Posting key
: Select 50
Account select drop down button
Give the company code AML and press enter
Select account
:100000 Equity share capital
Press enter
Amount enter
:*(star)
Note: * (star) Means debits and credits equal
Cash A/c
Dr
500000
To Equity
300000
To Preference
*
Business area
:AMLH
Text Enter
:+
+ (plus) mean copies the last line item narration in the same document.
Salaries
A/c
Dr
(Salaries provision for Sep.)

100000

Wages
A/c
Dr
(Wages provision for Sep.)
To outstanding Exp
We can not use *
Press enter
From the menu select document simulate (Shift +F9)
In one document we can have 999 line items.
Debit will be posted without any assign and credit amount will be posted with minus
sign.

48

Select save button or Ctr+S

We get a message document 1 was posted in company code:AML
How to view the last posted document 1.
From the menu select document display.
Select display document header button or (F5)
Display document
Path: Accounting Financial accounting General ledger-Document Display
(Tr.Code:FB03)
Select document list button
Give the company code

:AML

Document type

:SA

Select executive button (F8)

To view last one week posted document 24/09/2008 to 1/10/2008

Select execute button

To view self (documents posted by us)
Select own documents only check box
To view documents posted by a specific user
From the menu select > Edit > Dynamic > Selections (Shift +F4)
User name :SAPUSER
Select execute (F8) button
Double click on document no.1
Change document :
Path: Accounting Financial Accounting General ledger-Document Change
(Tr.code is FB02)
Document No.

:1

49

Company code

:AML

Fiscal year

:2008

Enter
Double click on first line item cash account
We can change only value date filed assignment filed and text filed.
Account display:
Path: Accounting Financial Accounting General ledger Account Display
balances ( Tr.code is FS10N)
To view more than one account transactions select multiple selection button beside GL
Account no.
We want to view random account numbers transactions.
Press select single value tab.
Give the account no.100100
200100
Select copy button
To view continuous account numbers transactions
Press select intervals tab
Low limit
:100000
Upper limit :100099
Select copy button
Account no.100050
To exclude an account from the range
Select exclude single value tab
Singe value :
100050
Select copy button
To exclude a range of accounts

:select exclude intervals tab

Low limit

:100050

Upper limit

:100059

Select copy button

50

To view only one account

Select drop down button beside GL Account
Give the company code

:AML

Enter
Select account no.100000 Equity share capital
Company code

:AML

Fiscal year

:2008

Business area

:AMLH

Select execute (F8) button

Double lick on cumulate balance amount
Double click on document No.1
Select call up document overview button (F9)
Select back arrow (F3)
Document Number
1
2
3

Posting date

Text

Amount
100000
200000
300000
----------Total Amount 600000
======

We can create our own line layout

How to create our own line layout:
Select change layout button (Ctrl+F8)
Select the filed which are not required
Select right arrow or hide selected fields button
From hidden fields column
Select posting date
Select left arrow show select fields button change column positions
Column
Document No.
Amount in local currency
Text
Posting date

Pos
1
4
3
2

Length
10
20
35
10

Change text length 35 characters for amount in local currency select total check box
Select copy button
How save the layout:

51

Select save layout button (Ctrl+S)

Option 1
Common to
All
A) Deselect user specific Check box
B) We have to save with any number or name

Option 2
User specific
A) Select user specific check box
B) we can save will any number or
Name

Layout
: / AML
Deselect user specific check box
Description
: Standard layout for AML
Select save button
Select back arrow two times
Execute
Double click cumulate balance amount
How to choose our layout:
Press select layout button (Ctrl+S)
Select
: AML
How to make default line layout:
From the menu select settings layout - Administration
Keep the cursor on /AML
Select define default setting button
Save
Select back arrow three times
Give the account no.200100 cash account
Execute (F8)
Double click on cumulative balance amount
Hold Document:
It is a temporary document
This is user for adjustment purpose or at the time of posting we do not know either debit
or credit.
This document can be deleted there is no tracking for this document.
A) Loans to Directors
Create as hold document an once he gives money back delete the document.
B) Payment to a party purpose of payment we dont know
Cash balance = Account balance +/ Hold documents
Hold documents will not update records

52

Steps:
1. Run a program called RFTMBLU for conversion of hold documents
2. Creation of hold documents
3. Delete / complete hold documents

1.

Run a program called RFTMBLU for conversion of hold documents

Path : Tools ABAP Workbench- Development ABAP Editor (SE38)

Program
: give the program name :RFTMBLU
Select execute button
Select no. termination for read error check box
Execute
2. Creation of hold documents
Use the transaction code (F-02)
Document date

: Today date

Type

:SA

Company code: AML

Posting key

:50

Account no.

:200100 (cash account)

Enter
Give the amount

: 5000

Business area

:AMLH

Text

:Amount paid to Mr.X

From the menu select document hold

Tem parry document No. :AML
Select hold document button
We get a message document AML was held
Second
F-02
Give the document date: Today date
Type

:SA

Company code

:AML

53

Posting key

: 40

Account 200100 (Cash account)

Enter
Give the amount 20000
Business area

:AMLH

Text

: Hold document testing

Posting key:

: 50

Account no.:

100000 (Equity share capital)

Enter
Amount enter

:* (Star)

Business area

: AMLH

Text

:+

From the menu select Document > Hold

Give the temporary document no. 123456 (give any number)
Select hold document button
3. Delete / Complete hold document (F-02)
Use the transaction code f-02
From the menu select
Path :Document Get held document Select document list button
Keep the cursor on document number 123456
Select delete button
select yes button
select back arrow (F3)
select document list button
Keep the cursor on document no.

:AML

select choose button

Give posting key

:40

Account no.

:100000 Equity share

Enter
Amount Enter

:*(Star)

54

Business Area

: AMLH

Text

:+

From the menu select document Simulate and save

Park Documents :
This is used for approvals Cashier
Enter the document he will
park in the system

Accounts will not be

updated
Account will not be updated

Informs to SR person SR person he can make changes

approval
to the document form amount /
Date / head of account before
release
And release document
Once he release the document
will be posted and updates
records

Steps:
1. Posting of packed document by cashier
2. Informed to Sr. person for release Be cashier
3. Display packed document and change date and amount
4. After change, inform to Cashier about approval
5. Display changes to packed document
1. Posting of Packed Document
Path : Accounting Financial accounting General Ledger- Posting-General
document parking (F-65)
Give the document date

: Today date

Document type

: SA

Company code

: AML

Posting key

:40

Account

:200100 (Cash account)

Enter
Amount

:9999

Business area

: AMLH

Text

: park document testing

55

Posting key:

:50

Account

:100000 (Equity share capital)

Enter
Amount enter

: *(Star)

Business area

:AMLH

Text

:+

From the menu select Document Park document

2. Informed to Senior Person for release
From the menu select system >short message
Give the title

: Please release Doc.No.3

Receipt user id of Senior person (sap user)

Recipient type

: Select SAP logon name

Select express mail check box (Screen down right side)

Select send button (Shift+F8)
From the menu select system > Create session
4. Display packed document and change date and amount
Path :Accounting Financial accounting General ledger-Document parked
documents- post / delete (FBV0)
Select document list button
Give the company code

:AML

Enter by user ID

:Cashier

Execute (F8)
Double click on document no.3
To change the date
Select document header button
Change document date and posting date to 5.10.2008
Select back arrow
Select fast data enter button
Change amount 6000 Debit

56

6000 Credit
Select back arrow
From the menu select document post
Inform to cashier about approval
From the menu select System >Short message.
Title document no.3 released
Recipient User Id of Cashier
Recipient type
Select SAP logon name
Select express mail check box
Select send button (left side upper)
From the menu select system > Create session
4 .Display changes to packed document
Path: Accounting Financial accounting General ledger-Document - Parked
Documents-Display changes (FBV5)
Company code
: AML
Document No
:3
Fiscal year
:2008
Enter
Select all changes button
Sample document:
This is used for month end provisions
Salaries A/c Dr.
100000
Rent
Dr
50000
Wages
Dr
500000
To outstanding
650000
Create a sample document and store in the system every month by coping sample
document number and by changing date and amount we an post the provisions we will
not forget any provisions.
Steps:
1. Create 3GL masters
A) Salaries A/c
Personnel cost
B) Rent A/c Administration

57

C) Outstanding expenses Current liabilities & Provision

2. Difference no.range interval for no.range X2
3. Creation of sample document
4. posting of transaction by copying sample document
To check account groups for giving account numbers. The transaction code is OBD4
Select position button
Give the chart of accounts : AML
Enter
The personnel cost is 400100-400199
Administration range 400300-400399
Current liabilities & Provision range is 100500-100599
Creation of GL masters (FS00)
Give the GL Account 400100
Company code

:AML

Select with template button

Give the GL Account 100000 (Equity share capital )
Company code

:AML

Enter
Change account group to personnel cost (Staff cost)
Select P & L statement radio button
Change short text to Salaries A/c
Change long text to Salaries A/c
Other fields are common
Select save button or Ctr+S
GL A/c No:

.400300

Company code

:AML

Select with template button

Give the GL account

:400100 salaries

Company code

:AML

Enter
Change account group to Administration
Change short text to Rent account

58

Change long text to Rent account

Other fields are common
Select save button or Ctrl+S
GL Account

:100500

Company code

:AML

Select with template button

Give the GL account

:100000 (Equity share capital)

Company code

: AML

Enter
Change account group to Current liability & Provisions.
Change short text to Outstanding express
Change GL Account Outstanding express
Select control data tab
Select open item management check box
Save
Define no. range interval for no. range X2:
Path: SPRO Financial accounting Financial accounting global settings
Document Document number ranges- (Tr.Code is FBN1)
Give the company code

:AML

Select change intervals button

Select interval button
No. range

:X2

Year

:2008

From number

:500001

To number

:500100

Enter & Save

Ignore the message press enter
Creation of sample document
Path: Accounting Financial accounting General ledger - Posting Reference
documents Sample document (F-01)

59

Document date

:30.09.2008

Posting date

:30.09.2008

Type

:SA

Company code

:AML

Posting key

:40

Accounting

:400100 (salaries a/c)

Enter
Ignore the warning message ,press enter
Amount

:500000

Business area

: AMLH

Text

: Salaries provision for the month

Posting key:

:40

Account

:400300 (Rent account)

Enter
Account

:75000

Business area

: AMLH

Text

: Rent provision for the month

Posting key:

:50

Account no.

:100500 (out standing exp)

Enter
Amount enter

:*

Business area

:AMLH

Text

: Provision for the month

Select save button or Ctrl+S

We get a message document 500001 was stored in company code : AML
5. Posting of transaction by coping sample document : F-02)
From the menu select document post with reference.
Give the document no.

:500001

Company code

:AML

60

Fiscal year

:2008

Select display line items check box

Enter
Change the document date

:31.10.2008

Posting date

:31.10.2008

Enter
Ignore the warning message press enter
Change the amount to 600000
Text

:Add October (Salaries for the month of October)

Amount

:0

Enter
Line item having zero will not update records
Ignore the warning message
Amount enter

:*(star )

For text

: Add October

From the menu select document simulate

Select save button or Ctrl+S
Month end provisions:
Option 1:
Accrual / Deferral document

Option 2
Open item management

Option 1: Accrual Deferral document

31.10.2008 Salary provision
Salaries Dr
To out standing

100000
100000

01.11.2008 reversal next month 1st

Outstanding Dr
To Salaries

100000
100000

05.11.2008 Payment of salaries

Salaries
Dr
To Bank

105000
105000

61

31.10.2008
05.11.2008

Salaries A/c
100000
105000

01.11.2008

100000

100000

01.11.2008

Outstanding Expenses A/c

31.10.2008
100000

Profitability effect::
For October
100000
For November because October 5000
Option 2: open item management
31.10.2008 Salaries provision
Salaries
Dr
To out standing

100000
100000

05.11.2008 Salaries payment

Out standing Dr
Salaries
Dr
To Bank

100000
5000
105000

Salaries A/c
31.10.2008
05.11.2008

100000
5000
Outstanding Expenses A/c
31.10.2008

01/11/2008

100000

100000

Profitability effect
For October
For Nov. because of October salaries

100000
5000

Companies follow 1st option (other than year end)

In case of option 2 the person who makes the provision is accountant and the person
who is making the payment and clearing is Cashier - Cashier has to track the provision
and clear against the provision.

62

Option 1: Accrual / Deferral document :

Steps
1.Creation of reversal reason and reversal reason should allow us to reverse on any
day.
2. Enter accrual / Deferral documents
A) Rent Provision
08.10.2008
B) Salary provision
31.10.2008
3.Reversal of accrual / deferral documents in one step
1.Creation of reversal reason and reversal reason should any day.
Path : SPRO- Financial accounting General ledger accounting-Business
transactions Adjustment posting / Reversal - Define reason for reversal
Select new entries button
Reason
:11
Text
: Real / Deferral Reversal reason for AML
Select neg. posting check box
Select alternative position date check box
Select save button or Ctrl+S
Save in your request
If we do not select alternative posting date check box
31.10.2008
Salaries Dr
To out standing
System will allow you to reverses only 31.10.2008
We want to reverse next month 1st select alternative posting date check box
Rent provision:
Path : Accounting Financial Accounting General ledger Periodic processing
Closing Valuate- Enter Accrual / Deferral Document (Tr.Code is FBS1)
Document date

: Today date

Type

:SA

Company code

: AML

Reversal reason

: Select 11

Reversal date

:1.11.2008 (next months)

Posting key

:40

63

Amount

:400300 (Rent A/c)

Enter
Amount

:50000

Business area

:AMLH

Text

: Rent provision for October

Posting key

:50

Account no.

:100500 (out standing exp)

Enter
Amount

: *(star)

Business area

: AMLH

Text

:+

From the menu select document >Simulate and save

Salaries provision:
Tr.Code is FBS1
Document date

:3110.2008

Posting date

:31.10.2008

Type

:SA

Company code

:AML

Reversal reason

:11

Reversal date

:01.11.2008

Posting key

:40

Account

:400100 (Salaries A/c)

Enter
Ignore the warning message press enter
Give the amount

100000

Business area

AMLH

Text

:Salaries provision for the month of October

Posting key

50

Account

:100500 (outstanding exp.)

Enter

64

Amount

:*

Business area

:AMLH

Text

:+

From the menu select document > Simulate and save

Reversal accrual / Deferral document :

Path : Accounting Financial Accounting General Ledger Periodic
processing Closing Valuate Reverse accrual / Deferral Document (Tr.Code
is F.81)
Give the company code

: AML

Reverse posting date

:01.11.2008

Select text run check box

Execute (F8)
Select reversal documents button
Select back arrow
OPTION 2 : Open Item Management
This is used vendors customers / Balance Sheet items where clearing is required. We
have to select open item management check box
While crating the GL accounts
Out standing Expenses
Salaries A/c
Wagers A/c
Bank 25000 Rent a/c

500000
300000
25000

We can see the account in 3 ways

1. Open items: Payable Salaries and wages
2. cleared items : Paid rent and bank
3. All items : Payable + paid

3. Scenarios
1st Scenario

2nd Scenario

3rd Scenario

Full Clearing

Partial clearing

Residual items method

65

Provisional and payment

Same amounts
A) Rent Provision (Transaction code F-02)
Document Date & posting date
:13.10.2008
Type

: SA

Company code

: AML

Posting key

:40

Account no.

:400300 (Rent A/c.)

Enter
Give the amount

:15000

Business area

:AMLH

Text

: Rent provision

Posting key

:50

Account no.

:100500 (outstanding exp)

Enter
Amount

:* (enter star)

Business area

:AMLH

Text

:+

From the menu select Document > Simulate and save

B) How to view open item managed account transactions:
Path : Accounting Financial Accounting General Ledger- Account Display /
Change line items (Tr. Code is FBL3N)
Give the GL Account

:100500 (outstanding exp)

Company code

: AML

Select open items radio button

Select normal items check box
Execute (F8)
OUT GONG PAYMENT WITH CLEARING:

66

Path : Accounting Financial Accounting General Ledger - Posting Out going

payments (F-07)
Give the document date

: Todays date

Type

: SA

Company code

: AML

Clearing text

: outgoing payment

Account Under bank data

:200100 (Cash A/c.)

Business Area

:AMLH

Amount

: 15000

Text

: Outgoing payment

Account under open item selection :100500 (out standing expenses)

Amount type

: S(S is default) (S: Stands for GL Accounts)

Select process open items button

Reversed documents will not appear for clearing:
Double click on payable amount 15000
Document > Simulate and save
Go and see open item account transactions Tr.Code is FBL3N
Give the GL Account no

:.100500 (outstand expenses)

Company code

:AML

Select cleared items radio button

Clearing data

: Todays date

Select normal items check box

Execute (F8)
Select back arrow
Select open item radio button
Execute
(-*- This symbol is open item(document no. below))
2nd Scenario
Partial Clearing

3rd Scenario
Residual items method

67

When we make part payment we can use either partial clearing or residual items
method.

Out standing exp.

OI
Rent
40000 Cr
Cash
5000 Dr
------35000 Cr
=====

Outstanding Exp.
OI
Rent
30000

28000 Cr

------28000 Cr
=======
CI :
Rent 30000 Cr
Rent 30000 Cr
-------------0
=====

A) Rent Provision
Rent
To Outstanding

Dr 40000
40000

A) Rent Provision
Rent A/c
Dr
Outstanding

30000
30000

B) Part payment

B) Payment

Out standing Dr 5000

To Cash 5000

Outstanding
Dr 30000 cleared
To Cash
2000
To Outstanding 28000

Residual: Balance payable

Note : OI means Open Items
CI Means Cleared Items
Companies follow 1st method

We test how to view bill wise outstanding:

Rent Provision F-02
Document date

: Today date

Type

: SA

Company code

: AML

68

Rs.2000

Reference

:3456

Posting key

:40

Account No.

:400300 (Rent a/c)

Enter
Amount

: 40000

Business Area

: AMLH

Text

: Rent provision

Posting key

: 50

Account No.

:100500 (Outstanding exp.)

Enter
Amount

: * (enter star)

Text :+
From the menu select Document Simulate and save

Out going payment using partial clearing method: ( Tr. Code F-07)
Document Date

: Todays Date

Type

: SA

Company code

: AML

Reference

: 3456

Clearing text

:Outgoing payment

Account under bank data: 200100 (Cash a/c)

Business area

: AMLH

Account

: 5000

Text

: Outgoing payment

Account under open item selections 100500 (outstanding exp)

Select process open items button
Keep the cursor on the amount filed of line item against which we want to adjust.
Select partial payment tab
Creates payment amount column
Double click amount 40000
Double click on payment amount 40000

69

From the menu select Document >Simulate

Gives a message correct the marked Line items
Double click on blue font line items
Text enter

:+

Select save button or Ctrl +S

Go and see open item account transactions

The Transaction is code is FBL3N
Give the GL account

:100500 (outstanding Exp.)

Company code

: AML

Select open items radio button.

Select normal items check box
Select execute button
To view bill wise outstanding
Select change layout button (Ctrl+F8)
From the hidden fields column
Select reference field
Select amount in local currency under column contain.
Select left arrow or show selected fields button
Select copy button
Keep the cursor on reference
Select sub total button
To make balance payment of 35000 and cleared provision and part payment (F-07)
Give the document date

: Todays date

Type

: SA

Company code

: AML

Reference

:3456

Clearing Text

: Out going payment

Amount under bank date

:200100 (Cash A/c)

70

Business Area

:AMLH

Amount

:35000

Text

: Outgoing payment

Account

: Under open item selection 100500(out standing exp)

Account type

:S

Select process open item button

Double click on provision 40000
Double click on part payment 5000
From the menu select document > Simulate and save
Go and see open item managed account transactions (FBL3N)
Give the GL Account o.

:100500(out standing exp)

Company code

: AML

Select cleared items radio button

Select normal items check box
Execute
Residual items method:
Rent provision F-02
Give the document date

: Todays date

Type

: SA

Company code

: AML

Posting key

: 40

Account no.

:400300 (Rent account)

Enter
Amount

:30000

Business area

:AMLH

Text

: Rent provision

Posting key

:50

Account no.

:100500 ( outstanding exp)

Enter

71

Amount

:*

Business area

: AMLH

Text

:+

From the menu select Document ->Simulate and save

Out Going Payment Using Residual Items Method: (F-07)

Give the document date

: To days date

Type

: SA

Company code

: AML

Clearing Text

: out going payment

Account under bank date

: 200100 (Cash a/c)

Business area

: AMLH

Amount

:2000

Text

: out going payment

Account type

:S (default comes)

Select process open item button

Account

: Under open item selection 100500 (out standing exp)

Keep the cursor on the amount filed of the line item against which we want
adjust.
Select residual items tab
It creates residual items column
Double click on next amount 30000
Double click on residual items amount
From the menu select Document > Simulate
It gives the message correct the marked line items.
Double click on blue font line item.
Text enter

:+

Save
Go and see the open item managed account transactions (FBL3N):

72

Give the GL Account no.

:100500 (out standing exp.)

Company code

: AML

Select open items radio button

Select normal items check box
Execute
FOREIGN CURRENCY TRANSACTIONS
1. Check exchange rate type
Bank buying
Bank selling

Exports
Imports / Expenditure

G type
B type

Average rate MM /SD users type

Path : SPRO-SAP Net weaver- General Settings Currencies Check
exchange rate types
Select position button
Exchange rate type: B (enter B)
Enter
Define translation rates for currency translation:
Giving conversion factors for two currencies:
USD 1
JPY 100
ERO 1
GBP1
ITL1
JPY 100

:
:
:
:
:
:

INR 1
INR 1
JPY=Japanese - Yen
INR1
INR1
GBP=Great Britain -Pound
INR1
ITL=Italian -Lira
INR1 37Rs

0.01

Or
1

0.37

Once we follow one conversion factor follow continuously for all the years. Dont change
in between if we change in between it gives wrong results.
This is given at client level and not at company code level (Client 800)
Path: SPRO SAP Net weaver- General settings Currencies Define translation
ratios for currency translation

73

Ignore the message select yes button.

Select new entries button

Exchange rate type

G (Bank buying)
B (Bank selling)
M (Average rate)

From
USD
USD
USD

To
INR
INR
INR

valid (from)
01.10.2008
01.10.2008
01.10.2008

Ratio (from)
1
1
1

Ratio (to)
1
1
1

Select save button or Ctrl+S

Press enter to save in your request.
Enter exchange rates:
Path: SPRO- SAP Net weaver- General settings- currencies Enter exchange
rates
Forex Table
We can enter Daily quotations / Week end quotations / Month end quotations.
For each day end for each type we can enter only one rate.
Select new entries button
Exchange type
G
B
M

Valid from
10.10.2008
10.10.2008
10.10.2008

R
1
1
1

From currency
USD
USD
USD

Director quotation
47.00
47.50
47.10

To
INR
INR
INR

Press enter and save in your request.

Exchange rates entry at the End User Area:
Path: Accounting Financial accounting General ledger-Environment Current
settings Enter translation rates (S_BSE_68000174)
Foreign currency postings for end user area:

SCENARIO :1
When exchange rate is not entered at
the time of posting.

SCENARIO 2
When exchange rate is entered at the
Time of posting

a. IF we dont enter the rate at the time of posting, it takes rate from Forex
table

74

b. If take the latest date rate

01.10.2008
45
10.10.2008
47
Enter date :15.10.2008
Posting date :09.10.2008
c. To enter default exchange rate type based on document type.
General ledger posting
: SA Bank selling rate
Purchase INV posting (FI purchases)
:KR Bank selling rate
MM Purchases
:RE Bank selling rate
Sales invoice posting (FI Sales)
SD sales

DR Bank buying rate

RV Bank buying rate

If we do not specify system takes average rate.

1. To enter default exchange rate type B (Bank selling rate) for document type
SA
Use the Tr. Code is OBA7
Select type
: SA
Select details button
Under default values exchange rate type for foreign currency documents. Select B
(Bank selling rate)
Save
2. Posting of expenditure in USD F-02
Give the document date

: To days date

Type

: SA

Company code

:AML

Currency

: USD

Rate

: Blank

Posting key

:40

Account

: 400100 (salary)

Enter
Give the amount

:1000

Business area

: AMLH

Text

: Salary payment

75

Enter
Posting key

: 50

Account

:200100 (cash account)

Enter
Amount

:*

Business area

: AMLH

Text

:+

From the menu select Document ->Simulate

To view in INR
Select display currency button
Save

When exchange rate is extend at the time of posting

Expenditure posting Tr.Code is F-02
Document date

: To days date

Type

: SA

Company code

: AML

Currency

: USD

Rate

:50

Posting key

:40

Account no.

:400100 (salary account)

Enter
It gives the warning message exchange rate 50 deviates from table rte 47.50 by
5.26%
Ignore the warning message press enter
Amount

:10000 USD

Business area

: AMLH

Text

: Salary payment

Enter

76

Posting key

:50

Account no.

:200100 (Cash account)

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document ->Simulate and save

REVERSELS:
1. Individual Document Reversal
2. Reversal of Reversed document
3. Mass Reversal
4. Clearance Items Reversal
5. Account Deferral document reversal
1. Individual Document Reversal
A) To reverse one document at the time
B) To give reversal reason
C) At the time of reversal, it we do not give reversal date it takes original
document posting.
Date incase, that period should be open
1. Document posted on 10th April 2008 Doc.No.1 Generated
2. Now, we have open the periods from September 2008 to October 2008
6,2008 7,2008
3.

Ledger scrutiny - Doc.No.1 is wrong

Document No.
Reversal reason
Reversal date
Save

Blank

It takes original document posting date 10/04/2008

It can not reverse, since the April period is not open
Path : Accounting Financial Accounting General ledger Document Reverse
Individual Reversal (FB08)
Give the document no.

:1

Company code

:AML

Fiscal year

:2008

77

Select 01 reversal reason

Posting date

: Blank

Select display before reversal button

Select back arrow
Select save button or Ctrl+S
From the menu select Document >Display
Select Go to Display document Head button (F5)
Double click on document no.1
Select display document header button
1. Posted Documents
1
2
3
4
5
6 Reversal for 1
7 Reversal for 2
2. Document type and no./ranges : OBA7
Select type
: SA
Select details button
Number range
:01
Reversal Doc.type
: AB
3. Document display
Company code
Doc. Type

: FB03
: AML
: SA original documents
AB Reversed documents

2. Reversal of Reversed Document

Indirect method (work around)
To reverse Doc No.2 By mistake we have reversed Doc.No.1 and it has generated
Doc.No.18
Use transaction code F-02
From the menu select post with reference
Give the document no.

:18

Company code

:AML

Fiscal year

:2008

Select generate reverse posting check box

78

Select display line items check box

Enter
Enter once again
Change the text to reversal for Doc No.18
Enter
Text

:+

Enter
Save
Enter
From the menu select Document ->Display
Select display document header button
3. Mass Reversal
A)To reverse more than one document at time we use mass reversal.
B) The documents to be reversed can be continuous numbers or random numbers.
Path: Accounting Financial accounting General ledger Document
Reverse Mass reversal (F.80)
Give the company code
: AML
To reverse random numbers
Select multiple selection button beside document no.(-->)
Under single values
Give document no .2
4
Select copy button
Reason for reversal 01
Select test run check box
Execute
Select reverse documents button
Cleared Items Reversal
1. Go and see open item managed account transactions (FBL3N)
Give the GL Account Number 100500 (out standing exp)
Company code
: AML
Select clear items radio button
Execute

79

Out standing exp A/c

01
10 Bank

15000

9
Rent
CI
9
Rent
10
Bank
Stop payment instructions to the banker

15000
15000 Cr
15000 Dr

A) Reset cleared items Delink between the provision and payment.

Out standing expenses
01
10 Bank

15000

A/c

Rent

B) Reverse cheque transaction

Out standing expenses A/c
01
9
Rent

15000

15000

Path: Accounting Financial accounting General ledger-Document Reset clear

items (Tr.Code is FBRA)
Clearing document

: 10

Company code

: AML

Fiscal year

: 2008

Select save button or Ctrl +S

Select resetting and reverse button
Reversal reason

:01

Enter
We get a message clearing 10 reset
Enter
Go and see open item managed account transactions Tr code is FBL3N
Give the GL Account no.100500 outstanding expenses
Company code
: AML
Select open item radio button
Execute
Interest Calculations

80

Balance Interest calculation

S
Type
GL
Account

Item interest calculation

P Type
Vendor / Customers

Define interest calculation type:

Path : SPRO- Financial accounting General ledger accounting- Business
transactions Bank account interest calculation Interest calculation Global
settings Define interest calculation types
Interest indication

: G1

Name

: 10% Monthly

Interest calculation type

: Select S

Balance interest calculation

Press enter to save in your request
Prepare account balance interest calculation:
Path : SPRO- Financial accounting General ledger accounting- Business
transactions Bank account interest calculation Interest calculation Global
settings- prepare account balance interest calculation (Tr.Code OBAA)
Select new entries button
Interest calculation indicator

: G1

Interest calculation frequency

: Select 01

Calendar type

: Select G (28

31/365)

Select balance plus interest check box

Save
Press enter to save in your request
Calendar Type
In case of rupee loans we use G Calendar

In case of foreign currency loans we

use F calendar.
FC Loan from SBI LIBOR +2%

81

(LIBOR Mean London Inter Bank Offer

Rate)
For interest calculations the
denomination will be always 360 days
FIBOR Frankfurt Inter Bank Offer Rate
MIB - Mumbai Inter Bank Offer Rate

Define Reference Interest Rates:

SBI rupees term loan

10/04/2008
10/09/2008
Interest calculation for the year

100000
10000

1st method
On 100000 from 10/04/2008 to 31/03/2009 at 10%
On 100000 from 10/09/2008 to 31/03/2009 at 10%

15000
-3000
-------12000

2nd Method
On 10000 from 10/04/2008 to 09/09/2008 at 10%
On 90000 from 10/09/2008 to 31/03/2009 at 10%

5000
7000
-----12000
=====
10%
8%
Account Credit balance reference
interest rate : G2-10%
Account debit balance reference interest
rate G3-8%

If the account is having credit balance

If the account is having debit balance
Loan account Interest indicator

A) Interest rates are given to reference interest rate (G2 and G3)
B) Reference interest rates are specified separately if there is a credit balance and if
there is a debit balance and it will be assigned to interest indicator
C) Interest indicator will be specified in loan account.
Define reference interest rates:

82

Path : SPRO Financial accounting General ledger accounting Business

transaction Bank account interest calculation Interest calculation Define
reference interest rates (Tr code is OBAC)
Select new entries button
Ref int.rate

: G2

Long text

: Credit balance 10% interest

Description also credit balance 10% interest

Date from

:01.04.2008

Currency

: INR

Save
Press enter to save in your request
Select next enter button
Ref.int.rate

: G3

Long text

: Debit balance 8% interest

Description

: Dr. Bal 8% int

Date from

: 01.04.2008

Currency

: INR

Save

Define Time Dependent Terms

Path : SPRO Financial accounting General ledger accounting Business
transaction Bank account interest calculation Interest calculation- Define time
Dependent Terms
Select new entries button
Interest calculation indicator

: G1

Currency key

: INR

Effective from

: 10.04.2008

Sequential number

:1

Terms

: Select credit interest balance interest calculation

Ref.interst rate

: G2

Save

83

Press enter to save in your request

Select next entry button (F8)
Interest calculation indication

: G1

Currency key

: INR

Effective from

:01.04.2008

Sequential number

:2

Term

: Select debit interest balance interest

calculation

Reference rate

: G3

Save
Enter Interest Values
Same path as above (Tr code is OB83)
Select new entries button
Reference interest rate

: G2

Valid from

: 01.04.2008

Interest rate

: 10 (one month)

Reference interest rate

: G3

Valid from

: 01.04.2008

Interest rate

:8

Save
Press enter to save in your request

Creation Of 2 Gl Masters
A .SBI rupees term loan
B. Interest account

Secured loans
Intrest

To check account groups for giving account numbers OBD4

Select position button
Give the chart of accounts
: AML
Enter
Secured loan range
:100300 -100399
Interest range
: 400400-400499

84

Creation Of Gl Masters (Fs00)

Give the GL account no.

:100300

Company code

: AML

Select with template button

Give the GL Account no.

:100000 Equity share capital

Company code

: AML

Enter
Change the account group to secured loans
Change short text to SBI rupee term loan
Change GL account long text to SBI rupee term loan
Change GL Account text to SBI rupees term loan
Select Create / Bank / Interest tab
Field status group change to G005
Interest indicator select G1
Save
Tr.Code:FS00
GL Account no.

:400400

Company code

: AML

Select with template button

Give the GL account no.

:400100 salaries account

Company code

: AML

Enter
Select type / Description tab
Change account group to interest
Change short text to interest a/c
GL account long text: Interest account
Save
Assignment accounts for automatic postings:

85

Path : SPRO- Financial accounting General Accounting Business

Transactions bank account interest calculation- Interest Posting prepare GL
Account balance interest calculation (Tr.Code OBV2)
Select symbols button
0002 Interest paid
2000 GL Account (paid)
Interest account
Dr 0002
To SBI rupees term loan 2000
If more than term loan
2000

400400
100300
++++++++++ ( 10 Times plus)

(10 times +(plus) mean any account number)

Length of account no. maximum 10 digits
We are using 6 digits why can not we use ++++++ (6 times plus)
When we post a transaction Cash account Dr
Credit to equity share capital and when we give the account number 200100 for cash
account and 100000 for Equity Share Capital It takes in the beginning 0000200100
Debit and 0000100000 Credit and when we save it saves with 200100 and 100000.
If we gives 6 times plus when we simulate for loan it takes 000010 and it can not
save.
SBI rupees term loan 100300
IDBI rupees term loan 100301
ICICI rupees term loan 100302
At the time of interest calculation, we give for which loan account interest is to be
calculated. Now we are asking the system to calculate interest for 100301 IDBI rupees
term loan account 100301 will be replaced in ++++++++++
Select accounts button
Give the Chat of Accounts
Enter

: AML

Accounts symbol
0002
2000

Currency
INR
INR

Select save button or Ctrl +S

Press enter to save in your request

Open Posting period (Tr.Code is OB52)

86

GL A/c
400400
++++++++++

To open posting periods for April 2008

Select position button
Give the posting period variant

: AML

Enter
For Variant

: AML

From the period 1 is

:1

Select save button or Ctrl+S

Press enter to save in your request
SBI rupee term loan receipt
: F-02
10.04.2008 SBI cheque date
100000
12.04.2008 cheque deposit in bank
Document date
:12.01.2008
Posting date
:12.04.2008

Interest calculation in SAP from 12.04.2008

Where as bank calculates from 10.04.2008
We are giving value date 10.04.2008
Now SAP also calculates interest from 10.04.2008
Document date & posting date

:10.04.2008

Type

: SA

Company code

: AML

Posting key

:40

Account

:200100 (Cash a/c)

Enter
Ignore the warning message press enter
Amount

:100000

Business area

: AMLH

Value date

:10.04.2008

Text

: SBI Term loan receipt

Posting key

:50

Account key

:100300 SBI Rupee term loan

Enter

87

Amount

:*

Business area

: AMLH

Value date

:10.04.2008

Text

:+

From the new select document simulate and save.

Term loan repayment (F-02)
Due date
:10.09.2008
Cheque date
:10.09.2008
To bank credit in SBI books only on 12.09.2008 interest credit will be in our books
10.09.2008
SBI gives credit from 12.09.2008
Cheque date
:07.09.2008
Value date
:10.09.2008
F-02
Give the document date & posting date 07.09.2008
Type

: SA

Company code

: AML

Currency

: INR

Posting key

:40

Account no.

:100300 SBI rupee term loan

Enter
Ignore the warning message press enter
Amount

:10000

Business area

: AMLH

Value date

:10.09.2008

Text

: SBI Term Loan Repayment

Posting key

:50

Account

:200100 (Cash account)

Enter
Amount enter

:*

Business area

: AMLH

Value date

:10.09.2008

Text

:+

88

From the menu select document >Simulate and save

Balance Interest calculations:
Path: Accounting Financial accounting General ledger- periodic processingInterest calculation-Balance interest calculation (F.52)
Company code

:AML

Give the GL account

:100300 ( SBI Rupee Term Loan)

Calculation period

:01.04.2008 to 31.03.2009

Execute
Select back arrow
To view line item wise interest
Select additional balance line check box
Execute
Select bank arrow
How to give effect for floating rate of Interest
Interest rate change from 10% to 12% from 01.06.2008
On 100000 from 10/04/2008 to 31/05/2008 @10%
On 100000 from 01.06.2008 to 09.09.2008 @12%
On 90000 from 10/09.2008 to 31/03/2009 @12%
Open one more session with SPRO
Path :SPRO- Financial accounting General ledger accounting Business
transactions- Bank account interest calculation Interest calculation- Enter
Interest Values (OB83)
Select new entries button
Reference interest rate

: G2

Valid from

:01.06.2008

Interest rate

:12

Save
Press enter to save in your request come to the first session
Execute
Select back arrow

89

Interest postings to accounts:

Change the calculation period

: 01.04.2008 to 30.04.2008

Select post interest settlements check box

Select update master records check box
Session name

: AML

Posting to business area

: AMLH

Posting date of session

:30.04.2008

Posting segment text

: Interest for April 2008

Select execute button

To view the batch input session
From the menu select system >Services > Batch input Session
Select session name
: AML
Select process button
Select display errors only radio button
Select process button
We get a message processing of batch input session completed
Select exit batch input button
To view the document posted use the (Tr. Code FB03)
Go and see the GL maser (FS00)
Give the GL Account no.
:100300 (SBI rupee T.L)
Company code
: AML
From the menu select GL account ->Display -> Select create / Bank / Interest tab
Key date of last interest calculation :30.04.2008
Date of last interest run
:20.10.2008
On which date we have to run
1. Simple interest
SBI rupee term loan 10.04.2008 100000

2. Compound interest
SBI rupee term loan 10.04.2008 100000
30.04.2008
575
For may it calculates on 100575

0002-400400 Interest A/c

2000-100510 Interest payable a/c
For may it calculates on 100000
Interest also to post to separate accounts
400400 Interest on SBI Rupee Term Loan

90

400401 Interest on IDBI Rupee Term Loan

400402 Interest on ICICI Rupee Term Loan
0002-400400 interest on SBI rupee term loan, we are calculating interest for IDBI rupee
term loan
In batch input session select process forward radio button
Deselect display errors only radio button
40

400400 Interest on SBI Term Loan 1000

Change account no to 400401

How to make open items initially inactive:

Clearing
1
1000 Cr
2
2000 Cr
3
3000 Cr
Payment 1000 Dr
The difference is too large for clearing all items are initially inactive
1
1000 Cr
2
2000 Cr
3
3000 Cr
Payment
1000 Dr
Path : Accounting Financial Accounting General ledger Environment User
parameter- Editing options (Tr.code is FB00)
Select open items tab
Select selected items initially inactive check box
Save
Foreign Currency Balance Revaluation
FC term loan (Foreign currency TL)
|
Long term working capital
Fixed assets purchase
|
Local assets
Imported assets
21.10.2008 100000 USD
13.10.2008 100000 USD

47
50

4700000
5000000
----------300000
========

As per accounting standard 11 (ASII)

Balance to be revaluated and change to profit & loss account.

91

Creation of 3 GL Masters
A) SBI FC Term loan
B) Exchange again
C)Exchange loss

Secured loans
other income
Administration

To check account groups for giving account no.OBD4

Select position button
Give the chat of accounts
: AML
Enter
Note the other income range 300100 to 300199
Create of GL masters FS00
Give the GL account no.100301
Company code
: AML
Select with template button
Give the GL account no

:100300 (SBI Rupee Term Loan)

Company code

: AML

Enter
Change short text and long test to SBI FC term loan
Select control data tab
Account currency change to USD
Deselect only balance and loan currency check box
Select create / bank / Interest tab
Interest indicator

: Blank

Delete the dates

Save
GL Account

:300100

Company code

: AML

Select with template button

Give the GL account no.

:400300 Rent account

Company code

: AML

Enter
Select type/ Description tab

92

Change account group to other income change short text and GL account long text to
exchange gain
Save
GL Account

: 400301

Company code

: AML

Select with template button

Give the GL account no.400300 rent account
Company code

: AML

Enter
Change short text and GL account long text to exchange loss
Save
DEFINE ACCOUNT PRINCIPLES
Path : SPRO- Financial accounting(new)-Financial accounting global setting
(new)-Ledgers-Parallel accounting-Define accounting principles
Select new entries button
Accounting principle

:B

Name / Description of accounting principle.: INDIAN ACCOUNTING STANDARDS

Press enter to save in your request
Assignment accounting principle to ledger groups
Same path as above
Select new entries button
Accounting principle

: B1

Target ledger group

:0L

Save
Press enter to save in your request
Define valuation methods
Path: SPRO- Financial accounting (new)- General ledger accounting (new)Periodic processing Valuate- Define valuation methods
Select new entries button

93

Valuation method

: AML1

Description

: FC valuation bank selling method for AML

Select always evaluate radio button

Document type

: SA

Exchange rate type for debit balance

: B (bank selling rate)

Exchange rate type for credit balance

:B

Select determine exchange rate of ratio button

Save
Press enter to save in your request
Define Valuation Areas
Same path
Select new entries button
Valuation area

: BA

Valuation method

: AML1

Currency type

: Select company code currency

Save
Press enter to save in your request
Assign valuation areas and accounting principles
Same path
Select new entries button
Valuation area

: BA

Accounting principle

: B1

Save
Press enter to save in your request
Prepare automatic postings for foreign currency valuation:
Path :Upto valuate the path is same-Foreign currency valuation-Prepare
automatic posting for foreign currency valuation (Tr code is OBA1)
Double click on exchange rate difference using exchange rate key
Give you chart of accounts

: AML

94

Select change valuation area or right arrow button

Give the valuation area

: BA

Enter
Exchange rate difference key

: USD

expenses account

:400301

Exchange rate gains account

:300100

Select save button or Ctrl+S

Press enter to save in your request
Delete ledgers (other than OL) for Ledger Group OL
April March OL
Jan- Dec
G1
July June GL

Leading ledger
(India)
Non leading ledger 1(US)
Non leading ledger 2(Australia)

At the time of posting FI we dont give ledger group it updates all the ledgers
automatically
Indian accounting standards /
Australian accounting standards

US Accounting
standards (US GAAP)

FC revaluation
Creation of ledger groups OL
Assign ledgers
OL and GI

Add to asset
G1
G1

Delete ledgers assigned to ledger group OL other than OL

Path :SPRO-Financial accounting (new)- Financial accounting Global settings
(new) Ledger-Define ledger groupSelect ledger group :0L
Double click ledger assignment folder
Select ledgers other than OL
From the menu select delete
Ignore the message press enter and save
Press enter to save in your request
Assign exchange rate difference key in GL Master (FS00)

95

Give the GL 100301 SBI FC Term loan

Company code

: AML

From the menu select GL Account change

Select control data tab
Exchange rate difference key: Select USD
Select save button or Ctrl+S

Foreign currency term loan receipt (F-02)

Give the document date

: Todays date

Type

: SA

Company code

: AML

Currency

: USD

Rate

:47

Posting key

:40

Account

:200100 ( Cash account)

Enter
Ignore the warning message press enter
Amount

:100000

Business area

:AMLH

Text

:SBI FC Term Loan Receipt

Enter
Posting key

:50

Account

:100301 SBI FC Term loan

Enter
Amount enter

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and Save

96

Enter year end exchange rate in Forex table OB08

Select new entries button
Exchange rate
G
B

Valid from
31.03.2009
31.03.2009

From
USD
USD

Direct quotation To
49.50
INR
50.00
INR

Save
Foreign Currency Revolution
Path: Accounting Financial accounting-General ledger-Periodic processingclosing-valuate-foreign currency valuation (new) (Tr.code is FAGL_FC_VAL)
Give the company code

: AML

Valuation key date

:31.03.2009

Valuation area

: BA

Select GL balance tab

Select valuate GL Account balance check box
GL account 100301 SBI FC term loan
Select postings button
Give the batch input session name

:AML

Select execute button

Select 1postings button
Select back arrow two times
Month end revaluation
Diff
23.10.2008
31.10.2008
30.11.2008
Exchange Loss
31.10.2008
30.11.2008
SBI FC Term loan
23.10.2008
31.10.2008
01.11.2008

100000

47
47.50
49

0.50
2.00

5000
200000

Option 2
50000
200000

01.11.2008

50000

30.11.2008

4700000
50000
200000

100000
500000
97

Loss for October

50000
Loss for November 150000
--------Loss up to Nov.
200000
======

procedure for month end revaluation: (Tr code is FAGL_FC_VAL)

Enter month end exchange rates in Forex table
Company code

: AML

Valuation key date

: Month end date

Valuation area

: BA

Select crate posting check box

Select reverse posting check box
Select execute button
Procedure for year end revaluation

Enter year exchange rate in Forex table

Company code

: AML

Valuation key date year end date

Valuation area

: BA

Select create posting check box

Reversal posting date

:Blank

Deselect reverse posting check box

Select execute button
From the menu select System -> Services-Batch input Sessions
Select session FAGL_FC_VALU
Select process button
Give the business area

: AMLH

Enter

Second

98

Business area

: AMLH

Enter
We get a message processing of batch in put session completed
Select exit batch input button
To view the document posted view the Tr.Code FB03
Enter
Select display currency button
End user area

customization area SPRO

SAP easy access screen)

How to view path when transaction code is given
In command filed enter search SAP- menu
Search SAP-Menu
Press enter
Search text entry : F-02
Enter
CUSTOMIZATION AREA: Use the Tr.code is SPRO
Select find button (Ctrl+F)
Search term : Fiscal year
Enter
Select fiscal year in area financial accounting global settings
Enter

99

ACCOUNT PAYABLE
This is subledger (subsidiary ledger). This is used when material management (MM)
module is not implemented for all type purchases material purchase services.
When Material Management(MM) module is implemented.
This is used for services where TDS is to be deducted.
Eg.Job work charges /legal and professional charges
In normal accounting for raw material purchases.
Purchase
A/c
To party

Dr

In SAP :for Raw material purchases

Inventory
RM Dr
General ledger
To party
Sub ledger Sundry creditors General ledger
|
Reconciliation account on control account
Trail balance will not match when we post to party automatically it updates sundry
creditors RM
Basic settings for account payable:
1. Creation of vendor account groups
a) we create FI vendors services parties
b) MM vendors
-Reconciliation account
Material parties
-Required entry field
2. Create number range for vendor accounts:
3. Assign number range group to vendor account group.
4. Define tolerance group for vendors.
5. Creation of 2GL masters.
a) Inventory raw material
- Current assets, loans & advances
b) Sundry creditors RM
-Current liabilities & Provisions
6. Creation of vendor master
7. Document type and no.ranges
KR: Vendor invoices
KZ: Vendor payment
KA: Vendor document for transfers / Reversals
8. Posting keys :31
Vendor credit
:25
Vendor debit

100

Creation of vendor accounts groups:

Path :SPRO Financial accounting Accounts receivable and accounts payableVendor accounts-Master data-preparation for creating vendor master data- Define
account groups with screen layout (vendors)
Select new entries button
Account group
Name

:AML1
:FI vendors for AML

Double click on company code data

Double click on account management
Reconciliation account make it required entry field
Cash management group make it suppress
select save button
select create request button
short description :AP customization for AML
enter
press enter to save in your request
select next entry button
account group AML2
Name

:MM vendor for AML

Double click on company code data

Double click on account management
Reconciliation account :

Make it required entry filed.

Cash management group select suppress

Save
Create number range for vendors account :
Up to preparation for creating vendor master data path is same
Create number ranges for vendors account.(Transaction code is XKN1)
Select change intervals button
Select interval button
Number range

:13

101

From no.

:4200001

To no.

:4300000

Enter
Select interval button once again
No.range

:14

From No.

:4300001

To no

:4400000

Enter
Save
Ignore the warning message press enter

Assign number range to vendor account groups:

Same path
Select position button
Account group

:AML1

Enter
For account group

:AML1

Number range

:13

Account group AML2

Number range

:14

Press enter to save in your request

Define tolerance group for vendor
Path :SPRO-Financial accounting-Account receivable and account payableBusiness truncations-Outgoing payments-manual outgoing payments-Define
tolerances(Vendors)
Select new entries button
Company code
Tolerance group
Description
Save

:AML
: Blank
:Tolerance group for AML

102

Press enter save in your request

Creation 2GL masters (FS00)
Give the GL account no.200120
Company code

:AML

Select with template button

Give the GL account no.200100 Cash A/c
Company code

: AML

Enter
Change short text and GL A/c long text to Inventory RM (Raw material)
Select create /bank /interest tab
Field status group change to G001
Deselect relevant to cash flow check box
Save
One more A/c
GL Account No.100501
Company code

:AML

Select with template button

Give the GL A/c No.100500 (Outstanding exp)
Company code

:AML

Enter
Select type/ Description tab
Change short test and GL account long test to Sundry Creditor to RM
Select control data tab
Deselect only balances in local currency check box
Reconciliation account for account type select vendor
Deselect open item management check box
Sort key

:Select 012 vendor number

Select create /bank /interest tab

Field status group change to G067 (reconciliation accounts)
Save

103

Creation of vendor master:

Path : Accounting-Financial accounting Account payable-Master recordsMaintain centrally-Create (Transaction code is XK01)
Give the company code

:AML

Account group

:AML1

Enter
Title

:Select company

Name

:Birla Chemicals Limited

Street

: Ameerpet

Post

:500082

City

:Hyderabad

Country

:In(India)

Telephone no.

:040123456

Select next screen button three times

Reconciliation account

:Select 100501 (sundry creditors raw materials)

Sort key

:012 Vendor no

Select next screen button

Payment terms

:Select 0001 (payable immediately)

Tolerance group

:Blank

Select check double invoice check box

Save
MM Module
Purchase order
|
Goods receipt
|
Invoice verification

104

FI Module
Document date

:Party bill date

Posting date
31.10.2008
Reference vendor no. party bill no.
1234
|
Save
Doc no.100001

01.10.2008
07.11.2008
1234
|
save

System gives a wrong message no.100001 is posted to the party with the same
amount. Do you want to post once again.
Provided we select check double invoice check box (If MM module is not implemented
and same bill two times entry)
Document types and no. ranges (OBA7)
Select type KR Vendor invoice
Select details button
Number range

19 (Note down the no.range)

Select number range information button

Give the company code

: AML

Select change intervals button

Select interval button
No.range

:19

Year

:2008

From no.

:100001

To no.

:200000

Enter and save

Ignore the warning message press enter
Select back arrow 3 times
Select type

-KZ vendor payment

Select details button

No. range

15 (note down the no.range)

Select no.range information button

Give the company code

:AML

105

Select change intervals button

Select interval button
No.range

year

From no.

To no.

15

2008

200001

300000

Enter and save

Ignore the warning message press enter
Select back arrow 3 times
Select type KA vendor document
Select details button
No.range

17

Select no.range information button

Company code

: AML

Select change interval button

Select interval button
No.range

:17

Year

:2008

Form no.

:300001

To no.

:400000

Enter and save

Ignore the message press enter

106

HOUSE BANK
Bank branch name
Bank Address
Contact person
Telephone no.
Senario1
1. House bank

No.of account
IDs (Identification)

SBI Main branch

Current A/c
Current A/c
No.1
No.2

Current C/A
No.3

Scenario 2
2 House banks
Account ID

SBI Main branch

|
Current A/c No.

BI Begumpet Branch
|
Current A/c No.

Steps:
1) Creation of GL Master SBI current account Under Current assets , Loans &
Advances
2) Define House bank
3) Creation of check lots check from no., check to no.
* In SAP check mean cheque
1. Creation of GL Master (FS00)
Give the GL account no.200105
Company code
:AML
Select with template button
Give the GL account no. :
200100
Company
:
AML
Enter
Change short text and GL account long text
save

Cash A/c
SBI current A/c

2. Define house banks

Path : SPRO-Financial accounting Bank accounting-Bank accounts
Define house banks (FI12)
Give the company code

: AML

Enter

107

Select new entries button

House bank

:SBI

Bank country

:IN

Bank key

:AML1 (text field)

Save
Bank name

:State Bank of India

Street

:Bank Street

City

:Hyderabad

Bank branch

:Main branch

Enter
Press enter to save in your request
Double click on bank account folder
Select new entries button
Account ID

:SBI1

Description

:SBI current A/c no.1

Bank account no.

:AML1234

Currency

:INR

G/L Account no.

:200105 SBI current a/c

Select save button

3. Creation of check lots:
Path :Accounting Financial accounting-Accounts Payable Periodic
Processing -payments (F110)
From the menu select Environmentcheck Information Number ranges
(FCHI)
Paying company code

:AML

House bank

:SBI

Account ID

:SBI1

Select change button (Shift +F5)

Select create button
Lot no.

:1

108

Check no

:500001

To no.

:500100

Select Non sequential check box

Short information

:SBI

Purchase date

:Todays date i.e Check box issue date

Enter and save

Manual payment
Automatic payment
1. We can issue any check any time
System will issue check one after
another
2. Sequential or Non-sequential
Sequential
Purchase invoice posting
Path : Accounting-Financial accounting-Account payable Document entryInvoice general (Transaction code F-43)
Give the document date

:Todays date

Type

:KR(Vendor)

Company code

:AML

Posting key

:31 (Vendor credit)

Account

:4200001 (Vendor no.)

Enter
Give the amount

:500000

Business area

:AMLH

Text

:Purchase invoice posting

Posting key

:40

Account no.

:200120 (Inventory raw material)

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select document Simulate and save

109

2. How to view vendor account transactions

Path: Accounting Financial accounting-Account payable-Account Display
change line items (Transaction code is FBL1N)
Give the vendor account

:4200001

Company code

:AML

Select open items radio button

Select normal items check box
Select execute button
3. To view general ledger sundry creditor raw material Transaction code is
FS10N
Give the GL account no.

:100501 Sundry creditor raw material

Company code

: AML

Fiscal year

:2008

Business area

:AMLH

Select execute button

Double click on cumulate balance amount
To view vendor wise
Select change layout button
Select assignment field from the hidden fields column
Select amount in local currency (under column content)
Select left arrow
Select copy button
100501 Sundry creditors RM
Sort key
:012 Vendor number
Sort key updates assignment field automatically
Outgoing payment with clearing
Path :Accounting Financial accounting-Accounts payable -Document
entryOutgoing payment Post (F-53)
Give the document date

: Todays date

Type

:KZ

Company code

:AML

110

Clearing text

:Outgoing payment

Account under bank date

:200105 (SBI current account)

Amount

:5000

Business area

:AMLH

Text

:Outgoing payment

Account under open item select :4200001

Account type

:K comes by default (K stands for Vendors)

Select process open items button

Double click on payable amount

:5000

Document Simulate
Select save button or Ctrl+S

Go and see the vendor account truncation (Tr.code is FBL1N)

Give the vendor account no.
Company code

:4200001

:AML

Select cleared item radio button

Select normal items check box
Execute
Creation of manual check
Path :Accounting Financial accounting Accounts payable Environment
Check information Create Manual checks (Tr code FCH5)
House bank
Account ID
Give the check no.
Save

:SBI
:SBI1
:500025

Display check resister

Upto check information the path is same
code is FCHN)

111

Display Check register (Tr

Give the paying company code :AML

Execute
Double click on check no.
:500025
Select accompany documents button

Bill no. Amount

1
5000
2
5000
3
15000
4
5000
5
5000

Payment
5000

Path A/c
Payment doc.no.
200005

Check
500001

5000
5000

200001
200010

500025 payment history

500005

Assignment of check no.to payment no.payment doc no.is cleared will be number
Check encashment date updating:
Based on bank statement we update check encashment date.
Advantage 1
1. We know on which date the check is encased by the party
2. Bank reconciliation is easier
3. upto check information the path is same change Additional info/Cash
(Tr code is FCH6)
paying company code
:AML
House bank
:SBI
Account ID
:SBI1
Check no.
:500025
Enter
Give the check encashment
:20.11.2008
Save
Go and see check register FCHN
give the paying company code
:AML
Execute
Sort date wise FI the encashment date is bank or offer 30.11.2008
Checks issued but not presented.
Unissued checks cancellation
Some time while writing check we commit mistake before issuing to party we
cancel check
Up to check information the path is same void unused checks (Tr code is FCH3)
Give the paying company code
House bank

:AML
:SBI

112

Account id
Check no.from
Void reason code

:SBI1
:500001
:Select 06 destroyed select void button
(Shift+F5)

Go and see the check register (FCHN)

Give the paying company code

:AML

Select execute button

Once the check lot is over all check keep the cursor and cheque no.from to select
sort in ascending order button (Ctrl +F5)
If any number is missing between the check is misused.
How to create void reason code
Path :SPRO-Financial accounting Accounts receivable and accounts
payable-Business truncations-Outgoing payments Automatic outgoing
payments-Payment media check management Define void reason codes
(Tr code is FCHV)
Select new entries button
Reason
Void reason code
Select save button or Ctrl+S
Press enter to save in your request

:15
:Stop payment for AML

How to delete encashment date data:

500019 we have to give encashment date 20.11.2008 for 500019.by mistake we
have given for 500020
500025 20.11.2008 to delete encashment date
500021
500022
Path :up to check information the path is same Delete Reset data (Tr.code
is FCHG)
Give the paying company code
:AML
House bank
:SBI
Account id
:SBI1
Check number
:500025
Select reset cashing data radio button
Execute
Select yes button for the message to reset data
Go and see the check register (FCHN)

113

Give the paying company code

Execute

:AML

Issued check cancellation

System will not permit to cancel encashed checks.
Vendor account
a) Invoice posting (F-43)
a) 01 (open items)
b) Outgoing payment with clearing (F-53)
b) Bank 5000 Dr a)5000 Cr
c) Manual check creation (FCH5)
CI (Clearing items)
A)
5000 Cr
B)
5000 Dr
d)Display check register (FCHN)
e) Issued check cancellation
1) Reset cleared items Delinking bill amount and payment amount
Vendor Account
01
B) Bank
5000 Dr
A)
5000 Cr
2) Reverse payment
Vendor account
01
A)
5000 Cr
Cancel check
Path :upto check information the path is same Void-Cancel payment (Tr.Code
is FCH8)
Paying company code

:AML

House bank

:SBI

Account ID

:SBI1

Check number

:select 500025

Void reason code

:15 (stop payment for AML)

Reversal reason

:select 01(reversal in current period)

Select cancel payment button

Go and seethe vendor account FBL1N
Give the vendor account no. :4200001
Company code
:AML
Select open items radio button
Select normal items check box
Select execute button

114

Go and see the check register FCHN

Give the paying company code
Select execute button

:AML

Advance payments to vendors (down payments to vendors)

Sundry creditors Purchase Advance
Advance to vendors
(current liabilities)
(current assets)
Payment
purchase
1. Creation of GL master Advance to vendors Current assets, Loans & Advances
2. Link between sundry creditors ands advances to vendors
A (Advance special GL indicator)
^
Sundry creditors
Advance to vendors
Reconciliation account
Alternative reconciliation account or special
GL Account
100501
200150
Vendor A/c
4200001 BirlaChemals Limited -100501
At the time of making payment we know the purpose of payment.
If it is payment against a bill -4200001
100501-Sundry creditors
If it is payment as an advance 4200001 A
4200001 Birla Chemicals Limited -100501
A(Advance (Special GL indicator))
^
100501 200150
Advance payment posting
Purchase invoice posting
Transfer of advance from special GL to normal by clearing special GL items.
Clearing of normal items.
Vendor account have two parts
1) Normal items
2) Special GL items
Creation of GL master advance to vendors (FS00)
GL A/c No.

:200150

Company code

:AML

Select with template button

Give the GL account no.100501 (Sundry creditors raw material)

115

Company code

:AML

Enter
Change account group to current assets loans & advances
Change short text and GL account long text to Advance to vendors
Other fields are common
Select save button or Ctrl+S
Link between sundry creditors and advance to vendors:
Path :SPRO-Financial accounting-Accounts receivables and accounts payables
Business transactions-Down payment made-Define alternative reconciliation
account for down payments (Tr code is OBYR)
Double click on A or down payment on current assets
Give the chart of accounts

:AML

Enter
Reconciliation account

:100501

Special GL account

:200150

Select save button or Ctrl+S

Press enter to save in your request
Advance payment posting:
Path :Accounting Financial accounting Account payable Document entrydown payment Down payment (F-48)
Document date

:Todays date

Type

:KZ

Company code

:AML

Vendor account

:4200001

Special GL indicator

:A

Bank account

:200105 SBI current account

Business area

:AMLH

Amount

:25000

Text

:Advance payment posting

116

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and save

Go and see the vendor account transaction (Tr.code is FBL1N)
Give the vendor account no.
:4200001
Company code
:AML
Select open items radio button
Select special GL transaction check box
Execute
Purchase invoice posting (F-43)
Give the document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no

:4200001

Enter
Amount

:25000

Business area

:AMLH

Text

:purchase invoice posting

Posting key

:40

Account no.

:200120 inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select document simulate and save

Go and see the vendor account (Truncation code FBL1N)
Give the vendor account no.

:4200001

117

Company code

:AML

Select open item radio button

Select normal items check box
Execute
Select back arrow
Select special GL truncation check box along with normal items
Execute
Transfer of advance from special GL to normal by clearing special GL items
Path :Accounting Financial accounting-Accounts payable-Document entry-Down
payment Clearing (F-54)
Give the document date

:Todays date

Document type

:KA

Company code

:AML

Vendor account

:4200001

Text

:Advance transfer to normal

Select process down payments button

Transfer posting

:25000

Save
Go and see the vendor account transactions FBL1N
Give the vendor account no.

:4200001

Company code

:AML

Select clearing items radio button

Select special GL transaction check box
Execute
Select back arrow
Select open items radio button
Select normal items check box
Execute

118

Clearing of normal items:

Path : Accounting Financial accounting Accounts payable Account Clear
(F-44)
Give the account no.
:4200001
Company code
:AML
Select process open items button
Double click on credit 25000
Double click on debit
25000
Save

Go and see the vendor accounts (Transaction code .FBL1N)

Give the vendor account no.
:4200001
Company code
:AML
Select cleared items radio button
Select normal items check box
Execute
Vendor account
|
Normal / Items
6
5
25000
425000
Sundry creditors C/L
Special GL items
Advance to vendor 3
25000
5
25000
2nd Scenario
Advance more bill less
Advance
200000
Bill amount
50000
A) Advance payment posting (F-48)
B) Purchase in voice posting (F-43)
C) Transfer of advance of Rs.500000 from special GL to normal (F-54)
Vendor A/c normal items
D
C
50000
Special GL items
A 200000

50000

50000

D) Clearing of normal items (F-44)

119

Final result
Vendor special GL shows a balance of Rs.1500000 Advance to vendors
To be cleared against future bills.
3rd Scenario
Advance bill more
Advance
9000
Bill amount
90000
Vendor A/c
normal items
A) Advance payment posting (F-48)
B) Purchase invoice posting (F-43)
C
9000 B
90000
C) Transfer of advance from special GL to normal
by clearing
Special GL Items
Special GL (F-54)
A
9000 C
9000
D) While making balance payment
Of Rs.81000 double click on bill
Amount 900000 and payment amount
Rs.9000. All the 3 line items will go to
Clearing items (F-53)
TERMS OF PAYMENT
01
Payable immediately - Due net
Path : SPRO-Financial accounting Accounts receivable and accounts
payable Business transactions-Incoming invoices / Credit memos
Maintain terms of payment
Select new entries button
Payment terms
:AML1
Select customer check box
Select vendor check box
Default for base line date
No default
:No.of purchases during the month base line date at
the time of Invoice posting Blank
For all purchases during the month give month end
date.
Document date
:Party bill date
Posting date
:Goods receipt date
Entry date
:Quality approval date
Payment terms

:If the payment is made within 10 days -3% cash

discount

120

If the payment is made within 20 days -2% ash

discount payable within 30 days
Under default for baseline date: Select posting date radio button
Percentage No.of days
Term 1
3
10
Term2
2
20
Term3
30
Press enter
Select save button or Ctrl+S
Press enter to save in your request
Cash Discount Received
Trade discounts are to be adjusted to purchases where as cash discounts are to
be shown under other income.
Creation of GL master Cash discount received other income (FS00)
Give the GL A/c no.

:300101

Company code

:AML

Select with template button

Give the GL account 300100 exchange gain
Company code

:AML

Enter
Change short text and GL account long text to cash discount received.
Save
Assignment of account for automatic postings:
Path :SPRO-Financial accounting-Accounts receivable and Accounts
payable-Business transactions-Out going payments-Out going payments
global settings Define accounts for cash discount taken. (Tr Code is
OBXU)
Give the Chart of Accounts
:AML
Enter
Save
Give the account no.300101 cash discount received
Save
Press enter to save in your request

121

Purchase invoice posting (F-43)

Document date

:25.10.2008

Posting date

:01.11.2008

Entry date

:Todays date

Type

:KR

Company code

:AML

Currency

:INR

Posting key

:31

Account

:4200001

Enter
Amount

:100000

Payment terms

:Select AML1

Text

:Purchase invoice posting

Enter
Ignore the warning message press enter
Posting key

:40

Account no.

:200120 Inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select document Simulate and Save

Go and see the vendor account (Transaction code is FBL1N):

Vendor account

:4200001

Company code

:AML

Select open item radio button

Select normal items check box
Execute

122

Form the menu select change layout button

Form the hidden fields column
Select current cash discount amount
Select amount in document currency under column-contain
Select left arrow or show selected fields button
Select copy button
Outgoing payment with clearing (F-53)
Document date

:Todays date

Type

:KZ

Company code

:AML

Clearing text

:Out going payment

Account under bank data

:200105 SBI current account

Business area

:AMLH

Amount

:97000

Text

:out going payment

Account

:Under open item selection 4200001

Select process open items button

Double click on payable amount

:100000

From the menu select document Simulate

We get a message correct the marked line items.
Double click on blue font
Text enter

:+

Save

123

Automatic payment program (APP)

System will

-Check due dates

-Issue check
-Pass the enter and cleared party account
-Generate payment advance
- update check register
The check lot should be sequential we are not programmer system given payment
program.
Check format and payment advice format
APP will be used by cash rich companies
They run weekly / for every 10 days /For every 15 days
At the time of APP run, we have to give bankwise ranking with available amounts.
SBI
1
1000000
IDBI
2
500000
ICICI
3
300000
It will issue checks from SBI upto 10 lakhs. Then afterwards it issued form IDBI upto
500000 Then it goes to ICICI and issued up to 3000000
After run, it gives a proposal In the proposal it shows for which parties for which bills
from which bank it is going to issue to checks.
We can edit proposal

By blocking some invoices for payment

Or
By charging bank

Due

Party Y
1
2
3
4
5

Party X
1
2
3
4
5

Black invoices 4,5 and make the payment for 1,2 and 3 use the fund for party bill
payments.
System is issuing form SBI for party X 3 bills party is having account in ICICI-Change
bank from SBI to ICICI.
Setup payment methods for country for payment transactions
Path :SPRO Financial accounting-Account receivable and account payable
Business transactions-Outgoing payments Automatic outgoing payments -

124

Payment method /Bank selection for payment program-Setup payment method

per country for payment transactions
Select new entries button
Country

:IN

Payment method

:B

Description

:Check

Select outgoing payments radio button

Select check radio button
Document type for payment

:KZ

Clearing document type

:KZ

Payment medium program

:RFFOUS_C

Name of print date set

:LIST1S

Save
Press enter to save in your request

Setup payment methods per company code for payment transactions:

Same path
Select new entries button
Paying company code

:AML

Payment method

:B

Minimum amount

:10

Maximum amount

:9999999999

Select payment per due day check box

Select from data button
From for the payment medium: F110_PRENUM_CHECK
Drawer on the form

: for Aravind Mills Limited

Authorized signatory
Save
Press enter to save in your request
Setup all company codes for payment transactions:

125

Same path
Select new entries button
Company code
:AML
Paying company code
:AML
Separate payment per business area check box
Out going payment with cash discount from : Bank interest rate 1.5% per month
18% per annum
Payment term:
If we make the payment within 30 days we get -1% cash discount
Due within 60 days
System will payment 60 days since discount is less than bank interest rate.
Within 30 days
:Interest for month 1.5
Within 60 days
:Interest for month 1.5+1.5
Payment terms:
If we make the payment within 30 days we get 2% cash discount.
Due with in 60 days
System will within 30 days since discount more than bank interest rate.
Maximum cash discount:
Payment term:
If we make the payment within 30 days we get 1% cash discount. Due within 60 days.
Though we are not entitled, system claims 1% cash discount and make the balance
payment only even if it is paid with 60 days.
Special GL transaction to be paid under vendors : Select A (Advances)
Save
Press enter to save in your request

Setup paying company codes for payment transactions:

Same path
Select new entries button
Paying company code

:AML

Select forms button

From for the payment advise F110_D_AVIS
Select sender details button
Text ID

:Select ST (ST stands for Text)

Letter header

:F_0001_HEADER

Footer

:F_0001_FOOTER

126

Sender

:F_0001_SENDER

Save and Press enter to save in your request

Creation of sequential check lots (FCHI)
Paying company code

:AML

House bank

:SBI

Account ID

:SBI1

Select change button

Select create button
Lot number

:2

Check number

:800001

To

:801000

Deselect non-sequential check box

Short information

:SBI

Purchase date

:Todays

Enter and save

Assign payment methods in vendor master:
Path :Accounting-Financial accounting Accounts payable-Master records
Maintain centrally-Change (XK02)
Give the vendor no.
:4200001
Company code
:AML
Select payment transaction check box under company code data
Enter
Payment methods
:Select B
Payment block
:If we dont want to make the payment to this party in this
run, select -Skip account
Alternative payee

:We have purchased from Birla Chemicals Limtied BCL has

to make the payment to party XYZ BCL instructs us to
make the payment to XYZ-in alternative payee give XYZ no.
when we run APP ,check will be in the name of XYZ and
party clearing will be BCL

127

:BCL in having account in ICICI It instructs us to issue

check from ICICI only We give house bank ICICI- check
we issued only form ICICI.
Individual payment
:When we run APP, it will issue one check only for all the
bills due some parties ask us to issue separate check for
each bill. Select individual payment check box.
Separate check will be issued for each bill.
Select save button or Ctrl+S
House bank

END USER AREA

Purchase invoice posting (F-43)
Document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Give the amount

:9999

Business area

:AMLH

Text

:Purchase invoice posting

Posting key

:40

Account no.

:200120 Inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

Document Simulate and save

Setup bank determination:
Path :Accounting Financial accounting Accounts payable-Periodic processingPayments (Tr code is FBZP)
From the menu select Environment maintain -Configuration
Automatic payment program Customization one Screen FBZP

128

Select bank determination button

Select position button
Paying company code

:AML

Enter
Select AML
Double click on ranking order folder
Select new entries button
Payment method

:B

Currency

:INR

Bank order

:1

House bank

:SBI

Save
Press enter to save in your request
Double click on bank accounts folder
Select new entries button
House bank

:SBI

Payment method

:B

Currency

:INR

Account ID

:SBI1

Bank sub account

:200105 (SBI current account)

Business area

:AMLH

save
Double click available amounts folder
Select new entries button
House bank

:SBI

Account ID

:SBI1

Days

:999

Currency

:INR

available for outgoing payment :1000000

Save

129

Automatic payment program run (Tr code is F110)

Path :Up to periodic processing the path is same- Payments (Tr code is F110)
Run date
Identification
Select parameter tab
Company codes
Payment methods

:Todays date
:AML1
:AML
:B

Though we have given the date, we can run tomorrow it self

Payment term

:If we make the payment within 10 days we get 2% cash

discount (Dues within 30 days)

Purchase today

:07.11.2008

If we make the payment to day -2%

If we make the payment on 14.11.2008 2%
System will not issue check todays It will issue in the next run since the discount
amount is same.
It control the cash flows
Party bill date
Payment term
APP run today

:07.11.2008
:AML2
30 days credit 07-12-2008
: It asks next Posting date :14.11.2008

APP run2
Next payable date
Next posting date

:14.11.2008
:14.11.2008
:14.11.2008

Vendor from
Vendor to
Save

:4200001
:4300000

21.11.2008

Select bank arrow

Select proposal button (Shift +F1)
Select start immediately check box
Enter
Go on press enter (Basic Tr code box green tick mark box)
Till we get the message payment Proposal has been created
130

To edit the proposal -Select any proposal button enter (Shift +F4)
Double click on vendor no.
To block on invoice for payment
Double click on document no.

:100001

Payment block

:Select A (Block for payment )

Enter
To change bank for second bill
Double click on document no.

:100004

Select reallocation button

Payment method

:B

House bank

:SBI

Account ID

:SBI1

Enter
Save
Select bank arrow two times
We get a message payment proposal has been edited
Select payment run button
Enter
Go on press enter .
It we get the message payment run has been carried out.
To take check printing:
Select printout / data medium tab for the program RFFOUS_C
Give the variant

:A1

Select maintain variants button

Select for all selection screen radio button
Select continue button
Program run date

:07.11.2008

Identification feature

:AML1

Paying company code

:AML

131

Payment method

:B

Business area

:AMLH

House bank

:SBI

Account id

:SBI1

Check lot no.

:2

Select print checks check box

Printer

:LP01

Select print immediately check box

Select print payment advice notes check box printer :LP01
Select print immediately check box
Select print payment summary check box
Printer

:LP01

Select print immediately check box

No.of sample print outs

:0

Select dont void any checks check box

Select attributes button (F5)
Meaning

:SBI check printing date 08.11.2008

Save
Select back arrow
Save once again
Select bank arrow
Select print out button
Select start immediately check box
For job name in place of question of mark Give variant A1
A1
Company code
:AML
Business area
:AMLH
Bank
:SBI
Account ID
:SBI1
Check lot no.
:2
Parameters are saved in the variant in place of question mark A1
Press enter
Enter once again
To view check printing

132

From the menu select system Services output control

Select execute button
Select spool no.check box for check
Select display contents (F6)
Go and see the vendor Account FB11N
Give the vendor account

:4200001

Company code

:AML

Select cleared items radio button

Select normal items check box
Execute
Double click on document type

:KZ

For the amount

:9999

Select call up document overview button (F9)

Select display document header button
Enter
From the menu select Environment check information

Go and see the check register (FCHN)

Give the paying company code
Execute

:AML

Credit memo postings

Purchase from Birla Chemicals Limited
If the material is not good
Return the material or reduce the amount (Price)
BCL will issue credit note to mail or AML raises Debit note on BCL
Both are same
Doc type
:KG (Credit memo)
KA
No.range 17
17
No need to give no.range interval already we have given earlier

133

Path :Accounting- Financial accounting Accounts payable Document entry

Credit memo general (F-41)
Document date

:Todays date

Type

:KG (Vendor credit memo)

Company code

:AML

Posting key

:21 Credit memo

Account

:4200001

Enter
Give the amount

:1000

Business area

:AMLH

Text

: Credit memo posting

Posting key

:500

Account no.

:200120 Inventory raw material

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and save

Note: Cash journal postings not accept negative balances
Normal postings Accept negative postings

134

ACCOUNTS RECEIVABLE (A/R)

This is also a Sub Ledger (Subsidiary Ledger)

This is used when Sales & Distribution (SD) Module Is not implemented-All types of
sales.
Eg: Product Sale/Raw Material Sale/Scrap Sale
When Sales & Distribution(SD) Module is implemented-This is used for Raw Material
Sale /Scrap Sale/Asset Sale-(Other than Product Sale)
At the time of sale:
Customer Account Dr
SALES

Sub ledger
|
General Ledger

Sundry Debtors(General Ledger)

|
TO
|
|
|
Reconciliation Account
Or
Control Account

BASIC SETTINGS FOR ACCOUNTS RECEIVABLE:

1.Creation Of Customer Account Groups
A)FI Customers
Asset Sale/Scrap Sale/RM Sale
Parties

Reconciliation account field

135

B)SD CUSTOMERS

Required Entry field

PRODUCT SALE PARTIES

2.Create number ranges for customer accounts
3.Assign number ranges to customer account groups
4.Creation of 2 GL masters
A)Sundry Debtors-

"Current Assets,Loans&Advances"

B)Sales Account
Sales
5.Creation Of Customer Master
6. Document Types And No.Ranges
DR
Customer Invoice
DZ
Customer Payment
DA
Customer Document For
Transfers/Reversals
7.Posting Keys

01
15

OBA7

Customer Debit
Customer Credit

We test a scenario where vendor is a customer

Party BCL
Party BCL
Purchase
100000
Sales
100000
Sales
20000
Purchase
20000
-------------Net Payable
80000
Net Receivable 80000
When we Pay/Receive net amount we have to clear vendor transactions and customer
transactions at a time
Note : Create receipt terms (if any cash discount debit - Debit expenses )
1.SALES INVOICE POSTING:
Creation of customer account groups
Path: SPRO- Financial Accounting- Account Receivables and accounts payables
customer accounts Master data- Preparation for creating customer master dataDefine account groups with screen layout (customers)
Select new entries button
Account group

: AML1

136

Name

: FI Customers for AML

Double lick company code data

Double click account management
Reconciliation account make it required entry filed
Save
Select create request button
Short description for AR customization for AML
Press enter
Enter once again to Save in your request
Select next entry button
Account group

: AML2

Name

: SD customers for AML

Double click on company code data

Double click on account management
Reconciliation account make it required entry filed.
Save.
Create No. range for customer accounts:
Path :Upto preparation for creating customer master data the path is same.Create no. range for customer accounts (Tr.code is XDN1)
Select change intervals button
Select interval button
No. range

:23

From no.

:6600001

To no.

:6700000.

Enter
Select interval button once again
No.range

:24

From no.

:6700001

To no.

:6800000

Enter and Save

137

Ignore the warning message press enter

Assign Number ranges to customer account groups:
Same path
Select position button
Account group

: AML1

Enter
For AML1

Assign no.range :23

For AML2

Assign no.range :24

Save
Press enter to save in your request
Define tolerance group for Customer
Path :SPRO-Financial accounting-Account receivable and account payableBusiness truncations-incoming payments-manual incoming payments-Define
tolerances(Customers)
Select new entries button
Company code
:AML
Tolerance group
: Blank
Description
:Tolerance group for AML
Save
Press enter save in your request

Creation of GL Masters (FS00):

Give the GL account no.

:200110

Company code

:AML

Select with template button

Give the GL account no.200150 advance to vendors
Company code

: AML

Enter
Change short text and GL account long text to Sundry Debtors

138

Select control data tab

Change reconciliation account for account type to customers
Change sort key to 031 customer number
Select Create / Bank / Interest tab
Field status group

:G067

Save
GL account no

:300000

Company code

:AML

Select with template button

Change GL account 300100 Exchange gain
Company code

:AML

Enter
Select type/description tab
Change the account group to sales/.
Change short text and GL account loge text to sales account
Other fields are common
Select save button or Ctrl+S
Creation of customer master
Path: Accounting- Financial accounting Accounts receivables-Master recordsMaintain Centrally-Create (Tr.Code is XD01)
Account group

:select FI customer for AML

Company code

:AML

Enter
Title :

: select Company

Name

: BIRLA Chemicals Limited

Country

: IN for India

Select control data tab

Vendor

:4200001

Select company code data button

Reconciliation account

:200110 Sundry debtors

139

Sort key

:031 (Customer no.)

Select payment transaction tab

Terms of payment

:0001 payable immediately due net

Save

Document type number ranges (OBA7)

Select type Dr customer invoice
Select details button
No.range

:18

Select no.range information button

Company code

:AML

Select change intervals button

Select intervals button
No.range

:18

Year

:2008

Form no.

:400001

To no.

:500000

Enter and save

Ignore the warning message press enter
Select back arrow 3 times
Select type

:DZ (Customer payment )

Select details button

No. range

:14

Select no.range information button

Company code

::AML

Select change intervals button

Select interval button
No.range

:14

Year

:2008

From no.

:500001

140

To no.

:600000

Enter and save

Ignore the message press enter
Select back arrow three times
Select type

:DA (customer document)

Select details button

No.range

:16

Select no.range information button

Company code

:AML

Select change interval button

Select interval button
No.range

:16

Year

:2008

Form no.

:600001

To no.

:700000

Enter and save

Ignore the warning message press enter

ENTER USER AREA

Sales invoice posting:
Path accounting Financial accounting Account receivable- Document entryInvoice General (F-22)
Give the document date

:Todays date

Type

:DR

Company code

:AML

Posting key
Account

:01 Invoice (Customer debit) C:Customer D: Debit

: select 6600001

Enter
Give the amount

:500000

Business area

: AMLH

141

Text

: Sales Invoice posting

Posting key

:50

Account

:300000 (sales account)

Enter
Account

:*

Business area

:AMLH

Text

:+

From the menu select document Simulate and save

2.How To View Customer Account TransactionsPath : Accunting Financial accounting Accounts receivable- Account-Display /
Change line items (Tr.code is FBL5N)
Give the customer account no.

:6600001

Company code

:AML

Select open items radio button

Select normal items check box
Select execute button
Select back arrow
To view vendor and customer transactions together
Select vendor items check box along with normal items
Execute
3.Incoming payment and clear vendor and customer transactions together
Step A)Document type DZ should allow vendor transactions
Document types and no. Ranges-OBA7
Select doc type:
Select details button

DZ

Select doc type: kz

Select details button

Below no. RangeAccount type:

Below no. RangeAccount type:

142

A
D
K
M
S

Assets
Customers selected
Vendors to select
Materials
GL accounts selected

Normal receipt entry:

Bank A/c DR
To customer

D
K
M

GL
customer

use the Tr.code OBA7

Select document type
select details button
select vendor check box
save

A
assets
customers to select
vendors selected
materials
S
GL accounts selected

Normal payment entry:

vendor a/c DR
Vendor
To Bank
GL

: DZ (customer payment )

Incoming Payment :
Path :Accounting Financial accounting Accounts receivable- Document entryIncoming payments (Tr.Codes is F-28)
Give the document date

: Todays date

Type

: DZ Customer payment

Company code

: AML

Clearing text

: Incoming payment

Account under bank data

: 200105 (SBI current account)

Business area

:AMLH

Amount

:496000

Text

: Incoming payment

Account under open item selection

Account type

: Select 6600001
:D comes by default (D stands for
customers)

Select other accounts check box

Select process open item button
Select standard open items check box
Account type

: Select K (Vendors)

143

Company code

:AML

Account

:4200001

Select continue button

Double click on all open items
Document Simulate and save
Go And See The Customer Account Transactions (Tr.code is FBL5N)
Give the customer account no.

:6600001

Company code

:AML

Select cleared items radio button

Select normal items check box
Select vendor items check box
Execute
Advance Receipts From Customers
(Down Payment Receipts From Customers)
Sundry
Sale
Advance
Debtors
(Current
Asset)
Receipt
Sale

Advance from
Customers
(Current Liabilities)

1. Creation Of GL Master-Advance From CustomersProvisions (FS00)

under Current Liabilities &

2. Link between Sundry Debtors and advance from Customers

A
(Advance)
Special GL Indicator
/\
Sundry debtors Advance from customers
(Reconciliation Account)

(Alternative reconciliation
account or special GL
account)

3.Advance Receipt Posting

144

4. Sales invoice posting

5. Transfer of advance from special GL to normal by clearing special GL items
6. Clearing of normal items
a)Customer account two parts
b) Special GL items
1.

Creation of GL master advance from customer current liabilities &

provisions (FS00)
Give the GL account no.

:100502

Company code

:AML

Select with template button

Give the GL account no.

:200110 Sundry debtors

Company code

:AML

Change account group to current liability & provisions

Change short & GL account long text advance from customers
Save
3. Link between Sundry Debtors and advance from Customers
Path :SPRO-Financial accounting-Accounts receivable and accounts
payable-Business transactions-Down payment received Define
reconciliation accounts for customer down payments(OBXR)
Double click on special GL indicator A
Give a your chart of accounts

:AML

Enter
Reconciliation account

:200110

Special GL account

:100502

Select save button or Ctrl+S

Press enter to save in your request
END USER AREA
Advance receipt posting:
Path :Accounting- Financial accounting Accounts receivable-Document entryDown payment Down payment (Tr.code is F-29)

145

Give the document date

:Todays date

Type

:DZ

Company code

:AML

Customer account

:6600001

Special G/L indicator

:A

Bank account

:200105 SBI current account

Business area

:AMLH

Amount

:12000

Text

:Advance receipt posting

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu select Document Simulate and save

Go and see the customer account transaction (FBL5N)
Give the customer account no.

:6600001

Company code

:AML

Select open items radio button

Select special GL transactions check box
Execute
Sales invoice posting ( Tr code is F-22)
Give the document date

:Todays date

Type

:DR customer invoice

Company code

:AML

Posting key

:01

Account

:6600001

Enter
Amount

:12000

Business area

:AMLH

146

Text

:Sales invoice posting

Posting key

:50

Account no.

:300000 Sales A/c

Enter
Amount enter

:*

Business area

:AMLH

Text

:+

Form the menu select document Simulate and save

Go and see the customer account transaction (FBL5N)

Give the customer account no.

:6600001

Company code

:AML

Select open items radio button

Select normal items check box
Execute
Select back arrow
Select special G/L transactions check box along with normal items
Execute
Transfer of advance from special GL to normal by clearing special GL items:
Path :Accounting-Financial accounting Accounts receivable-Document entryDown payment clearing (F-39)
Give the document date

:Todays date

Type

:DA

Company code

:AML

Customer account

:6600001

Text

:Advance receipt clearing

Select process down payment button

Transfer posting

:12000

Save

147

Go and see the customer account transactions (FBL5N)

Give the customer account no.

:6600001

Company code

:AML

Select cleared items radio button

Select special GL transactions check box
Execute
Select bank arrow
Select open items radio button
Select normal items check box
Execute
Clearing of normal items:
Path :Accounting- Financial accounting Accounts receivable Account Clear
(F-32)
Give the account no.

:6600001

Company code

:AML

Select process open item button

Double click on debit

:12000

Double click on credit

:12000

Save
Go and see the customer account transactions FBL5N
Give the customer account no. :6600001
Company code
:AML
Select cleared items radio button
Select normal items check box
Execute

148

BILL DISCOUNTING
Fund based limits
(Money will be given
physically by the bank)
1. Cash credit
Local Sales order
2. Packing credit
Export sales orders
3.Bank overdraft
4.Bill discounting
Bill discounting mechanism

Non fund based limits

(Money will no be given
physically by the bank to
the company)
1. Bank Guarantees (BG)
2. Letter of credit (LC)

AML

Sale 500000 on 12.11.2008

Term of payment 30 Days Credit

AML Discounts the bill

With the bank
|
Bank will charge 30 days
|
On due date, bank will collect
From customer
|
----------------------------------------------------------------------------------------|
|
Customer makes the
customer does not make
the
payment to the bank
Payment to bank liability to
AML

149

No liability to AML

Liability to AML
Contingent liabilities
Liability is uncertain

Year end:

This is shown in notes to accounts Under contingent liabilities

Bills discounted with bank

Normal Accounting
A) Incase of sales
Customer A/c
Dr
To Sales
B) Bill of exchange payment
- No entry -

C) Bill discounting
Bank current A/c Dr
To Bank bill discounting
D) Report view customer wise
/BIllwise due date
wise/Bankwise out standings
available in SAP
E) Reverse contingent liability
Bank bill discounting Dr
To Customer

SAP Accounting
Customer A/c Dr
(Sundry debtors)
To Sales
Customer special GL (W) Dr
(Sundry debtors bill of exchange)
To customer a/c with clearing
(Sundry debtors)
Bank current A/c Dr
To Interest A/c
To Bank Bill discounting

Bank bill discounting (with clearing) Dr

To Customer special GL(W) with
clearing
(sundry debtors will of exchange)

Presentation in Balance sheet:

Sundry debtors=Sundry debtors

Sundry debtors
(Bill of exchange)
Bank bill discounting

Debit
} Net Zero
Credit

Or
Dont plot sundry debtors bill of exchange and bank discounting in balance sheet-It is
required only for notes to accounts.

150

Customer A/c
Normal items

SBI bill discounting

OP BAL
300000

A) 100000

E)100000

B)100000

C)100000
---------400000

Special GL
B)100000

E)100000

300000

Limits with banks:

Bill discounting limit
Already discounted

SBI
5000000
3000000
------------2000000

Limit available
Bill discounted as per C
Limit available
Payment by customer as per E
Now limit available

IDBI
2000000
2000000
-----------0
=======

1000000
----------1000000
1000000
----------2000000
======

Creation of 2 GL masters
Sundry debtors (Bill exchange under current assets, loans & advances.
SBI bill discounting

Secured loans

Fund based limits and non-fund base limits

First change on current asset and

second change on fixed assets.

Creation of GL account (FS00)

Give the GL account no.

:200111

Company code

:AML

Select with template

Give the GL account no.200110 Sundry debtors
Company code

:AML

151

Enter
Change short text to sundry debtors Bill of Exchange
Change GL account long text to sundry debtors (Bill of exchange)
Other fields are common
Select save button or Ctrl+S
GL account no.

:100302

Company code

:AML

Select with template with button

Give the GL account no.100300 SBI Rupee Term loan
Company code

:AML

Change short text and GL account long text to SBI bill discounting
Select control data tab
Select open item management check box
Select create /bank /interest tab
Select post automatically only check box
Save
Link between sundry debtors and sundry debtors bill of exchange
Path:SPRO-Financial account-Bank account Business transactions-Bill of
exchange transactions-Bill of Exchange receivable-Post bill of change receivableDefine alternative reconcile Actual for Bills/Exchange receivable (Tr code is
OBYN)
Double click on special GL indicator

:W (Bill of Exchange receivable)

Give the chart of accounts

:AML

Enter
Reconciliation account

:200110

Special GL account

:200111 Sundry debtors (Bill of exchange)

Save
Save in your request
Link for Bank current account, Sundry debtors Account and bank bill discounting
account

152

Path: up to the bill of exchange receivable at bank-Define bank sub accounts(Tr

code is OBYK)
Select new entries button
Chart of accounts

:AML

Bank account

:200105 SBI current account

Usage select discounting special GL indicator :W

Customer reconciliation account :200110(sundry debtors)
Bank sub account for liability :100302 (SBI bill discount)
Save
Press enter to save in your request
END USER AREA
Sales invoice posting (F-22)
Give the document date

:Todays date

Type

:DR

Company code

:AML

Select posting key

:01

Account no.

:6600001

Enter
Amount

:100000

Business area

:AMLH

Payment terms

:Select NT 30 Net 30 (30 days credit)

Text

:sales invoice posting

Posting key

:50

Account

:300000 Sales account

Enter
Ignore the warning message press enter
Amount

:*

Business area
Text

:AMLH
:+

From the menu select document Simulate and save

153

Bill of exchange payment:

Path :Accounting Financial accounting- Accounts receivable Document entryBill of exchange Payment (F-36)
Give the document date

:Todays date

Type

:DZ

Company code

:AML

Posting key

:09 Customer special debit

Account no.

:6600001

Special GL indictor

:W

Enter
Amount

:100000

Business area

:AMLH

Text

:Bill of exchange payment

Due on

:14.12.2008 (30 days due date)

Placement usage

:select discounting

Domicile

:SBI

Control bank location

:Main Branch, HYD

select choose open item button

Select process open item button
Double click on receivable :100000
From the menu select document Simulate and save
Note the document no.500003
Bill discounting:
Path :Accounting Financial accounting- Accounts receivable- Document entry
Bill of exchange Discounting (F-33)
Give the document date

:Todays date

Type

:DA

Company code

:AML

Bank account

:200105 (SBI current account)

154

Business area

:AMLH

Amount

:95000

Text

:SBI bill discounting

Posting key

:40

Account no.

:400400 Interest account

Enter
Amount

:500000

Business area

:AMLH

Text

:+

Press select bill of exchange button

Doc no.

:500003

Document Simulate and save

Report to view customer wise bill wise, document wise and bank wise
outstanding:
Path :Accounting Financial accounting-Accounts receivable-Periodic
processing Bill of exclude processing Korea-Bill of exchange management
(Tr codes S_ALR_87012213)
Give the chart of accounts

:AML

GL account

:200111 Bill of exchange

Company code

:AML

Special GL indicator

:W

Usage

:select D (Discounting)

Select discounted /Collected radio button

Execute
Select current layout button
Keep the fields due date, document no, customer received form, document dataDomicile.
Amount in local currency
Select copy button
Reverse contingent liability :

155

Path :Accounting-Financial accounting Accounts receivable-Document entryBill of exchange Reverse contingent liability (F-20)
Give the document date & Posting date
:13.12.2008
Type
:DA
Company code
:AML
GL account
:200111 (Sundry debtors bill of exchange)
Usage
:Select discounting
Due by
:31.12.2008
Customer
:6600001
Select edit line items button
Ignore the all warning message and press enter

Select drop down button for command column

+
++
-

Set items to active

Set items is blocks to active
Set items to inactive
Set items in blocks to inactive

Customer made payment for 2,3 and 4 bills.

Bill No
2
3
4
5

or
+
+
+

or

++
++
-

Customer made payment for 1 and 5 bills

Bill no.
or
or
1
+
2
3
4
5
+

Command filed select +

Save
From the menu select document Display

156

If bill is dishonored:
Contingent liability becomes actual liability base step E reverse contingent liability
additional entry to be passed.
Customer
account
To SBI current account

Dr
(Sundry debtors)

Dunning (Reminder)
If the customer does not make the payment as per terms of payment system will
issue dunning letters.
We are not programmers we use system given dunning letter formats.
Dunning area:
Company code as a whole /Regional wise / location wise
Eg.Big companies
Separate marketing heads
For East

For West

For North

For South

Only to his area customers.

Here we create each session as one dunning area .
Small companies one marketing head for all the regions.
Company code will be the dunning area.
(Cash credit : Loan from bank and after sales we discharge the liability export sales
order , packing credit loan from bank , bill discounting after sale)
Dunning levels type of letters
Maximum
:9 levels
We are using
:4 levels
Dunning intervals (Frequency)
:10 days
Grace period
:3 days
Eg:
Sale on 17.11.2008
Payment terms 0001
Payable immediately

1st Letter
2nd Letter
3rd Letter
4th Letter
after
after
after
after
20.11.2008 30.11.2008 10.12.2008 20.12.2008

Dunning charges: For sending the letter we can collect dunning charges form the
customer.
It can be level based / amount
Based

157

It can be fixed percentage amount

It will be shown only in the letter
It will not be posted the accounts
Define dunning areas:
Path :SPRO-Financial accounting-Accounts receivable and account payableBusiness transactions Dunning Basic settings for dunning Define dunning
areas.
Select new entries button
Company code

:AML

Area

:Blank

Text

:Dunning area to AML

save
Ignore the warning message press enter
Press enter to save in your request
Define dunning procedures:
Path :Up to dunning the path is same Dunning procedures-Define procedures
(Tr code is FBMP)
Select new procedure button
Dunning procedure

:AML

Name

:Dunning procedure for AML

Dunning interval in days:10

No.of dunning levels

:4

Line item grace periods :3 days

Interest indicator

:Select 01 standard item interest calculation

Select standard transactions dunning check box

Ignore the warning message press enter
Dunning texts button
Company code

:AML

Select customer radio button

Enter

158

Select new company code button

Give the company code :AML
Enter
For company code

:AML select separate notice per dunning level check box

Select back arrow two times

Select Yes button for the message to save date
Press enter to save in your request
Select dunning levels button
Select always dun check box for all the four levels
Select charges button (F6)
Give the currency

:INR

Enter

Company code

:AML

Select customer radio button

Enter
Open one more session with transaction code :FBMP
Double click on procedure

0001

Select dunning text button

Give the company code

:0001

Select customer radio button

Enter
Come to the first session
Dunning level 1
From F150-Dunn -01
Dunning level 2
Select pagedown button (right side)
Dunning level 3
Form F150_dunn_02
Dunning level 4th

159

Form F150_dunn_02
Now select charges button
Give the currency :INR
Enter
Select back arrow
Save
Ignore the warning message press enter
Press enter to save in your request
Assign dunning procedure in customer master:
Path :Accounting-Financial accounting-Accounts receivable Master recordsMaintain centrally-Change (Tr code is XD02)
Give the customer account no.

:660001

Company code

:AML

Enter
Select company code date button
Select correspondence tab
Dunning procedure

:select AML

Save
END USER AREA
Sale invoice posting (F-22)
Give the document date & posting date :10.11.2008
Type

:DR

Company code

:AML

Posting key

:01

Account

:6600001

Enter
Amount

:1111

Business area

:AMLH

Text

:Sales invoice posting

160

Posting key

:50

Account no.

:300000 Sales account

Enter
Amount

:*

Business area

:AMLH

Text

:+

From the menu Select Document Simulate and save

Dunning run
Path: Accounting Financial accounting-Accounts receivable Periodic
processing-Dunning-(Tr code F150)
Run on

:Todays date

Identification

:AML1

Select parameter tab

Dunning date

:Todays date

Documents posted up to

:Today date

Company code

:AML

Customer

:6700000

Save
Select back arrow
Select schedule button
Select start immediately check box
Output devise

:LP01

Select schedule button

Go on press enter till we get the message Dun selection is complted
Select dunning print out button
Select print button
Go on press enter till we get the message dunning print out is completed
Select dunning history button

161

Give your company code :AML

Execute (F8)
Keep the cursor on 1111
Select display dunning notice button
Keep the cursor on the document no.
Select print preview button
Go and see the customer master (XD02)
Customer
Company code
Enter
Its updates automatically
Last dunned date

:6600001
:AML

:17.11.2008 and dunning level.

162

SALES TAX
VAT means valued added tax or LST Local Sales Tax
CST mans Central Sales Tax
Purchase
Input tax
1
Local
purchases
VAT/CST
Purchase
Basic
100
Excise 8% 8
VAT 4% 4.32(B+E)
4.4(CST2%)
--------Bill amount 112.32
224.40
======

Sales (Output tax)

2
3
outside
state

4
Local
Sales

CST purchase

VAT /L

100
8
2.16(CST2%)

200
20

-------110.16

---------

=====

=====

Outside
State sales
CST sales

200
20
27.50(VAT12.5%)
--------247.50

Payment to sales Department

1. Local sales Local purchases 27.50-4.32=23.18
2. Local sales CST purchases 27.50=27.50
3. CST sales Local purchases 4.4-4.32=0.08
4. CST sales CST purchases=4.4=4.4

163

======

At the time of local purchases, tax paid on purchases, can be adjusted to tax
payable at the time of sales. (Local sales /CST sales)
At the time of CST purchase, tax paid on purchases can not be adjusted to add to
inventory.
Excises rates are based on products
Excise rates are given central excise tariff, in central excise tariff we have 8 digits
chapter ID.
52000000 Textiles 8%
Central excise will be covered in the end.
We are testing now without excise duty.
Customization of sales tax

1. Define tax procedure

Path :SPRO-Financial accounting Financial accounting global settingsTax on sales /purchases-Basic settings-Check calculation procedure.
Double click on define procedures
Select new entries button
Procedure

:H Tax

Description

:Sales tax India

Save
Press enter to save in your request
Select H Tax
Double click control data folder
Select new entries data folder

Select new entries button

Step

Co

C Type

Description From To

10

Select BASB Base amount

20

MWVS

Input tax

10

10

Select VST -Input tax

30

MWAS

Output tax 10

10

MWS output tax

Save

164

Account key

Assign country to calculation procedure

Up to basic settings the path is same Assign country to calculation procedure
Select position button
Give the country

:IN for India

Enter
For country IN assign procedure H tax
Save
Press enter to save in your request

Define tax codes for sales and purchases

Up to tax on sales of purchases the path is same-Calculation Define-Tax
codes for sales and purchases. (Tr.code is FTXP)
Give the country

:IN for India

Enter
Give the tax code

:Vo

Enter
Description

:0% input tax

Tax type

:Select V input tax

Enter
Input tax, tax percent rate 0
Keep the cursor on ouput tax, tax percent rate
Select deactivate line (F5) button
Save
Tax code

:V1

Enter
Description

:4% input tax

Tax type

:select V input tax

Enter
Input tax, tax % rate 4

165

Keep the cursor out put tax, tax percent rate

Select deactivate line button
Save
Tax code

:A0

Enter
Description

:0% output tax

Tax type

:select A output tax

Enter
Output tax, tax percent rate 0
Keep the cursor our input tax, tax percent rate
Select deactivate line button
Save
Tax code

:A1

Enter
Description

:12.5% output tax

Tax type

:Select A out put tax

Enter
Output tax, tax percent rate 12.5%
Keep the cursor on input tax, tax percent rate
Select deactivate line button
Save
Assign tax codes for non-taxable transactions
Path :Up to tax on sales/purchases the path is same Posting-Assign tax codes
for non-taxable transactions (Tr code is OBCL)
Select position button
Give your company code
:AML
Enter
For AML select input tax V0
Out put tax Vo
Save
Press enter save in your request
Creation of GL master FS00

166

1. VAT receivable
2. VAT payable

Current assets,
Loans & Advances

Current liability
Tr code is FS00
Give the GL account no.

:200155

Company code

:AML

Select with template button

Give the GL account no.

:200120 (Inventory RM)

Company code

:AML

Enter
Change short and GL long text to VAT receivable
Select create / Bank /Interest tab
Field status group change to G041 (Tax office clearing accounts)
Save
One more account
Give the GL account no.100505
Company code

:AML

Select with template button

Give the GL account no.

:200155

Company code

:AML

Enter
Select type/Description tab
Change account group to current liability and provisions
Change short text and GL account long text to VAT payable
Save
Give the GL account no.:200120
Company code

:AML

From the menu select GL account change

Select control data tab
Tax category

:Select * (All tax types allowed)

167

Select posting without tax allowed check box

Save
Ignore the warning message press enter
GL Account

300000

Company code

AML

Sales A/c

From the menu select GL account change

Tax category

:select *

Select posting without tax allowed check box

Save
Ignore the message press enter
Assignment of accounts for automatic postings:
Path :SPRO-Financial accounting Financial accounting global settings-Tax
on sales/purchases-posting-Define tax accounts (OB40)
Double click on transactions VST (input tax)
Give the Chart of Accounts :AML
Enter
Select save button or Ctrl+S
Give the account :200155 VAT receivable
Save
Press enter to save in your request
Select back arrow
Double click on transactions MWS(output tax)
Save
Give the account no.100505 VAT table
Save
Press enter to save in your request
In line environment FI consultants job: Customization
Creation of Tax procedure
Creation of tax codes
Creation of GL accounts
Assignment of GL accounts

168

MM module:
Purchase order material no.RM1
Purchase order vendor 1234
Purchase order Qty 1 Kg
Purchase order Rate 100
Purchase order tax code V1 (4% input tax)
Goods receipt
Tax procedure:
Base amount
100 (1* 100) inventory Account
Input tax on base amount 4
VST -200155 VAT receivable
(V1-4% )
----Vendor credit
104
===
SD module:
Sales order

Customer no.
9876
Material
FG1
Qty
1Kg
Rate
200
Tax code
A1 (12.5%) output tax

Tax procedure
Base amount
200 sales account
Output tax on base amount 25 MWS -100505 VAT payable
At 12.5%
----Customer debit
225
===
In FI for sales:
Customer account Dr 225
To sales
200
To VAT payable
25
Save
Sales invoice posting Tr code is F-22
Give the document date :Todays date
Company code

:AML

Posting key

:01 customer debit

Account

:6600001

Enter
Give the amount

:225

169

Select calculate tax check box

Text

:Tax sales invoice posting

Posting key

:50

Account no.

:300000 (Sales a/c)

Enter
Amount

:*

Tax code

:Select A1

Business area

:AMLH

Text

:+

From the menu select Document- Simulate

Double click on VAT payable line item
Business area

:AMLH

Text

:+

Save

170

ASSET ACCOUNTING
Bad debits:
1. Creation of GL Master :Provision for bad debts reconciliation A/c No.200112
2. Link between sundry debtors and provision for bad debts :OBXY
E
/\
200110

Reserve for bad debt

200112

3. Sales invoice posting

F-22

4. Transfer from customer normal to customer special GL

E
Customer special GL E
ER
Dr
To customer with clearing
5. After 3 years bad debtors Dr
To Customer special GL

F-30
Provision for bad debt
Sundry debtors
F-30
Provision for bad debt

Asset accounting: This is sub ledger (subsidiary ledger)

Chart of Depreciation
Asset accounting customization will be done for Chart of Depreciation will be assigned
to company code/codes.
We have to copy either Germany chart of depreciation or Indian Chart of Depreciation.
Depreciation areas:
Book depreciation (Postings to accounts)

171

Income tax depreciation

Group depreciation
Costing depreciation

|
| Only for information
|

Depreciation methods;
Straight Line Method depreciation method (SLM)
Written down value depreciation method (WDV)
Depreciation keys
5% SLM Rate
5% WDV Rate

Rate +Method

Transaction types
100 External acquisition
110 In-house production \
210 Retirement with revenue
Asset debit
The debit can be use of External acquisition (Outside purchase) /In house
production/Inter unit transfer/Inter company purchase.
With transaction type we will come to know because of what it is debited.
Posting keys:
70 Asset Debit
75 Asset Credit
Asset accounting is based on 4 rules:
1. Sub asset master is to be created with reference to main asset master.
2. Main asset master is to be created with reference to asset class
3. Account determination is specified in asset class
4. For account determination we assign GL accounts based on the nature of
transaction.
Account
Asset class
determination
Purchase
200000 P & M
200000 P& M

1.Land
2.Building

Profit on asset Dept A

sale
3. Plant &

Free hold
Lease hold
Factory
Non factory
Machine no.1
15.05.2003

172

Main asset
master

Sub asset
master

Motor

Machinery
Loss on asset
Sale
Loss due to
scrapping
Depreciation

Dept B
Dept C
4. Furniture &
Fixtures
5. Vehicles

Accumulation
depreciation

6. Capital
work in
progress

Machine no.2

20.11.2008

Furniture &
Fixtures
Heavy ,
Others
General
Expansion 1
Expansion 2

Additions to specific mechanical will be created as sub asset masters.

Main asset will be have always sub number zero.
Crate machine no.1 Master
Motor to machine no.1
Addition to machine no.1

1-0
1-1
1-2

If we give 1-0 it gives main asset value

If we give 1-1 it gives motor value
If we give 1 it gives machines 1 with additions
Why we call Land /Buildings etc. as account determinations.
These items will determine the GL accounts to be posted automatically.
Motor purchase: .
Motor A/c
Dr
SL
To Bank GL

500000
2000000
500000

Transaction type :100

P & M 50000 GL

Save
CUSTOMIZATION
Copy reference Chat of Depreciation /Depreciation Area:
Path :SPRO-Financial accounting-Asset Accounting Organizational structures
Copy reference Chart of Depreciation /Depreciation area (Tr code is EC08)
Double click on copy reference Chart of Depreciation
From the menu select organizational object
Copy org. object (F6)

173

From Chart of Depreciation :Select ODE

(Maximum valuation: Germany)
To chart of Depreciation

:AML

Enter
Ignore the message press enter
Select create request button
Short depreciation :Asset customization for AML
Enter
Press enter once again to save in your request
We get a message chart of depreciation ODE copy to AML
Enter
Select back arrow
Double click on specify depreciation of Chart of Depreciation
Select position button
Chart of Depreciation

:AML

Enter
Change the description to Chart of Depreciation for AML
Press enter to save in your request
Select back arrow
Double click copy /delete depreciation areas
Give the Chart of Depreciation :AML
Enter
Select areas 3,10,15,20,31,32,41 &51
From the menu select Edit Delete
Save
Ignore the warning message press enter
Press enter to save in your request
Assign Chart of Depreciation to Company code
Path :Up to organization structure the path is same Assign Chart of Depreciation
to company code (Tr code is OAOB)

174

Select position button

Give the company code

:AML

Enter
For company code AML Chart of Depreciation AML
Save
Press enter to save in your request

Specify account determination

Path :Up to the organizational structure the path is same Asset Class-Specify
account determination
Select new entries button
Account
Description
determination
AML10000
Land
AML11000
Building
AML20000
Plant & Machinery
AML30000
Furniture & Fixtures
AML31000
Vehicles
AML40000
Capital work in progress
Save
Press enter to save in your request
Create screen layout rule
Same path
Select screen layout

1000

Select screen layout

1100

Select screen layout

2000

Select screen layout

2100

Select screen layout

2500

Select screen layout

3000

Select copy as button

Change screen layout 1000 to AML1
175

Name

:Land

Change screen layout 1100 to AML2

Name

:Buildings

Change screen layout 2000 to AML3

Name

:Plant & Machinery

Change screen layout 2100 to AML4

Name

:Furniture & Fixtures

Change screen layout 2500 to AML5

Name

:Vehicle

Change the screen layout 2600 to AML6

Name

:Capital work in progress

Enter & Save

Press enter to save in your request
Define number range intervals
Path :Same path (Tr code is AS08)
Company code

:AML

Select change intervals button

Select interval button
Number range

:01

From number

:100000

Enter
Select interval button once again
No.range

:02

From no.

:100001

To no.

:200000

Enter
Select interval button
No.range

:03

From no.

:200001

To no.

:300000

176

Enter
Select interval button
No.range

:04

From no.

:300001

To no.

:400000

Enter
Select interval button
No.range

:05

From no.

:400001

To no.

:500000

Enter
Select interval button
No.rage

:06

From no.

:500001

To no.

:600000

Enter & Save

Define asset classes:
Path :Same path (Tr code is OAOA)
Select new entries button
Asset class :AML1000
Description :Free hold land
Short text also :Free hold land
Account determination

:select AML10000 Land

Screen layout rule

:select AML1 Land

No.rage

:01

Select included asset under inventory data

Select no.AUC or Summary Management of AUC
Save
Press enter to save in your request

177

Note: AUC stands for Asset Under Construction

Select next entry button (F8)

Asset class

:AML1100

Description

:Factory Buildings

Short text

: Factory Buildings

Account determination

:select AML11000 Buildings

Screen layout rule

:AML2

Number rage

:02

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC
Save
Select next entry button (F8)
Asset class

:AML2000

Description

: Dept A

Short text

: Dept A

Account determination

:select AML20000 P & M

Screen layout rule

:AML3

Number rage

:03

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC
Save
Select next entry button (F8)
Asset class

:AML3000

Description

: Furniture & Fixtures

Short text

: Furniture & Fixtures

Account determination

:select AML30000 Furniture & Fixtures

Screen layout rule

:AML4

Number rage

:04

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC

178

Save

Select next entry button (F8)

Asset class

:AML3100

Description

: Vehicles and others

Short text

: Vehicles and others

Account determination

:select AML31000 Vehicles and others

Screen layout rule

:AML5

Number rage

:05

Select include asset under inventory data check box

Select no.AUC or Summary Management of AUC
Save
Select next entry button (F8)
Asset class

:AML4000

Description

: Capital Work in Progress -General

Short text

: Capital Work in Progress -General

Account determination

:select AML40000 CWIP-General

Screen layout rule

:AML6

Number rage

:06

Select include asset under inventory data check box

Select line item settlement radio button
Save
Select include asset under inventory data check box:
Inventory means fixed inventory, whatever assets we create they will be included in
fixed assets inventory.
As per companies auditors report order (CARO) the auditor will state whether fixed
assets have been physically verified by management or not.
Incase of big companies physical verification in a phased manner
When we create an asset master There is a field called last verification date
Asset nos

Last verification date

179

1
31.03.2008
2
31.03.2007
3
31.03.2008
4
31.03.2008
5
31.03.2007
In the report we give the report date From 01.04.2007 to 31.03.2008 we get the list of
asset verified during the year
1
2
3
4

31.03.2008
31.03.2008
31.03.2008
31.03.2008

We have not selected for capital work in progress

We can not verify every that assets once they are commissioned they will be shown
under respective head and not under capital work in progress
For capital work progress general Select line item settlement radio button
Machinery
01/11/2008

Debit to
CWIP

Asset commissioned on 22.11.2008

as machine no.10

Fright AMT
15/11/2008
Settle from Capital Work In Progress to machine no.10 line item wise
Commissioning charges 22/11/2008
Determine areas in the asset class
Path :SPRO-Financial accounting Asset accounting-Valuation Determine
depreciation areas in the asset class (Tr.Code is OAYZ)
Give the chat of depreciation

:AML

Enter
Select position button
Asset class :AML1000 (Free hold land)
Enter
Select AML1000 (Free hold land)
Double click depreciation areas folder
Deselect deactivation check box for area 01 Book depreciation

180

Layout

:Select 2000 depreciation on asset sub-no level

For area 01 layout 2000

For area 02 layout 2000
For area 30 layout 2000
Save
Press enter to save in your request
Select back arrow
The same procedure the followed for asset class
AML1100
AML2000
AML3000
AML3100
AML4000

Factory building
Dept A
Furniture & Fixtures
Vehicles & other
Capital work in progress

Deselect deactivation check box for area 01 for land there is no depreciation
In asset master creation-Capitalization date required Land purchase details
registration date
Depreciation key(Rate)

0%

For area 01- Select 2000 Depreciation on asset sub number level
Asset no.
Machine 10 1
Motor
1
-

Sub.no.
0
1

10/08/2005
22/11/2008

Creation of 15 General ledger master FS00

S.N
GL Account No.
o.
1
200000
Land

Account No.to
copy
200110 Sundry
debtors

200000 Land

200005

181

Parameters to Maintain
-Account group Fixed assets
-200000-20009
-Change the account group Fixed
Assets
-Sort key -018 Asset number
Reconciliation A/c for account type
Asset
-Field status group 067
Reconciliation accounts.
-Do -

3.
4.
5.
6.

Buildings
200010
Plant & Machinery
200015
Furniture & Fixtures
200020
Vehicles
200025
Capital work in
progress

100200
Accumulate
depreciation- Building

100205
Accumulated
depreciation Plant &
Machinery
100210
Accumulated
depreciation Furniture
& Fixtures
100215 Accumulated
depreciation Vehicles
300102 Assets sales

9.

10
11.

-Do-

-Do -

-Do-

-Do -

-Do-

-Do -

-Do-Do -

-Do-

100200
Depreciation Buildings

-Do-

-Do-

-Do-

300100
Exchange gain

300103 Profit on asset

sale

-Do-

13

400302 Loss on asset

sale
400303 Loss due to
scrapping
400500 Depreciation

-Do-

15

-Do -

-Do-

12

14

Account group-Accumulate
depreciation
-100200-100299
-Sort key -018 Asset number
-Reconciliation A/c for account type
Assets
-Field Status group- 067
Reconciliation accounts

-Do-

Account group other income

300100-300199
Sort key -018 Asset number
Field status group G052
-Account group other Income
-300100-300199
-Sort key 018 Asset number
-Field status group -G001
-Do-DoChange the Account group
Depreciation
400500-400599

182

Sort key -018 Asset number

Filed status group-G001

Assignment of accounts for automatic postings:

Path :SPRO-Financial accounting Asset accounting-Integration with the general
ledger-Assign GL accounts.
Give the your Chat of Depreciation
Enter
The Transaction code is AO90

:AML

Select chant of accounts

:AML

Double click on account determination folder

Select account determination

:AML10000 Land

Double click on Balance sheet accounts folder

Acquisition column :Acquisition and production costs Give the A/c No.:200000 Land
Loss made on asset retirement w/o revenue.(w/o revenue mean scrap)
Give the account no.400303 loss to scraping
Clearing account revenue from asset sale

:300102

Gain from asset sale

:300103

Loss from asset sales

:400302

Press enter
Select save button
Ignore the warning message press enter
Press enter to save in your request
Double click on account determination folder
Select account determination

:AML11000 Buildings

Double click on Balance Sheet accounts folder

Acquisition column acquisition and production cost a/c no.200005
Loss made on asset retirement w/o revenue

:400303

Clearing account revenue from asset sale

:300102

183

Gain from asset sale

:300103

Loss from asset sale

:400302

Save
Ignore the message press enter
Double click on depreciation folder
Accumulated depreciation for ordinary depreciation 100200 accumulated depreciation
buildings
Expense account for ordinary depreciation 400500 Depreciation account
Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML 20000 P & M

Double click on Balance Sheet accounts folder

Acquisition column acquisition and production cost Give the GL account no.:200010
Loss made on asset retirement (without) w/o revenue 400303
Clearing account revenue from asset sales

:300102

Gain from asset sale

:300103

Loss from asset sale

:400302

Select save button or Ctrl+S

Double click on depreciation folder
Accumulated depreciation account for ordinary depreciation a/c no.100205
Expense account for ordinary deprecation

:400500

Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML30000 Furniture & Fixtures

Double click on balance sheet account folder

Acquisition :Acquisition and production costs 200015 (Furniture & Fixtures a/c)
Loss made on asset retirement w/o revenue

:400303

Clearing account revenue from asset sale

:300102

Gain from asset sale

: 300103

184

Loss from asset sale

:400302

save
Ignore the message press enter
Double click on depreciation folder
Accumulated depreciation account for ordinary depreciation 100210
Expense for ordinary deprecation

:400500

Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML 31000 vehicles

Double click on Balance Sheet accounts folder

Acquisition: Acquisition production costs

:200020

Loss made on asset retirement w/o revenue

:400303

Clearing account revenue from asset sale

:300102

Gain from asset sale

:300103

Loss from asset sale

:400302

Save
Ignore the message press enter
Double click on depreciation folder
Accumulate depreciation for ordinary depreciation

:100215

Expenses account for ordinary depreciation

:400500

Save
Ignore the message press enter
Double click on account determination folder
Select account determination

:AML40000 Capital Work In

progress
Double click on Balance Sheet accounts folder
Acquisition :Acquisition and production cost

:200025

Loss made on asset retirement w/o revenue

:400303

Clearing accounts revenue from asset sale

:300102

Gain from asset sale

:300103

185

Loss from asset sale

:400302

Select save button or Ctrl+S

Ignore the message press enter
Specify document type for posting of deprecation:
Up to integration with general ledger the path is same Post-Deprecation to the
GL Specify Document type for posting deprecation-Double click on define
document type (Tr code is OBA7)
Select type AF Deprecation postings
Select details button
Note the number range 04
Select number range information button
Give the company code

:AML

Select change intervals button

Select intervals button
Number range

:04

Year

:2008

From no.

:700001

To no.

:800000

Select external check box

Enter and save
Ignore the warning message press enter
As per SAP documentation :
From ECC5 onwards
Up to 4.7 EE

Not to select external check box

Select external check box

When we select external check box, we have to give what should be the document
number at the time of posting.
There is an exception for deprecation postings also we have to select external check
box
In normal postings we are posting are document at a time.
Incase of deprecation / when we run depreciation number of documents will be
generated at a time based on account determination

186

04-2008 -700001 -800000 Select external check box

AML 10000 Land
AML11000 Buildings
Depreciation account
AML20000 Plant & Machinery
Assessment for
AML30000 Furniture & Fixtures Account determination
AML31000 Vehicles
AML40000 Capital work in Progress
When we run depreciation 4 documents will be generated automatically every month.
700001

Depreciation DR
To Acc Dep Buildings

700002

Depreciation DR
To Acc. Dep-Plant & Machinery

700003

Depreciation DR
To Acc Dep Furniture & Fixtures
Depreciation DR
To Acc Dep -Vehicles

700004

Specify intervals and posting rules:

Same path (next step) (Tr code is OAYR)
Select company code

AML

Double click on posting rules folder

Select monthly posting radio button
Save
Press enter to save in your request
Specify rounding for net book value and /or deprecation:
Path :SPRO-Financial accounting-Asset accounting-Valuation Amount
specifications (company code/Deprecation area) Specify rounding of net book
value and /or deprecation
Ignore the message press enter
Select company code

:AML

Double click on rounding specifications folder

187

Select area 01 book deprecation

Select details button
Select automatically calculated depreciation check box
Select arithmetic rounding radio button
Save
Press enter to save in your request
Define screen layout for asset master data:
Path :SPRO-Financial accounting-Asset accounting-Master data-Screen layoutDefine screen layout for asset master data
Double click on define screen layout for asset master data
Select layout

:AML1 Land

Double click on logical fields groups folder

Select 2 posting information
Double click on field group rules folder
Capitalization data make it required entry field
Select main number check box
Select sub-no check box
Select copy check box
We have created AML1 by copying layout 1000
Afterwards we create XYZ layout by copying
AML1 what ever fields we have chosen for AML1 should be copied XYZ
Select save button or Ctrl+S
Press enter to save in your request
Select back arrow
Select 3 time dependent date
Double click on filed group rules folder
Business area make it required entry field
Select main no.check box, sub no.check box
Save
Select back arrow two times

188

The same procedure is to the followed for layout AML 2 Buildings

AML 3 Plant & Machinery
AML10 Furniture & Fixtures
AML5 Vehicles
AML6 Capital Work in Progress
Define screen layout for asset deprecation areas:
Same path (Tr code is AO21)
Select screen layout 2000 deprecation on asset sub no.level
Double click on field groups folder
Depreciation keys make it required entry filed
Select main no.check box
Select sub-no.check box
Select copy check box
Save
Deprecation keys creation (Rate+ Methods)
1. Define base methods
2. Define declining balance method
3. Define period control methods
4. Define period control methods
5. Maintain deprecation key
First steps will be assigned in 5th step and 5th step will be assigned in Asset master.
1. Define base methods:
Path :SPRO Financial accounting-Asset accounting-Depreciation Valuation
methods Depreciation key-Calculation methods Define base methods
Base method
:0014 Ordinary :Explicit percentage (after end of life)
A) Ordinary deprecation
B) Explicit percentage creation percentages rate given in Companies Act
Schedule XIV
C) After end of line If the next box value becomes zero no depreciation should be
calculated.
Define declining balance methods
Same path
Give the Char of Depreciation AML

189

Enter
Note down decimal balance 001
002
Decimal factor 2
Max percentage 20
Beginning years :Wear and tear will be less
Acquisition value
100000
Rate of depreciation
5%
First year
5
Second year
5
Third year
5
Fourth year
5
--20
First 4 years :100000*5% *98% (2% discount as per companies act)
5th year onwards :100000*5%
Define multi level methods: (Tr code is AFAMS)
same path
select new entries button
multilevel method

:A

Description

:5% SLM

Validity star

:Select from ordinary deprecation on star date

Save
Press enter to save in your request
Double click on levels folder
Select new entries button
Acquisition year

:9999

Year

:999

Periods

:12

Base value

:Select 01 Acquisition value

Percentage

:5

Save

Acquisition year

:9999

190

We have given say any year 2008- This rate is applicable for the assets purchased in
the year 2008 Next year also we are purchasing an asset having 5% rate-we have to
create acquisition year once again in the next year.
When we give 9999 purchase can be in the year
2. Years 999
A) 5% SLM rate 20 years (100/5)
B) 5% WDV rate
?
C) 1% SLM rate 100 years (100/1)
D) 1% WDV rate
?
999 max no. of year
In base method once the net book value becomes zero Dot calculate depreciation .
In some countries.
First 5 years 5%
Next 5 years 10%
Next 5 years 15%
3. Periods 12 months
4. Base value 01 Acquisition value in case of SLM
24 Net book value incase of WDV
5. Percent 5 rate of depreciation
6. Reduction 1
Acquisition vale
100000
1% Scrap value
1000
-----99000
Dep 5% only on 99000
7. Remine life

Percentage method
India

Select acquisition year 9999

Double click on Multi level method folder
Select next entry button
Multilevel method A2
Description :5% WDV
Validity star :From ordinary depreciation star date
Save

191

Useful life method

Machine no.1-In year 2003
Useful life :20 Years
Going for SAP in 2008
Select rem life
Asset master -15 Years

Select acquisition year 9999

Double click on levels folder
Select new entries button
Acquisition year
:9999
Year
:999
Periods
:12
Base value
:Select 24 net book value
Percent
:5
Save
Maintain period control methods:
Same path
Give the Chart of deprecation :AML
Enter
Select new entries button
Period method

:006

Description

:AML period control method

Acquisition year

:Select 01 pro rate at period start date

Add year

:Select 01

Retirement year

:01 (Retirement mean sale)

Transfer year

:01

Press enter to save in your request

Maintain deprecation key:

Same path Tr code is AFAMA
Select new entries button
Depreciation key

:AML1

Description

:5% Straight line dep.method

Select period control according to fiscal year check box

Select dep. to the day check box
Save
Ignore the warning message press enter

192

Press enter to save in your request

Double click on assignment of calculation methods folder
Select new entries button
Depreciation type

:Select ordinary deprecation

Phase

:Select from the start of depreciation

Base method

:0014

Declare balance method

:001

Period control method

:006

Multilevel method

:A1

Class

:Select straight line depreciation

Save
Select back arrow 4 times
Select depreciation key

:AML1

Select activate button

Save
Select new entries button
Depreciation key

:AML2

Depreciation

:5% written Down Value Deprecation method

Period control according to Fiscal year check box

Select depreciation to the day check box
Save
Ignore the warning message press enter
Double click assignment of calculation methods folder
Select new entries button
Depreciation type

:Select ordinary depreciation

Phase

:Select from the start of depreciation

Base method

:0014

Declare balance method:001

Period control method :006
Multilevel method

:A2

Class

:Select declining balance depreciation

193

Save
Select back arrow four times
Select depreciation key AML2
Select activate button
Save
Select first page control page up button
Select depreciation key

:0000(no depreciation no interest )

Select activate button

Save
FI END USER AREA:
Create of main asset master:
Path :Accounting-Financial accounting-Fixed assets-Asset Crete Asset (The
Transaction code is AS01)
Asset class

:Select AML2000 Department A

Company code

:AML

Enter
Give the description

:Machine no.1

Capitalized on

:18.04.2008

Select time dependent tab

Business area

:AMLH

Select depreciation area tab

Depreciation key

:Select AML1

Useful life

:15 years

Period

:6 months

Ordinary depreciation start date :18.04.2008

Note: Commissioning date Indian system, sum countries is next month first day
Eg. 01/05/2008)
save
Creation of sub asset master

194

Path :Up to fixed assets the path is same-Asset-Create-Sub number Asset(The

transaction code is AS11)
Asset

:200001

Company code

:AML

Enter
Description

:Motor

Capitalized on

:29.11.2008

Select time dependent tab

Select deprecation area tab
Change the depreciation key AML2
Useful life

:15 years

Period

:01

Ordinary depreciation:29.11.2008
Save
Main asset purchase posting:
Path :Accounting-Financial accounting-Fixed asset Posting-Acquisition-External
acquisition -With vendor (Transaction code is F-90)
Give the document date and posting date

:18.04.2008

Type

:KR (Vendor invoice)

Company code

:AML

Posting key

:31 Vendor credit

Account

:4200001

Enter
Ignore the warning message press enter
Amount

:500000

Business area

:AMLH

Text

:Machinery purchase posting

Posing key

:70 Debit asset

Account

:Select 200001 -0 Machine no.

195

Transaction type

:Select 100 External asset acquisition

Enter
1st Rule:
Sub asset master with reference to main asset master
200001-1 with reference to 200001
2nd Rule
Main asset with reference to asset also 200001 with reference to AML2000 Dept A
3rd Rule
Account determination is specified in asset class
AML200000 Plant & Machinery specified in AML2000 Dept A
4th Rule
For account determination we assign accounts based on the nature of transaction
For AML2000-Incase of acquisition-2000010 Plant & Machinery
Amount enter
:*
Text
:+
From the menu select document Simulate and save
Sub asset purchase posting (F-90)
Give the document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Amount

:100000

Business area

:AMLH

Text

:Motor purchase posting

Posting key

:70

Account

:200001-1 that motor

Transaction type

:100

Enter
(Applicable 1st rule)
Amount

:*

196

Text

:+

From the menu select document Simulate and save

REPORT TO VIEW SUB ASSET WISE, YEAR WISE VALUES
Path :Accounting Financial accounting Fixed assets Asset Asset explorer
(Tr code is AWO1N)
Give the company code

:AML

Asset no.

:200001

Sub No.

:0

Fiscal year

:2008

Enter
Select Display depreciation calculation button
Select period information button
Select back arrow
Select compression tab
Change the asset to 200001
Sub no.

:1

Enter
Select planned values tab
Change the fiscal year to 2009
Enter
Select display depreciation calculation button
2nd Report
Report to view for all assets for particular period
Path :Accounting-Financial accounting Fixed assets Information system
Reports on asset accounting Asset balances Balance lists Once again asset
balances By business area (Tr code is S_ALR_87011965
Press all selections button (Shift +F7)
Give the company code

:AML

Report date

:31.12.2008

197

Execute
Double click on Dept A
Double click on Machine no.1
Select back arrow 3 times
Change the report date to 30.04.2008
Execute
Double click on Dept A

Depreciation run:
Path :Accounting Financial accounting Fixed assets -period processing
depreciation run Execute (Tr code is AFAB)
Give the company code

:AML

Fiscal year

:2008

Posting period

:1

Select planned posting run radio button

Select test run check box
(Note :If you run in middle of year select unplanned posting run radio button)
Execute
Ignore the warning message press enter
Select error list button (F7) (Right side corner)
Select back arrow
Deselect text run check box
From the menu select program Execute in back ground
Enter
Select continue button
To schedule in the rights select date /time button
Give the schedule start date :01.12.2008
Time :Give HR 23.00
Save
To post immediately select immediate button

198

Save
Note down get a message background job was scheduled for program RA POST 2000
To check whether the job or not from the menu select System Jobs-Job overviewServices select execute button
To view the document posted: (Tr code is FB03)
Select document list button
Give the company code
:AML
Document type
:AF
Execute
Double click on document no.
Use the Tr code is AFAB
Company code
:AML
Fiscal year
:2008
Before Dep run for May 2008 and after Dep run for April 2008 we have commissioned
an asset with back date 200002-0 Machine no.2 25.04.2008
Posted period
2
1. select planned posting run radio button posting as per plan (earlier we have
selected monthly posting)
For 200001-0 from 1st May 2008 to 31st May 2008
For 200002-0 for 25th April 2008 to 31st May 2008
Report run:
Before run for May
Posting period
Select report run
System checks which assets are commissioned in April and not posted depreciation.
200002-0 from 25th April 2008 to 30th April 2008
Once it is completed
Posting period
2
Select planned posting run
200001-0 From 1st May 2008 to 31st May 2008
200002-0 from 1st May 2008 to 31st May 2008
Repeat run is possible only after planned posting run
We have run depreciation up to October 2008 -now we have commissioned an asset
with April date repeat run is possible only for last planned posting run-In this example
only for October.
Restart

199

Rare cases server is down during processing time system gives message restart.

Unplanned posting run:

Posting run not as per plan,
We have run for April
We want to run May to November Dep. At a time.
Posting period
8
Select unplanned posting run
Depreciation will be posted from May to no.at at time.
Asset sales :
200001-0 Machine no.1
Acquisition value
Acquisition depreciation
Net book value 30.04.2008
Asset sales on 01.05.2008
Profit on asset sale

500000
890
--------499110
501000
---------1890

1to check fields status for field status group G052 use the Tr code is OBC4
Select field status variant :AML
Double click on filed status groups folder
Double click on field status group G052
Accounts for fixed assets retirement
Double click on Asset accounting
Asset retirement make it required entry field
Save
Press enter to save in your request
ASSET SALE
Path :Accounting financial Accounting Fixed assets Posting Retirement
Retirement with revenue with customer (F-92)
Give the document date & Posting date :01.05.2008
Type

:DR

Company code

:AML

Posting key

:01

200

Account no.

:6600001

Enter
Ignore the message press enter
Give the amount

:501000

Business area

:AMLH

Text

:Asses sale

Posting key

:50

Account no.

:300102 Asset sale

Enter
Amount

:*

Business area

:AMLH

Text

:+

Select asset retirement check box

From the menu select document Simulate
Enter
Asset no.
Sub number
Transaction type

:200001
:0
:210 comes by default
(210 stand for retirement with revenue)

Give the asset value (Capitalization date):01.05.2008

Select complete retirement check box
Enter
Contra
01
70
40
75
50
01
50

Customer
Account Dep P & M 200001-0
Asset Sale
Plant & Machinery 2000001-0
Profit on asset sale
Customer
P&M

501000
890
501000
500000
1890
501000
501000

We get a message correct the marked line item.

Double click on blue font line item
Select display document overview button
Asset sale on

20.05.2008

Sale 2000001-0 Machine

201

01 Customer
501000
70 Acc Dept P & M 1500
2000001-0

Acquisition value
500000
Acc Dep up to 19.05.2008 1500
---------Net book value 19.05.2008 4985000

40 Asset sale
501000
50 Asset sale
501000
75 Plant & Machinery 500000
Asset sale on 20.05.2008 501000
2000001-0
CONTRA
---------50 Profit on asset sale 2500
profit on asset sale
25000
Depreciation A/c
3014 890 DR
2015
3115 610 DR
(Dep up to 19/05/2008)
ASSET TRANSFER

Accumulated Depreciation account

1500 3014 890
3115 610

When we transfer an asset from one unit to another unit with the company code we
have to transfer at cost
HYD BGL
200001-0
Capitalization date 20/04/2008
To transfer asset on 01.05.2008 to BGL
To transfer acquisition value
To transfer accumulated depreciation from the date of receipt (From 01/08) depreciation
will be calculated in Bangalore unit
1st Method
2d Method
Two step procedure
one step procedure
A) Creation of asset master in BGL (AS01)
Creation of asset master and transfer
values
B) Transfer values
Path: Accounting Financial accounting Fixed assets Posting Transfer
Transfer with in company code (ABUMN)
Give your company code :AML
Ente
Give the asset no. 200001 Sub No.0
Document date

:01.05.2008 |

Posting date

:01.05.2008 | Todays date

Asset value date

:01.05.2008 |

Text

:Asset Transfer

Select new asset radio button

202

Give the description

:Machine no.1

Asset class

:AML2000 Dept A

Select master data button

Give the business area

:AMLB

Select additional data button

Give the capitalized on 01.05.2008
Select depreciation area tab
Give the depreciation key :AML1
Useful life

:20 years

Period

:5 months

Ordinary depreciation date :01.05.2008

Select back arrow
Enter
Select save button or Ctrl+S
Go and see the document FB03
Give the document no.30
Company code

:AML1

Fiscal year

:2008

Enter
1) When we want to transfer no. of assets at a time go for two step procedure
2) When the asset has to be created in the receiving unit as a sub asset goes for
two step procedure.
Asset scrapping
200000-1 Motor in Hyderabad unit 29.11.2008
This cant be sold transferred /used we can scrap the asset
Scrap asset on 01.01.2009
It calculates depreciation up to 31.12.2008
The net book value will be charged to P & L Account
Impairment of assets (AS28)
If the expected relation of the asset is less than net book value and future cash flows
are negative, we have to impair the asset for the difference.
To check motor value as on 31.12.2008 (Tr code is S_ALR_87011965)

203

Press all selections button

Give the company code
Business area
Report date

:AML
:AMLH
:31.12.2008

Select execute button

Double click on Dept A

Asset Scrapping:
Path :Accounting Financial accounting Fixed Assets Posting RetirementAsset retirement by scrapping (Tr code ABAVN)
Give the asset no.200001 Sub No.1
Document date
:01.01.2009
Posting date
:01.01.2009
Asset value date
:01.01.2009
Text
:Asset scrapping
Save
Go and see the document (FB03)
Document no.
:31
Company code
:AML
Fiscal year
:2008
Enter
Capital work in progress line item settlement
Machinery 01.11.2008
Debit to CWIP
Machine No.5
Freight charges 05.11.2008
Asset commissioned as machine no.5 on
31.12.2008
We settle from CWIP to respective asset
Commissioning charges
30.11.2008

This is linked with CO this will be covered in the

end

204

REPORTS:
Step 1.How to create a folder?
Keep the cursor and favorites from the menu select Favorites Insert folder
Give the folder name FI reports
Enter
Step 2. How to attach the report to folder ?
Keep the cursor on FI reports folder from the menu select Favorites Insert
truncation tr code is (S_ALR_87011965)
Double click on asset balances report
Step 3. How to attach the report on desktop?
Go to report Asset balances on right top select generates a short cut button
System description
:ECC6
Enter
Select OK button
Close SAP
Icon desktop
Double click on asset balances Icon
Give the password :oracle (SAP password)
Step 4: How to create variant?
Go to asset balances report
Give the company code

:AML

Report date

:30.11.2008

205

From the menu select go to variant --Save as variant

Give the variant name :AML
Date

:30.11.2008.

Save
Now close SAP
Double click on asset balances Icon on desktop
Give the password

:oracle

Enter
Select get variant button (Select asset balances S_ALR_87011965)
Execute
Select

:AML

Chart of Accounts List

Path :Accounting Financial accounting General ledger Information
system General ledger reports Master data Chart of account- Chart of
account (S_ALR_87012326)
Give your chart of accounts
Execute

:AML

TRAIL BALANCE
Path: Up to general ledger report the path is same -Account balances
Korea-Trail Balance (Tr code is (S_ALR_87012310)

Country

:Korea

Trail balance

:South Korea

Give the company code

:AML

Execute
Ignore the warning message press enter
Select current layout button
Keep the fields
GL account
GL account long text

206

Closing balances
Enter
To down lead to excel from the menu select list export spread sheet
Enter
List >Export local file
Select spread sheet radio button
Enter
See directory file name :AML.xls
Select generate button
LEDGER:
Path :Accounting Financial accounting General ledger Periodic
processing closing Document Balances audit trail All accounts -General
ledger from the document file (Tr code is S_ALR_87100205)
Give the company code
Execute

:AML

(Select menu bar Settings-Layout Current button )

or
Select current layout button(Ctrl+F8)
Keep the fields document no.
Posting date
From the hidden fields column
Select text fields
Select left arrow
Select debit amount in local currency
Select left arrow
Select credit amount in local currency
Select cumulative balances
Select left arrow
Select total check box for debit amount in local currency, Credit amount in local
currency
Select copy button

207

To go the document level

Double click an amount no.
Select call up document over view button
VENDORS LIST
Path :Accounting Financial accounting Accounts payable Information
system -Reports for accounts payable accounting Mater data Vendor list
(Tr code is S_ALR_87012086)
Give the company code
:AML
Select address and telecom check box
Execute

Vendor wise patches

Path :Up to report for account payable accounting the path is same Vendor balances vendor business (S_ALR_87012093)
Give the company code
Execute
Each vendor wise

:AML

Out standing lit of vendors:

Path :up to reports for accounts payable accounting the path is same
Vendor Items- List of Vendors Open item for printing (S_ALR_87012083)
Give the company code
Execute

:AML

Age wise analysis of vendors:

Path :Up to vendors column item the path is same -Vendor payment history
with open item sorted list (S_ALR_87012085)
Give the company code

:AML

Summarization level

:0

Select days overdue squirted list check box

Execute
Vendor advances report

208

Path :Up to vendors column items the path is same List of Down
payments open on key date vendors (S_ALR_87012105)
Give the company code
Execute

:AML

Vendor ledger:
Path :Open and cleared up to vendors: Item the path is same List of
vendor line item (S_ALR_87012103)
Give the company code
Execute

:AML

Depreciation fore cost

Path :Accounting Financial accounting Fixed Assets Information
system -Reports are asset accounting Depreciation fore cost-Depreciation
on Capitalized Assets (Depreciation simulation) (S_ALR_87012936)
Give the company code
Report date
Execute

:AML
:31.03.2011 (Give the any month end date)

Fixed assets schedule as per schedule VI of Companies Act

Path :Information system Accounting Financial accounting Fixed assets
-Asset history sheet (Tr code is AR02)
Give the company code
:AML
Report date
:31.03.2009
Select group totals only radio button
Execute
Select assets button
Double click on asset retirements

209

DATA TAKEOVER
Master uploading
Balance uploading
Master uploading:
GS Master
Vendor masters
Customer masters
Asset masters
Material master

:FS00
:XK01
:XD01
:AS01
:MM01

Create an excel file conversion to text file Up loading to SAP

Legacy System Migration
Work bench (LSMW)

Batch data
Communication (BDC)

Computer aided testing

tool (CATT)

ABAP :They teach all 3 methods

LSMW:Job of functional consultant
Open an excel file and note down for which fields values are to be uploaded
GL
Accou
nt no.

Com
pany
code

Acco
unt
Grou
p

10000
1

AML

SCPL

P&
L
Stat
eme
nt
A/c

Balan
ce
Sheet
A/c

Short
Text

Long
Text

PREF PREF
Share
Share
cap.
Cap.

210

Acc
ount
curr
ency

INR

Only
Balanc
e in
local
curren
cy
X

Line
item
displ
ay

So
rt
ke
y

Field
statu
s
group

00
1

G001

20012
5

AML

CAST

30000
5
40010
1

AML

SALE

AML

PRSN X

Invento
ry
Stores
Sales
trading
Wages
account

Inventory
Stores

INR

00
1

G001

Sales
Trading
Wages
account

INR

G001

INR

00
1
00
1

Delete above column headings

Delete other sheets (like sheet 2 , sheet 3)
Select complete sheet
Press right mouse button
Select format cells
Select number Category Text
Select ok button
From the menu select file save as
Save type

:select Text (tab delimited)

File name

:AML Text

Select save button

Select no button
Select cancel button
From the menu select file close
Select no button
2. Open an excel file and not down technical name of each filed technical name
shall be noted down as per step one order
Open an excel file
Component

Data type

length

Open SAP FS00

Give the GL No.100000 Equity share capital
Company code

:AML

Enter

211

G001

Keep the cursor on GL A/c press F1

Select technical information button
Double click field name SAKNR
Copy component SAKNR in excel 1 component column
Data type

:C

Length

:10

Copy component BUKRS that is company code in excel component column

Data type

:C

Length

:4

Select back arrow in SAP

Keep the cursor on account group
Press F1
Select technical information button
Double click on filed name KTOKS
Copy component KTOKS that is account group in excel component column
Data type

:C

Length

:4

Copy component XPLACCT That is P & L statement account in excel component

column
Data type

:C

Length

:1

Copy component XBILK that is I Balance Sheet A/c in excel component column
Data type

:C

Length

:1

Copy TXT20-ML That is GL A/c short text in excel component column

Data type

:C

Length

:20

Copy component TXT50_ML That is GL long text in excel component column

Data type

:C

Length

:50

212

Select back arrow

Select control data tab
Keep the cursor on account currency press F1
Select technical information button
Double click on filed name WAERS
Copy component WAERS that is account currency in excel component column
Data type

:C

Length

:5

Copy XSALH that is only balance in local currency in excel component column
Data type

:C

Length

:1

Line item display

:copy component XKRES that is line item display in excel

component column
Data type

:C

Length

:1

Sort key: copy component ZUAWA that is sort key in excel component column
Data type
:C
Length
:3
Copy component FSTAG that is field status group in excel component
Data type
:C
Length
:4
Save the file an ex file, file AML
Up loading of master in SAP (Tr code is LSMW)
Note: LSMW used for create No. of GL accounts at a time.
Ignore the message press enter
Project

:AML

Subproject

:FI

Object

:GLMaster

Select create entry button

Description

:AML Project

Enter
Sub project description FI Area

213

Enter
Object name

:GL master up loading

Enter
Select continue button (F8)
Select double click Display click change button (Shift +F7)
Select execute button
Select batch in put recording radio button
From the menu select Goto recording Overview
Select create recording button (Ctrl +F1)
Give the recording name

:AMLGL

Description

:GL Master uploading

Enter
FS00
Give the GL Account
Company code

:100305
:AML

From the menu select GL Account create

Account group select secured loans
Select balance sheet account radio button
Short text and GL account long text :IDBI rupee term loan
Select control data tab
Select only balances in local currency check box
Select line display check box
Sort key

:001

Posting date

Select create 1 bank /Interest tab

Field status group

:G005 Bank Accounts

Save
Keep the cursor on FS00
Select default all button
Save
Select back arrow two times

214

Give the recording name

:AMLGL

Enter and save

Select back arrow
Execute

Select create a structure button

Source structure

:AMLSTR

Description

:AML GL Structure

Enter and save

Select back arrow
Execute
Keep the cursor on AMLSTR
Select table maintain button
Copy from
AML excel component column in SAP field name column
Copy from excel
AML excel data type column in SAP type column
Copy AML excel length column in SAP length column
Verify the copies data some data not copied copy to next page
Save

Select back arrow

Select back arrow once again
Select save button or Ctrl+S
Execute

Select back arrow

Execute
Kept the cursor on AMLGL
Save
Back arrow

215

Execute
From the menu select Extras-Auto field mapping
Press enter
Go on select accept proposal button (Press Accept proposal button many times)
Till we get the message
Auto field mapping completed
Enter and save
Select back arrow
Skip maintain fixed values, transactions user defined routines
Select specify files radio button
Execute
Keep the cursor on the PC (Fronted)
Select add entry button
Select file

:AML text

Name

:GL Master uploading

Select tabulator radio button

Enter & Save
Select back arrow
Execute
Save
Select back arrow
Execute
Execute once again
Select back arrow two times
Skip display read data
Select convert data radio button
Execute
Execute once again
Select back arrow two times
SKIP Display converted data
Select create batch input folder session

216

Execute
Execute once again
We get a message /batch input folder
With 4 transactions created
Ignore the message press enter
Execute
Select session name GL master
Select process button
Select display errors only button
Select process button
We get a message processing of batch input session completed
Select exit batch input button
To view accounts created (Tr code is FS00)
Selected drop down button for GL A/c No.
Company code
:AML
Enter
(Note: check it uploaded GL Accounts 100001, 200125,300005,400101)

217

BALANCES UP LOADING
Company going live in SAP from 1st December 2008 unloads take balances as
on 30th November 2008 and enter in SAP P & L Account balances as well as
Balance Sheet Account balances.
Company going live in SAP from 1st April 2008 on wards, - Take Balance Sheet
account balances as on 31.03.2008 in SAP dont enter all the transactions
Reasons:
1. In normal accounting all vendors, Customers, Assets are part of General
Ledger where as in SAP we have sub ledger concept.
2. In normal accounting for vendors/ customers Purchases /Sales
transactions and advances will be entered in one account where as in SAP
we have normal items and special GL Item.

3. In normal accounting for Fixed Assets- We have account wise acquisition

value and accumulated depreciation where as in SAP for Fixed Assets, we
have each sub asset wise acquisition value and accumulated depreciation.
4. In normal accounting depreciation in a provisional figure where as in SAP it is
actually calculated figure.

5. In normal accounting raw material consumption is a derived figure.

218

Opening stock +Purchases Closing stock whereas in SAP we maintain each

material wise quantity, rate and amount and raw material consumption is
actually calculated figure.
6. In normal accounting we will not pass production entries and delivery entries
where as in SAP, system pass production entries and delivery entries with
production cost.
Procedure
1) We should enter day to day date in SAP production client till balances are up
loaded and tallied.
2) Incase of Vendors /Customers we have to prepare a statement showing only
open items which should match with trail balance figure.

3) Incase of Assets, prepare a statement showing each asset wise acquisition value
and accumulated depreciation which should match with trail balance figure.
4) Incase of materials, prepare as a statement showing Material wise, Quantity ,
Rate and Amount which should match with Trail Balance figure.

5) We have to create 5 dummy accounts under any account group.

A) GL Clearing
B) Vendor clearing
C) Customer clearing
D) Asset clearing
E) Stock taking
F)
6) After uploading balances, if the above 5 clearing accounts become zero, Then
our date takeover is correct
Trail Balance (For opening balances)
Debit
Equity share capital
Party A/c
Accumulated Dep. P & M Machine no.40
Sales
P & M Machine no.40
Party X
Inventory RM
Cash account

219

500000
200000
100000
150000

Credit
500000
100000
300000
400000

RM Consumption

1.
2.
3.
4.
5.

350000
--------1300000
=======

---------1300000.
=======

GL clearing A/c
Vendor clearing A/c
Customer clearing A/c
Asset clearing A/c
Stock taking A/c

1. To take GL Credit side items:Tr code F-02)

GL clearing A/c
Dr
1300000
To Equity share capital a/c
To Vendor clearing a/c
To Asset clearing a/c
To Sales a/c

500000
100000
300000
400000

2. To take GL debit side items (F-02)

Asset clearing
Dr
500000
Customer
Dr 200000
Stock taking
Dr
100000
Cash account
Dr
150000
Raw material consumption Dr 350000
To GL Clearing
1300000
3. A)

Prepare a statement showing each vendor wise bill wise open item and
advances which showed match with trail balance .
Party A
Bill no.1
400000 Cr
Bill no.2
50000 Cr
Bill no.3
30000 Cr
Advance
20000Dr
100000 Cr

B) Entry for Vendors (f-43)

Vendor clearing Dr 115000
Party A (SPLGLA) Dr 200000 advances to vendor
To party A-BIL1 No.1
400000
}
Sundry creditors
To party A-BIL1No.2
500000
}
To party A-Bill No.3
45000
30000 Sundry creditors
4 (A) Prepare a statement showing each customer wise bill wise open items and
advances which should match with trail balances

220

Bill no.1
Bill No.2
Advance

Party X
50000 Dr
1800000 Dr
30000 Cr 200000 Cr

4 (B) Customer balances F-22

Party X- Bill no.1
Dr
50000
Sundry debtors
Party X-Bill no.2
Dr
180000 Sundry debtors
To party X (SPL GLA)
300000 Advances from customer
To Customer clearing
200000 Advance from customer
5(A)

To make fixed assets P & M GL account and accumulated depreciation

plant & Machinery GL Account as non-reconciliation accounts and pass.
F-02

40 Plant & Machinery

500000
50 Accumulated Depreciation P & M
50 Asset clearing

300000
200000

Non-reconciliation means in FS00

For Plant & Machinery GL A/c and accumulated depreciation P & M GL A/c
Reconciliation a/c type Assets remove
5 (B) Creation of asset masters:
|
|
AS01
LSMW
Use the Tr code is AS01
Asset class
:AML2000 Dept A
Company code
:AML
Description
:Machine no.40
Give the capitalized date :20.06.2006
Select time dependent tab
Business area
:AMLH
Select depreciation areas tab
Depreciation key
:AML1
Use life
:15 years Period 4 months
Ordinary deprecation date :01.04.2008
Save
5 (C ) To take over acquisition value and accumulated depreciation for asset
2000004-0
It will not updated our GL Accounts since account for account type
Assets.

221

Path :SPRO-Financial accounting Asset Accounting Asset data transfer

manual online transfer Create/Change /Display legacy asset (The Tr code
is AS92)
Double click on change legacy asset
Give the asset no.
:200004
Sub number
:0
Company code
:AML
Select takeover values button
Ignore the warning message press enter
Cumulated acquisition value
:500000
Accumulate ordinary deprecation :30000
No book values
:200000
Save
5. D)

To make fixed assets P & M A/c and accumulated depreciation P & M

account as reconciliation accounts.

Path :SPRO-Financial accounting Asset accounting Preparing for

production start up-Production start up-Set or reset reconciliation
accounts (Tr code is OAMK)
Select company code
:AML
Double click on change control of reconciliation account folder
From the menu select Edit selections select all
Select set reconciliation indicators for all accounts button
Save
Press enter to save in your request
6 (A) To propose a statement showing each material match with trail balance.
Material
RM1
RM2
RM3

Qty
2000
7000
2500

Rate
20
5
10

Amount
40000
35000
25000
--------100000
======

6 (B) Creation of material masters (Transaction code MM01) and in accounting

view For moving average price
RM1
RM2
RM3

20
5
10

222

Use the transaction code MB1C

Movement type :561
RM1
RM2
RM3
Save

Qty
2000 Kgs
7000 Kgs
25000 Kgs

Accounting entry will be generated automatically

Inventory RM Dr
1000000 BSX
To stock taking
1000000 GBB BSA
Closing procedure
In the year end what steps we have to do April 2008 March 2008 fiscal year
2008
In last week of March 2009
1. To carry forward Vendor and Customer balances to next year.
Path Accounting Financial accounting-Accounts payable Periodic
processing Closing Balance carry forwarded ( Tr code is F.07)
Give the company code
:AML
Carry forwarded fiscal year
:2009
Select , select customer check box
Select , select vendors check box
Deselect detail log check box
Execute
Ignore the warning message press enter
One time exercise for each year

2. To carry forwarded asset balances

We can open 2 years at a time
2007
2008
To open 2009 we have to close 2007
A)

To check which year is closed for asset accounting

Path :Accounting -Financial accounting Fixed assets Periodic processing

year end closing Undo-Entire company code (Tr code is 0AAQ)
Select position button

223

Give the company code

Enter

:AML

To close fiscal year 2008 (not mandatory step)

Up to periodic processing the path is same Year end closing Execute (Tr code
is AJAB)
Company code

:AML

Fiscal year to be closed 2008

Deselect text run check box
Form the menu select Program- Execute in back ground
Enter
Select immediately button
Select save button (down side)
We get a message Back ground job was scheduled for program RAJABS00

To check whether the job is processed or not

From the menu select System Services-Jobs Job overview
Select execute button
To view result of the job
Select job RAJABS00 check box
Select spool button
Select spool no .check box
Select display content button
To close only year for asset a accounting we have to post depreciation for all assets
and for all months
C) To open fiscal year 2009 for asset accounting
Path :Up to period processing the path is same Fiscal year change (Tr code
is AJRW)
Give the company code
New fiscal year

:AML
:2009

Deselect test run check box

224

From the menu select program execute in back ground

Enter
Select immediate button
Select save button
We get a message back ground job was scheduled for program RAJAWE_00
To check whether the job is processed or not
From the menu select System Services Jobs job overview
Select execute button
To view the result of job
Select job RAJAWE00 check box
Select SPOOL button
Select SPOOL no.check box
Select display contents button
3. To carryforward GL Balances
Path :Accounting Financial accounting General Ledger Periodic
processing Closing Carryforward-Balances carryforward new Tr cod is
FAGLGVTR
Ledger

:select OL leading ledger

Company code

:AML

Carryforward fiscal year

:2009

Deselect test run check box

Select output list of results check box
Select balances in retired earning check box
Execute
Select retired earning accounts button
Select back arrow
Select Balances sheet accounts button
To copy number range interval for next year

225

Path :SPRO-Financial accounting Financial accounting global settings

Document Document number ranges copy to fiscal year (Tr code is OBH2)

Ignore the message press enter

Company code
:AML
To fiscal year details under source fiscal year
To fiscal year under target fiscal year details
Execute
Select Yes button

:2008
:2009

To open periods for next year

April 2009-March 2010
April 2009-April 2009 Fiscal year 2009
1st 1, 2009-1,2009
April 2008-March 2009
2nd

|
|

Mandatory
Optional

March 2009-March 2009

12, 2008-12,2008

Path :Up to document the path is same Posting periods Open and close
posting periods
Select position button
Posting period variant

:AML

Enter
For AML
From period 1 is 1 (April )
Year

:2009

To period

:1

Year

:2009

From period

:2

Period

:12

Year

:2008

To period

:12

March to March

226

Year

:2008

Select save button or Ctrl+S

Save in your request
How to open special periods
On 15.04.2008 Accounts Dept Finalized profitability management, management
adjustment entries.
To post in special periods
April 2009 March 2010 Fiscal year 2009
April 2009 April 2009
1st 1, 2009 -1, 2009
April 2008 March 2009 Fiscal year
March 2009-March 2009
13,2008 -13,2008
Same path :OB52
For variant
:AML
From the period2
Year
To period
Year
Save

:13
:2008
:13
:2008

How to post to special periods (F-02)

(Adjustment of management entries )
Document date & Posting date

:28.03.2009

Type

:SA

Company code

:AML

Posting key

:40

Account no.

:400100 Salaries A/c

Enter
Change the period to 13
Enter
Ignore the warning message press enter
Amount

:500000

Business area

:AMLH

227

Text

:Salaries provision

Posting key

:50

Account no.

:100500 Outstanding exp

Enter
Amount

:*

Business area

:AMLH

Text

:+

Select document Simulate and Save

Go and see the GL A/c FS10N
Give the GL A/c No.
:400100 Salaries A/c
Fiscal year
:2008
Business area
:AMLH
Company code
:AML
Execute

228

BANK RECONCILIATION
Check Deposit
|
-------------------|
|
Manual Electronic

Bank statement
|
-----------------|
|
Manual
Electronic

Manual check deposit /manual bank statement

For each current account we have to create accounts

1.
2.
3.
4.
5.

Main bank account

Check issue account
Check deposit A/c
clearing account
Bank Changes

Account no. should with

0
Open item
1
Open item
2
Open item
3

If we have 100 Bank current accounts instead of assigning accounts 100 times we
assign only one time using masking.
1. Main bank account
+++++++++0
2. check issue account
+++++++++1
3. check deposit a/c
+++++++++2
4.clearing account
+++++++++3
Always main bank account balance and bank statement balance will be same.
Flow:
Sales:

229

1. Sales invoice posting F-22

Customer A/c
Dr
To Sales
2. Check deposit
A) Bank key
B) Bank account
C) Pay slip no.
D) Transaction type
E) Customer
F) Bill no.
G) Amount and Save

100000
100000

IDBI Check deposit a/c Dr

100000
To Customer with clearing 100000
3. Enter manual bank statement
A) If the check deposit credit is not there open items in bank check deposit A/cChecks
Deposited but not credited
B) If the check deposit credit comes in bank statement
A) Pay slip no.
B) Bank key
C) Bank account
D) Transaction type
E) Amount and save
IDBI main bank A/c Dr
100000
To IDBI Check deposit a/c 100000
(with clearing)

Purchases :
4. Purchase invoice posting F-43
Inventory RM Dr
200000
To Party A/c
200000
5 Outgoing payment with clearing F-53
Party A/c Dr with clearing 200000
To IDBI check issue A/c 200000
6. Manual check creation
Assign check no.to payment doc.no.
7. Enter manual bank statement

230

A) If the check debit is not there open items in bank check is issue A/c check
issued but not presented.
B) If the check issue debit is there
A) Bank key
B) Bank account
C) Transaction type
D) Check number
E) Amount and save
IDBI check issue Dr with clearing 200000
To IDBI Bank a/c
200000
Bank charges direct debits
8. Enter manual bank statement
A) Bank Key
B) Bank account
C) Transaction type
D) Amount and save
Bank charges
Dr
To IDBI main bank a/c
IDBI main bank A/c
3

5000
5000

IDBI bank statement

10000 7 B) 20000
8) 500

7 B) 20000
8)

3 B) 100000 Cr
500
DR

IDBI check Dept A/c

2.
100000
3. 100000
IDBI Check issue A/c
7 B) 20000

20000

1. Creation of GL masters (FS00)

Give the GL A/c no.

:200130 Wages A/c

Company code

:AML

Select with template button

Give the GL A/c no.200105 SBI A/c
Company code

:AML

Enter
Change short text and GL Account long text to IDBI main bank

231

Save
GL A/c No.

:200131

Company code

:AML

Select with template button

Give the GL A/c NO.200130
Company code

:AML

Enter
Change short text and GL A/c long text to IDBI check issue
Select control data tabs
Select open item management check box
Save
GL A/c No.

:200132

Company code

:AML

Select with template button

Give the GL A/c No.

:200131

Company code

:AML

Enter
Select type/description tab
Change short text and GL A/c long text to IDBI check deposit
Save
GL A/c No.

:400304

Company code

:AML

Select with template button

Give the GL A/c No.

:400300 Rent A/c

Company code

:AML

Enter
Change GL A/c short text and GL A/c long text to Bank charges
Save
Define House Bank (FI12)
Give the company code

:AML

232

Enter
Select new entries button
House bank

:IDBI

Bank country

:IN

Bank key

:AMLIDBI1

Save
Give the name IDBI bank limited
Street

:Bank Street, Koti

City

:Hyderabad

Bank branch

:Main branch

Enter
Press enter to save in your request
Double click on bank accounts folder
Select new entries button
Account ID

:IDBI1

Description

:IDBI current no.1

Bank account no.

:AMLIDBI1234

Currency

:INR

GL A/c No.

:200130 IDBI Main bank

Save
3. Creation of Check lots (Tr code is FCHI)
Give the paying company code

:AML

House bank

:IDBI

Account ID

:IDBI1

Select change status button

Select create button (shift+F5) beside details button
Lot no.

:1

Check no.

:100001

To no.

:100100

Select non-sequentional check box

233

Short information

:IDBI bank
:Todays date

Purchase date
Enter and save

Define posting keys and posting rules for check deposit

Path :SPRO-Financial accounting Bank accounting Business transactions
Check deposit Define posting keys and posting rules for check deposit
Chart of accounts

:AML

Enter
Select new entries button
Accounts symbol

:AMLA

Text

:Main Bank

Accounts symbol

:AMLB

Text

:check issue

Accounts symbol

:AMLC

Text

:Check deposit

Accounts symbol

:AMLD

Text

:Bank charges

save
press enter to save in your request
double click on assign accounts to account symbol folder
select new entries button
accounts symbol

:AMLA

Account symbol
Currency
GL A/c
AMLA
INR
+++++++++0 (9 times plus)
AMLB
INR
+++++++++1 (9 times plus)
AMLC
INR
+++++++++2 (9 times plus)
AMLD
INR
400304 Bank Charges A/c
Save
Double click create keys for posting rules folder
Select new entries button
Posing rule
AML1

Text
Check receipt Clear customer

234

AML2
AML3
AML4
Save

Check deposit clearing in Bank

Check issue clearing in Bank
Bank charges direct debit by banks

Double click on define posting rules folder

Select new entries button

Notes:
Check receipt clear customer
AML1-Check receipt clear customer
IDBI check deposit Dr
GL
To Customer with clrg
SL
Doc.Type

DZ

Posting rule
Posting area
Debit posting key
Account symbol
Document type
Posting type

:AML1
:select 2 sub ledger accounting
:40
:AMLC (check deposit)
:DZ
:select 8 sub ledger a/c

Select next entry button

Posting rule

:select AML2 (check deposit clearing in bank)

Notes:
AML2

:Check deposit clearing in bank

IDBI1 Main account Dr

GL
To IDBI check deposit with clearing GL
Doc .type
:SA

Posting area
:select 1 Bank accounting
Debit posting key :40
Accounts symbol :AMLA main bank a/c
Document type
:SA (GL account document)
Posting type
:select 5 clear credit GL Account
Select next entry button
Posting rule :AMLB check issue clearing in bank
AML3 Check issue clearing in Bank

235

IDBI check issue with clrg DR

To IDBI main bank A/c
Doc .type :SA
Posting area
Debit account symbol
Credit posting key
Account symbol
Document type
Posting type
Select next entry button
Posting rule

:select 1 bank accounting

:AMLB
:50
:AMLA Main bank
:SA
:select 4 clear debit GL Account
:AML4 Bank charges :Direct debit by bank

Bank charges
Dr
To IDBI Main bank A/c
Doc type :SA
Posting area
Debit posting key
Account symbol
Credit posting key
Account symbol
Document type
Posting type
Save

GL

GL
GL

:select 1 Bank accounting

:40
:AMLD
:50
:AMLA
:SA
:select 1 post to GL A/c

Create and assign business transactions :

Path :Up to business transactions the path is same Check deposit Create and
assign business transactions (Tr code is OT53)
Select new entries button
Transaction

:AML1

+/-

:+

Posting rule

:AML1

Text

:Check receipt clear customer

Transaction

:AML1

+/-

:- (for posting revenues)

Posting rule

:AML1

Text

:Check receipt clear customer reversal

Select save button

236

Select cancel button

Select Yes button
Save
Press enter to save in your request
Define variants for check deposit
Same path ( Tr code is OT45)
Select create button
Variant
:AML1
Name
:check deposit variant for AML
Enter
From the possible fields column
Double click on reference document no.(selection)
Enter
Column
1
2
3
4

Offset
3
20
37
52

Length
16
4
10

Save
Select create request button
short description
:Work Bench request for AML
Enter
press enter to save in your request
kept the customer on AML1
select activate button
create and assign business truncation for manual bank statement
path :up to business truncation the path is same Payment transactions manual
bank statement Create and assign business transactions
select new entries button
Transaction
+/-

Posting rule

AML2
AML2

+
-

AML2
AML2

AML3

AML3

237

Interpretation Text
algorithm
Check deposit
Check deposit
clearing in
bank reversal
011 (Outgoing Check issue

AML3

AML3

AML4

AML4

AML4

AML4

check :Check
no. different
from payment
doc.no.
11

Save
Press enter to save in your request
011- Check no. different from payment doc.no. purchases

1.

Purchase invoice posting F-43

Inventory RM
DR
To Party A/c
Doc no.1

200000
200000

2. Outgoing payment with clearing

Party A/c DR with clearing
To IDBI Check issue A/c
Doc no.200001
3. Manual check creation

F-53
200000
200000

FCH5

Assign check no. to payment doc no.

Assign check no.100001 to payment
Doc no.200001
Check no. and payment Doc no. are different
Define variants for manual bank statement

238

clearing in
Bank

Check issue
clearing in
bank
(Reversal)
Bank charges
direct debit by
bank
Bank charges
direct debit by
bank
(reversal)

Same path (Tr cod is OT43)

Select create button
Variant

:AML2

Name

:Manual bank statement variant for AML

Enter
From the possible fields column double click on reference doc .number (selection)
Enter
4the column (20+16) :36
From the possible field column double click on bank reference
Enter
From the possible fields column double click on business area
Enter (53+13+4):67
Save
Press enter to save in your work bench request
Keep the cursor on AML2 :select activate button

To make text field optional field for field status groups G001 and G005 (Tr code is
OBC4)
Select field status variant :AML
Double click on field status group folder
Double click on G001
Double click on general data
Text make it optional entry field
Save
Press enter to save in your request
Double click on G005
Double click on General data
Text make it optional entry field
Save
SALES

239

Sales invoice posting (F-22)

Give the document date

:Todays date

Type

:DR

Company code

:AML

Posting key

:01

Reference bill no.

:2345

Account

:6600001

Enter
Amount

:100000

Business area

:AMLH

Text

:Sales invoice posting

Posting key

:50

Account no.

:300000 Sales a/c

Enter
Amount

:*

Business area

:AMLH

Text

:+

Document simulate & Save

Manual check deposit
Path :Accounting financial accounting Banks Incomings check deposit
manual entry (FF68)
From the menu select settings Specifications
Start variant

:select AML1

Enter
Bank key

:AMLIDBI1

Bank account
Currency
Group
Transaction

;AMLIDBI1234
:INR
:1 (paying slip no.)
:select AML1 (check receipt clear customer )

240

Posting date

:Todays date

Value date

:Todays date

Currency

:INR

Enter
Amount

:100000

Reference no.

:2345 (bill no.)

Business area

:AMLH

Customer no.

:6600001

Enter & save

Save once again
From the menu select System >services Batch input Sessions select session
name :IDBI-IDBI1
Select process button
Select Display errors only radio button
Select process button
We get a message processing of batch in put session completed
Select exit batch input button
Go and See the customer A/c FBL5N
Give the customer no.6600001
Company code
:AML
Select cleared items radio button
Select normal items check box
Execute
Double click on type DZ
Select column document overview button
Check deposit credit in bank statement
Path :Accounting Financial accounting Banks-Incoming Bank statement
manual entry (Tr code is FF67)
From the menu select settings specifications
Start variant

:select AML2

Enter

241

Bank key

:AMLIDBI1

Bank account
Currency

:AMLIDBI1234
:INR

Give the statement no.

:1

Statement date

:Todays date

Opening balance

:0

Closing balance

:100000

Posting date

:Todays date

Enter
Ignore the warning message press enter

Transaction

:select AML2 check deposit in bank

Value date

:Todays date

Amount

:100000

Give the reference doc no. :1 (That is paying slip no.)

Business area

:AMLH

Enter & Save

Save once again
From the menu select System Services Batch input session
:IDBI IDBI1

Select session name

Select process button

Select display errors only radio button

Select process button
Ignore the message and exit batch input button

Go and see the IDBI check deposit A/c (FBL3N)

Give GL A/c No.

:200132

Company code

:AML

Select cleared items radio button

Select normal items check box
Execute

242

Double click credit 100000

Select call up document overview button

1.

Purchases

Purchase invoice posting F-43

Give the document date

:Todays date

Type

:KR

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Give the amount

:20000

Business area

:AMLH

Text

:Purchase invoice posting

Posting key

:40

Account no.

:200120 Inventory RM

Enter
Amount

:*

Business area
Text

:AMLH
:+

Document Simulate and Save

2.

Outgoing payment with clearing (Tr code is F-53)

Give the document date

:Todays date

Type

:KZ

Company code

:AML

Clearing text

:Outgoing payment

Account under bank data

:200131 (IDBI cheque issue date)

Business area

:AMLH

Amount

:20000

243

Text

:Outgoing payment

Account under open item selection :4200001

Select process open item button
Double click on payable amount :20000
From the menu select Document --Simulate & Save
3.

Manual check creation (FCH5)

Give the check no.100010

Save
4.

Enter manual bank statement (FF67)

Select overview button (F8)

Keep the cursor on AML IDBI Bank Ltd
Select new statement button
Closing balance (100000-200000)=800000
Posting date

:todays date

Enter
Transaction

:AML3 check issue clearing in Bank

Value date

:todays date

Amount

:20000 with minus

Bank reference

:100010 (cheque no.)

Business area

:AMLH

Enter
Select save button , save once again
From the menu select System Service Batch input Sessions
Select session name

:IDBI-IDBI

Select process button

Select Display errors only radio button
Select process button
Ignore the message exit batch input button

244

Go and see IDBI cheque issue account (FBL3N)

Give the GL account
Company code

:200131 IDBI cheque issue account

:AML

Select cleared items radio button

Select normal items check box
Execute
Double click on debit 20000
Select call up document overview button
Bank charges Direct debits
Enter manual bank statement FF67
Select overview button
Keep the cursor on AML IDBI Bank Ltd

Select new statement button

Give the closing balance

:79500

Posting date

:Todays date

Enter
Transaction

:AML4 Bank charges direct debits

Value date

:Todays date

Amount

:500-

Business area

:AMLH

Enter & Save

Save once again

From the menu select System Services Batch input Session
Select session name :IDBI IDBI-1
Select process button
Select display errors only radio button
Select process button
Ignore the message and select exit batch input button

245

To view the document posted (FB03)

Enter
To view bank statements in SAP FF67
Select overview button
Double click on AML IDBI Bank Ltd
To view the transactions in the statement
Double click on statement no.

CASH JOURNAL
1) To view daily cash and ban opening balances, Receipts , Payments and closing
balance
2) GL Cash account accepts negative cash balance Cash Journal will not accept
negative cash balance
3) For petty cash purpose
1. Creation of GL master Petty cash account Current assets-Loans &
Advances (FS00)
Give the GL A/c No.
:200101
Company code

:AML

Select with template button

Give the GL A/c No.

:200100

Company code

:AML

Enter
Change short text and GL a/c long text to Petty Cash A/c
Select create /bank /interest tab
Select post automatically only check box
Save
Define number rage intervals for cash journal documents
Path :SPRO-Financial accounting bank accounting Business transactions-Cash
journal Define number range intervals for Cash journal Documents (FBCJC1)

246

Give the company code

:AML

Select change intervals button

Select interval button
No.range

:01

From no.

:500001

To no.

:600000

Enter & Save

Ignore the warning message press enter

Setup cash journal (FBCJC0)

Same path
Select new entries button
Company code

:AML

Cash journal no.

:0001

GL A/c No.

:200101

Currency

:INR

Document type for GL A/c

:SA

Document type vendor payment :KZ

Document type vendor receipt

:KZ

Document type customer payment

:DZ

Cash Journal name,

:AML HYD petty cash

Save
Press enter to save in your request
Create ,Change delete business truncations (FBCJC2)
Same path
Select new entries button
Company code

:AML

247

Business transaction type

:select R Revenue

G/L A/c

:300000

Cash journal business transaction

:Revenue

Select account modifiable check box

Company code

:AML

Business transaction type

:select E Expenses

GL A/c No.

:400100 Salaries A/c

Cash journal Business transaction :Expenses

Select account modifiable check box
Save
Press enter to save in your request
Setup print parameters for cash journal
Select new entries button
Company code

:AML

Cash journal print program name :RFCASH00

Report variant

:DEMOEN (Demo English)

Correspondence

:select SAP18 Cash document

Save
Press enter to save in your request
Posting to Cash journal
Path :Accounting Financial accounting General ledger Posting Cash journal
posting (FBCJ)
From the menu select Extras Change Cash journal
Give your company code

:AML

Cash journal

:0001

Enter
Select cash receipts tab
Business transaction

:select Revenue

248

Amount

:5000

Business area

:AMLH

G/L A/c

:300000 Sales A/C

Text

:Cash sales

Save
Select post button
Select print cash journal button
Ignore the message press enter

WITH HOLDING TAX (TDS

TDS: Tax deducted at source on Vendors/ Contractors/Local and professional charges
TCS: Tax collected at source on Customers/ scrap sale /waste sale
TDS is part of CIN (Country India Version)
TDS two types
Classic with holding Tax
Up to 4.6 C SAP CIN from 4.7 EE on
words CIN is part of SAP
SAP was released in India 1995 SA
and CIN
February 1996 Finance Budget Govt.
made changes to TDS for the changes
in Budget.
SAP releases Patch (program)
February 1997 finance budget changes
February 1998 Finance budget
changes
February 1991 Finance budget
changes

Extended withholding tax

Released extended with holding tax

Original CIN program modified with the
budget changes
Number changes
A) Education cess
B) Higher and Secondary Education
cess

249

C) Return Contractors annual Return

form 26C
D) Changed to annual return Form 26
E) Changed to quarterly return Form
26Q
F) ETDS
TDS on contractors/Professional
charges /Rent/Interest other than
salaries

TDS on contractors (Income Tax Section 194C)

1 Status Company /Partnership firm
2. TDS Rates
Basic
2%
Surcharges 10% on 2%
ED 3% on (basic +Surcharges )

Individual
10% on 2% contract value in the
whole year exceed 10 Lakhs other
wise NIL
3% on Basic +Surcharge
(Note :contract value in the whole
year exceeds 1 core other wise NIL)

4. TDS is to be deducted at the time of invoice posting or advance payment posting

whichever is earlier
5. If each contract value is less than 20000 and all contract value in the whole year
is less than 50000 No TDS is to be deducted.
6. To create only one code for invoice postings and one code for advance postings
(Max codes can be created 99)
7. If the contractor does not have taxable income he for lower rate of deduction or
NIL rate of deduction . Company has to deduct at lower rate or Nil rate
Exemption certificate will be given by Income Tax Dept for each year.
8. In the bill amount includes material cost and conversion charges (composite
contacts) To deduct TDS only conversion charges.
9. TDS deducted should be deposited within 7 days from the month end incase of
year end credits TDS to deposit within 2 months from the year end.

250

If 7th day comes on public holiday choice to make the payment day before or
after.
10. Issue TDS certificate in form 16A to the contractor It can be a monthly certificate
or consolidated certificate for the whole year.
11. File quarterly return in form 26Q earlier annual return Form 26
12. Permanent Account Number (PAN) will be allotted at company code level where
as Tax Deduction at Source (TDS No./TAN can be obtained at company code
level/Business area level/Business places level.
Maintain calendar
Path :SPRO-SAP Net weaver General settings Maintain calendar
Select public holidays radio button
Select change button
Select create button
Select with fixed date radio button
Select create button
Day

:1

Month

:select 05 May day

Short holiday name

:May day

Long holiday name

:May day

Enter
Ignore the message select Yes button
Ignore the message press enter
Select back arrow
Select holiday calendar radio button
Select change button
Select create button
Calendar ID

:A1

(AML HYD Factory Holiday calendar)

Select assign holiday button

Select May day check box
Select assign public holiday button

251

Save
Ignore the message press enter
Select back arrow two times
Select factory calendar radio button
Select change button
Select create button
Factory calendar ID

:A2

Description

:AML HYD Factory calendar

Holiday calendar ID

:A1

Work days select Monday to Saturday check boxes

Save
Ignore the message press enter
Check withholding tax countries
Path :SPRO-Financial Accounting Financial accounting global settings-With
holding tax-Extended withholding tax-basic settings-Check with holding tax
countries
Select new entries button
Country

:IN

Withholding tax country

:IN

Description

:India

Select save button or Ctrl+S

Save in account payable customization request
Define withholding tax keys
Same path
Give the country key :In for India
Enter
Select new entries button
Official withholding tax :194C
Name
:TDS contractors
Save
Press enter to save in your request
Define Business places (section code )

252

Path :Up to extend with holding tax the path is same -Basic settings India
Define business places
Select new entries
Company code

:AML

Section code

:AMLF

Name

:AML HYD factory

Save
Give the name

:AML HYD Factory

Press enter to save in your request

Assign factory calendars to section code (Business places)

Same path
Select new entries button
Company code

:AML

Section code

:AMLF

Factory calendar ID

:A2

Rule

:select day before

Save
Press enter to save in your request

Define business place

Path: Form the menu select System Services Table maintenance Extended
table maintenance (Tr cod is SM30)
Table/view

:J_1BBRANCV

Select maintain button

Give the company code

:AML

Enter
Select new entries button
Business place

:AMLF

Description

:AML Hyderabad factory

253

Save
Give the name

:AML Hyd factory

Press enter to save in your request

Assign section code to business place (Tr code is SM30)
Table /View

:V_seccode

Select maintain button

Give the company code

:AML

Enter
For section code

:AMLF

Business place

:AMF

Save
Press enter to save in your request
Define withholding tax type for Invoice posing:
Path: Up to Extended with holding tax the path is same Calculation With
holding tax type Define with holding tax type for invoice posing
Give the country key

:IN

Enter
Select new entries button
With holding tax type

:D1

Description

:section sec 194C contractors Invoice posting

Select gross amount radio button

Select with holding tax commercial rounding radio button
Select post with hold tax amount check box
Select no accumulation radio button
Save
Press enter to save in your request
Define withholding tax for payment posing
Same path

254

Give the country key

:IN

Enter
Select new entries button
With holding tax type

:DA

Description

:Sec 194 C contractors Advance posting

Select gross amount radio button

Select withhold tax commercial rounding radio button
Select no accumulation radio button
Select post with holding tax amount check box
Select central invoice propitiate radio button
Select save button or Ctrl+S
Press enter to save in your request

Why to select central invoice proportionate for advance payments

2.266%
1. Advance payment
F-48
20.11.2008
Party special GL (A)
Dr
100000
To Bank
97734
To TDS (To deposit before 07.12.2008) 2266

2. Purchase invoice posting F-43

14.12.2008
Conversion charges
Dr
300000
To party
293202
To TDS (to Deposit before 07.12.2009) 6798
3. Transfer of advance from special GL to normal by clearing special GL -54
14.12.2008
Party Dr
97734
TDS Dr
2266 auto debit
To Party special GL (A)
100000
TDS payable on 07.12.2008 on 07.12.2008 2266
TDS payable on 07.12.2009
4532
(6798-2266)

Define withholding tax codes

255

Path :Up to extend with holding tax the pat is same Calculation With hold
tax codes Define with holding tax codes
Give the country key

:IN

Enter
Select new entries button
With holding tax type

:D1

With hold code

:D1

Description

:section 194C contractors Invoice (2.266%)

Official with holding tax

:section 194 C

Base amount percentage subject to tax

:100

With holding tax rate

:2.266%

Posing indicator

:selection 1 (standard posting :Bank /Vendor

/Customer line item reduced

Save
Press enter to save in your request
Select back arrow
Select with holding tax type

:D1

Select copy as button

Change with holding tax type :D1 to DA
Change with hold tax code

:from D1 to DA

Description

:sec 194 C (contractors Advance 2.266% )

Enter and Save

Check recipient type
Path :Up to extended with hold tax the path is same Basic settings Check
recipient types
Give the country key

:In for India

Enter
Select new entries button
With holding tax type

:D1

256

Recipient type

:CO

Text

:company

One more
With holding tax type

:DA

Recipient type

:CO

Text

:Company

Save
Press enter to save in your request

Maintain tax due dates

Path :Up to extend with holding tax the path is same Basic settings India
Maintain tax due dates
Select new entries button
Country
Official with holding tax key
Recipient type
No.of days unit tax due date
Save

:IN
:194C
:CO
:777

Assign withhold tax types to company code

Path :Up to Extend with holding tax the path is same company code
Assign with holding tax types to company code
Select new entries button
Company code

:AML

Withholding tax type

:D1

Recipient type

:CO

Select with hold tax agent check box

Withholding tax obligated firm :01.04.2008
Obligated to with hold tax until

:31.03.2009

Save
Press enter to save in your request

257

Select back arrow

Select company code AML with tax type D1
Select copy as button
Change the With holding tax type to DA
Enter & Save
Activate extended withholding tax :
Same path
Select position button
Give the company code

:AML

Enter
For company code AML select extended with holding tax check box
Save
Ignore the warning message press enter
Press enter to save in your request
Combined with holding tax code
Path : up to Extend with holding tax the path is same Calculation India
surcharges Maintain surcharge rates (Surcharges combined with basic
withholding tax codes)
Select new entries button
Company code

:AML

Withholding tax code

:D1

Recipient type

:CO

Surcharge rate

:10

Company code

:AML

Withholding tax code

:DA

Recipient type

:CO

Surcharge

:10

Save
Press enter to save in your request
Creation of 2 GL masters (FS00)

258

1. Conversion charges under manufacturing group

2. TDS on contractors under Current Liabilities & Provision group
FS00
Give the GL A/c No.

:400200

Company code

:AML

Select with template button

Give the GL A/c

:400100 Salaries A/c

Company code

:AML

Enter
Change the A/c group to manufacturing expenses
Change short text and GL A/c long text to Conversion changes
Save

One more
Give the GL Account no.

:100510

Company code

:AML

Select with template button

Give the GL A/c No.100500 out standing exp.
Company code

:AML

Enter
Change short text and GL account long text to TDS on Contractors
Save
Assignment of accounts for Automatic postings:
Path :Up to Extended with holding tax the path is same Posting Accounts for
withholding tax Define accounts for withholding tax to paid over
Give the Chart of Accounts :AML
Enter
Select with holding tax code check box
And with withholding tax type check box
Save

259

Withholding tax type

:D1

Withholding tax code

:D1

Account

:100510

Withholding tax type

:DA

Withholding tax code

:DA

Account

:100510

Save
Press enter to save in your request

Maintain company code settings

Path :SPRO-Logistic- General Tax on goods movement India Basic settings
Maintain company code settings
Select new entries button
Give the company code AML and Save
Press enter to save in your request
Specify document type for remittance challans
Remittance challans TDS on contractors
1
2
3
4
5

CO
OT
CO
CO
TO

1000 (Company)
2000 (Individual)
3000
4000
5000

When we make TDS payment we have to prepare two challans

1 for Companies
2 for Individuals
In remittance challan screen
recipient type
1
3
4

Company (CO)
CO
CO
CO

1000
3000
4000

TDS on contractors Dr-With Clg 8000 GL

To Bank
8000 GL

260

Doc .Type :SA

Path :Up to Extended with holding tax the path is same Posting India
Remittance challans Document types Specify document type (Accounts
payable)
Select new entries button
Company code

:AML

Remittance challan document type

:SA

Save
Press enter to save in your request
Maintain number groups:
Same path
Select new entries button
Company code

:AML

Section code

:AMLF

Official withholding tax key

:194C

Number group

:08

Save
Press enter to save in your request
Assign number ranges to Number groups: ( Tr code is J1INO)
Same path
Select new entries button
Internal number range group :08
Internal challan
:08
Save
Maintain number ranges:(Tr code is J1INUMBER)
Same path
Select maintain groups button
Select group without tax having 08 check box

261

From the menu select Interval Maintain

Give the company code

:AML

Enter
Select interval button
Year

:2008

From no.

:1

To number

:100000

Enter & Save

Ignore the message press enter

Assign remittance challan number group to Business place

Tr code is (SM30)
Give the Table /View

:J_1IEWTNUMGR

Select maintain button

Select new entries button
Company code

:AML

Business place

:AMLF

Official with holding

:194C Tax key

Number group

:08

Save
Assign remittance challan number group to section code :(SM30)
Table /view :J_1IEWTNUMGR_1
Select maintain button
Select new entries button
Company code

:AML

Selection code

:AMLF

Official withholding

:194C Tax key

Number group

:08

Save

262

Press enter to save in your request

Maintain number groups and SAP script forms
Path :Up to Extend with holding tax the path is same Postings India
Withholding tax certificates for Vendors and Customers Maintain number
groups as SAP script forms
Select new entries button
Company code

:AML

Section code

:AMLF

Official withholding tax key

:194C

Form

:J_11EWT_CERT

No group

:09

Save
Press enter to save in your request
Assign number ranges to number groups
Same path
Select new entries button
Number group
:09
Internal number range
:09
Save
Press enter to save in your request

Maintain number ranges

Sam path
Select maintain groups button
Select group without text having 09 check box
From the menu select interval maintain
Company code

:AML

Enter
Select interval button
Year

:2008

From number

:100001

263

To number

:200000

Enter & Save

Ignore the message press enter
Assign withholding tax code in Vendor master
Path :Accounting Financial accounting Accounts payable Master recordsMaintain centrally change (Tr code is XK02)
Give the vendor no.

:4200001

Company code

:AML

Select with hold tax check box

Enter
Give the withhold tax country :IN (India)
With holding tax type

:D1

Withholding tax code

:D1

Select liable check box

Recipient type

:CO

Withholding tax type

:DA

Withholding tax code

:DA

Select liable check box

Recipient type

:CO

Select CIN details button

Ignore the warning message press enter
Select withholding tax tab
Give the PAN of vendor

:AP4C12345C

Select back arrow

Save
END USER AREA
Conversion charges posting (F-43)
Document type

:Todays date

Type

:KR

264

Company code

:AML

Posting key

:31

Account no.

:4200001

Enter
Give the amount

:100000

Business area

:AMLH

Business place /section code

:select AMLF

Enter
Text

:Conversion charges posting

Posting key

:40

Account

:400200 conversion charges account

Enter

Conversion charges

Option 1
If the bill value is less
than 20000 and whole
year contract value is
less than 50000
No TDS

Remove D1 and DA

Option 2
If the value consists of
material 30000 and
conversion charges
70000
A) For D1 with holding
tax base amount enter
70000 TDS will be
deducted on 70000
B) Remove DA

Option 3
If the bill amount is only
for conversion charges

A) Remove DA

Remove with hold tax code

:DA
Enter
Amount
:*
Business area
:AMLH
Text
:+
From the menu select Document Simulate and Save
Note : If you get a error message once check it Activate extended withholding tax /
Document splitting
Create remittance challan

265

Path :Accounting Financial accounting Accounts payable With holding tax

India Extended with holding tax Remittance of withholding tax-Create
remittance challan (Tr code is J1INCHLN)
Company code

:AML

Fiscal year

:2008

Business plane/ Second code

:AMLF

Posting date

:01.01.2009 to 31.01.2009

Section

:194 C

Recipient type

:CO

Document date

:07.02.2009

Posting date

:07.02.2009

Bank account

:200105 SBI CA

Execute (F8)
Enter
Business area

:AMLH

Text

:Conversion charges amount

Double click on all open items (by default one rupee can not see in SAP zero)
Select document overview button
Double click on the line item
SBI current A/c with one rupee
Amount

:*

Save
Select clearing document button
Select back arrow
Enter Bank challan
Path: Same path ( Tr code is J1INBANK)
Give the company code

:AML

Fiscal year

:2008

Challan clearing number

:select document no.37

266

(Once we select challan clearing number, Internal challan number and internal challan
date will be update automatically)
Base challan no .

:789

Bank challan date

:07.02.2009

Bank key

:select SBI

Execute
Print TDS Certificate
Path :Up to extend with holding tax the path is same Certificates Print
(J1INCERT)
Company code

;AML

Fiscal year

:2008

Business area /Section code

:AMLF

Section

:194C

Posting dates

:01.04.2008 to 31.03.2009

Bank challan dates

:01.05.2008 to 30.04.2009

Certificate date

:30.04.2009

Signatory

:Mr X

Designation

:Manager

Place of printing

:Hyderabad

Execute
Select print button
Output device

:LP01

Select print button

To view the print out
From the menu select System Services Output control
Select execute button
Select spool no.check box
Select display contents button
Quarterly return

267

( Tr code J1INQEFILE)
Path for Entering acknowledgement numbers.
In TDS certificate we have to specify acknowledgment number for each quarterly return
field.
Path :System Service Table maintenance Extended table maintenance (Tr
code is SM30)
Table /View J_1IET_ACKN_N
Select maintain button
Select new entries button
Company code
:AML
Year
:2008
Section code
:AMLF
Period
:select second quarter
ACK No.
:123
Save
Note: Quarterly return not working in pirated softwares patches updated in genuine
SAP software
Advance posting:
1. Advance payment posting F-48
15.12.2008 50000 1133 TDS to deposit before 07.01.2009
2. Conversion charges posting F-43
02.01.2009 200000
4532
3.

Transfer of advance from special GL to normal by clearing special GL F-54

02.01.2009 1133 Auto debit will come before 07.02.2009 to deposit
45321133=3399

268

SAP CO NOTES

269

SAP CO NOTES
INDEX
PARTICULARS
CO Areas and Basic Settings for Controlling
Cost Center Accounting
Online Reconciliation Leger
1. Creation of GL Masters
2. CO Customization
3. FI Customization
Cross Company Code Postings
Maintain Overhead structure
Statically Key Figures (SKF)
Assessment
Internal Orders
Budgeting and Availability Control
Profit Center Accounting
Integration
1. Transaction Key /Process Key
2. Valuation Class
3. Assignment of accounts
4. MM Customization
5. FI Consultant job in MM
6. Assignment of Accounts for Automatic Postings(MM
to FI)
7. FI Consultant job in SD
8. SD Steps
9.
Co-Profitability Analysis (CO-PA)
1. Data flow in CO-PA
2. Customization
3. SD End user area
Report Painter
Product Costing
1. Co Consultant Job (Activity based costing)
2. PP Consultant job
3. CO End User area
4. MM End User area
5. PP End user area
Actual Costing
1. CO Consultant job
2. PP consultant area
3. Asset Accounting area

270

Page No.
3
11
23
25
27
28
31
34
38
42
46
60
64
76
77
78
89
90
97
100
115

120
120
122
126
129
132
134
144
146
147
149
153
153
167
174

New General Ledgers (ECC 6 New Features )

1. Customization
2. Document Splitting
Central Excise and Sales Tax
1. Central Excise Customization (Purchase)
2. Central Excise customization (Sales)
3. SD End user area
Financial Statement Version
Asset Accounting Area
Project Report

271

179
180
188
192
195
211
217
228
237
238

CONTROLLING (CO)
This is used for internal reporting in Co organizational Hierarchy Highest node is controlling
area. In FI Highest node is company , Company code
CO AREAS :
1.

Cost Elements Accounting: To update Co records / sub modules cost elements are
required.

There are two types of cost elements

1. primary cost elements
2. Secondary cost Elements
2.

Cost Center Accounting: This is used to view department wise costs.

3.

Internal orders: This is used to view costs for specific task.

Eg: Vehicle wise running expenses / Petrol expenses, Repairs to that Vehicle, Telephone
wise expenses production order costs / Exhibition costs.
Create each vehicle as n order and capture the costs
Production order:
Create production order as on internal order and capture the costs.
Exhibition costs: Sales men salaries , Advertisement discounts to customers conveyance.
Create a exhibition order

4.

Profit center accounting : This is used to view profitability product wise / Division wise /
Location wise if business area is not used in FI

Product Costing :This is used for valuation if inventories

Eg: Finished goods and work in process.
Profitability analysis: This is used to view profitability for number of parameters at a
time.
Eg. Sales order wise / Customer wise / Product wise / Plant wise / Sales organization
wise profitability this is reporting tool

6.

272

BASIC SETTINGS FOR CONTROLLING:

Maintain controlling area
FI Organization Structure

CO. Organization Structure

Company
|
Company code
|
Business area

Controlling
|
|
|
Cost Center

Scenario 1
Company
|
Company code
|
Business area

Controlling Area
|
Cost Center

---

(a)Controlling area at company code level, b)Business area will be assigned in cost centers.)

Scenario -2
Company
|
Company code
|
Business area

Controlling Area
|
|
|
Cost Center

---

(a )Controlling area at company (group) level no. of company codes will have one
controlling area, b) Business area will be assigned in cost centers.
1) When management wants to view number of company codes cost centers data at a time
It is not possible in 1st Scenario It is possible 2nd scenario.
In report it will ask only one controlling area and not multiple controlling area.
2) When management wants to view number of cost centers data of company code
Directly it is possible in 1st scenario.
Also it is possible in 2nd Scenario By creating cost center groups.
It means 2nd Scenario is more flexible.

273

MAINTAIN CONTROLLING AREA:

Path : SPRO Controlling General controlling Organization Maintain controlling area
(Tr.Code is OKKP)
If we go for 1st scenario company code should be the controlling area.
If we go for 2nd scenario we can use any code for controlling area code.
Double click maintain controlling area.
Select new entries button
Controlling area
Name
Company code to controlling area
Currency type

:BIL
:controlling area forBIL
: Select controlling area same as company code
: select 10 company code currency.

Once we select 10 company code currency , currency field, Chart of Accounts filed and Fiscal
year variant filed will be updated automatically.
Cost Center standard hierarchy
: BILHIER
Save
Select yes button for the message system to create as a standard hierarchy
Select create request button
Short description
: Co customization for BIL
Press enter
Press enter once again to save in the request.
COST CENTER STANDARD HIERARCHY:
Cost center standard hierarchy
: BILHIER
|
Cost centers
Dept. A

Dept.B

Dept.C

At the time of cost center creation It will ask under which hierarchy we are creating the cost
centers.
In the report when we give cost center Dept.A It gives only Dept.A date. When we give cost
center Dept.B It gives only Dept.B date.
When we give cost center hierarchy BILHIER It gives all the cost centers data.

274

Double click on assignment of company codes folder

Select new entries button
Give the company code : BIL
Select save button or Ctrl+S
Press enter to save in your request
Double click on a activate components / control indicators folder
Select new entries button
Fiscal year

:2007

Cost center

: Select component active

Select active type check box

Order management select component active.
Select profit center accounting check box
Save
Ignore the warning message press enter
MAINTAIN NUMBER RANGES FOR CONTROLLING DOCUMENTS:
1. CO through posting from FI (Business transaction COIN
CO No rang interval for the business transaction COIN
FI

Document type
And no.ranges

Co

SA
|
01
|
1-100000

COIN
|
|
1-00000
Automatic posting

Manual posting F-02

1. Repost Co line items (Business transaction RKU3)

Option 1
Posting in FI
Wages A/c
Wages A/c

Dr
Dr

100000
200000

Dept.A
Dept.B

275

Wages A/
To bank

Dr

300000
600000

Dept C

1 FI Document
1 Co Document COIN

Note :Automatic posting is a business transaction

Option 2
Posting in FI
Wages A/c

Posting in CO
Dr

To Bank
2
1
1

600000

Dept common
Dept.common
Dept. Common

600000

Post Co line item

Documents
FI Document
CO Document COIN

Dept A
Dept B
Dept C

100000
200000
300000

No FI document
1 CO Document RKU3

Transfer document wise/line item wise

Total documents generated
1.
2.

FI Document
CO Documents

Wages A/c

Dr

600000

Dept Common Dept A 300000

Dept Common Dept B 200000
Dept Common Dept C 300000

Rent A/c
To bank

Dr

50000
650000

Dept A
Repot CO line item

Transfer line item wise

Transfer document wise / Line item wise
Report costs ( Business transactions RKU1)
This is used when we split the cost center into number of cost centers or transfer for wrong cost
center postings.
No FI document will be generated

276

CO document only will be generated

Transfer cost element wise (GL Account wise) 01/07/2007 split into Dept A and Dept X
Dept A

Dept X

30/04/2008
30/05/2008
30/06/2008

30/04/2008
03/05/2008
30/06/2008

400100 Salaries 200000

400100 Salaries 250000
400100 Salaries 275000
---------400100 total 725000
400101 wages
400101 wages
400101 wages

Total 400101
30/04/2008
31/05/2008
30/06/2008

400300
400300
400300
400300 Total

Rent
Rent
Rent

400100 Salaries 200000

100000
150000
125000
---------375000

400101 wages 125000

500000
50000
50000
-------150000

400300

Rent 40000

Planning primary costs ( Business transaction RKP1)

Planning cost center wise or no. range interval for all the types , budgeting cost center wise for
each cost element.
Path: SPRO- Controlling General controlling Organization- Maintain number ranges for
controlling document (T.Code is KANK)
Controlling area
: BIL
Select maintain groups button
From the menu select group Insert
Text: Co doc no. range interval for BIL
From number
:1
To number
:100000
Enter
Double click on business transactions COIN
RKU3
RKU1
RKP1
Select Co.No.range interval for BIL check box
From the menu select Edit Assignment element group

277

Save
Ignore the message press enter
Note :Usage of Version locked authorized person only Eg; Cost Accountant
MAINTAIN VERSIONS:
Version are nothing but budgets
Original budgets
Revised budget
Re revised budget

Version 0
version 1
Version 2

We can compare actual with original budget, Revised budget and Re revised budget
Path: SPRO Controlling General controlling Organization Maintain versions
Select version 0 (Plant /actual version )
Double click on settings for each fiscal year folder
Give the controlling area

: BIL

Enter
Select new entries button
Fiscal year

:2008

Exchange rate type

:select B (Bank selling rate)

Once budgeting is completed at end user are a select version locked So that no body can
change budget figures.

Select save button or Ctrl+S

Press enter to save in your request

Select bank arrow
Planning is made attend user area after plannings completed we select version locked check
box , no body can change planned figures.

COST ELEMENT ACCOUNTING:

278

To update CO records / sub modules cost elements are required

There are 2 types of cost elements
1. Primary cost element
A)Primary cost elements are our general
ledger accounts
B) Posting to primary cost elements are
possiable

2 Secondary cost elements

A)Secondary cost elements are other than
general ledger accounts
B) Postings to secondary cost elements are
not possible. They are used to allocations /
Settlements
Dept C
Dept A
Dept B
(Service Dept)
(Production Depts)
Salaries
100000
Wages
200000
Power
5000
In the month end, by using secondary cost element,
we allocate costs from service to
production Depts.

COST ELEMENT CATEGORIES

PRIMARY COST ELEMENT CATEGORIES:

1.
Primary cost / costs redacting revenues. This used for expenditure accounts
3.
Accrual / Deferral per surcharge :This is used for month end provisions only in CO
11.
Revenues: This is used for income accounts
12.
Sales Deduction: This is used for expenditure accounts like sales commission Trade
discount where CO-Profitability analysis module is activated
22.
External settlement( Settlement from CO FI): This is used for allocation of internal
order settlement to GL Accounts / Assets.
SECONDARY COST ELEMENT CATEGORIES:
21.
31.
41.
42.
43.

Internal settlement (Settlement from CO to CO) This is used for allocation of internal
order settlement cost to cost centers.
Order/ Project Results analysis: This is used for work in process calculations is product
costing.
Overheads rates :This is used for calculation of raw material overhead rate /
Production overhead rate in product costing .
Assessment: This is used for allocation of primary cost element posing and secondary
cost postings from one cost center to other cost centers.
Internal Activity Allocation: This is used for calculation of activity types in production
cost.
Eg: Machine hours rate / labour hour rate in product costing.

279

COST CENTER ACCOUNTING

This is used to view department wise costs we use cost center accounting.
1. Creation of primary cost elements, we can create
A) FI Area
|
B)CO Area
|- Co Area
C)Automatic creation
|
2. Display cost elements created
3. Creation of filed status group by making cost center required entry field
4. Assign new filed status group in GL expenditure accounts
5. Creation of cost centers.
6. Creation of cost center groups.
7. Creation of cost element groups
8. To enter exchange rate for type M for INR to Euro
9. Posting of transaction in FI
10. To view cost center wise report.
11. To view CO documents
1. A) Creation of primary cost element at FI area
Use to FS00 GL masters creation
Give the GL account number : 400100 Salaries Account
Company code
: BIL
Form the menu select GL Account display
Now select edit cost element button
Valid from date
:01.04.2008
To date
:31.12.9999 comes automatically
Enter
Cost element category
: Select 1 (Primary cost / cost reducing revenues)
Select save button or Ctrl+S
1. B) Creation of Primary cost element at CO area:
Use transaction code FS00
Path: Accounting- Controlling- Cost element accounting-Master data-Cost element
Individual processing-Create primary (Tr.code KA01 )
Cost element
: 400300 Rent Account
Valid from
:01.04.2008 to 31.12.9999
Enter
Cost element category
:1 (primary cost /cost reducing revenue)
Save
1. C) Automatic creation of primary cost elements:

280

1) Marked default settings (OKB2)

path : SPRO-Controlling-Cost element accounting-Master data Cost elements Automatic
creation primary and secondary cost elements-Make default settings.(Tr.code is OKB2)
Give the chart of Accounts : BIL
Enter
Account from
:400301
Account to
:499999
Cost element category select 1
Save
Press enter to save in your request
Create batch input session (OKB3)
Same path as above
Give the controlling area

: BIL

Valid from

:01.04.2008

Valid to

:31.12.1999

Session name

:BIL (This is text field)

Execute
Execute batch input session (Tr code is SM35)
Same path as above
Select session name

: BIL

Select process button

Select session

:BIL

Select display errors only radio button

Select process button
We get a message processing of batch input session completed.
Ignore the message & select exit batch input button

Display primary cost elements created (KA03)

Path: Accounting-Controlling-Cost element accounting-Mater data-Cost element
Individual processing Display- (Tr code is KA03)

281

Select drop down button beside cost element

Give the Controlling area : BIL
Enter
Creation of field status group by making cost center required entry field: (Tr.Code
is OBC4)
Select field status variant: BIL
Double click on filed status groups folder
100000 equity share capital G001

We cant make cost center required for balance

sheet accounts

400100 Salaries Account

G001
For G004 we make cost center required and assign
in salaries account (i.e in expenditure accounts)

Double click on field status group G004 cost accounts

Double click on General data
Text make it required entry field
Select next group button
Cost center select required entry filed
Select next page or page down button two times.
Business area make it option entry filed
Save
Press enter to save in your request
Assign group new field group in GL expenditure accounts (FS00)
Give the GL account 400100 salaries account
Company code

:BIL

From the menu select GL account change select create / Bank / Interest tab
Filed status group change to G004
Save
Give the GL Account No.400300 Rent A/c
Company code

:BIL

From the menu select GL account change

282

Change field status group to G004

Save
Creation of cost centers:
Path: Accounting-Controlling-Cost center accounting-Master data-Cost centerIndividual processing-create (Tr.code is KS01)
Cost center

: Dept A

Valid from

:01.04.2008 to 31.12.9999

Enter
Give the name

: Dept A

Give the description

: Dept A

Person responsible

:Mr.A

Cost center category

: Select 1 production

Hierarchy area

: select BILHIER

Business area

:BILH

Currency

:INR

Select save button or Ctrl+S

Ignore the warning message press enter
One more cost center

: Dept B

Valid from

:01.04.2008 to 31.12.9999

Reference cost center

: Dept A

Controlling area

: BIL

Enter
Change the name to Dept B
Change the description to cost center Dept B
Change the person responsible

: Mr B

Other fields are common

Select save button
Ignore the warning message press enter
Cost center

: Dept C

Valid from

:01.04.2008 to 31.12.9999

283

Reference cost center

: Dept A

Controlling area

: BIL

Enter
Change the name to

: Dept C

Change the description to cost center : Dept C

Change person responsible to Mr.C
Cost center category

: Select to 2 (service cost center)

Select save button or Ctrl+s

Ignore the warning message press enter
Creation cost center groups:
Hierarchy
: BILHIER
Cost centers
Dept A Dept B Dept C Dept X
Dept Y
Dept Z
Category
Production Prod Service
Production Production Service
Business Area
HYD
HYD
HYD
BGL
BGL
BGL
If we want to see all cost centers data BILHIER
If we want to see production cost centers data Create a cost center group and assign Dept A .
Dept B, Dept X and Dept Y.
If we want to see HYD cost centers data cost cost center group and assign Dept A, Dept b and
Dept C
If we want so settled production cost centers data create A cost center group and assign Dept
A and Dept B
Path : Accounting Controlling Cost center accounting Master data- Cost center group
Create (Tr.code is KSH1)
Give the cost center name

: BILHYD PROD

Enter
Description Hyderabad production cost centers BIL
Select Edit Cost Center Insert cost center button
Select the cost centers Dept A
Dept B
Save
Creation of cost Element group:

284

FI : Account groups Personnel cost

CO:Dept wise personal cost or

Administration

400100 salaries

Create cost element group personnel and

assign 400100 -400199

400101 Wages
400102 Bonus
400103 Staff welfare and Administration
400300 Rent
400301 Telephone exp
400302 Petrol exp

Create cost element group administration

and assign 400300-400399

In the report center Dept A Dept C

Or
Cost center GRP
Cost element
Or
Cost element GRP personnel
administration

Path: Accounting Controlling-Cost center accounting-Master data-Cost element group

Create (Transaction code: KAH1)
Cost element group name : BILADMIN
Enter
Description : Administration expenses for BIL
Select insert cost element button (Shift+F4) (Edit Cost element Insert cost element)
From 400300 to 400399
Save
To enter exchange rate for type M for INR to EURO (Tr.Code is OB08)
Select new entries button
Exchange rate type

: M (Average rate)

Valid from

:01.10.2008

From currency

: INR

To

: EUR

Direct quotation

:0.02

Select save button or Ctrl+S

285

Press enter to save in your request

Posting of transaction in FI Transaction code:F-02
Give the document date
Type
Company code
Posting key
Account
Enter
Give the amount
Cost center
Text

: Todays date
:SA
:BIL
:40
:400100 salaries account
:500000
: Dept A
:Salaries posting

One more expenditure

Post key
:40
Account
:400300 Rent account
Enter
Amount
:100000
Cost center
: Dept A
Text
: Rent posting
Posting key
: 50
Account
:200105 SBI current account
Enter
Amount
:*
Business area
:BILH
Text
: Expenditure posting
From the menu select Document Simulate
Select save button or Ctrl+S
To view cost center wise report:
Path: Accounting Controlling-cost center accounting Information system-Report for cost
center accounting-Line items Cost centers: Actual line items (Transaction :KSB1)
Cost center select Dept A (if you want change the posting dates)
Select execute button
Keep the cursor and the first line item
Select document button
Select back arrow
Select change layout button (Ctrl+F8)
Select Document no.under column set

286

Select value in reporting currency under displayed columns

Select left arrow or show selected filed button
Select reference document no.under column set
Select value in report current under displayed columns
Select left arrow
Select business transition under column set
Select document no. under displayed columns
Select left arrow
Enter
To view co documents:
Path :Up to reports for costs center accounting path is same -Line items Co documents
:Actual costs (transaction code is KSB5)
Document no.
:1 to 100000
Execute
Select folder button for document no.1

Report co line items:

Business transaction RKU3
FI doc.13
001 400100 Salaries
500000 Dept A

Report co line item

002 400300 Rent
003 200105 SBI

150000 Dept B
50000 Dept C

100000 Dept A
600000

Report co line item

Transfer document wise /line item wise , transfer line item wise
No FI document will be generated
Only document will be generated
Path: Accounting Controlling-Cost center accounting Actual postings-Report line itemsEnter (Transaction code is KB61)
Select document no. :13
Company code
:BIL
Fiscal year
:2008
Execute

287

Double click on line item no.1

Amount under new account assignment 150000
Cost center
:Dept B
Select new item button
Select next button
Amount under new account assignment 50000
Cost center
: Dept C
Save
Go and see the cost center report KSB1
Give the cost center

Dept A

Select execute button

To view cost element wise to total
Select cost element column
Select sub totals button
(Note:That is dues cost element wise total)
Repot costs (Business transaction RKU1)
This is used when we split a cost center in to number of cost centers or wrong cost center
postings.
No FI document will be generated
Only CO document will be generated
Transfer cost element wise (GL account wise)
Path : Accounting-Controlling-cost center accounting Actual postings-manual reporting of
costs Enter (Transaction code is KB11N)
Cost center (old)

: Dept A

Cost element 400100 Salaries

Amount

:100000

Cost center new

: Dept C

One more cost center (old)

: Dept A

Cost element

:400300 Rent

Amount

:25000

Cost center (new)

: Dept C

Enter
Select save button or Ctr+S

288

Period lock:

A) Transaction which effect

FI and CO eg:COIN
B) Transaction which effect
only CO Eg.RKU3, RKU1
C) Transaction which effect
only FI Eg.Debit balance
sheet and credit balance
sheet

FI
To open

CO
To open

No check

To open

To open

No check

Sept .08 March

Oct 2008 to March 2009

An expenditure posting in FI for September. We cant post since periods are not open.
Path: Accounting Controlling-cost center accounting-Environment Period lock-chang
(Tr.code is OKP1)
Controlling area

: BIL

Fiscal year

:2008

Select actual button

Select period

:01

Select lock period button

Save
Set controlling area :(OKKS):
Path :up to Environment the path is same Set controlling area
Give the controlling area
:BIL
Enter
Real time integration of controlling with FI on line reconciliation ledger
This is used when we get for 2nd scenario (no.of company codes having one controlling area ) all
the company codes should use same Char of Accounts.
Planning cost center wise
Path :Accounting Controlling cost center accounting Planning Cost and Activity inputs
Change (KP06)
Version

:select 0 (Original budget)

289

From period

:1

To period

:12

Fiscal year

:2008

Select next page or page down button

Cost center group

:BILHIER

Cost element From

:400000

Cost element To

:499999

Free
If we select radio button
We have to select cost element from the
drop down list and plan against the
Climents

Form Bsed
If we select from based radio button
The cost element list in a available on
screen plant against cost elements

Select form based radio button

Select overview screen button
For cost element 400100 Plan Fixed cost 1500000
Distribution key 1 Equal distribution
Select cost element

400100

From the menu select Goto Period screen

Select back arrow
Fro cost element 400300 Plan fixed cost 960000
Distribution key 1
To plan for Dept B Select next combination button
To go back to previous dept select previous combination button
Save

To view variance report cost center wise

Path :Accounting Controlling-Cost center accounting Information system Reports for cost
center accounting Plan /Actual comparisons Cost centers: Actual /Plan/Variance (Tr code
is S_ALR_87013611)
Controlling area

:BIL

290

Fiscal year

:2008

From period

:10

To period

:10

Plan version

:0

Cost center Value

:Dept A

Execute
Keep the cursor on Salaries A/c actual costs amount
Select call up report button
Double click on cost centers : Actual line items keep the cursor on the first line item.
Select document button

ONLINE RECONCILIATION LEDGER

Reconciliation used when
when number of company codes having one controlling area 2nd Scenario
It can be at controlling area
All the company codes should use the same Chart of Accounts
due to online reconciliation ledger, it generated in a document in FI

291

BIL Controlling area

|
-----------------------------------------------------------------------|
|
Company code BIL
company code BSL
|
|
----------------------------------------------------------------------|
|
|
|
|
|
Dept A
Dept B
Dept C
Dept X
Dept Y
Dept Z

If salaries paid and posted FI at (F-02)

Salaries A/c
---------------------------------100000
|
|
Out of 100000 salaries 20000 belongs to company code BIL
If we use the reconciliation account at cost center level and the 20000/- is transfer to company
code BSL (Dept X) it passes the entry in financial automatically
Here Reports at No FI records
In BIL Books
BSL
Dr 20000
To Salaries a/c
20000
In BSL books
Salaries account
To BIL a/c

Dr 20000
20000

Customization at Finance:
To copy company code BIL customization including accounting to BSL
Path :SPRO-Enterprise structure Definition Financial accounting Edit, copy, Delete,
Check company code(T.Code EC01)
Double click on copy, delete, check company code
From the menu select organization object copy organization object
From Company code

:BIL

To company code

: BSL

Enter

292

Select Yes for the message (for copy the GL accounts)

Select No button allocate a different local currency
Ignore the message press enter
Select create request button
Short description :Customization for Birla Steel Limited
Press enter
Enter once again to saving the request
Go on press enter till you got the message company code BIL copied to BSL with out 75 number
range object
Ignore the message press enter
Select back arrow
Double click on edit company code data
Select position button
Give the company code

:BSL

Enter
Select company code

: BSL

Select address button

change the company name to : Birla Steel limited
Enter
save and Save in your request button
Assign company code to company
Path :SPRO-Enterprise structure-Assignment Financial accounting-Assign company code
to company
Select position button
Give the company code
: BIL
Enter
For the company code
:BSL assign BIL(group name)
Select save button or Ctrl+S
Press enter to save in your request
Document type SA should allow inter company postings: (OBA7)
Select type

: SA

293

Select details button

Select inter company postings check box
Save
Press enter to save in your request
Creation of GL Masters FS00
BIL Books
1) FI/CO reconciliation account under only
expediter group which should not be a cost
element 400150 Personnel group
2) Birla Steels limited, current assets,
Loans & Advances 200160 Birla Steel
Limited

BSL Books
1)FI/CO reconciliation account under any
expenditure group which should not be a
cost element 400150 personnel group
2)Birla Industries Limtied current Assets,
Loans & Advances 200161 Birla
Industries Limited

Same chart of accounts

BIL chart of accounts BIL
BSL chat of accounts BIL
When we use same chart of accounts, account description should be same in all the company
codes.
In BSL books If we create account No.200160 It takes Birla Steels Limited- we can not crate
our account in our books.
Creation of GL masters FS00
Give the GL account no.

:400150

Company code

:BIL

Select with template button

Give the GL account o.

:400100 Salaries

Company code

: BIL

Enter
Change short text & GL account long text to FI/CO reconciliation account
Select create / bank /interest tab
Field status group change to ICCF CO < -> FI reconciliation posting
Save
Give the GL Account No.200160
Company code

: BIL

294

Select with template button

Give the GL Account No.200100 Cash A/c
Company code

:BIL

Enter
Select type/Description /tab
Change short text GL account long text to BIRLA STEEL LIMITED
Select create / Bank/Interest tab
Filed status group change to G067
Deselect relevant to cash flow check box
Save
Give the GL account No.400150
Company code

:BSL

Select with template button

Give the GL account 400150
Company code

:BIL

Enter & Save

Give the GL account 200161
Company code

:BSL

Select with template button

Give the GL account 200160
Company BIL
Enter
Select type / Description tab
Change short text +GL long text to Bila Industries limited
Save
Prepare cross company code Transaction (Transaction code is OBYA)
Path :SPRO-Financial accounting-GL accounting Business transactions-Prepare cross
company code transactions
Company code 1
Company code2
Enter

BIL
BSL

295

Posted in BIL
cleared against BSL
Debit posting key
:40
Account debit
:200160 ( Birla Steel Limited)
Credit posting key
:50
Account credit
:200160
Posted in BSL
Cleared against BIL
Debit posting key
:40
Account debit
:200161 Bilra Industries Limited
Credit posting key
:50
Account credit
:200161
Save
Press enter to save in your request
CO customization ( tr code is OKKP)
Maintain controlling area
Assign company BSL to controlling area BIL
Select controlling area

:BIL

Select details button

Company code to controlling area: Select cross company code cost accounting
Reconciliation ledger document type

:SA (GL accounts document)

Double click on activate components / control indicators folder

Select company code validation check box
Double click on assignment of company codes folder
Select company code

:BIL

Select copy as button

Change the company code to BSL
Enter & save
Ignore the warning message press enter
Activate reconciliation ledger (Tr code KALA)
Note: Follow through path
Path:SPRO Controlling Cost element accounting-Reconciliation ledger-Activate deactivate
reconciliation ledger
Double click on activate reconciliation ledger

296

Controlling area

:BIL

Select Execute button

Ignore the warning message press enter
Define adjustment accounts for reconciliation posting
Same path

(Tr code is OK17)

Double click on define accounts for automatic postings

Select change account determination button
Save
Reconciliation account:

Give the account no.400150 FI/CO

Save
Press enter to save in your request
FI CUSTOMIZATION
Define variant for real time integration:
Path :SPRO-Financial accounting (new) Financial accounting global setting (new) LedgerReal time integration of controlling with financial accounting Define variants for real time
integration
Select new entries button
Variant for real time integration B1
Select real time integration active check box
Select account determination active check box
Key date active from :01.04.2008
Document type

:SA

Ledger group (FI)

:0L

Text variant for

:BIL

Select cross company code check box

Select cross business area check box
Select cross profit center check box
Save
Press enter to save in your request

297

Assign variants for real time integration to company code:

Same path.
Select new entries button
Company code

:BIL

Variant

:B1

Company code

:BSL

Variant

:B1

Save
Press enter to save in your request
Creation of cost center for company code BIL (KS01)
Give the cost center department X
Valid from

:01.04.2008

To date

:31.12.9999

Reference cost center :Dept A

Controlling area

:BIL

Enter
Change the name to

:Dept X

Change the description to cost center dept X

Change company code to

BSL

Select save button or Ctrl+s

Ignore the warning message press enter
Repost costs (F-02)
Cost center old
Cost element
Amount
Cost center new Dept
Save

:Dept A
:400100 Salaries
:20000
X

To make text filed optional for field status group G004 cost accounts(Tr.code is OBC4)
Select field status variant for BIL
Double click on field status groups folder

298

Double click field status G004

Double click on General data
Text make it optional entry field
Press enter to save in our request
Go and see the FI documents (Tr.code is FB03)
Select document list button
Give the company code

:BIL

Enter the date :From date

To Date

Execute
Double click on document no.
Select back arrow
Chang the company code to BSL
Execute
Double click on document no.

CROSS COMPANY CODE POSTINGS

Company code

:BIL

BSL

Outstanding expenses of BSL paid by BIL

BSL

Dr
To Bank

25000
25000

Outstanding 25000
To BIL25000

299

Paying company code : BIL

Credit
Bank
Debit
outstanding exp

:BIL 25000
:BSL 25000

Use the Transaction code :F-02

Give the document date
:Todays date
Type
:SA
Company code
:BIL
Posting key
:50
Account no.
:200105
SBI CA
Enter
Amount
:25000
Business area
:BILH
Text
:outstanding expense payment on behalf of BSL
Posting key
:40
Account no
:100500 out standing exp.
New company code
:BSL
Enter
Amount
:*
Business area
:BILH
Text
:+
From the menu select document Simulate
Double click third line item
Business area
:BILH
Text
:+
Select next item button
Business area
:BILH
Text
:+
Select save button or Ctr+S
Posting by
Company code
:BIL
Cross company code no.
:15
08
FI posted by
Company code
Cross company code no.

:BSL
:2
08

By viewing the cross company code document number We know which company code has
initiated the posting.
Select continue button
Accrual orders (Imputed cost calculation)
This is used for month end provision only in CO

300

This is used for irregular expenses like Bonus

Cost element category should be 3
Accrual/ Deferral per surcharge
Define CO.No.range in interval for business
Transaction

:KAZ1 Actual cost center accrual

FI Month end provision

1. Accrual / Deferral document
A. Bonus provision for Nov
30.11.2008
Bonus A/c
To Out standing exp.
B. Reverse next month 1st 01.12.2008
01.12.2008
Outstanding Exp.
To Bonus A/c
C. Bonus provision for Dec.
31.12.2008
Bonus A/c
To Out standing exp
2. Open item management
A). Bonus provision for Nov.
30.11.2008
Bonus A/c
To Outstanding exp.
B). Bonus provision for Dec.
31.12.2008
Bonus
To Outstanding exp

Dr.10000
10000

Dept A

10000

Dept A

20000

Dept A

10000

Dept A

10000

Dept A

Dr.10000

Dr 20000

Dr10000

Dr.10000

Month end provision

Number of companies will not prepare profit & loss and Balance sheet every month, the
will not make provision in the books every month in year end, companies follow accrual
basis of accounting. They make provisions for the whole year.
Expenditure for all the months
Expenditure for March

Less (other than March)

More

In SAP when we take production an accounting entry will be generated automatically

Finished goods valuation will be based on costs for the month.
Stock valuation will be accrual orders

Lower in all month other than March

Accrual orders

Higher in March

Create overhead structure

301

Salaries
100000
Bonus -10% on salaries 1000

Debit cost center credit cost center

Dep Dummy (No accounting entry)

In the month end

Dept A

Bonus

1000 allocation to Dept A costs will

be allocated to production orders There by
Dept A will be zero- production valuation
will be correct.

Dept Dummy
Bonus

1000

In the year end in FI when we make bonus provision for the whole year.
31.03.2009

Bonus A/c
Dr
To Outstanding

1200000
1200000

Dept Dummy

Dept dummy values in the year end

31.03.2009 Dept dummy

1200000
======

April to March 10000*12 = 120000

=====

In the year end Dept dummy values will be zero.

Creation of GL master bonus account personnel cost (FS00) group:Give the GL Account No.
:400105
Company code
:BIL
Select with template button
Give the GL account no.
:400100 (salaries)
Company code
:BIL
Enter
Change short and GL account long text to Bonus account
Save
Select edit cost element button (F8)
Valid from date
:01.04.2008 to 31.12.9999
Enter
Cost element category :Select 3 accrual deferral per surcharge
save
Creation of cost center Dept dummy (KS01)
Give the cost center

: Dept dummy

302

Reference cost center

: Dept A

Controlling area

:BIL

Enter
Change name to Dept dummy
Change description to cost center: Department dummy
Select save button
Ignore the warning message press enter
Maintain overhead structure:
Path:SPRO-Controlling Cost element accounting-Accrual calculation percentage methodmaintain overhead structure (Transaction code is KSAZ)
Select create over head structure button (F7)
Over head structure :BIL1
Description
:BIL overhead structure
Select save button
Row Base
10 B1
Enter
Give the name salaries
Select create button
Row
O/H rate (Over head rate) Description
20
B2
Bonus
Enter
Give the name Bonus
Dependency :KRS1(controlling area)
Select create button
Save
Ignore the message press enter
Keep the cursor on overhead structure BIL1
Select assignment button (F5)
Controlling area
:BIL
Select actual accrual radio button
Select continue button
Valid from
1 2008

valid to
12

2008

overhead structure
BIL1

Save
Double click on overhead structure BIL1
Keep the cursor on B1

303

FR

To
10

CR
10

B3

From the menu select Goto calculation base

From cost element 400100
Save
Kept the cursor on B2
From the menu select Goto overhead rate
Valid from
1 2008
Save
From 10

Valid to
12 2008
To

10

Actual overhead
10%
Crdit B3

Keep the cursor on B3

From the menu select go to credit
Company code

:BIL

Business area

:BILH

Valid to

:12

Cost element

:400105

Cost center

:Dept Dummy

2008

Save
Define CO.no range interval for the business transaction KAZ1-Actual cost Center
accrual:(Transaction Code KANK)
Give the controlling area

:BIL

Select maintain group button

Double click on KAZ1- Actual cost center accrual
Select CO.No range interval for BIL check box
From the menu select Edit-Assigned element group
Save
Ignore the warning message press enter
1. Posting of salaries for the month of August F-02
Give the document date end posting date :03.08.2008
Date

:03.08.2008

304

Type

:SA

Company code

:BIL

Posting key

:40

Account no.

:400100 Salaries A/c

Enter
Ignore the warning message press enter
Amount

:100000

Cost center

Dept A

Text

:Salaries posting

Posting key

:50

Account no

:200105 SBI current Account

Enter
Amount

:*

Business area

:BILH

Text

:+

From the menu select document Simulate and save

Accrual calculation (KSA3)
Accounting Controlling Cost element accounting-Actual postings Accrual
calculation
select cost center radio button
give the cost center
: Dept A
period
:5
fiscal year
:2008
deselect test run check box
select details list check box
Execute
Select next list level button
Go and see the cost center report KSB1
Give the cost center

:Dept A

Posting date

:01.08.2008 to 31.08.2008

Execute
Select back arrow

305

Give the cost center

: Dept dummy

Execute
Bonus provision in the year end in FI Transaction F-02
Give the document date & Posting :31.03.2009
Type
:SA
Company code
:BIL
Posting key
:40
Account no.
:400105 bonus account
Enter
Ignore the warning message press enter
Amount
:10000
Cost center
:Dept dummy
Text
:Bonus provision for the year 2008-09
Posting key
:50
Account
:100500 outstanding exp.
Enter
Amount
:*
Business area
:BILH
Text
:+
Document Simulate and save
Go and see the cost center report KSB1
Give the cost center
:Dept dummy
Posting date
:01.04.2008 to 31.03.2009
Execute

STATICALLY KEY FIGURES (SKF)

This is used as a basis for allocation of costs from one cost center to other cost centers.
Eg. Employee / Area/ Telephone calls
Dept C
Dept A
Dept B
(service Dept)
(Production departments)
Salaries
500000
No.of employee of A and B
Rent
100000
Sq.meter are of A & B
Telephone Exp25000
No.of telephone calls of A & B
Enter CO. No range interval for the business transaction.

306

RKS (Enter statistical key figures)

SKF category Fixed Total
Fixed
If we choose fixed, values
To SKF are common for all months in the
year, if we dont make changes in between
Eg: Employee / Area

Total
If we choose total
We have to enter values for SKF, for each
and every month
Eg: Telephone calls

No.of Employees
April 2008
May 2008
June
July
Aug
Sep
Oct

100
|
|
|
|
|
|

100
|
|
|
|
|
150

Aprl 2008
May
June
July
Aug
Sep
Oct

Dec
Jan.09
Feb
March

|
|
|
|

|
|
|
|

Dec
Jan 2009
Feb
March

No.of Telephone calls

1000
1500
2000

Define co.no range interval for the business transaction RKS-Enter Statistical key figures
Transaction Code is (KANK )
Give the controlling area
Select maintain groups button

: BIL

Double click on RKS

Select Co.No.range interval for BIL check box
From the menu select Edit Assignment element group.
Save
Ignore the warning message press enter.
Create Statistical key figures
Path :Accounting Controlling cost center accounting master Data-Statistical key figures
Individual processing Create (Tr.Code is KK01)
Give the statistical key figure

:EMP

307

Enter
Give the Name

:Employee

Statistical key figure unit of measurement : Select EA each

Key figure category :Select fixed values under radio button
Save
Path : Accounting Controlling Cost Center accounting actual postings-statistical key
figures-Enter (Tr.code is KB31N)
Received cost center

: Dept A

Statistical KF

: EMP

Total quantity

:500

Received cost center

: Dept B

Statistical KF

:EMP

Total quantity

:250

Save
Period end closing
In the month end, we allocate costs from one cost center to other cost centers
Dept C
(Service department)
Salaries
Wages
Rent

Dept A
Dept B
(Production departments)
500000
300000
50000

no.of employee of A and B

No.of employee of A and B
Percentage basis

Basis of allocation can be percentage method statistical key figures method /activity type
(machine hour / labour rate)

Allocation methods:
1. Assessment :
A) Transfer primary cost postings and secondary cost postings.
Dpt X
Dept C
Dept A
Dept B
Wages 100000 Salaries
500000
Salaries 400000 Salaries 300000
Wages
300000
Rent
50000 Add all 85500
Add all from C 95000 10%
All from Dept X
100000
------------------------------

308

Less

950000
=====

1255000
=======

395000
=======

Allocation
Primary cost postings
Secondary cost postings
B) Receiving cost centers cant track original cost element Dept A and B will not
show the transfer value how much salaries wages and rent.
C) Define Co.No.range interval for business transaction RKIU actual overhead
assessment.
2. Distribution
A) Transfer only primary cost postings
B) Receiving cost center can track original cost elements.
C) Sender should be only cost center
D) Define Co.No.range interval for the business transaction RKIV actual overhead
distribution.
3. Periodic reposting:
A) Transfer only primary cost postings
B) Receiving cost center can track original cost elements.
C) Sender can be a cost center or interval order.
D) Define Co.No.range interval for the business truncation.
RKIB periodic reposting.
4. Indirect activity allocation.
A)Transfer only primary cost postings.
B) Receiving cost center can track original cost elements.
C) Sender should be only cost center.
D) Transfer quantities as well as values.
E) Define Co.No.range interval for the business truncation.
RKIL Indirect activity allocation .
Which over method we follow, we have to create cycles.
When the allocation basic is different for the cost elements in the cost center, we have to create
number of cycles for number of segments for a cycle.
Dept C
(Service Department)
Salaries
Wages
Rent

Dept A
Dept B
(Production departments)
500000
300000
50000

No.of employees of A and B

No.of employees of A and B
Percentage basis

309

Option 1:
Cycle 1
(Salaries and wages allocation)
|
Segment 1
Option 2

Cycle 2
(Rent allocations)
|
Segment 1

Cycle 1
|
---------------------------------------------|
|
Segment1
Segment2
(Salaries and wages allocation)
(Rent allocation)

ASSESSEMENT
1. Creation secondary cost element : i.e (that is) assessment cost element :
Path: Accounting Controlling Cost element accounting-Mater data-Cost element
Individual processing Create secondary (KA06)
Give the controlling area

:BIL

Enter
Cost element

:1000000

Valid from

:01.04.2008

to 31.12.9999

310

Enter
Name and description

:Assessment cost element.

Cost element category

:42 (Assessment )

Save
2. Define Co.No.range interval for the business truncation- RKIU-Actual overhead assessment
Use the Truncation code :KANK
Give the controlling area

:BIL

Select maintain groups button

Double click on RKIU
Select Co.No.range interval for BIL check box
From the menu select Edit Assignment element group.
Ignore the message press enter
Creation of assessment cycle:
Accounting Controlling Cost center accounting-Period and closing Current settings
Define assessment (Tr.code S_ALR_87005742)
Give the cycle
:BIL1
Start date
:01.04.2008
Enter
Text
: Assessment cycle
Select iterative check box.
Select save button or Ctrl+S
Press enter to save in your request
Select iterative check box
Dept C
Dept A
Salaries
500000
Dept B
Less :Allocation
500000
Dept Z
-------0
Add: Allocation
90000
Less :Allocation
90000
------0
Add: Allocation
1800
Dept Z
Wages

400000

Dept X

60% 300000 54000

30% 150000 27000
10% 50000 9000

50%

311

225000

4500

Add: Allocation

Less : Allocation

50000
-------450000
450000
------0
====

Dept Y

30%

135000

2700

Dept C

20%

90000

1800

We have to run number of items to make both cost center values zero. If we select interactive
check box, system will run number of items automatically till both cost center values become
zero.
Select attach segment button.
Segment name

: Segment 1

Description

: Salaries allocation

Assessment cost element

:select 1000000

Sender rule

:select posted amounts

Share in %

:100

Select actual value origin radio button

Receiver rule

:Select variable portions

Variable portion type

:Select actual statistical key figures

Select sender / receivers tab

Sender cost center

:Dept C

Under Cost element

:400100 (Salaries a/c)

Under Receiver cost center group

:BILHYDPROD

Select receiver tracing factor tab

Statistical key figure

:EMP

Select receiver weight factors tab

Select save button or Crl+S
Press enter to save in your request
Select attach segment button
Segment name segment2
Description

:Rent allocation

Assessment cost element

:1000000

Sender rules

:Posted amount

312

Sharing in %

:100%

Select actual value origin radio button

Select receive rule

:Fixed percentages

Select senders/ receivers tab

sender cost center

:Dept C

Cost element

:400300 (Rent )

Receiver cost center group

: BILHYDPROD

Select receiver tracing factor tab

Dept

70

Dept

30

Save
Press enter to save in your request
Go and see the cost center Report (Tr code is KSB1)
Give the cost center
Posting date
Execute
Select cost element column
Select sub totals button
Dept C
Salaries

Rent

:Dept C
:01.10.2008 to 31.10.2008

A
1500000
500
100000
25000
70
17500

B
No.of employees
250
50000
Percentage basis
30
7500

Execution of assessment cycle:

Path :Accounting Controlling Cost center accounting Period end closing-Single functionsAllocations Assessment (KSU5)
Give the period

:7 (October)

Fiscal year

:2008

Deselect text run check box

Select details list check box
Cycle select

:BIL1

313

Execute
Select receiver button

INTERNAL ORDERS
This is used to view costs for a specific task.
Eg. A) Vehicle wise running expenses
Management has to task decision whether to sell the (or) keep the vehicle in company
A) petrol expenses for the vehicle

B) Repairs to the vehicle

It we take GL accounts in FI we will not create each vehicle wise petrol expenses and repairs
account.
In cost center accounting vehicles will be under administration cost center and the petrol
expenses repairs and administration expenses will be posted to administration cost center.

314

By creating vehicle as an internal order we can get the costs.

B) Telephone expenses:
If we want to know telephone wise expenses in FI we will have one account for all
telephones.
If we take cost center It will be entered in administration cost center - We can not get
telephone wise expenses directly.
By creating telephone as an order we can get telephone wise expenses.
C)

Production order costs

In a month no. of production orders will be executed. Some production orders consume more
raw material and same production orders consume less raw material.
If FI we have only GL account raw material consumption We dont know order wise
consumption.
By crating production order, we can get order wise costs.

D)

Exhibition costs
Company is conducting an exhibition
Salesmen salaries
Conveyance
Advertisement
Discounts

One account
Different account
Different account
Different account

We don't know the exhibition costs by creating an order we can get exhibition costs

Orders will be of 2 types

1)Real orders

2)Statistical orders

Settlement is possible
We can settle order

settlement not possible

statistical orders are used for decision
making

To

Cost Center
(Internal settlement)
From Co to Co
GL Accounts
Assets
(External settlement )
(From CO to FI)
When we transfer from cost center To cost centers allocation by assessment / Distribution
periodic reposting / Indirect activity allocation.
When we transfer from Internal order settlement.

315

Eg. Telephone expenses

Dr

50000 Cost center Dept

Order Tel no.66110883
To Bank
50000
The cost will be allocation to production orders
from CO
In the production order valuation we cant take.(50000+50000)
We have to take only one time 50000
When we are posting to no. of cost objects are will be real and others will be statistical.
At the time of order creation there is a statistical order check box.
A) When we select statistical order is statistical order check box.
Order is statistical (Automatically cost center will be real)
B) If we dont select statistical order check box
Order is real (Automatically cost center will be statistical )
Statistical order :
Telephonewise expenses order we create as statistical order.
Telephone expense
To Bank

Dr 50000

Cost center Dept A

Order Telephone no.66611983 Statistical

50000

Cost Center Dept A

Telephone expenses 50000 Allocation to paid order 50000
Cost center Dept A Zero
In the month end we allocation costs from Dept A to production orders there by cost center Dept
A will be zero.
Order telephone no.66611983
Telephone expenses 50000
Management can see telephone wise expense at any point of time afterwards.
Suppose we create order as real order
Telephone expenses Dr
50000
To Bank
50000

Cost center Dept A

order telephone no.66611983 Real

Cost center c data

Telephone Expenses
Telephone expenses

Order Telephone no.6661987

Allocation to production 50000

50000
50000

Order will be zero

In the month end we allocate cost from order telephone no.66611983 to production order there
by order will be zero.

316

Afterwards management cant see telephone wise expense.

Creation of order types:
Path : SPR O Controlling Internal orders order master data-Define order types
(KOT2_OPA)
Select new entries button
Order category

:Select 01 Internal order (Controlling)

Enter
Order type

:BILT

Description

:Telephone orders for BIL

Planning profile

:select 000001 (General budget /plant profile)

Object class

:Select Over head cost

Select release immediately check box

Save
We get message no.range not processed
Ignore the message press enter
Select assign /change interval button beside no.reage interval
Double click order type

:BILT

Select motor pool A-ZZZZZZZZZZZZ(External)

From the menu select Edit Assign element group
Save
Ignore the message press enter
Creation of filed status group by making cost center and internal order required entry
fields (OBC4)
Select field status variant

:BIL

Double click on field status group folder

Select field status group G004 cost accounts
Select copy as button
Change the filed status group to G002
Change the text to cost accounts (CC & IO required)
Enter

317

IO =Internal order

Save

CC=Cost Center

Press enter to save in your request

Double click on G002
Double click on additional account assignment
CO /PP order make it required entry field.
Save
Creation of GL master telephone expense (FS00)
Give the GL account no.400305
Company code

:BIL

Select with template button

GL account 400300 Rent account
Company code

:BIL

Enter
Change short text and GL a/c long text to Telephone expenses
Select crate / Bank/Interest tab
Change the filed status group to G002
Save
Select edit cost element button
Valid from date

:01.04.2008

Enter
Cost element category

:Select 1

Save
Creation of Internal orders:
Path :Accounting Controlling-Internal orders-Master data-Special functions Order Create
(Tr code is KO01)
Order type

:Select BILT

Enter
Order no.

:BIL 66611983 (Telephone no.)

Description

:Telephone order no.66611983

318

Company code

:BIL

Business area

:BILH

Select control data tab

Select statistical order check box
Save
One more order
Order type

:BILT

Enter
Order

:BIL66611984

Description

:Telephone order no.66611984

Company code

:BIL

Business area

:BILH

Select control data tab

Select statistical order check box
Save
Creation order group
Up to master data the path is same Order group Create (Tr code is KOH1)
Give the order group name
:BILHYDTEL
Enter
Description
:Hyderabad order group (GRP)for BIL
Select insert order button(Select menu bar Edit Order Insert Order)
Select to orders
:BIL66611983
:66611984
Save
Posting of transaction in FI (F-02)
Document date

:Todays date

Type

:SA

Company code

:BIL

Posting key

:40

Account no.

:400305 Telephone exp

Enter
Give the amount

:100000

319

Cost center

:Dept A

Order

:BIL66611983

Text

:Telephone expenses

Posting key

:50

Account no.

:200105 (SBI current account )

Enter
Amount

:*

Business area

:BILH

Text

:+

From the menu select Document Simulate and save

To view internal order wise report
Path :Accounting Controlling-Internal order-Information system-Reports for Interval orders
-Line items Order -Actual line items-(Tr. Code is KOBI
Give the order no.BIL66611983
Remove the order group
Execute
Keep the cursor and telephone expense line item select document button
Planning order wise
Path :Accounting Controlling Internal orders Planning Cost and activity inputs Change
(KPF6)
Version
:0
From period
:8 (November)
To period

:8

Fiscal year

:2008

Select next page or page down button

Give the order no.

:BIL66611983

Cost element

:400305 Telephone expense

Select from based radio button

Select view screen button
Cost element

:400305

Total plan cost

:75000

320

Select save button or Ctrl+S

To view variant report order wise
Path :Accounting Controlling-Internal order Information system-Reports for internal orderPlant /Actual comparisons-Order :Actual / plan / Variance (S_ALR_87012993)
Controlling area

:BIL

Fiscal year

:2008

From period

:8 (Current month)

To period

:8

Pant version

:0

Order values

:BIL66611983

Execute
Real orders:
They are used for vehiclewise expenses
Petrol expenses
To Bank

Dr 50000
50000

Order no.AP9Z1234

In the month end:

Cost center Dept A
Cost center Dept B
Cost center Dept C
Settlement can be percentage basis / ratio basis /Amount basis
Order no.AP9Z1234 Settle to

Petrol expenses

50000

------50000
====

Order No AP9A1234
Allocation Dept A 25000
Dept B 15000
Dept C 10000
-----50000
====

Order will be zero

Petrol expense
To Bank

Dr 50000

Cost center:Common
Order No.AP9Z1234 Statistical

50000

321

In the month end from cost center common allocate to Dept A, Dept B and Dept C by assessment
/ Distribution / Periodic posting /Direct activity allocation.

Petrol Expenses

Cost center common

Allocation to Dept A 25000
Dept B 15000
Dept C 10000
--------------50000
50000
====
=====
50000

Cost center will be zero

Order no.AP9Z1234
Petrol expense

50000
=====

Management can see vehicle wise expenses at any point of item afterwards.
Creation of filed status group by making only internal order required entry filed (OBC4)
Select filed status variant

:BIL

Double click on filed status group folder

Select field status group G002
Select copy as button
Change field status group to G010
Change the text to cost accounts (IO required )
Enter and save
Press enter to save in your request
Double click on G010
Double cock additional account assignments
Cost center make it optional entry field
Save
Creation of GL master petrol expense under administration group (FS00)
Give the GL Account no.

:400310

Company code

:BIL

322

Select with template button

Give the GL account no.400300 Rent account
Company code

:BIL

Enter
Change short text and long text to petrol expenses
Select create/bank /interest tab
Field status group

:G010

Save
Select edit cost element button
Valid from date

:01.04.2008

Enter
Cost element category

:01

Save
Creation of secondary cost element i.e. Statement cost element (KA06):
Give the cost element
:1000001
Enter
Name and description settlement cost element
Cost element category
:Select 21 internal settlement
Save

Maintain allocation structure:

Path :SPRO-Controlling Internal orders-Actual posting- Settlement-Maintain allocation
structures
Select new entries button
Allocation structure

:B1

Text

:BIL allocation structure

Save
Press enter to save in your request
Select

:B1

Double click assignments folders

323

Select new entries button

Assignment

:01

Text

:Vehicle expenses settlement

Save
Select

:01

Double click on source folder

From cost element

:400310 Petrol expenses

Save
Press enter to save in your request
Double click on settlement cost elements folder
Select new entries button
Receiver category

:Select CTR cost center

Settlement cost element

:1000001

Save
Petrol expenses will be settled to cost center by using secondary cost element settlement cost
element.
Through orders.
Maintain settlement profiles:
Same path
Double click on maintain settlement profiles
Select new entries button
Settlement profiles

:BIL1

Description

:BIL settlement profile

Allocation structure

:B1

Select to be settled in full radio button

Double click on CTR cost center
Select % settlement check box
Select equivalence number check box
Select amount settlement check box
Under valid receivers
For cost center

:Select settlement required

324

Max.no. distribution rules

:999

Residence time

:12 months

Save
Press enter to save in your request
Rule 1:
Order no.AP9Z1234 settle cost center Dept A
Petrol expenses 50000 settle cost center Dept B
Dept C

30000
15000
5000

Rule 2
Order No.AP9Z1234 Settle to cost center Dept A 85%
Petrol expenses 50000 Settle to cost center Dept B 10%
5%
Order no.AP9Z1234 settle to cost center Dept 4:
Petrol exp 50000
Dept 3:
Dept 1:
Maintain number range for settlement documents:
Go through Same path (Tr.code is SNUM)
Select maintain groups button
Double click on controlling area BIL
Select Standard accounting document check box
From the menu select EditAssign element group
Save
Ignore the message press enter
Creation of order type (KOT2_OPA)
Select new entries button
Order category

:Select 01 Internal order (controlling)

Enter
Give the order type

:BILV Vehicle order type BIL

Settlement profile

:BIL1

Budget profile

:0000001 (General budget profile)

Object class select

:Overhead costs

Select release immediately check box

325

Save
Ignore the message press enter save in your request
Select assign /Change intervals button beside no.range interval
Double click on BILV
Select motor pool A-ZZZZZZZZZZZZZZ external check box
From the menu select Edit Assign element group.
Save
Ignore the message press enter

Define co.no.range interval for the business truncation K0A0-Actual settlement. Use the
transactions code (KANK)
Give the controlling area

:BIL

Select maintain groups button

Double click on KOAO actual settlement
Select co.no.range interval for BIL check box
Form the menu select Edit Assign element group.
Save
Ignore the warning message press enter
END USER AREA:
Creation of internal order (KO01)
Give the order type
:BILV
Enter
Give the order

:AP9Z1234

Description

:Vehicle no.AP9Z1234

Company code

:BIL

Business area

:BILH

Select control data tab

Deselect statistical order check box
Select settlement rule button
Category

:CTR cost center

Settlement receiver

:Dept A

326

Give the percentage

:70

One more
Category

:CTR

Settlement receiver

:Dept B

Percentage

:30

Save
Ignore the warning message press enter
Posting of petrol exp F-02
Give the document date

:Todays date

Type

:SA

Company cod

:BIL

Posting key

:40

Account no.

:400310 petrol exp.

Enter
Give the amount

:100000

Give the order no.

:AP9Z1234

Text

:Petrol exp.

Posting key

:50

Account no.

:200105 SBI current account

Enter
Amount

:*

Business area

:BILH

Text

:+

From the menu select menu document Simulate and save

Actual settlement :
Path :Accounting Controlling-Internal order-Period end closing-Single functions-Settlement
Individual processing (K088)
Give the order

:AP9Z1234

Settlement period

:8 (current month)

327

Fiscal year

:2008

Deselect test run check box

Select check transaction date check box
Select execute button
Select details list button
Note : Order means overall expenses Eg: Vehicle Expenses
Cost Element means each item wise :Eg.Vehicle expenses for Petrol, Repairs, Driver
salary etc

BUDGETING AND AVAILABILITY CONTROL

Planning
1. We can plant cost element wise in the
order
2. We can do planning period wise in a
year (Month wise)
3.Micro level (Lower level)

Budgeting
1.Budgeting will be done order wise
2. Budgeting should be done year wise
3. Marco level (High level)
For budgeting SAP has given availability control
Order no.AP9Z1234
Budget amount 500000
Option 1
Give
Warning
To the user

If actual amount exceeds 85% of budget 425000

Or
If the variance is above 20000 i.e actual 5200000

328

Option2
Option 3
Give warning Give
To the user
Error1
And inform to
Budget manager

Or
Both
Whichever activity comes first
Or
If a actual amount exceeds 70% of budget go for option1
If actual amount exceeds 85% of budget go for option 2
If actual amount exceed 100% of budget go for option 3
When we do budgeting it generate a document We have to give budgeting No. range interval
only for 04 (Hard coded by SAP)
This is given at client level and not at controlling area level it is not year specify.
Note : Order Eg.Vehicle Expenses
Cost element :Eg.Vehicle for petrol, repairs,Driver salary etc.,
Maintain no.range for budgeting:
Path :SPRO-Controlling-Internal orders-Budgeting / availability control-Maintain no.ranges
for budgeting (Tr code is OK11)
Select change intervals button
Define tolerance limits for availability control
Same path
Select new entries button
Controlling area

:BIL

Profile

:select 000001 General budget profile

Tr.group

:++ all activity groups

Action

:select 2 waring with mail to person response

Usage

:85

Save
Press enter to save in your request
Specify exempt cost elements from availability control
Same path
Petrol expenses
Repairs
Drivers salary is Fixed cost

329

We can specify when we post to drivers salary all with order AP9Z1234 Even if, it exceeds
85% of budget no. message need to be given.
It is known expenditure
Select new entries button
Controlling area
:BIL
Cost element
:400100 Salaries account
Save
Press enter to save in your request
Maintain budget manager
Same path
Select new entries button
Controlling area

:BIL

Order

:BILV

Object class

:OCost (Overhead cost)

User name

:SAP user (budget manager)

Save
Press enter to save in your request
Budgeting order wise (END USER AREA)
Path :Accounting-Controlling Internal order-Budgeting-Original budget Change (Tr code
is K022)
Order

:AP9Z1234

Enter
For the period :500000 (Budget amount)
Over / budget also 500000
From the menu select Extras Availability: Control Activate
Save

Posting of petrol expenses (F-02)

Give the document date

:Todays date

Type

:SA

330

Company code

:BIL

Posting key

:40

Account no.

:400310 Petrol expenses

Enter
Give the amount

:350000

Order

:AP9Z1234

Text

:Petrol expense

Posting key

:50

Account no.

:200105 SBI current account

Enter
Give the amount

:*

Business area

:BILH

Text

:+

From the menu select Document Simulate and save

Ignore the message press enter
To view in box of the budget manager
Path :SAP MenuOffice Work place (Tr code is SBWP)
Select inbox folder
We get a message accounting document no.

331

PROFIT CENTER ACCOUNTING

This is used to view profitability division wise /product wise /location wise if business area is not
use in FI
Idea scenario
Company
FI
|
Company code
FI
|
Business area
FI
(Location)
|
---------------------------------------------------------------------------------------|
|
|
|
Steel
Cement
Pharma
Co-profit center
Division
Division
Division
Accounting
|
|
Product wise
Co profitability
Analysis

332

Option 1
Hyderabad location
|
Steel Cement Pharma

Option 2
HYD
|
Steel

Profitability

Profitability Balance sheet

BGL
|
cement

MOM
|
Pharma

The advantage of profit center accounting is it derives profit center automatically though
derivation rules.
A) In case of expenditure
Tough cost centers
B) IN case revenues
Automatic account assignment
C) In case of balance
Though business area
Sheet it items (Applicable for option 2)
Eg:a) At the time of creation of cost center assign profit center
Dept A-Assign profit center steel
b) At the time of posting
wages a/c Dr 500000
Dept A
To Bank
500000
It updates cost center Dept A as well as profit center steel.
We have to create dunning profit center. At the time of posting, when there is no derivation rules,
system updates dummy profit center. Transfer form dummy profit center to respective center.
Create derivation rule so that future transactions will not go to dummy profit center. They will go
to respective profit centers.
Set controlling area (OKKS)
Path :SPRO-Controlling Profit center accounting-Basic settings-Set controlling area
Give the controlling area
:BIL
Enter
Maintain controlling area settings: (OKE5)
(Follow through path )
Path :Up to base settings the path is same- Controlling area settings-Maintain controlling
area settings
Standard hierarchy

:BIL

Select elimination of business volume check box

Profit center local currency type

:Select 20 Controlling area currency

Select confirm button

333

Select store truncation currency check box

Save
Elimination of internal business volume
Purchase
Order
|
|
|
|
Goods
Receipt

Material no.
Vendor no.
Plant
Profit center
Qty
Rate

1 Profit center steel

1234
HYD
Steel
1 Kg
100

It should no take in steel profit center 100+100

It should take only one time
Create dummy profit center
Path :SPRO-Controlling-Profit center accounting-Master data-Profit center-Create dummy
profit center(Tr code is KE59)
Double click on dummy profit center
Give the dummy profit center

:BIL dummy

Select basic data button

Name

:BIL dummy

Description

:Dummy profit center for BIL

Profit center group

:BIL

Save
Set control parameters for actual date
Path : Up to basis settings the path is same Controlling area settings -Activate direct
postings-Set control parameters for actual data (Tr code is 1KEF)
Select new entries button
From year
:2008
Select Line items check box
Select online transfer check box
Save
Maintain plan versions

334

Up to activate the path is same

Plan version Maintain plan version
Select version

:0 Plan /Actual Version

Double click on settings for profit center accounting folder

Select new entries button
Year

:2008

Select online transfer check box

Select line items check box
Exchange rate type

:B (bank selling rate)

Save
Press enter to save in your request
Define no. ranges for local documents
A) At the time of creation of cost center Assign profit center
Dept A-Assign profit center
B) At the time of posting
Wages A/c
500000
Dept A
To Bank
500000
When there is no derivation rule It updates dummy profit center
Transfer from dummy profit center
To Profit center steel
No FI document will be generated
No co document will be generated once profit center document will be generated (local)
Path :SPRO-Controlling-Profit center Accounting-Actual postings-Basic settings:
Actual Define number ranges for local documents (Tr code is GB02)
Select maintain groups button
Select actual document from direct posting with GB01 check box
From the menu select interval Maintain
Give the company code

:BIL

Enter
Select interval button
Year

:2008

335

From no

:1

To

:100000

Enter and save

Press enter to save in your request
Select back arrow
Select planned doc.with direct posting with GB01 check box
Form the menu select interval maintain
Give the company code

:BIL

Enter
Select interval button
Year

:2008

From no.

:100001

To no.

:200000

Enter and save

Creation of profit center:
Path :Accounting-Controlling-Profit center accounting-Master data-Profit centerIndividual processing-Create (Tr code is KE51)
Give the profit center

:Steel

Select master data button

Analysis period to

:01.04.2008 to 31.12.9999

Name

:Steel

Long text

:Profit center steel

Person responsible

:Mr A

Profit center group

:BIL

select activate button (Shift+F1)

One more profit center

profit center cement
select master data button
name :Cement
long text
:Profit center cement

336

person responsible
:Mr B
profit center group
:BIL
select activate button
Create account groups
up to master data the path is sameAccount group create (Tr code is KDH1)
Give the account group name

:PLITEMS ( Profit & Loss)

Enter
Description

:P & L accounts for BIL

Select insert account button

From

:300000

To

:499999

Save
Select Back Arrow
Account groups

:BSITEMS

Enter
Description

:Balance sheet accounts for BIL

Select insert account button

Form A/c

:100000

To A/c

:299999

Save
Assign profit center in cost center
Path :Accounting-Controlling-Cost center accounting-Master data-Cost center-Individual
processing-Change (KS02)
Give the cost center

:Dept A

Select master data button

Give the profit center

:Steel

Select save button or Ctrl+S

Ignore the warning message press enter
Cost center

:Dept B

Enter

337

Profit center

:Cement

Save
Ignore the warning message press enter
Creation of sales account as revenue element (FS00)
Give the GL account no.

:300000 Sales A/c

Company code

:BIL

Select edit cost element button

Enter
Cost element category

:Select 11 Revenues

Save

Maintain automatic account assignment of revenue elements

Path :SPRO-Controlling Profit center accounting Actual postings-Maintain automatic
account assignment of revenue elements (Tr code is OKB9)
Select new entries button
Company code

:BIL

Cost element

:300000 Sales A/c

Account assignment details

:Select 2 Business area is mandatory

Save
Press enter to save in your request
Select

:BIL with cost element 300000

Double click on detail per business area /valuation area folder

Select new entries button
Option 1
HYD location
|
Steel cement Pharma
300000
HYD
Steel

Option 2

HYD
|
Steel

338

BGL
|
Cement

MUM
|
Pharma

300001 Sales cement

HYD
Cement
300002 Sales pharma
HYD Pharma

Business area
Profit center
Business area
Profit center
Save

300000

Sales account

HYD Steel
BGL Cement
Mum Pharma

: BILH
: Steel
: BILB
: Cement

Choose addition balance sheet and p & L accounts

Applicable for second scenario: Application for second option
Same path Select choose accounts (Tr code is 3KEH)
select new entries button
Account from

:100000

Account to

:299999

Default profit center :Steel

Save
Press enter to save in your request
Select profit center determination button
Select crate step button
Step description

:Profit center derivation though business area for balance sheet

items.

Select drop down button under name column

Select GSBER businesses area
Save
Select maintain rule values button
Select source field intervals on /off button
Account no.100000
To account no.299999
Business area

:BILH

Profit center

:Steel

339

Account no

:100000

To account no.

:299999

Business area

:BILB

profit center

:Cement

Save
END USER AREA
1) Planning profit center wise for p & L items
Path :Accounting Controlling Profit center accounting Planning cost /RevenuesChange (Tr code is 7KE1)
Version select

:0

From period

:8

To period

:8

Fiscal year

:2008

Company code

:BIL

Select next page or page down button

Profit center

:Steel

Account group

:PLITES

Select from based radio button

Select overview screen button
Per account no.300000 Sales account
Profit center reporting currency :600000 (Minus report currency)
For account no.400100 salaries A/c without any sign
Save
Planning profit center wise for balance sheet items (Only for second scenario)
Up to planning the path is same Balance sheet accounts change (Tr code is 7KE3)
Version

:0

From period

:8

To period

:8

Fiscal year

:2008

340

Company code

:BIL

select next page or page down button

Profit center steel
Account group

:BSITEMS

Select form based radio button

Select overview screen button
For account

:100300 SBI rupee term loan

Profit center reposting currency 20000- with minus sign

For 200105 SBI current account profit centers reporting currency 200000 without any sign
Save

Posting of cash sales (F-02)

Give the document date

:Todays date

Type

:SA

Company code

:BIL

Posting key

:40

Account no.

:200105 (SBI current account)

Enter
Amount

:550000

Business area

:BILH

Text

:sales posting

Posting key

:50

Account no.

:300000 (Sales a/c)

Enter
Amount

:*

Business area

:BILH

Text

:+

Form the menu select Document Simulate and save

Posting of salaries (F-02)

341

Document date

:Todays date

Type

:SA

Company code

:BIL

Posting key

:40

Account no.

:400100 Salaries a/c

Enter
Give the amount

:475000

Cost center

:Dept A

Text

:Salaries posting

Posting key

:50

Account no.

:200105 SBI current account

Enter
Amount

:*

Business area

:BILH

Text

:+

Document simulate and save

To View variance report profit center wise for P & L items
Path :Accounting Controlling Profit center accounting-Information system-Repost for
profit center accounting-Interactive reporting Profit center group:Plan /actual /variance
(Tr code is S_ALR_87013326)
From period

:8 (Current /Running month)

To period

:8

Fiscal year

:2008

Plan version

:0

Profit center values

:steel

Profit center accounts groups

:PLITEMS

Select execute button

To view variance report profit center wise for balance sheet items:

342

Up to interactive reporting the path is same Profit center group: Balance sheet accounts
plant / Actual /Variance (Tr code S_ALR_87013336)
From period

:8 (Running month)

To period

:8

Fiscal year

:2008

Plan version

:0

Profit center values

:Steel

Balance sheet account group

:BSITEMS

Execute
Transfer of values from one profit center to another profit center
One cost center works for no.of profit centers we an assign only one profit center is cost
center.
In dept A
Profit center steel
From profit center steel transfer to cement
Manual transfer through cycles
No.FI document will be generated
No.CO document will be generated
Only profit center document will be generated.
Path :Accounting Controlling-Profit center accounting-Actual postings-Profit center
document Enter (Tr code is 9KE0)
Layout select 8A-001 document :Profit center /account
Select execute button
Company code

:BIL

Select Enter screen button

Profit center

:Steel

Account no.

:400100 Salaries

In profit center local currency 500000 (with minus sign)

Profit center

:Cement

Account no.

:400100 Salaries

Amount

:500000 (without minus sign)

Save

343

INTEGRATION
Organization structure :
FI: Business area
Company
|
Company code
MM:- Structure
SD: Structure
Business area | Factory /
Sales organization Company code level /
| Plants Branch/Port
|
Regional location
|
|
|
Storage locations Raw material / Finished goods Distribution-> Direct sales through
/Packing material
Channel
Agents
|
|
Division Product groups/ products
Why we create port as a plant:
Keep the material on ship
HYD
Chennai
Factory
Port

Customer

Export sale Terms of delivery-FOB (Free on Board) ownership will be transferred once we
kept the martial on ship.

344

Business area will be assigned to plants, plants will be assigned to sales organization business
area will be assigned to sales organizations.
In SD module, combination of sales organization, distribution channel and division One sales
area.
Sales Area 1
Hyd sales Org.
|
Direct sales
|
Steel

Sales Area 2
Hyd Sales org
|
Through agents
|
Steel

Movement types: Similar to posting keys in FI

101
Material receipt against purchase order /production order
102/122
Reversal of 101
201
Issue to cost centers
202
Reversal of 201
261
Issue to orders
262
Reversal of 261
521
Production receipt without production orders.
522
Reversal of 521
561
Opening stocks taking
562
Reversal of 561
601
Delivery (sales)
602
Reversal of 601
Difference between 201 and 261
Cost centers
Issue material
(Movement type 261)
Stores items to issue
(Mov.type 201)
(cost center 201)

Dept A
Production order 1

Dept B

Production order 2
Production order 3

Material issue is identifiable to production orders use movement type 261

Material issue is not identifiable to production orders use movement type 201
Transaction key /process key
a) BSX
b) WRX
c) PRD

Inventory postings
Goods receipt /Invoice receipt (GR/IR)
Price difference /Production order differences

345

Dept C

d) GBB

Offsetting entry for inventory postings

(i) VBR consumption
(ii) VNG Scrapping
(iii) BSA Opening stocks
(iv) ZOF Production receipt without production order
(v) AUF Production receipt with production order
(vi) VAY Delivery where sales account is created as revenue element (CO
implemented)
(vii) VAX Delivery where sales account is not created as revenue element
(Co not implemented)
(viii) AUA production order differences

Eg: 400000 Raw material consumption

200121 Inventory raw material
For consumption
Raw material consumption Dr
To Inventory raw material
For GBB
For BSX

VBR

Assign account no.400000

Assign account no.200121

Valuation class:
Valuation class determines the GL accounts to be posted automatically.
A) Raw materials
Local
Imported
Inter unit purchases
Inter company purchases 4
Valuation class
B) Stores
:Local
2 valuation class
C) Finished goods own manufacturing 1 valuation class
Valuation grouping code / valuation modifier /Valuation modification key:
Company codes
Chart of accounts
Plants
Local raw materials

BIL

BCL

BSL

BIL
HYD-BGL
BGL-MUM
RM1 RM2 RM3-RM1

HYD-MUM
RM2-RM3

Incase of purchases, 200121 Inventory raw material local

When we follow same chart of accounts for numbers of company codes, Instead of assigning
accounts number of times, assign only one time by using valuation grouping code.

346

Valuation
Areas Plants
HYD
BGL
BGL
MUM
HYD
MUM

Chat of accounts

BIL
BIL
BIL
BIL
BIL
BIL

Company code

Valuation
Grouping

BIL
BIL
BCL
BCL
BSL
BSL

X
X
X
X
X
X

For X in case of RM local purchases assign account number 200121, inventory Raw material
local.
This is similar to posting periods in FI
A) Define posting period variant
B) Assign posting period variant to company codes

X
X to BIL
X to BCL
X to BSL

c) Define posting periods for variant X

for X1, 2008 12,2008
Material types
Raw materials
Stores & spares
Packing & material
Finishing goods
Semi finished goods
Purchased
Produced
Trading goods
Services

Price controls
ROH V-Moving average price
ERSA V-Moving average price
VERP V-Moving average price
FERT S-Standard price
HALB
V-Moving average price
S-Standard price
HAWA V-Moving average price
DIEN

Semi finished goods purchased

Dept A
Dept B
Dept C
15 days
Sales order To be delivered with in 2 days

purchase price
purchase price
purchase price
Raw materials +
Overheads
Purchase price
Raw material+Overheads
Purchase price

Dept D
FG
Purchase an item where with
In 2 days purchase an item
Where processing of A,B and C is
completed
D processing of D

Semi finished goods produced

Dept A
Dept B
Issue RM
15 days time

Dept C

347

Dept D

Sales Dept got an order for sale where the processing of A and B is completed
Take production
After completion
Of B and sell
Trading goods: Purchase FG and sell FG without doing any processing.
Services:
Plant is having operating capacity
No sales orders
Job work for others
We get job work changes Material
Does not belong to us
- Material types are similar to account groups in FI
- There we create GL masters here we create material masters.
- GL master are created under account group where as material masters are created
under material type.
- Material master is created at plant level-when number of plants are using the same
material it will be extended(copied) to other plants.
- For materials we can open 2 periods at a time.
Oct
Nov.
When we open Dec.-Automatically Oct will be closed.
Where we crate material master We will have number of tabs (Views)
Basic data
Purchase view
Sales view
MRP view
Quality
Ware house management
Accounting
Costing
MM Flow
A) Material requisition
By production Dept to Stores
B) Purchases requisition
By stores to purchases
C) Call for enquiries, Get quotations and do price comparisons By purchase Dept.
D) Create purchase order
Vendor number, Material
Quality, Rate, Plant, Company code
Delivery terms, payment terms,
Purchase organization
E) Release
It is optional
It will work through work flow
If P.O value is less than Rs.10000

To be released by manager purchases

If P.O value is Rs.10000 and above To be released by GM(Purchases)

And less than 100000 if P.O value is
10000 and above
To be released by Director

348

Once we save the purchase order, based on the value it goes to the inbox of the command
authorized person, till is releases we cant take goods receipt.
F)

Goods receipt With reference to P.O

Inventory RM local DR
100
To GR/IR clearing RM local 100
Balance sheet current asset
BSX
Balance sheet current liability
WRX
(Qty in GR*Rate as per P.O)

G)

Invoice verification-Against PO/GR

GR/IR clearing RM local DR
100 Balance sheet CL
WRX
To party
100 Balance sheet CL From PO,
Party no. will be taken
i) Raw material consumption
RM Consumption
Local DR 100 P & L Debit GBB VBR
To inventory RM local
100 BS C/A(Current Asset) BSX
J) Wages payment
Wages A/c
DR
20
P & L Debit
To Bank
20
BS CA
K) Production Receipt
At product cost
Inventory FG
DR
120
BS
C/A BSX
(FG =Finished goods)
To INC/DEC in stocks FG 120 P & L Credit GBB
ZOF In case of on production order /CPP module not implement GBB AUF in
case of production order (PP module implemented)
SD steps
L) Delivery At product cost
INC /DEC in stocks FG DR 120 P & L Credit
GBB VAX If sales account is not created as revenue element (Co not implemented /GBB VAY
If sales account is created as revenue element (Co Implemented)
To Inventory FG
120
BS
C/A
M) Sales billing
Customer A/c DR 150
BS
C/A From sales order, customer number will be taken
To Sales
150 P & L credit ERL
LCL=Local
Inventory FG=Raw material consumption local +wages
GR=Goods receipt
INC/DEC STK FG=Increase /Decrease stock finished goods
P & L account

349

H)

RM can local
Wages
Net profit

100
L)Sales
20
J)INC/DEC STKFG 120
30
K)INC DEC STK FG -120
------150
===

150
0
----150
===

Balance Sheet
Surplus in P & L Account
F) GR/IR CLG RM LCL 100
E) GR/IR CLRG RM LCL
a) Sundry creditors RM

30
F) INV RM LCL 100
H) INV RM LCL -100
-100 0
--------0
100
I) Bank
-20
j) INV FG
120
K)INV FG -120
0
L)Sundry debtors
150
----------130
130
===
===

Integration rules
A) In material master we specify valuation class
B) For valuation class we assign GL accounts based on the nature of transaction
C) At the time of material receipt/Issue stores person enters movement type, material
number and quantity. Our accounts will be up dated automatically based on accounts
assignment to valuation class which is specified in material master
Eg: Material no. Valuation

Inventory postings
BSX

RM1 (local)

GR/IR
Clearing
(WRX)
100520-GR/IR
CLRG RM LOCAL

3000 RM local 200121-INV-RM

Local
Local Raw Material
1. Purchase order
Material RM1
Vendor -1234
Qty-100 Kgs
Rate 5 Rs Save
P.O.No.1
2. Goods receipt
with reference to P.O-P.O No.1
Movement
Type:101
Debit BSX
200121
Credit WRX
Material
RM1
Qty
60 kgs
Save

350

Consumption
(GBB VBR)
40000-RM
Consumption-IMP

Material Doc no.200001

200121 Inventory RM local DR
100520 GR/IR CLR RM Local
(Qty IN GR *Rate as per P.O)
60*5

300
300

Raw material consumption

Movement type
201
Debit GBB VBR
Credit BSX 200121
Material
RM1
3000
Qty
10 Kgs
400000
RM Consumption LCL
DR
50
200121
Inventory RM Local
50
(Qty issued * Moving average rate)

Debit A/c No. 400000

Imported raw material

1. Purchase order

Material -RM2
Vendor -4567
Qty-1Kg
Rate -100
PO No.2
2.
Goods receipt- with reference to PO-PO No.2
Movement type:101 Debit BSX
200122
Credit WRX 100521
Martial
RM2
3001
Qty
1 Kg
Save
Material Doc No.200003
200122Inventory
RM IMP DR
100
100521
GR/IR CLRG RM IMP
100
(Qty IN GR* Bate as per P.O)
1*100
Raw material returns
Material doc no.200003
Movement

Type 102

Debit WRX
Credit BSX

Material
Qty
Save
100521
200122

RM2
1 Kg
Material doc no.200004
GR/IR CLR RM
IMP
Inventory RM
IMP

100521
100122
3001

DR

100
100

Why SAP does not support purchase accounting why it supports inventory accounting:

351

RM Local raw material

1
2
3
Not included in purchase
Bill received Less stock reported
Provision statement
by stores
RM consumption=Qty
Value
Opening stock
0
0
0
0
Add purchase
0
516.50
516.50
_____________________________
516.50
516.50
Less :Closing stock
300
300
200
-----------------------------------------Raw material consumption X
X
X
========================
Wrong wrong
wrong
1. Purchase order material no.
RM1
Vendor
1234
Qty
100 Kgs
Rate
5 Rs
Excise
10%
CST
2%
Other change 1%
Material receipt:
We get excise invoice to claim cenvat Final invoice many come or may not come.
Only excise invoice received
Basic price
500
Excise
50
Stores person updates his records with the above data.
Issue: Not included in purchase provision statement:
Account Dep gets a statement from stores in the month end material received bills not received
to make purchase provision.
Stores person By mistake he has not included the above item in the purchase provision
statement.
Account Dept.gets closing stock statement from stores-in the statement he is showing 60 kgs
stock at 5Rs.300
Issue2 Closing stock valuation wrong
We have received invoice after words in invoice
wrong
Basic
Excise
CST2%
Other 1%
Bill amount

500
50
11
5.5
------566.50

500
50
11
5.5
-------516.50

--50

352

Purchase a/c
cenvat receivable
In the month end stores person sends closing stock statement
60 kgs at Rs.5
Should be value 516.5/100*60=309
*Issue less stock reported by stores
If this month production is more, profitability will be more.
If this month production is less, profitability will be less.
Physical stock available -60 Kgs
Reporting to accounts only 40 kgs
40*5=200
Inventory accounting
1. Purchase order

2. Goods receipt
Movement type
Material
Qty
Save

Material no.RM1
Vendor
1234
Qty
100
Rate
5
Tax code A1 (10% Excise +2% CST) other charges 1%
PO no.1
with reference to PO no.1
101
RM1
100

Entry will be passed automatically

Inventory RM local DR
To GR/IR CLR RM Local
GR*Rate as per PO

516.50
516.50 Qty in

Store records : Material RM1

Qty
:Value
Receipt
:100 Kgs 516.50
Account records 200121 Inventory RM local
516.50 DR
3. Raw material consumption
Movement type
201
Material
RM1
Qty
40 Kgs
Save
Accounting entry will be generated automatically RM consumption local DR
206.5 (516.5) 100*40
To Inventory RM local 206.6
Qty issued moving .AVG price

353

Stores records:

Material
Qty
100 Kgs
40 Kgs
-----60 Kgs

Receipt
Issue

RM1
Value
516.50
206.6
-----309.9

Accounts records 200121 Inventory RM local

516.50 DR
206.60 DR
CL stock value
309.9

Price differences are two types

1)Batch method

2)Moving average method

|
------------------------------------------------------|
|
|
Stock fully available Stock partly available Stock no available

1st method Batch method:

RM1 PO
PR

Batch Qty
1
100
2
50
----150
10
--140
----140

Rate
10
40

10

10 RS

Amount
1000
2000
----3000
100
---2900
180
----3080

BILL for 12Rs

1.Material Receipt
Inv RM local
DR 1000 BSX
To GR/IR CLR RM LCL/100 WRX
2. Raw Material consumption
RM consumption local DR 100 GBB VBR
To INV RM local
100 BSX

3. Invoice verification
GR/IR CLRG RM LCR
DR 100 WRX
INV RM LOCAL DR 180
BSX 90*2
Price diff RM LCL 20 PRD 100*2
To Vendor
1200 form PO vendor no. is taken

Break up
1
90
12
1080
2
50
40
2000
Preparation in P & L account :
Raw material consumption :
Raw material consumption +/ price difference RM
Eg: RMC
100
PD RM
20
----

354

120
===
For the truncation key PRD We can assign raw material consumption account or price
difference RM A/c

Moving average method: stock fully available

RM1

PO Price :10

Final Bill for Rs.12

Qty rate amount

1. Goods receipt

Bill qty

100
50
---150
20
---Average bill 130

10
40

20

---130

1000 Inv.RM local DR 1000 BSX

2000 To GR/IR CLRG RM LCL 1000
------ 2. Raw material consumption
3000 RM consumption local DR 400 GBB VBR
400
To INV RM local 400 BSX
----2600 3.Invoice verification
GR/IR CLRG RM LCL DR 1000 WRX
200
GR/IR CLRG RM LCL DR 1000 WRX
----2800 INV RM Local DR 200 BSX 100*2
To Vendor 1200 form PO Vendor no.is
taken

Consumption rate:
Value / Qty 3000/150=20
Next consumption rate
Value / Qty 2800/130=21.54
3rd method moving average method: Stocks partly available
RM1

PO

Bill qty

Qty
100
50

Price 10Rs Bill for 12Rs

1.Material receipt
Rate
10
40

Amount
1000
2000

1. Goods receipt
INV RM local DR
1000 BSX
To GR/IR CLRG RM 1000 WRX

355

--150
130
----AVBL QTY 20

20

---20

----3000
2600
-----400
40
---440

2. Raw material consumption

RM comp local DR 2600 GBB VBR
TO inv RM local 2600 BSX

3.Invoice verification
GR/IR CLR RM LCL DR 1000 WRX
INV RM Local
Dr 40 BSX 20 *2
Price diff RM
DR
160 PDR
To
Vendor 1200 from PO
vendor no.is taken
Consumption rate
Value / Qty 30000/150=20
Next consumption rate:
Value qty 440/20=22.00
Incase of batch method It has checked batch wise for the material.
In case of moving average method if has checked material wise.
4th Method-moving average method: Stocks not available safety socks
RM1 PO Price

Bill Qty

AVBL Qty

Qty
100
50
---150
150
---0

10 Rs
Rate
10
40
---20

Amount
1000
2000
-----3000
3000
----0

Bill for Rs12

1. Material receipt
Inv RM local DR
1000 BSX
To GR/IR CLRG RM LCL 1000WRX
2. Raw material consumption
RM Consume local DR 3000 GBB VBR

To INV RM Local
3. Invoice verification
GR/IR CLRG RM LCL DR 1000 WRX
Price Diff RM DR
200
To Vendor
1200 form PO vendor no.is taken

Sales and Distribution Flow:

1. Inquiry and quotation:
2. Sales order : Product, Plant, Sales organization, customer no., quantity, rate delivery
terms, payment terms.
3. Delivery :With reference to sales order
A) Delivery without post goods issue (Delivery without PGI) ownership is not
transferred.
Eg. Export sales Terms of delivery FOB (Free on board)

356

Hyderabad Factory
Delivery without PGI

Chennai Port

No FI document only
material document

Customer
Delivery with PGI
FI document material
document

FI document :At product cost

Increase /Decrease in stocks FG DR GBB VAY-If sales account is created as revenue
element (Co implemented)1

GBB VAX if sales account is not created as revenue element (Co not
implemented)
To inventory FG
BSX
B) Delivery with Post Goods Issue (Delivery with PGI)
Eg. Local sales terms of delivery Ex works
Hyderabad factory
Customer
Delivery with PGI
Sales Billing: With reference to delivery
Customer account DR
To Sales
SD-Pricing procedure
Eg:
From R egion
To Region
Customer
Material

From sales order

:ERL

1
Andhra
Andhra
Taxable
Taxable

Basic price
Excise % on basic
VAT % on Basic+Excise

2
Andhra
Tamilnadu
Taxable
Taxable

3
Andhra
Andhra
Non-taxable
Non-taxable

CST % on basic+ Excise

From H sales
Condition type:

KOFI (Account assignment-FI)

KOFK (Account Assignment CO)

Assignment of accounts

357

4
Andhra
Tamilnadu
Non-taxable
Non-taxable

1
Application
area

2
Conditi
on type

3
Chat
of
accoun
ts
BIL

4
Sales
originatio
n

6
Account
assignment
group for
materials
03

7
8
Accou
nt keys

HYD

5
Account
assignment
group for
customers
01

V-Sales &
KOFI
Distribution

BIL

HYD

02

03

ERL

V-Sales &
KOFI
Distribution

BIL

HYD

01

01

ERF

V-Sales &
KOFI
Distribution

BIL

HYD

01

03

V-Sales &
KOFI
Distribution

01Domestic
revenues
02-Foreign
revenues

03Afflicated
company
revenues

ERL
Sales
revenu
e
01 Traded
ERF
goods
Freight
Reven
ues
02 Services ERBRebate
s
/Tradi
ng
Discou
nts
03
ERS
Finished
Sales
goods
Deduct
ions

Note :ERS :Sales commission

Bank

5000 From customer 5000

Reimbursement of expenses

MM CUSTOMIZATION
MM consultant job

358

ERL

300001
Sales Local
own goods
300002Sales
exports own
goods
300003
Sales local
trading
goods
400350
Freight
Local own
goods

1. Define Plants
Path: SPRO-Enterprise structure- Definition Logistic general-Define copy, delete
check plant.
Double click on define plant
Select new entries button
Plant

:BILP

Name

:BIL HYD Factory plant

Factory calendar

:Select B2 or 01 (B2=BIL HYD Factory Calendar)

Save

(01=Standard calendar)

Give the name

:BIL Hyderabad factory plant

Country

:IN

Enter
Select create request button
Short description

:MM customization for BIL

Press enter
Enter once again to save in the request
Define division:
Path :Up to logistic General the path is same-Define copy, Delete, check division.
Double click on define division
Select new entries button
Division

:BS (It is a text filed)

Name

:Steel Division

Save
Press enter to save in your request

Maintain storage location

Path :SPRO-Enterprise structure Definition- materials management Maintain
storage location (OX09)
Give the plant

:BILP

359

Enter
Select new entries button
Give the storage location

:HYD

Description

:Hyderabad storage location

Save
Press enter to save in your request

Maintain purchasing organization

Same path
Select new entries button
Purchase organization

:BIR

Description

:BIL Purchase organization

Save
Press enter to save in your request
Assign plant to company code:
Path : SPRO-Enterprise structure Assignment- logistics General Assign plant to
company code ( Tr code is OX18)
Select new entries button
Company code

:BIL

Plant

:BILP

Save
Press enter to save in your request
Assign business area to plant/valuation area and division
Path :Same path -Select plant /valuation area Division button
Select new entries button
Plant

:BILP

Division

:BS

Business area

:BILH

360

Save
Press enter to save in your request
Assign purchasing organization to company code
Path :Up to assignment the path is same Materials management Assign purchasing
organization to company code
Select position button :Give the purchase org:BILR
Enter
For BILR for assign company code BIL
Save
Press enter to save in your request
Assign purchasing organization to plant:
Same path
Select new entries button
Purchasing org
:BILR
Plant
:BILP
Save
Press enter to save in your request
Create purchasing groups
Path :SPRO-Materials management Purchasing Create purchasing groups.
Select new entries button
Purchasing group

:BIL

Description

:BIL RM purchasing group

Save
Press entr to save in your request
Define material groups:( OMSF)
Path :SPRO-Logistic general Material master-Settings for key fields Define Material
groups.
Select new entries button
Material group

:BILC

361

Material groups description :Chemicals

Press enter to save in your request

Maintain company code for material management:

Path :SPRO-Logistic General Material master-Basic settings-Maintain company code
for materials management
Select position button
Give the comp code

:BIL

Enter
Year

:2008

Period

:7 (October)

Note : This period enter carefully, if you once enter not modified
Select ABP check box (ABP stands for Allow Back Period Posting)
Note: September entries allowed
Save
Ignore the warning message press enter
Press enter to save in your request
Define attributes of material types:
Path:up to the material master the path is same Basic settings Material type-Define
attributes of material types.
Select position button
Select material type

:ROH (Raw materials)

Enter
Select ROH
Double click on quantity / Value updating folder
Select position button
Valuation area

:BILP ( Nothing but plant)

Enter
For BILP select quantity updating, value update check box
Save

362

Press enter to save in your request

Select back arrow
Select material FERT for finished product
Double click quantity / value updating folder
Select position button
Valuation area

:BILP

Enter
For BILP select quantity updating check box value updating check box
Save
Set tolerance limits for price variance for purchase order
Path: SPRO-Material management Purchasing Purchase order set tolerance limits
for price variance
Select TIKY :PE & SE for company code 1000
Select copy as button
Enter the company code to BIL
For tolerance key

:PE

Enter
Change the company code to :BIL
For tolerance key

:SE

Enter and save

Press enter to save in your request
Plant parameters:
Path :SPRO-Materials management Inventories management Physical inventory
Plant parameters
Select plant :1000
Select copy as button
Change the plant to BILP
Enter and save
Press enter to save in your request

363

Set tolerance limits for goods receipt

Path :Up to inventory management and physical inventory the path is same -Goods
receipt-Set tolerance limits
Select tolerance key B1,B2,VP for company code 1000
Select copy as button
Change the company code to BIL for B1
Enter
Change the company code BIL for B2
Enter
Change the company code to BIL for VP
Enter and save
Press enter to save in your request
Maintain default values for tax codes
Path: SPRO- Materials management Logistics invoice verification-Incoming invoice
maintain default values for tax codes
Select new entries button
Company code
:BIL
Save
Press enter to save in your request
Set tolerance units for invoice verification
Path:Up to logistics invoice verification the path is same Invoice block-Set tolerance
limits
select tolerance key BD, ST for company code 1000
select copy as button
change the company code to BIL for BD
enter
change the company code to BIL for ST
save

364

Define automatic status change

Path :Up to the logistic invoice verification the path is same Invoice verification in
back ground Define automatic status change
Select new entries button
Company code

:BIL

Select save button or Ctrl+S

Press enter to save in your request
Group together valuation areas:
Path :SPRO-Material management Valuation and account assignment-Account
determination-Account determination without wizard-Group togather valuation
areas.
Select position button
Valuation
:BILP
Enter
Give the valuation grouping code :X
Save
Press enter to save in your request

Define valuation classes:

Path :Same path Select valuation class button
Select valuation class 3000 Raw materials local
Select valuation class 7920 Finished products
Select copy as button
Change valuation class 3000 to BIL1
Change the description to Raw materials local
Change valuation class 7920 to BIL2 Finished product
Enter and save
Press enter to save in your request

365

FI consultants job:
1. Creation of GL masters FS00
A) Inventory RM local
B) Inventory finished goods
C) GR/IR clearing RM local
D) RM consumption local
E) INC/DEC in stocks FG
Give the GL account no.

200121

Company code

BIL

Current assets loans & advances

-doCurrent liabilities & Provisions
RM Consumption
Increase /Dec in stocks

Select with template button

Give the GL account no.200120 Inventory RM
Company code

:BIL

Enter
Change the short text to Inventory RM local
Change the GL a/c long text also inventory RM local
Select control data tab
Tax category

:select * (All tax allowed)

Select posting without tax allowed check box

Select create/Bank/Interest tab
Field status group change to G006 Material accounts
Save
Note :Before post select automatically only check box 200121
Ignore the warning message press enter
GL account no.

:200122

Company code

:BIL

Select with template button

Give the GL a/c no.200121
Company code

:BIL

Enter
Select type/description tab
Change short text and GL a/c long text to inventory FG

366

Save
GL account

:100520

Company code

:BIL

Select with template button

GL account

:100500 outstanding exp.

Company code

:BIL

Enter
Change short text and GL account and long text to GR/IR clearing RM local
Select control data tab
Tax category

:*

Select posting without tax allowed check

Sort key

:014 Purchase order

Select create /bank /interest tab

Field status group change to G045 goods/Invoice received clearing accounts
Save
G/L account

:400000

Company code

:BIL

Select with template button

Give the GL account no.400100 Salaries a/c
Company code

:BIL

Enter
Select type/description tab
Change the account group to RM consumption
Change short text and GL account long text to RM consumption local
Select create /bank /interest tab
Field status group to change to G003 Material consumption accounts
Save
Select edit cost element button
Valid from

:01.04.2008

Enter
Cost element category

:Select 01

367

Save

GL account

:300200

Company code

:BIL

Select with template button

Change the GL a/c no.300100 Exchange gain
Company code

:BIL

Enter
Select type/Description tab
Change account group to Increase /Decrease stocks
Change short text and GL account long text to Increase/Decrease in stocks FG
Select create/Bank/Interest tab
Change field status group to G030 change in stock accounts
Save
*Assignment of accounts for automatic postings
Path :Up to account determination without wizard the path is same Configure
automatic postings (Tr code is OBYC) (MM to FI Integration )
Select cancel button
Select account assignment button

Double click on transaction BSX inventory posting

Give your Chart of Accounts

:BIL

enter
Select valuation modifier check box
Select valuation class check box
Save

Valuation modified

Valuation class

Account

BIL1 RM local

200121 Inventory RM local

BIL2 Finished products

200122 Inventory FG

368

Save

Press enter to save in your request

Select back arrow
Double click on transaction WRX GR/IR clearing account
Select valuation modifier check box
Select valuation class check box
Save
Valuation modifier

:X

Valuation class

:BIL1 RM local

Account no.

:100520 GR/IR clearing local

Save
Press enter to save in your request
Select back arrow
Double click on GBB offsetting entry for Inventory posting
Select General modification check box
Valuation modifier check box
Valuation class check box
Save
Valuation General modification
modifier
X
VBR (consumption)

Valuation class

Account

BIL1 RM local

BIL2 Finished
products
BIL2
BIL2

400000 RM
consumption local
300200 Increase /
Decrease stocks FG
300200
300200

BIL2

300200

X
X

ZOF (Production receipt

without production order)
AUF with production
VAY (Delivery where sales
account is created as revenue
element
Co implemented)
VAX Delivery where is sales
account is not created as
revenue element
CO not implemented
Save
Press enter to save in your request

369

Document types and no.ranges (OBA7)

WE
:Goods receipt
WA

:Goods issue

RE

:Grass invoice receipt

Tr code is OBA7

Select WE

:Goods receipt

Select details button

Number rage

:50

Select number range information button

Company code

:BIL

Select change intervals button

Select interval button
No.range

:50

Year

:2008

From no.

:800001

To no.

:900000

Enter and save

Ignore the warning message press enter
Select back arrow 3 times
Select type WA Goods issue
Select details button
Number range

:49

Select no.range information button

Company code

:BIL

Select change intervals button

Select interval button
No.range

:49

Year

:2008

370

From no.

:900001

To no.

:1000000

Enter and save

Ignore the warning message press enter
Select back arrow three times
Select RE gross invoice receipt
Select details button
No. range

:51

Select no.range information button

Company code

:BIL

Select change intervals button

No.range

:51

Year

:2008

From no.

:1000001

To no.

:1100000

Enter and save

Ignore the warning message press enter

MM end user area

Creation of vendor master XK01

Give the company code

:BIL

Purchasing organization

:BILR

Account group

:BIL2 MM vendors for BIL

Enter
Give the name

:Nagarjuna Steels Limited

Country

:IN

Select next screen button 3 times

Reconciliation account

:select 100501 Sundry credit RM

Sort key

:012 vendor

Select next screen button

371

Payment terms

:0001

Select next screen button 2 times

Order currency

:INR

Select GR based invoice verification check box

Save
Creation of RM material master
Path :Logistics Materials management Material master-material-Create(Genral)
Immediately (Transaction code MM01)
Material

:BILRM1

Industry sector

:Mechanical engineering

Material type

:Raw material

Press select views button

Select basic data1, purchasing, general plant data/storage1/accounting1
Select organization levels button (bottom side)
Give the plant

:BILP

Storage location

:HYD

Enter
Give the description

:Raw material 1

Basic unit of measurement

:KG

Material group

:BILC (Chemicals)

Division

:BS (Steel)

Select purchasing tab

Purchasing group

:BIL

Select accounting one tab

Valuation class

:select BIL1 (RM local)

Price control

:select V moving average price

Moving price

:50

Select save button or Ctrl+S

To open material periods for November:

372

Up to material master the path is same Other-Close period (Transaction code is

MMPV)
From company code

:BIL

Give the period

:8 (November)

Fiscal year

:2008

Select check and close period radio button

Execute
Purchase order creation
Path :Logistics Material management Purchasing Purchase order-CreateVendor/supplying plant known (The transaction code is ME 21N)
Give the purchasing organization

:BILR

Company code

:BIL

Enter
Give the purchasing group

:BIL

Item

:10

Material

:BILRM1

PO quantity

:100 Kg

net price

:75

Plant

:BILP

Give the currency

:INR

Vendor no.

:2001

Save
Note the purchase order no.4500017092
Goods receipt:
Path :Logistics Material management Inventory management Goods movement
Goods receipt- for purchase order PO number known (The transaction code is
MIGO)
Select goods receipt
Give purchase order no.4500017092
Enter

373

Storage location select

:HYD

Select quantity tab

Quantity in delivery note

:100

Select item ok check box

Select save button or Ctrl+S
Select display button
Enter
Select document information tab
Select FI documents button
200121 Inventory RM local 7500

BILRM1

100520 GR/IR CLRG RM local -7500

BILRM1
Qty .Received(GR) *Rate as per PO
100*75

BSX
BIL1
WRX
BIL1

Note: change USTAX to GTAX

Invoice verification:
Path :Logistics Materials management Logistics-Invoice verification Document
entry-Enter invoice (Transaction code is MIRO)
Give the invoice date

:Todays date

Reference

:Party bill no.1234

Text

:Invoice verification

Purchase order

:4500017092

Select payment tab

Payment terms

:0001

Baseline date

:todays date

Select base data tab

Tax code

:select V0

Enter
Business area

:BILH

Select beside data tab

374

Amount

:7500

Enter
Select save button or Ctrl+s
From the menu select invoice document Display
Select follow on document button
2001 Nagarjuna Steels Limited 7500 From party no is taken
100520 GR/IR CLRG RM local 7500 BILRM1
BIL1

Raw material consumption

Path :Logistics Materials management Inventory management goods movement
goods issue (Transaction code is MB1A)
Movement type

:201

Plant

:BILP

Storage location

:HYD

Enter
Give the cost center

:Dept A

Material

:BILRM1

Quantity

:30

Select save button or Ctrl+S

From the menu select goods Issue display
Enter
Select accounting documents button
Select accounting document number
BSX
200121 Inventory RM local 2250-BILRM1

BIL1
GBB VBR

400000 RM consumption LCL 2250-BILRM1

Qty consumed * moving average price
30*75

375

BIL1

To view stock ledger

Path :Logistics Materials management Inventory management Environment
Stock for posting date (Transaction code is MB5B)
Material no.

:BILRM1

Company code

:BIL

Plant

:BILP

Selection date

:01.04.2008 to 31.03.2009

Select valuated stock radio button

Execute
SD CUSTOMIZATION
SD consultants job
1. Define region:(State)
Path :SPRO-SAP netweaver-General settings-Set countries Insert regions
Select new entries button
Country

:IN

Region

:AP

Description

:Andhra Pradesh

Save
Select create request button(F8)
Short description SD customization for BIL
Save in your request
Define sales organization
Path :SPRO-Enterprise structure Definition Sales and contribution
Define,copy,delete,check,-Sales organization
Double click on define sales organization
Select new entries button
sales organization

:BILS

Description

:BIL HYD

statistics currency

:INR

376

Sales organization

save, Ignore the warning message press enter

Give the name

:BIL HYD sales organization

country

:IN

region

:AP

press enter
To save in your request
Define distribution channel
Same path -Sales & distribution Define,copy, delete,check distribution channel
Double click on define distribution channel
Select new entries button
Distribution channel

:BD

Name

:Direct sales

Save
Press enter to save in your request

Define shipping point

Path :SPRO-Enterprise structure Definition-Logistic execution Define, copy,
delete, check shipping point
Double click define shipping point
Select new entries button
Shipping point

:BISH

Description

:BIL HYD shipping point

Save
Name

:BIL HYD shipping point

Country

:IN

Enter
Press enter once again to save in the request
Assign sales organization to company code:

377

SPRO-Enterprise structure Assignment-Sales & Distribution Assign sales

organization to company code
Select position button
Sales organization

:BILS

Enter
For sales organization

:BILS

Assign company code

:BIL

Save
Press enter to save in your request

Assign distribution channel to sales organization

Same path
Select new entries button
Sales organization

:BILS

Distribution channel

:BD

Save
Press enter to save in your request
Assign division to sales organization
Same path
Select new entries button
Sales organization

:BILS

Division

:BS

Save
Press enter to save in your request
Setup sales area:
Same path
Select new entries button
Sales organization

:BILS

Distribution channel

:BD

378

Division

:BS

Save
Press enter to save in your request
Assign sales organization distribution channel- plant:
Select new entries button
Sales organization

:BILS

distribution channel

:BD

Plant

:BILP

Save
Press enter to save in your request
Define rules by sales area:
Path :Up to sales and distribution the path is same Business area account
assignment Define rules by sales area
Select position button
Sales organization

:BILS

enter
For sales organization

:BILS

Rule select

:001 (Business area determination from plant / division )

Save, press enter to save in your request

Assign shipping point to plant:

Path :SPRO-Enterprise structure Assignment-logistic execution Assign shipping
point to plant
Select find button
Enter

:BILP

Press enter
Select

:BILP

Select assign button

Select BISH check box

379

enter
Save
Press enter to save in your request

Define common distribution channels:

Path :SPRO-Sales & Distribution Master data Define common distribution
channels
Select position button
Give the sales organization

:BILS

Enter
Distribution channels for condition :BD
Distribution channels for customer master :select BD
Save
Press enter to save in your request
Define common divisions:
Same path
Select position button
Sales organization
:BILS
Enter
Division for conditions :select BS
Division for customer master :select BS
Save
Press enter to save in your request
Maintain pricing procedures
Path :SPRO-Sales and distribution Basic functions pricing Pricing control
Define and assign pricing procedures
Double click on maintain pricing procedures
Select pricing RVAA01 standard
Double click on control data folder
Condition type SKTV cash discount

380

Condition type MWST output tax

Deselect required check box
Save
Ignore the warning message press enter to save
Define pricing procedure determination:
Upto define and assign pricing procedures the path is same
Double click on define pricing procedure determination
Select new entries button
Sales organization

:BILS

Distribution channel

:BD

Division

:BS

Document pricing procedure

:select A standard

Customer pricing procedure

:select 1 standard

Pricing procedure

:select RVAA01 standard

Condition type

:select PR00 price

Save
Press enter to save in your request
Define tax determination rules:
Path :SPRO-Sales and distribution Basic functions- Taxes Define tax
determination rules
Select new entries button
Tax country
:IN for India
Sequence
:1
Tax category
:UTXJ Tax Jursdict code
Save
Setup partner determination:
Partner functions
SP Sold to Party
SH Ship to party
BP Bill to party

Customer No.
1
1 Not modifiable
1
2 Modifiable
1
2. Modifiable

381

PY Payer

2 Modifiable

If we dont specify separately (SP,SH,BP and PY)all we be only customer

Path :Up to basic functions the path is same-Partner determination Set up partner
determination
Double click setup partner determination for customer master
Double click on partner functions folder
Select position button
Partner function

:SP

Enter
Select partner function SP
Double click on account group function assignment folder
Select new entries button
Partner function

:SP

Account group

:BIL2

Partner function

:SH

Account group

:B1L2

Partner function

:BP

Account group

:BIL2

Partner function

:PY

Account group

:BIL2

Ignore the warning message press enter to save in your request

Double click on partner determination procedures folder
Select new entries button
Partner determination

:BIL

Name

:BIL partner determination procedure

Save
Ignore the warning message press enter

Select partner determination

:BIL

Double click partner functions in processor folder

382

Select new entries button

Partner function

:SP

Select not modifiable check box

Select mandatory check box
Select partner function

:SH select mandatory function check box

Select partner function

:BP select mandatory function check box

Select partner function

:PY select mandatory function check box

Save
Press enter to save in your request
Double click on partner determination procedure assignment folder
Select position button
Account group

:BIL2

Enter
For BIL2 Assign partner procedure BIL
Save
Assign shipping points
SPRO-Logistics execution-Shipping Basic shipping functions Shipping point and
goods receiving point determination Assign shipping point
Select new entries button
Shipping conditions

:select 01 as soon as possible

Loading group

:0003 manual

Plant

:BILP

Propose shipping point

:BISH

Save
Press enter to save in your request

FI consultant job:
Creation of GL master sales local own goods under sales group FS00
Give the GL a/c no.

:300005

383

Company code

:BIL

Select with template button

Give the GL a/c no.

:300000 sales account

Company code

:BIL

Enter
Change short text and GL a/c long text local own goods
Select control data tab
Tax category

:*

Select posting without tax allowed check box

Select create /Bank /Interest tab
Field status group G029 revenue accounts
Save
Select edit cost element button
Valid from

:01.04.2008

Enter
Cost element category :11 Revenues
Save
* Assignment of account for automatic postings:
Path :SPRO-Sales and Distribution Basic function-Account assignment/costing
Revenue account determination Assign GL accounts (Transaction code is VKOA)
Note : This is Important Tr code
Double click on table one
Select new entries button
Application area :Select V Sales & Distribution
Condition type

:KOFI account data

Chart of accounts :BIL

Sales organization :BILS
Account assignment group of customer :Select 01 domestic revenues
Account assignment group of material
Account key

:03 Finished goods

:Select ERL sales revenues

384

GL account

:300005 sales local own group

Save
Press enter to save in your request
SD end user area
Creation of customer master

:XD01

Company code

:BIL

Sales organization

:BILS

distribution channel

:BD

Division

:BS

Account group

:SD customer for BIL

Enter
Name

:DLF Industries Ltd

Country

:IN

Region

:AP

Select company code data button

Reconciliation account

:200110 sundry debtors

Sort key

:031 customer no.

Select payment transaction tab

Terms of payment

:0001

Select sales area data button

Customer pricing procedure

:select 1 standard

Select shipping tab

Delivery priority

:select 02 normal

Shipping conditions

:select 01 as soon as possible

Delivery plant

:BILP

Select billing documents tab

Select price determination check box
In CO terms under delivery and payment terms :select EXW form plant
Terms of payment

:0001

Account assignment group

:select 01 domestic revenues

For Tax category UTXJ Tax classification :select 1 liable for tax

385

Save
Creation of finished goods material master (MM01)
Give the material

:BILFG

Industry sector

:Mechanical engineer

Material type

:Finished product

Press select views button

Select basic data 1
Select Sales

:Sales organization data 1

Select Sales

:sales org.data 2

Select Sales

:General /plant data

Select MRP1
Select general plant data /storage 1
Select accounting 1
Select organization levels button
Plant

:BILP

Storage location :HYD

Sales organization :BILS
Distribution channel :BD
Enter
Description

:Finished product

Base unit of measurement :KG

Division

:BS

Gross weight

:1 kg

Select sales

:select 1

sales :Sales org.1 tab

Division

:BS

Tax classification :select 1 (Taxable)

Select sales

:sales, sales organization 2 tab

Account assignment group :select 03 finished goods

Select sales

:General /plant tab

386

Available check

:select KP no check

Transportation group

:select 0003 container

Loading group

:select 0003 manual

Select MRP1 tab

MRP type

:select ND no planning

Select accounting 1 tab

Valuation class

:select BILL2 finished product

Price control

:select S standard price

Standard price

:400

Save
Creation condition types:
Path : Logistics Sales & Distribution Master data-Conditions Select using
conditions type-create (Transaction code is VK11)
Condition type

:PR00 price

Select key combination button: Select material with release status radio button
Enter
Sales organization BILS
Distribution channel

:BD

Material

:BILFG

Amount

:600

Valid from

:01.04.2008

Valid to

:31.03.2009

Save
Select back arrow
Condition type

:select UTXJ tax Jursdict code

Select key combination button

Select domestic taxes radio button
Enter
Country

:IN for India

Tax classification for customer :1

Tax classification for material :1

387

Valid from

:01.04.2008

Valid to

:31.03.2009

Tax code

:A0 (0% output tax)

Save
Ignore the message press enter
CO PROFITABILITY ANALYSIS (CO-PA)
Co for Controlling
PA for Profitability Analysis
This is used to view profitability for number of parameters at a time:
Eg: Customerwise /Productiwise /Sales order wise plant wise, Sales organization profitability.
Account based profitability /costing based profitability analysis / both (in India we use both)
PP Module
MM Module
FI Module product costing SD module CO-PA
CO Module
Define an operating concert
Operating concern can be equal to controlling area or above controlling area
Controlling area can be equal to our company code or above company code
Company code =controlling area =operating concern

Data structure
Characteristics
Customer
Product
Sales order
Plant
Sales organization
Sales employee
Country

Value fields
-----|
|
|-
|
|
|
----

Sales cost of goods sold net profit

Profitability segment It consists of

A) System defaulted characteristics
Eg: customer / Product / Sales order /Plant /Sales organization

388

B) Client required characteristics

Eg: Sales employee / Industry
Data flow in SD module:
1. Inquiry and quotation
2. Sales order customer /product /plant sales organization /quantity /rate delivery terms
payment terms.
3. Delivery with reference to sales order.
A) without posting goods issue (without PGI)
B) with post goods issue (with PG1)
4. Sales billing with reference to delivery
Data flow in Co-PA
SD condition types

CO-PA value fields

VV 010 Revenues
VV 140 Cost of goods sold

PR00
Price
VPRS
Costs
(Product costs)
(up to COGM level)

CO - +FI
COGM Admin & SD Exp.
(Both costing based and account based)

We are going to MAP:

PR00 =VV010
VPRS=W140
Product cost :
Cost sheet:
Raw materials
Raw material overheads
Production costs

BILFG1
BILFG
xxx
xxx
xxx
----- Production valuation will be at COGM level or COGM+
admin exp. Level
Cost of goods manufactured xxx
(COGM)
Administration
xxx
Sales & Distribution
xxx
----Cost of goods sold (COGS) xxx
In client 800 for company code 10001 controlling area -1000 operating concern IDEA
In IDEA All SD condition types and equivalent CO-PA value fields
We check IDEA and do customization the same way for our operating concern also IDEA is a
references to all the CO consultants

389

CUSTOMIZATION :
Maintain operating concern
Path :SPRO-Controlling Profitability analysis Structures Define operating concern
Maintain operating concern (Tr code is KEA0)

Give the operating concern

:BIL1 (It is a text field)

Select create button

Ignore the warning message press enter
Description

:Operating concern for BIL

Select costing based check box

Select account based check box
select attributes tab
operating concern currency INR
select company code currency check box
fiscal year variant

:V3

save
select data structure tab
select create button under data structure
select KMVTNR sales employee
select left arrow
select value fields tab
select VV010 revenue
select VV140 cost of goods sold
select left arrow
select save button
from the menu select data structure save
from the menu select data structure activate

390

Select back arrow

Select yes button for the message to generate the operating concern environment.
Ignore the message press enter
Save
Define profitability segment characteristics (Segment level characteristics)
Path: Up to structures the path is same -Define profitability segment Characteristics (Tr code
is KEQ3)
Give the operating concern

:BIL1

Enter
For product and customer
Select costing base and account base radio button
Save
Press enter to save in your request
Assign controlling area to operating concern:
Path :SPRO-Enterprise structure Assignment Controlling Assign controlling area to
operating concern.
Select position button
Give the controlling area

:BIL

Enter
For controlling area

:BIL

Assign operating concern

:BIL1

Save
Press enter to save in your request
Define no.range for actual postings
Path :SPRO-Controlling Profitability analysis Flows of actual values Initial steps Define
no.range for actual postings (Tr code is KEN1)
Operating concern

:BIL1

Select maintain groups button

391

Select generated groups check box

From the menu select interval maintain
Select interval button
From no.

To no.

:9999999999 (10 times)

Save
Ignore the message press enter
Maintain assignment of SD conditions to CO-PA value fields:
Path :Up to flows of actual values the path is same Transfer of billing documents Assign
value fields .(TR code is KE4I)
Double click on maintain assignment of SD conditions to CO-PA value fields
Select new entries button
Open one more session with SPRO-Controlling-Profitability analysis Structures Set
operating concern
Give the operating concern
Select operating concern
Enter
User the Tr code is KE4I

:IDEA

Come to the first session

Condition type

:PR00

Value field

:VV010 (Revenues)

Condition type

:VPRS (cost)

Value field

:VV140 (Cost of goods/ Sold)

Save
Press enter to save in your request
Notes :Direct posting from FI/MM
PR00 price
:VV010 Revenues
Scrap sales/waste sales Posting only in FI, only FI-No Co account base , if we post manually in
FI
If we post directly in FI-for account no.300000-399999 up date VV010 revenues
VPRS costs

:VV140 cost of goods sold

392

If we post directly in FI for account no.400000-499999 up date VV140 cost of goods sold
Up to flows of actual value the path is same
(Through path )
Direct posting from FI/MM:Maintain PA transfer structure for direct postings
Tr code is KEI2
Select structure FI (Financial accounting COPA)
Double click assignment lines folder
Give the controlling area

:BIL

Enter
Enter once again
Select assignment :20 (Direct revenues from FI)
Double click on source folder
From

:300000

To

:399999

Double click on value fields folder

Select new entries button
Quality /value

:Select value filed

Fixed /variable

:Select 1 fixed amounts

Value field

:select VV010

Save
Press enter to save in your request

Double click on assignment lines folder

Assignment select

:10 Direct cost from FI

Double click on source folder

From

:400000

To

:499999

Double click on value fields folder

Select new entries button
Quantity /value

:select value field

393

Fixed /variable

:select 1 fixed amount

Value field

:VV140

Save
Activate profitability analysis
Path :Up to flows of actual values the path is same Activate profitability analysis (KEKE)
Select position button
Give the controlling area

:BIL

Enter
For controlling area

:BIL

Activate status

:select 4 (component activate for both types of profitability

analysis)

Save, press enter to save in your request

SD END USER AREA
1. Creation of sales order
Path: Logistics Sales and Distribution Sales Order Create (Tr code is VA01)
Order type

:select OR (Standard Order)

Sales organization

:BILS

Distribution Channel :BD

Division

:BS

Enter
Sold to party

:200101

P.O.No.

:1

P.O.Date

:To days date

Required delivery date :Todays date

Delivery plant

:BILP

Payment terms

:0001

Item

:10

Material

:BILFG

Order quantity

:10 kg

394

Enter
Ignore the message press enter
Select item

:10

From the menu select Goto Item Conditions

Select shipping tab
From the menu select Edit in complication log
We get a message document is complete ,no errors
Select save button or Ctrl+S
Note the order no.11764
Production receipt :
There are two types of production receipt.
1. Production receipt without production order
MVT Type:521

2. Production receipt with production order

MVT Type:101

Path :Logistics Materials Management Inventory management Goods movement Goods receipt Other (Tr code is MB1C)
Moment type

:521 (Receipt w/o production order into unrest use stock)

Plant

:BILP

Storage location

:HYD

Enter
Give the material

:BILFG

Quantity

:50

Save
Ignore the warning message press enter
Note : Check it GL A/c 200122 Inventory, select automatic posting check box
From the menu select other goods receipts Display-Enter
Select accounting documents button
Select accounting document no.
BSX
200122 Inventory FG 20000 BILFG BIL2

395

GBB
300200 INC/DEC in stocks FG 20000-BILFG BIL2 ZOF
Qty *Standard Price
50*400
Delivery:
Path : Logistics Sales & Distribution Sales Order Sub request functions Outbound
delivery (Tr code is VL01N)
Shipping post
:BILH
Give the order no.

:11764

Enter
Actual goods issue date

:Todays date

Select item

:10

Select picking tab

Picked quantity

:10

Select post goods issue button

From the menu select outbound delivery display
Enter
From the menu select Environment Document flow keep the cursor on goods issue delivery
document no. (down side in document column)
Select display document button
Select accounting documents button
Select accounting document no.
Double click on accounting document no.
200122 Inventory FG 4000-BILFG BSX is assign this A/c BIL2
300200 INC/DEC in stocks FG 4000 BILFG GBB VAY assigned to BIL2
Qty delivered *Standard price
10*400
Sales billing
Path :Up to sub sequent functions the path is same Billing document(Tr code is VF01)
(Through path)
Select Delivery document no.
Execute

396

Save
From the menu select Billing document-Display-Select accounting button
Double click on accounting document no.
200100 DLF Industries Limited 6000 customer no.is taken from sales order
300005 Sales local own goods 6000-ERL
Qty sold *Sale price
10*600

REPORT PAINTER
Report to view customer wise/product wise /Sales organization wise /plant wise profitability
Define forms for profitability reports :
Path :SPRO-Controlling Profitability analysis Information system report components
Define forms Define forms for profitability reports-(The Tr code is KE34)
Double click on creation Form
Give the operation concern form :AML
Form description

: From AML profitability

Select two axes (matrix) radio button

Select create button
Select operating concern currency radio button
Enter
Double click on row 1
Select value field with characteristics radio button
Enter
Value field select VV010 Revenue
Select confirm button
Double click on row 2
Select value field with characteristics radio button
Enter
Value field select VV140 cost of goods sold
Select confirm button
Double click on row 3

397

Select formula radio button

Enter
Select Y001
Select minus button
Select Y002 cost of goods sold
Enter
Short text Net profit
Select copy short text button
Enter
Double click on column 1
Select characteristics radio button
Enter
Select plant /Actual indicator for available characteristics
Select left arrow
For plant /actual indicator
From :Select 0 actual data
Select confirm button
Save
From the menu select Edit-General data selection
Once again general data selection
From the available characteristics column
Select record type, period /year
Select left arrow
For record type
For form column :Select B direct posting from FI
For To column :Select F billing data
For period /year : For from column :Select variable on /off check box
Local variable

:Enter 1

Press enter
For to column select variable on/off check box
Local variable

:2

398

Enter
Select confirm button
From the select Extras variables variable definition
For name 1

: Give the description from period /year

For name 2 Description

:To period /year

Enter & save

Create profitability report:
Same path
Double click on crate profitability report
Tr code is KE31
Give the report

:BILREPORT ( This is a text field)

Description

:BIL Profitability Report

Select report with from radio button

Give the form name :BIL1
Select create button
Select operating concert currency radio button
From the characteristics list :Select customer /plant /product ,Sales organization
Select left arrow
Select output type tab
Select classic drill down radio button
Select available on selection screen check box
Save
Ignore the message press enter
Select execute button
Form period/year

:01.2008

To period /Year

:12.2008

Execute
Ignore the message select press enter
To view product wise profitability from the menu select navigate-with drill down
Double click on product

399

This called date cube

PRODUCT COSTING
This is used for valuation of inventories i.e. Finished goods and Work in progress
PP Module
MM Module
FI Module
CO Module

|
|
|

Product costing

Note: SAP lab :Product costing made easy BPB publication Not covered product costing Crate
a cost estimate with quantity structure
Cost element with quantity structure
At standard cost
In the month end we get actual cost
Variable will be settled to accounts
How standard cost will be arrived at :
Sales budget for next month Production budget Material requirement Planning
|
|
(Make to orders (confirmed orders) (This is same men budget)
+
And make to stock (expected orders))
Overhead planning =
Standard cost
Cost sheet for the product BILFG1
Raw materials
xx
Raw material overheads
xx
Production costs
xx
Cost of goods manufactured (COGM)
xx
Administration Expenses
xx
Sales & Distribution exp.
xx
---Cost of goods sold (COGS)
xx

To check with client at what level he wants to value stocks

At COGM level or At COGM +Admin level
Raw material standard cost
For each product we find out materials required
For BILFG1 We required BILRM1
BILRM2
MM Module :Material Master
Accounting view moving average price
BIL RM1
75
400

BILRM2

125

PP Module: Bill of Material (BOM)

To produce BILFG1 what materials are required and how much quantity
BILRM1
1Kg
BILRM2
1Kg
Raw material standard cost =Quantity
from BOM (PP)*Rate from Material Master (MM)
(1*75)+1*125)=200
Raw material overheads
Overheads like freight charges :At the time of receipt it will be added to material At the time of
consumption the material cost includes freight also.
Overhead like loading and unloading normal amounts change directly to P & L account clients
will tell us-how much percentage can be taken on raw material cost (consumption.) 5% of raw
material costs
Eg: 250*5%=12.5
Production costs:
Cost centers in PP Module :Work centers

Raw material

Dept A

Dept B Dept C

Dept D

Dept A
Issue

Dept B Dept C
Issue

Dept D
Issue finished product

All products need not go through all the Departments

Process flow for each product in PP module we call as routing.
PP Module: Routing
Raw material

Dept A
Issue

(Process flow)
Dept B
Dept D
Issue
Finished product

Wages
Salaries
Power

300000
100000
320000
------Planned cost
720000
=====
Planned hours available

401

Machines
No.of days

100 working for 3 shifts (24 Hours )

30 Days
100*30*24=72000
720000/72000=10 Rs

Machine hour rate

(Activity type)
To Produce BILFG1
Hours required 5Hrs
Production cost 10*5=50

Production cost : (Hours required in Dept A * Machine hour rate)+(Hours required in Dept B*
Machine hour rate )+ (Hours required in Dept D * Machine hour rate)
Example :
Why cant we allocate based on production

BILFG1
BILFG2

Production Qty
999 Kgs
1 Kg
-----1000

Hrs Req
1
999
----1000

Cost

720000

If we allocate cost based on production

BILFG1
BILFG2

720000*999/1000=719280
720000*1/1000=
720
-------720000
======
If we allocate cost based on hours required
BILFG1
BILFG2

720000*1/1000
720000*999/1000

=720
=719280
----------720000
========

ACTIVITY BASED COSTING

Co Consultants job:
1. Creation of 2 secondary cost elements (Use Tr.code is KA06)
A) RM overhead rate
B) Activity allocation
Give the cost element 1200000
Valid from 01.04.2008 to 31.12.9999

402

Enter
Give the name and description

:RM Overhead rate

Cost element category

: Select 41 overhead rates

Save
Cost element

:1200001

Enter
Name and description

:Activity allocation

Cost element category

:select 43 Interval activity allocation

Save
Creation of activity type Machine hour:
Path :Accounting Controlling cost Center accounting Master data Activity typeIndividual processing create (Transaction code KL01)
Activity type

:BIL

Valid from

:01.04.2008 to 31.12.9999

Enter
Give the Name & Description :Machine hour
Activity unit

:select H

Cost center categories

:Select * (All cost center categories)

Active type category

:select 1 (Manual entry , Manual allocation)

Allocation cost element

:1200001

Save
Creation of cost centers: (Tr.code is KS01)
Give the cost center

:Dept G

Valid from

: 01.04.2008 to 31.12.9999

Reference cost center

:Dept A

Controlling area

:BIL

Enter
Change the name to Dept G
Change the description to cost center :Dept G

403

Person responsible

:MrG

Other things are common

Select save button

Cost center

:Dept H

Reference cost center

:Dept A

Controlling area

:BIL

Enter
Change the name to Dept H
Change the description to cost center:Dept H
Change person responsible to Mr.H
Cost center category :select 9( Allocation cost center)
Save

Create of cost center group (Tr code is KSH1)

Give the cost center group :BILPROD
Enter
Description :BIL Production cost center group
Select insert cost center button
Select cost center Dept G
Save
Define overhead keys:
Path :SPRO-Controlling Product cost controlling Product cost planning basic settings for
material costing - overheads-Define overhead keys
Select new entries
Overhead key

:BIL1

Description

:BIL Overhead key

Save
Press enter to save in your request

404

Define overhead groups

Same path
Select new entries button
Valuation area

:BILP

Overhead group

:BIL1

Overhead key

:BIL1

Name of overhead group

:BIL over head group

Save
Press enter to save in your request
Note:
Overhead rate will be given to overhead key
Overhead key will be assigned to overhead group
Overhead group will be specified in material master
Define calculation basis
Path :SPRO-Controlling- Product cost controlling Product cost planning-Basic setting for
material costing Over head costing sheet components Define calculation bases
Select new entries button
Base

:D1 (Text filed)

Name

:Raw materials

Base

:D2

Name

:Production cost

Save
Press enter to save in your request

Select D1 double click on details folder

Controlling area

:BIL

Enter
Select new entries button
From cost element

:400000

To cost element

:400099 RM consumption

405

Save
Select back arrow two times
Select base D2 Production cost
Double click on details folder
Controlling area

:BIL

Enter
Select new entries button
From cost element

:400100

To cost element

:400299 Personnel & Manufacturing group

From cost element

:400500

To cost element

:400599 Depreciation a/c

From cost element

:1200001 Activity allocation

To cost element

:1200001

Save
Define percentage overhead rates:
Same path
Select new entries button
Overhead rate

:D3

Name

:RM overhead rate

Dependency

:Select D010 Overhead type/Overhead key

Save
Press enter to save in your request

Select D3
Double click on details folder
Ignore the warning message press enter
Select new entries button

406

Valid from

To

Controlling area Overhead type Overhead key Percentage

01.04.2008 31.03.2009

BIL

01.04.2008 31.03.2009

BIL

Select 2
BIL1
5
(Planned overhead rate) RM key
1 (Actual overhead rate) BIL1

Select save button or Ctrl+S

Press enter to save in your request
Define Credits
Same path
Select new entries button
Credit

:D4

Name

:BIL RM credit key

Save
Press enter to save in your request
Select

:D4

Double click on details folder

Controlling area

:BIL

Enter
Select new entries button
Valid to

:31.03.2009

Cost element

:1200000 RM overhead rate

Fixed percentage

:100%

Cost center

:Dept H (Allocation cost center)

Save
Actual over head rate 10%
Credit key D4 -1100000 Cost Dept.

1. RM1 Purchase/Receipt (Freight including)

Inventory RM local DR
600000
To GR/IR clearing RM local 600000
2. Loading & Unloading charges

407

10

Loading & Unloading charges Dr

To Bank

7000 Dept H
7000

3. RM 2 Purchase
Inventory RM local DR
300000
To GR/IR clearing RM local 300000
4. Loading & Unloading charges for RM 2
Lodging & unloading charges DR
To Bank

3000
3000

5. RM Consumption for production Order 1-RM1 and RM2

RM consumption local DR
RM Consumption local DR
To Inventory RM local
To Inventories RM local

40000 Order 1
20000 Order 1
40000
20000

6. RM consumption for production order 2 RM-1 and RM2

RM consumption local DR
RM Consumption local DR
To inventory RM local
To Inventory RM local

10000 Order 2
30000 Order 2
10000
30000

In the month end

RM material consumption
Lodging & Unloading charges
% on consumption

100000
10000
10% actual overhead rate

Cost center Dept H

(Allocation cost center)
Loading & Unloading for RM1 7000 DR
Loading & Unloading for RM2 3000 DR

Order 1
Order 2

6000 DR
4000CR

H Value will be zero

RM Consumption

Order 1
60000

408

Order2
40000

RM overhead rate
(Actual 10%)

6000
----66000
=====

4000
----44000
=====

Indirectly we are allocating cost center Dept H values to production orders based on the
consumption values.
Define costing sheets:
Path :Up to overhead the path is same- Define costing sheets
Select new entries button
Costing sheet

:BIL

Description

:BIL Costing Sheet

Save
Press enter to save in your request
Select

:BIL

Double click on costing sheet rows folder

Select new entries button
Row

Base

Overhead

10
20

D1
400000-400099

Description
Raw materials

D3

RM Overhead rate

From
To Row
Credit

:10
:10
:D4

Row
Base
Description

:30
:D2
:Product cost

Row
Description
From
To row
Save

:40
:Cost goods manufacturer
:10
:30

Assign costing sheet to plant :

409

Path :SPRO-Controlling Product cost controlling Product cost planning Material cost
estimate with quantity structure- Define costing variants (TR code is OKKN)
Select position button
Cost variant :Select PPC1 standard cost estimate (Materials)
Enter
Select PPC1
Select details button
Select valuation variant button
Select create beside valuation variant /plant
Select new entries button
In plant

:BILP

Save
Press enter to save in your request

Select back arrow

Select valuation variant

:001 with plant BILP

Select details button

Select overhead tab
Give the costing sheet

:BIL costing sheet both in the places

Save
Define cost component structure:
To know the break up of standard product cost
What is raw material cost?
What is RM overhead cost ?
What is production cost ?
Path :SPRO-Controlling Product cost Controlling Product cost planning Basic settings for
material costing Define cost component structure . (OKTZ)
Select cost component structure

:01

Double click on cost components with attributes folder

410

Select component structure

:01 with cost component 10 raw materials

Double click on assignment:Cost component cost element interval folder

Select new entries button
Cost competent structure

:01

Chart of Accounts

:BIL

From cost element

:400000

To cost element

:400099

Cost component

:select 10 RM

Save
Ignore the warning message press enter
Press enter to save in your request
Select back arrow
Double click on cost components with attributes folder
Select cost component structure 01 with cost component 80 Material over head
Double click on assignment:Cost component cost element Interval folder
Select new entries button
Cost component structure

:01

Chat of Accounts

:BIL

From cost element

:1200000 RM overhead

Cost component

:80 Material overhead

Save
Press enter to save in your request
Double click on cost components with attributes folder
Select cost component structure

:01 with lost component 50 production machine

Double click on assignment cost component cost element interval folder

Select new entries button
Cost component structure

:01

Chat of Accounts

:BIL

From cost element

:400100

To cost element

:400299

Cost component

:select 50 production machine

411

One more
Cost component structure

:01

Chat of Accounts

:BIL

From cost center

:400500

To cost center

:400599

Cost component

:50

One more

Cost component structure

:01

Chat of Accounts

:BIL

From cost element

:1200001

Cost component

:50

Save
Double click on cost component structure folder
For cost component structure 01 select active check box
Save
For cost component structure assignment structure 02 also for cost component
Note: The above procedure is to be followed to 02 also
PP CONSULTANT JOB:
Define MRP controller
Path :SPRO-Production material requirements Planning Master data-Define MRP
controllers
Select new entries button
Plant
:BILP
MRP controller
:Mr.A
Save
Press enter to save in your request

Notes:
Define floats (Scheduling margin key)

412

Floats Buffer days or grace days

2 days grace days
08.12.2008
10.12.2008
10.12.2008
12.12.2008
11.12.2008
13.12.2008
15.12.2008
17.12.2008

Production order creation

Production order release
Production start date
Production end date

Path :SPRO-Production Material requirements planning Planning Scheduling and

capacity parameters Define floats (Scheduling margin key)
Select new entries button
Plant

:BILP

Margin key

:BIL

Opening period

:2 days

Float before production

:2 days

Float after production

:2 days

Release period

:2 days

Save
Press enter to save in your request
Define production scheduler
Path :SPRO-Production-Shop floor control- Master data-Define production scheduler
Select new entries button
Plant
:BILP
Production scheduler :B
Description
:Mr.B
Save
Press enter to save in your request
Determine person responsible for work center
Path :SPRO-Production Basic data Work center General data Determination person
responsible
Select new entries button
Plant
:BILP
Responsible person : Mr.C
Person responsible for work center :Mr.C
Save

413

Press enter to save in your request

CO END USER AREA:
Planning cost center wise (KP06)
Version

:0

From period

:9 (December)

To period

:9 (December)

Fiscal year

:2008

Give the cost center

:Dept G

Select page down button or next page button

Cost element

:400100 Salaries A/c

Select from based radio button

Select overview screen button (F5)
For 400100 Plant fixed cost

:720000

Save
Planning for machine hours
Path :Accounting Controlling Cost center accounting Planning-Activity output /PricesChange (KP26)
Version

:0

From period

:9

To period

:9

Fiscal year

:2008

Select next page or page down button

Cost center

:Dept G

Activity type

:BIL

Select form based radio button

Select overview screen button
Plant activity

:72000

Save

414

calculation of Machine hour rate

Path :Up to planning the path is same Allocations Price calculation (KSPI)
Select cost center group radio button
Cost center group select
:BILPROD
Execute
Select save button
Ignore the message press enter
MM END USER AREA
Creation of material master

(MM01)

A) Raw material
B) Finished product

2
1

Give the material

:BILRM2

Industry sector

:Mechanical Engineering

Material type

:Raw material

Press select view button

Select basic data1

:Select purchasing Select general plant data /storage /Accounting

Select organization levels button

Plant

:BILP

Storage location

:Hyderabad

Enter
Give the description :Raw material 2
Base unit of measurement :KG
Material group

:BILC

Division

:BS

Select purchasing tab

Purchasing group

:BIL

Select accounting 1 tab

Valuation class

:BIL1 RM Local

Price control

:select V moving

Moving price

:150

415

Save

One more material

:BILFG1

Industry section

:Mechanical engineering

Material type

:Finished product

Press select view button

Select basic data1, MRP1, MRP2,MRP3, Work scheduling, general plant data /storage1,
accounting , Costing 1
Select organizational levels button /enter
Enter
Plant

:BILP

Storage location

:Hyderabad

Enter
Description

:Finished product 1

Base unit measurement :KG

Division

:BS

Select MRP1 tab

MRP type

:select PD (MRP)

MRP controller

:A

Lot size

:select EX lot for lot order quantity

Select MRP 2 tab

In house production :0 days
Schedule margin key :select BIL
Select MPR 3 tab
Ignore the warning message press enter
Availability check

:select KP (no check )

Select work scheduling tab

Production scheduler :B
Select accounting tab

416

Valuation class

:BIL2 Finished products

Price control

:S (Standard price)

Standard price

:300

Select costing one tab

Overhead group

:select BIL1

Save
Note :BOM=Bill of Material
PP END USER AREA
Creation of Bill of Material
Path :Logistics Production Master data Bills of material Bill of material Material
BOM Create (CS01)
Give the material

:BILFG1

Plant

:BILP

BOM usage

:select 1 production

Enter
For item

:10

Give the component

:BILRM1

Quantity

:1

Item

:20

Give the plant

:BILRM2

Quantity

:1

Save
Creation of work center
Path :Up to mater data the path is same Work centers then work centers-create (CR01)
Plant

:BILP

Work center

:Dept G

Work center category

:select 0001 Machine

Select basic data button

417

Give the description

:Dept G

Person responsible

:Mr.C

Usage

:009

Under standard value maintenance

Standard value key

:SAP1 Normal production

Select costing tab

Start date

:01.04.2008

Cost center

:Dept G

For machine activity :Give activity type BIL

Activity unit

:H (Hour)

Formula key

:SAP002 (Production machine time)

Save
Creation of routings
Path :Up to master data the path is same Routings Routings Standard routings Create (Tr
code is CA01)
Give the material

:BILFG1

Plant

:BILP

Enter
Usage

:select 1 production

Status

;select 4 (released (general))

Select operation button

For operation 10 give the work center

:Dept G

Control key

:select PP01 in hour production

Double click on operation

:10

Machine standard value

:5

Unit

:H (Hour)

Save
Note: Routing is process flow as a department wise
CO END USER AREA

418

Creation of cost estimate with quantity structure:

Path :Accounting Controlling Product cost controlling Product cost planning-Material
costing cost estimate with quantity structure Create (Tr code is CK11N)
Give the material

:BILFG1

Plant

:BILP

Costing variant

:select PPC1 (standard cost estimate for material )

Enter
:Todays date

Costing date from

Note :In live environment next month first day date, this is planning date, In training institution
use todays date
Costing date to

:31.12.9999

Quantity structure date

:08.12.2008

Valuation date

:08.12.2008

Enter
Cost sheet
Raw materials
BIL RM1
BILRM2

1 Kg
1Kg

75
150

RM overhead cost -5%

Production costs 5*10
Machine hours 5 Hrs
Machine hour rate 10Rs

225
11
50
----286

From the menu select Costs >Display cost components

Select save button or Ctrl+S
Enter
Marking and releasing
Display material master
Path :Logistics Materials management Material master-Material Display Display current
(MM03)
Material

:BILFG1

419

Press select views button

Select costing 2 view
Enter
Plant
:BILP
Enter
A) Marking and releasing
Display material master
1. Making updates future price in live environment on 21st February create estimate for March
and store in the System.
2. Realizing updates current price on 1st of March release stock valuation will be at the new rate
from 1st of March
B) Marking and releasing :
Path :Accounting Controlling Product cost controlling Product cost planning material
costing Price update (CK24)

Posting period

:9

Fiscal year

:2008

Company code

:BIL

Plant

:BILP

Material

:BILFG1

Select test run check box

Select marking allowance button
Select company code

:BIL

Costing variant

:select PPC1
(Standard cost estimate for materials)

Save

Select back arrow

Deselect test run check box
Execute
Select material

:BILFG1

Select costing to tab

420

Select back arrow two times

Select release button
Execute
Select material

:BILFG1

Select costing to tab

ACTUAL COSTING
CO consultant Job
Check costing variants for Manufacturing orders (PP)
Path :SPRO-Controlling Product cost controlling -Cost object controlling product cost by
order Manufacturing orders Check costing variants for manufacturing orders(PP) (Tr.code
is 0PL1)
Select costing variant PPP1 Production order plan
Select details button
Select valuation variant button
Select create button beside valuation variant /plant
Select new entries button
In plant

:BILP

Save
Press enter to save in your request
Select back arrow
Select valuation variant

:006 with plant BILP

Select details button

Select overhead tab
Give the costing sheet

:BIL costing sheet

Save
Select back arrow
Select costing variant PPP2 production Order Actual
Select details button
Select valuation variant button

421

Select create beside valuation variant/plant

Select new entries button
In plant

:BILP

Save
Press enter to save in your request
Select back arrow
Select valuation variant 007 with plant :BILP
Select details button
Select overhead tab
Costing sheet

:select BIL costing sheet

Save
Define goods received valuation for order delivery:
Same path
Select new entries button
Valuation area
:BILP
Valuation variant
:007 production order -Actual
Save
Press enter to save in your request
Work in process customization
Creation of 5 secondary cost elements (Tr code is KA06)
Give the cost element

:1100000

Valid from

:01.04.2008 to 31.12.9999

Enter
Name & Description

:Order /Project result analysis

Cost element category

:select 31 (order /project results analysis)

Save
Cost element

:1100001

Reference cost element

:1100000

Controlling area

:BIL

Enter & Save

422

Cost element

:1100002

Reference cost element

:1100000

Controlling area

:BIL

Enter & Save

Cost element

:1100003

Reference cost element

:1100000

Controlling area

:BIL

Enter & Save

Cost element

:1100004

Reference cost element

:1100000

Controlling area

:BIL

Enter
Save

Define results analysis keys

Path :SPRO-Controlling Product cost controlling Cost object controlling Product cost by
order Period end closing Work in process Define results-Analysis keys (Tr code is OKG1)
Result analysis key :FERT WIP calculation for production orders

Define results analysis versions(Tr code OKG9)

Same path
Select new entries button
Select controlling area
:BIL
Technical result analysis cost element :select 1100000
Save
Press enter to save in your request
Define valuation method (Actual cost) ( Tr code is OKGC)
Same path
Select new entries button
Select actual cost button
Controlling area

:BIL

Result analysis version :0

423

Result analysis key

:FERT

Enter & Save

Press enter to save in your request
Define line Ids
Same path
Purchase of to get the break up of WIP (Work In Progress)value
Select line ID EL (Revenues)
EK

Direct cost

FK

Production cost

ABR settled cost for controlling area 1000

Select copy as button (F6)

Change the controlling area to BIL for all line IDs
Enter & Save
Press enter to save in your request

Define Assignment (OKGB)

Same path
Select line ID EL that is revenues for controlling area

:1000

Select copy as button

Change the controlling area to BIL
Change masked cost element to 00003+++++ (5 times plus)(300000 to 399999)
Enter & Save
Press enter to save in your request
Select line ID :EK Direct cost for controlling area 1000
Select copy as button
Change the controlling area to BIL
Change mass cost element to 00004000++
Enter and save
Select line ID FK that is production cost for controlling area 1000
Select copy as button

424

Change the controlling area to BIL

Production cost elements:
400100 -400199 Personnel
400200-400299 Manufacturing
400500-400599 Depreciation
1200001 Activity allocation

00004001++
00004002++
00004005++
00012+++++

Change master key cost element to 00004001

Enter & Save
Notes: for define assignment line ID brak up of WIP
Dept A
Issue RM

Dept B

ept C

work in progress

RM over head
Production costs

100000

200000

Calculate internally WIP by using secondary cost elements and transfer to financial accounting
require the break up of WIP by using line IDs and account assignments to line IDs.

Select line ID FK production cost for controlling area BIL

Select copy as button
Change the mass cost element to 00004002++
Enter & Save
Select 2FK line IDs for controlling area BIL
Select copy as button Change masked cost element from first line ID 00004005++
Change to 00012+++++
Enter & save
Select bank arrow

Select line ID ABR Settled cost for controlling area 1000

Select copy as button
Change the controlling area to BIL
Change mass cost element to 0001000001 :(settlement cost element)
Enter & save

425

Define update; (Tr.code is OKGA)

Same path
Select new entries button
Controlling area

:BIL

Version

:0

Result analysis key

:FERT

Line ID

:select EL revenues

Category

:select N (costs not to be included)

Controlling area

:BIL

Version

:0

Result analysis key

:FERT

Line ID

:Select EK (Direct cost)

Category

:select K cost

WIP

:1100001

Revenues

:1100002

Controlling area

:BIL

Version

:0

Revenues analysis key :FERT

Line ID

:FK production cost

Category

:select K cost

WIP creation

:1100003

Reserves creation

:1100004

Select page down button

One more controlling area :BIL
Version

:0

Result analysis key

:FERT

Line ID

:ABR settled cost

Category

:select A (Settled cost )

Save
Press enter to save in your request

426

Creation of two GL Masters:

WIP entry
Work in process

DR

BS

To Increase /Decrease in WIP

CA(Current assets, Loans &

Advances)
Credit INC/DEC in stocks

P&L

FS00
Give the GL Account no.

:200123

Company code

:BIL

Select with template button

Give the GL A/c No.200121 INV RM local
Company code

:BIL

Enter
Change short text to and GL A/c long text to work in process
Other fields are common
Save

GL A/c No.300201
Company code :BIL
Select with template button
Give the GL A/c no.300200 Increase /Decrease stocks FG
Company code

:BIL

Enter
Change short text and GL A/c loge text to INC/DEC stocks WIP (Work in Progress)
Save
Define posting result for setting work in process
Path :Up to period end closing the path is same Work in process Define posting results for
setting work in process (OKG8)
Select new entries button

427

Controlling area

:BIL

Company code

:BIL

Result analysis version :select 0

Result analysis category :WIPR (Work in Process with requirement to Capitalized)
P & L A/c

:300201

Balance sheet

:200123

Save
Press enter to save in your request
Define results analysis version (OKG9)
Same path
Select controlling area

:BIL

select details button

Select transfer to Financial accounting check box
Save
Ignore the warning message press enter
Press enter to save in your request

RM issue overhead production costs Dept A

Dept B

Dept D

FG not received
Settle to accounts by using secondary costs elements break up WIP (BY using line IDs)
Define variance keys:
Path :Up to period end closing the path is same Variance calculation :Define variance keys
(OKV1)
Select variance key 00001 Production order
Select copy as button
Change the variance key to BIL1
Change the name also variance key for BIL
Enter & Save
Define default variance keys for plants (OKVW)

428

Same path
Select position button
Give the plant
:BILP
Enter
For plant
:BILP
Assign variance key :BIL1
Save
Press enter to save in your request
Define target cost version: (OKV6)
Notes:
Budgeted cost =Budgeted production Qty

Standard price

Standard cost =Standard quantity * Standard price

Target cost =Actual production qty *
Actual cost =Actual Production *

standard price

actual price

Path :Same path

Select controlling area 1000 with target cost version 0
Select copy as button
Change the controlling area to BIL
Change the description to target cost version for BIL
Enter & Save
Press enter to save in your request
Assign variance key in Material master
Path :Logistics Material management-Material master Material Change Immediately
(MM02)
Give the material no.BILFG1
Press select views button
Select costing 1 view
Enter
Give the plant :BILP
Enter

429

Variance key :select BIL1

Save
Creation of cost element group (KAH1)
Give the cost element group :BILPRODN
Enter
Description
:Production cost element for BIL
Select Edit-Cost element -Select insert cost element button
400100
400299
Personnel & Manufacturing
400500
400599
Depreciation
1200001
Activity allocation
Save

Create allocation structure:

Path :SPRO-Controlling Product cost controlling- Cost object controlling Product cost by
order-Period end closing Settlement create allocation structure
Select new entries button
Allocation structure

:B2

Text

:BIL Production differences allocation structure

Save
Press enter to save in your request

Select

:B2

Double click on assignments folder

Select new entries button
Assignment

Text

01

Direct costs(Raw materials)

02

Material overheads

03

Production costs

Save

Select assignment 01
Double click on source folder

430

From cost element

:400000

To cost element

:400099

Double click settlement cost elements folder

Select new entries button
Receiver category

:select G/L, GL account

Select by cost element check box

Save

Double click on assignments folder

Select assignment 02 Material overheads
Double click on source folder
From cost element

:1200000 RM overhead rate

Double click on settlement cost elements folder

Select new entries button
Receiver category

:select G/L , GL Account

Select by cost element check box

Save
Double click on assignment folder
Select assignment 03 production cost
Double click on source folder
Give the cost element group :BILPRODN
save
Double click on settlements cost elements folder
Select new entries button
Receiver category

:select G/L

Select by cost element check box

Save
Create settlement profile:
Same path
Select new entries button

431

Settlement profile

:BIL

Description

:BIL production order differences settlement profile

Select to be settled in full radio button

Allocation structure :B2
Default object type

:select G/L

Select % settlement check box

Select equivalence number check box
Select amount settlement check box
Under valid receivers for GL account :Select settlement required
Document type

:SA

Maximum no.of distribution rules :999

Residence time

:12 months

Save
Press enter to save in your request
Define CO.No.range interval for the business transactions
RKL -Actual Activity Allocation
KZPI- Actual overhead (Periodic)

User transactions code :KANK

Give the controlling area

:BIL

Select maintain groups button

Double click on RKL
Double click on KZPI
Select Co. No. range interval for BIL check box
From the menu select Edit Assign element group
Save
Ignore the warning message press enter
Define exchange rate for type P (Standard truncation for cost planning for INR to EURO
(Transactions code OB08)

432

Select new entries button

Exchange rate type
:P
Valid from
:01.12.2008
From currency
:INR
To currency
:EUR
Direct quotation
:0.02
Save
Press enter to save in your request
FI Consultant job
BILRM2
receipt
Purchase order
|
GR
|
IV

Opening stock

Inventory RM local
To Stock taking

DR
GBB

BSX
BSA

Current liability & provision

Production order differences are to be settled to accounts

Production order differences manufacturing DR
PRD
To INC/DEC in stocks FG GBB AUA

Creation of 2 GL masters (FS00)

Give the GL A/c No.400201
Company code

:BIL

Select with template button

Give the GL A/c No. :400200 Conversion charges
Company code

:BIL

Change short text and GL account long text to production order differences
Select create /bank/Interest tab
Field status group change to G014 MM adjustment account
Save
GL A/c No.

:100599

Company code

:BIL

Select with template button

433

Give the GL A/c No.100500 VAT payable

Company code

:BIL

Enter
Select type /Description tab
Chang short text and GL account long text to Stock taking
Select create /bank /interest tab
Change the field status group G049 (manufacturing cost accounts)
Save
Give the GL account no.300200 INC/DEC stock in FG
Company code

:BIL

Select edit cost element button

Valid from :01.04.2008 to 31.12.9999
Enter
Cost element category

:select 22 external settlement

Save

Assignment of account for automatic postings (OBYC)

(See the material )
Double click on transaction PRD Cost (Price) differences
Give the Chart of Accounts

:BIL

Enter
Save
Give A/c No.400201 production order differences
Save
Press enter to save in your request
Select back arrow
Double click on GBB offsetting entry for inventory posting
Valuation modifier

:X

General modification :BSA opening stock taking

Valuation class

:BIL1

Account no.

:100599 stock taking account

434

Valuation modifier

:X

General modification :AUA production

Valuation class

:BILL

Account

:300200

Save
Press enter to save in your request
PP CONSULTANTS AREA
Define order type Dependent parameters
Path :SPRO-Production Shop floor control-Master data Order-Define order type dependent
parameters. (Tr code is OPL8)
Select plant

:1000 with order type PP01

Select copy as button

Change the pant to BILP
Enter and Save
Press enter to save in your request

Define scheduling parameters for production orders

Path :Up to Shop floor control the path is same- Operations-Scheduling Define scheduling
parameters for production orders (Tr code is OPU3)
Select plant

:1000 with order type PP01

Select copy as button

Change the plant to BILP
Enter and save
Press enter to save in your request
Define confirmation parameters
Path :Up to shop floor control the path is same Operations-Confirmation-Define
confirmation parameters (OPK4)
Select plant 1000 with order type PP01

435

Select copy as button

Change the plant to BILP
Enter and Save
Press enter to save in your request
Define checking control
Path :Up to shop floor control the path is same Operations Availability check define
checking control (OPJK)
Select business function

:1 & 2 for order type PP01 for plant 1000

Select copy as button

Change the plant to BILP
Enter
Change the plant to BILP
Enter and save
Press enter to save in your request
END USER AREA
Creation of production order:
Path :Logistics Production-Shop floor control-Order Create with material (Tr code is
CO01)
Give the material
:BILFG1
Production plant

:BILP

Planning plant

:BILP

Order type

:select PP01 Production order

Enter
Give the total Qty under quantities :10
Start date & end date :Todays date
Select cost order button (Ctrl+F7)
From the menu select Goto Costs Analysis
Select back arrow
Select release order button (Ctrl+F1)

436

Save
From the menu select order display note the order no.60003225
Enter
Select assignment tab
Not to the reservation no.66076
Raw material receipt by way of opening stock
Path :Logistics Materials management Inventory management goods movement Goods
receipt Other (Tr code is MBIC)
Give the movement type

:561

Plant

:BILP

storage location

:HYD

Enter
Give the material no.

:BILRM2

Quantity

:100 kgs

Select save button or Ctrl+S

From the menu select other goods receipts display
Enter
Select accounting documents button
200121

Inventory RM LCL 15000 BILRM2

BIL1 BSX

100599

Stock taking

GBB BSA

15000 BILRM2

100*150

Raw material issue to production order:(Tr code is MB1A)

Select to reservation button
Give the reservation no.66076
Enter
Qty
BIL RM1
:15
BIL RM2
:15
Save

437

BIL1

From the menu select goods issue display

Enter
Select accounting documents button
Select accounting document no.
200121

Inventory RM local

1125 BILRM1 BSX

BIL1

400000

RM consumption local 1125 BILRM1 GBB VBR BIL1

Quantity consumed * Avg rate ( 15 *75)

200121

Inventory RM local 2250 BILRM2 BSX BIL1

400000

RM consumption local 2250

Qty consumed * Avg. rate (15*150)

GBB VBR
BILRM2
BIL1

Actual overhead calculation

Path :Accounting Controlling Product cost controlling Cost object controlling product
cost by order Period end closing single functions Overhead Individual processing (Tr
code is KGI2)
Give the order no.

:60003225

Period

:9

Fiscal year

:2008

Select text check box

Select dialog display check box
Execute
Select back arrow
Deselect text run check box
Execute

Work in process calculation

Path :up to single functions the path is same Work in process Individual processing
Calculate (Tr code is KKAX)
Give the over no.

:60003225

WIP period

:9

438

Fiscal year

:2008

Result analysis version :select 0

Select test run check box
Execute
Select back arrow
Deselect test run check box
Execute
Settlement of work in process to accounts
(31.12.2008 (month end date)
Path :Up to single functions the path is same Settlement of individual processing (Tr code is
K088)
Give the order no.

:60003225

Settlement period

:9

Fiscal year

:2008

Deselect text run check box

Select check transaction date check box
Execute
Select detail lists button
Select accounting documents button
Select accounting document no.

300201

INC/DEC in stock WIP 3713 P &L Account

200123

Work in Process 3713 Balance Sheet

(Actual RM +Actual RM overheads)

To view work in process report

Path :Accounting Controlling Product cost controlling Cost object controlling Product
cost by order Information system Reports for product cost by order Object list Order
selection (Tr code is S_ALR_87013127)
Plant
Material number

:BILP
:BILFG1

439

From period
To Period
Execute
Select report call button

:01
:9

2008
2008

Confirmation of production order

Path :Logistics Production shop floor control Confirmation Enter-For operation time
ticket (Tr code is Co11N)
Give the order no.

:60003225

Operation /Activity

:10 kg

Confirmation type

:select final confirmation

Yield to confirm

:10 kg

Fro activity 2 to confirm

:60 Qty

Unit

:H (Hour)

Save
Production receipt
Path :Logistics Material management Inventory management Goods movement Goods
receipt for order (Tr code is MB31)
Give document date

:31.12.2008

Posting date

:31.12.2008

Give the movement type

:101 (Goods receipt for order into ware house)

Order

:60003225

Plant

:BILP

Storage location

:HYD

Enter
Ignore the warning message press enter
Select save button or Ctrl+S
From the menu select goods receipt display
Document no.5000011861
Enter
Select accounting documents button
Select accounting document no.

440

200122

Inventory FG 2860

BILFG1

BSX

300200

INC/DEC in stocks FG 2860 BILFG1

Qty produced * standard rate
10*286
To make production order technically complete (TECO)

BIL2
GBB AUF
BIL2

Path :Logistics Production shop floor control Order Change (Tr code is CO02)
Give the order no.60003225
Enter
From the menu select functions Restrict processing Technically complete
Save
Calculation of variances
Path :Accounting Controlling-Product cost controlling Cost object controlling Product
cost by order - period ending closing single functions- Variances Individual processing (Tr
code is KKS2)
Give the order no.60003225
Select execute button
Select back arrow
Deselect text run check box
Execute
Double click on variance amount

Open one more session for order display (CO03)

Give the order no.60003225
Enter
From the menu select go to cost analysis
Calculation of work in process (KKAX)
Path :Upto single functions same path Work in Progress Individual processing-Calculate
Work in process for Dec
Production for Dec

441

To calculate WIP once again work in process will be reserved and variances will be settled to
accounts
Give the order no.

:60003225

WIP to Period

:9

Fiscal year

:2008

Result analysis version:0

Deselect text run check box
Execute
Settlement of work in process to accounts :KO88
Give the order no.

:60003225

Settlement period

:9

Fiscal year

:2008

Deselect test run check box

Select check transaction date check box
Execute
Select details list button
Select accounting documents button
Select accounting document no.
GBB AUA
300200
400201
300201
200123

INC/DEC in stocks FG 853 BILFG1

BIL2
Production order diff 853 period
INC/DEC in stock WIP 3713 P & L debit
work in process 3713 Balance sheet credit

ASSET ACCOUNTING AREA

Capital work in progress line item settlement

Machine purchase
Debit to CWIPMachine no.15
01.12.2008
Commission 13/12/2008
Freight charges 05.12.2008 settle from CWIP to respective asset
Commissioning charges 12/12/2008
Define settlement profile:

442

Path :SPRO-Financial accounting Asset accounting- Transactions-Capitalization of assets

under construction Define /Assign settlement profiles (TR code is OKO7)

Double click on define settlement profile

Select settlement profile AI Settlement assets under construction
Select details button
Select to be settled in full radio button
Allocation structure :select A1( CO allocation structure)
Default object type

:select FXA asset

Select % settlement check box

Select equivalence numbers check box
Select amount settlement check box
Under valid reserves for fixed assets :Select settlement required
Document type

:AA (Asset Posting)

Max no. distribution rules

:999

Residence time

:12 months

Save
Select back arrow two times
Double click on assign settlement :Profile to company code
Select position button
Give the company code

:BIL

Enter
For company code BIL assign settlement profile AI
Save
Press enter to save in your request
Creation of capital work in progress asset master (AS01)
Give the asset class

:BIL4000 capital work in progress

Company code

:BIL

Enter
Description

:CWIP General

443

Capitalized on

:01.12.2008

Select time dependent tab

Business area

:BILH

Select depreciation areas tab

Depreciation key

:0000 (no depreciation)

Save
Note down the asset no.500001-0
Asset purchase posting (F-90)
Give the doc .Date & Posting date

:01.12.2008

Type

:KR

Company code

:BIL

Posting key

:31

Vendor account

:2001

Give the amount

:600000

Business area

:BILH

Text

:Machinery purchase posting

Posting key

:70

Account no.

:500001-0

Transaction type

:100 External acquisition

Remove the TDS codes

Enter
Amount

:*

Text

:+

Document Simulate & Save

Freight payment (F-02)
Give the Doc date & Posting date
Type

:SA

Company code

:BIL

Posting key

:70

:15.12.2008

444

Account

:500001-0

Transaction type

:100

Enter
Give the amount

:10000

Text

:Freight payment

Posting key

:50

Account no.

:200105 SBI current a/c

Enter
Amount

:*

Business area

:BILH

Text

:+

Document simulate & save

Creation of machinery master (AS01)
Give the asset class

:BIL 2000 Dept A

Company code

:BIL

Enter
Description

:Machine no.15

Capitalized on to days date

Select time dependent tab
Business area

:BILH

Select depreciation area tab

Depreciation key

:BIL1

Useful life

:15 years

Period

:6 months

Ordinary depreciation start date :Todays date

Save
Note: the asset no.200004-0
Settlement of CWIP to machine no.15
Path :Accounting Financial accounting Fixed assets Posting-Capitalized asset under
construction distribute (Tr code is A1AB)

445

Company code

:BIL

Asset

:500001

Sub number

:0

Execute
From the menu select Edit select select all (F5)
Select enter button
Category

:select FXA asset

Settlement receiver

:200004-0

Give the percentage

:100

Select back arrow

Save
Select settlement button (Shift +F8)
Give the asset value date

:13.12.2008 (Todays date)

Text

:CWIP settlement

Deselect text run check box

Execute
Go and see the document (FB03)
Enter
Note :In live environment you take a purchase of machinery dont enter directly Asset account,
first enter in Capital Work in Progress after commissioning added all charged convert to asset
accounting.

NEW GENERAL LEDGERS ( ECC 6 NEW FEATURES)

New general ledger (Multiple ledgers)
Accounting group V3 India group
Accounting group K4 US Group
Accounting group V6 UK Group

April March B1 Leading ledger 0L

Jan Dec
K4 Non leading ledger M1
July-June
V6 Non leading ledger 2 M2

When we create ledgers automatically ledger group will be created

We can assign in ledger group number of legers for 0L we can assign all and M2

446

At the time of posting If we dont specify ledger group It updates all legers.
FC (Foreign currency)Revaluation Gain /Loss to charge to P & L account -For leading ledger
01 and non leading ledger M1-For UK group purpose it is to be added to asset and calculate
depreciation for ledger group 0L-Assign M1 ( 0L is already assigned) At the time posting it
updates ledgers 0L and M1
Representative ledger and non-representative ledger
When we create legers ledger group will be created that ledger will be called representative
ledger we are assigning for 0L ledger group M1 This is called non representative ledger.
At the of posting system checks representative ledger periods are open or not we need not open
non-representative ledgers periods.
Eg: Ledger GRP (Group)-0L
Ledger 01

Representative ledger
(April 2008- March 2009)
January 2009 period should be open
Ledger M1
Non-representative ledger
January 2009 December 2009
January 2009 period can be closed.
We are creating M1 ledger Automatically M1 ledger GRP is created we are assigning ledger
0L (0L=Leading ledger) Always leading ledger only should be the representative ledger.
Document types and no.ranges are required non-leading ledgers All non-leading ledgers we
specify all document types and given only one number range we give number range interval
only for one number range.

CUSTOMIZATION
Activate new general ledger accounting:
Path :SPRO-Financial accounting Financial accounting global settings Activate new
general ledger accounting
Select new general ledger active check box
Save
(This is one time job work at client place)
Define ledgers for general ledger accounting

447

Path :SPRO-Financial accounting (new) -Financial accounting global settings (new) Legers
Ledger-Define ledgers for general ledger accounting
Select new entries button
Ledger

:M1 ( Text filed)

Ledger name :Non leading ledger for BIL

Totals table

:FAGLFLEXT

Ledger

:M2

Ledger name :Non leading ledger for BIL

Totals table

:FAGLFLEXT

Save
Save in your request
Ignore the message press enter
Define and activate non-leading ledgers:
Same path
Give the ledger

:M1

Enter
Select new entries button
Company code

:BIL

Fiscal year variant

:K4

Posting period variant :BIL

Save
Press enter to save in your request
Select back arrow

Give the ledger

:M2

Enter
Select new entries button
Company code
:BIL
Fiscal year variant
:V6 (July to June)
Posting period variant :BIL
Save
Define ledger group:

448

Same path
Select ledger group

:0L

Double click on ledger assignment folder

Select new entries button
Ledger

:M1

Deselect representative ledger check box

Save
Ignore the warning message press enter
Press enter to save in your request
Define document types for entry view in a ledger
Path :SPRO-Financial accounting (new)-Financial accounting global settings (new)
Document Document types Define document types for entry view in a ledger.
Give the ledger
:M1
Enter
Select new entries button
Type
Number range
SA
40 (give it any number range)
KR
40
DR
40
WE
40
WA
40
RE
40
RV
40
WI
40
AA
40
Save
Press enter to save in your request
Select back arrow
Give the ledger
:M2
Enter
Select new entries button
Type
SA
KR
DR
WI

Number range
41
41
41
41

449

WA
WE
WL
RE
RV
AA

41
41
41
41
41
41

Save
Define document types for general ledger view
Same path
Give the ledger
:M1
Enter
Select new entries button
Type
Number range
SA
45
KR
45
DR
45
WA
45
WI
45
WL
45
WE
45
RE
45
RV
45
AA
45
Save
Press enter to save in your request
Select back arrow
Ledger

M2

Enter
Select new entries button
Type
SA
KR
DR
WA
WE
WI
WL
RE
RV
AA

Number range
46
46
46
46
46
46
46
46
46
46

450

Save
Define document number ranges for entry view:
Path :Up to document the path is same Document number rages Documents in entry view
Define document number ranges for entry view
Give the company code

:BIL

Select change intervals button

Select interval button
No.range

:40

Year

:2009

From no.

:1100001

To no.

:1200000

Enter
Select interval button
No.range

:41

Year

:2008

From no.

:1200001

To no.

:1300000

Enter and save

Ignore the warning message press enter
Define document no.range for general ledger view:
Path :Up to document the path is same Document no.rages Documents in general ledger
view Define document no.range for general ledger view
Give the company code

:BIL

Select change intervals button

Select interval button
No.range

:45

Year

:2009

Form number

:500001

To number

:600000

451

Enter
Select interval button
No.range

:46

Year

;2008

From number

:600001

To number

:700000

Enter & save

Ignore the warning message press enter
END USER AREA
Posting of transaction :
Path :Accounting Financial accounting-General ledger Posting Enter general posting for
ledger group (Tr code is FB01L)

Give the document date

:Todays date

Type

:SA

Ledger group

:blank

Company code

:BIL

Posting key

:40

Account number

:200100 Cash A/c

Enter
Give the amount

:100000

Business area

:BILH

Text

:Equity share capital receipt

Posting key

:50

Account no.

:100000 Equity share capital

Enter
Amount

:*

Business area

:BILH

Text

:+

Document Simulate & Save

452

Document date

:Todays date

Type

:SA

Ledger group

:0L

Company code

:BIL

Posting key

:40

Account no.

:200100 Cash A/c

Enter
Amount

:50000

Business area

:BILH

Text

:Equity share capital receipt

Posting key

:50

Account no.

:100000 Equity share capital

Enter
Amount

:*

Business area

:BILH

Text

:+

Document Simulate & Save

0L Leading ledger

April 2008- March 2009 10th Period 105000

2008

M1 Non-leading ledger Jan 2009-Dec 2009 1st Period 105000

2009

M2 Nonleading ledger July 2008 June 2009 7th Period 100000

2008

To view the ledger

Path :Accounting Financial accounting General ledger Account Display balances (new)
(Tr cod is FAGLB03)
Account number

:100000

Company code

:BIL

Fiscal year

:2008

Ledger

:0L

Execute

453

Double click on balance 105000

To view the document
Select document no.check box
Select display document button
Select call up document overview button
Select back arrow 3 times
Select choose ledger button
Change the ledger to M1
Enter
Change the Fiscal year to 2009
Execute
Select back arrow
Select choose ledger button
Change the ledger to M2
Enter
Change the fiscal year 2008
Execute
Segments Creation
Scenario
Company code
|
Business area
|
Profit centers

:BIL
:HYD
:Cement, Steel

Future scenario
Company code
|
Segment
|
Profit center

In future there will not be any developments

Business areas

BIL
HYD
Cement , Steel

Segments will be assigned in the for

profit center

In case of automatic line items generation business

Area will not be picked up
Profit center through derivation rules
Profit center is updated automatically
segment also will be updated.

Segment creation

454

Path :SPRO-Enterprise structure Definition Financial accounting -Define segment

Select new entries button
Segment
Description
BGL
Bangalore segment
HYD
Hyderabad segment
Select save button or Ctrl+S
Press enter to save in your request
Assign segment in profit centers:
Path :Accounting Controlling profit center accounting Master data profit center
Individual processing change (Tr code is KE52)
Profit center

:select Steel

Enter
Segment

:select HYD

Enter
Select activate button

(Shift +F1)

One more profit center

Profit center

:Cement

Enter
Segment

:select HYD

Select activate button

DOCUMENT SPLITTING
In document splitting, line items are split according to selected dimensions so that we can draw
financial statements for the selected dimensions at any time.
Eg: Profit Center wise, Segment wise
Sales
Party X Account
Dr
To Sales Steel
To Sales cement
Due to document splitting
Party X Account
Dr

100000
80000 Steel profit center
20000 Cement profit center

80000 Steel

455

Party X account
Dr
To Sales Steel
To Sales Cement

20000 Cement
80000 Steel
20000 Cement

Creation of 3GL masters :FS00

A) Sales Steel
Sales
B) Sales Cement
Sales
C)Zero balance clearing a/c current liabilities & provisions

FS00
GL Account no.

:300010

Company code

:BIL

Select with template button

Give the Gl A/c No. :300005 Sales local own goods
Company code

:BIL

Enter
Change short text and GL account long text to sales Steel
Save
Select edit cot element button
Valid from 01.04.2008 to 31.03.9999
Enter
Cost element category

:11 Revenues

Save
Second a/c
Give the GL A/c No.

:300011

Company code

:BIL

Select with template button

Give the GL A/c

:300010

Company code

:BIL

Enter
Change short text and GL a/c long text to sales Cement
Save

456

Select edit cost element button

Cost element category

:11 Revenues

Save

GL A/c No.

:100530

Company code

:BIL

Select with template button

Give the GL A/c No.100505 VAT payable
Company code

:BIL

Enter
Change short text and GL account long text to Zero balance clearing
Select create /Bank /Interest tab
Change field status group to G067 (Reconciliation account)
Save
Classify G/L Accounts for document splitting:
Path :SPRO-Financial accounting (new)-General ledger accounts(new) Business
transactions Document splitting-Classify G/L accounts for document splitting
Give your chart of accounts :BIL
Enter
Select new entries button
Account from
Account to
100000
299999
300000
399999
400000
499999
Save
Press enter to save in your request

Category
01000
30000
20000

Description
Balance sheet account
Revenue
Expense

Define Zero balance clearing account

Same path
Select account key

:000

Double click on accounts folder

457

Chart of Accounts

:BIL

Enter
Select new entries button
Give the G/L account :100530 Zero balance clearing A/c
Save
Press enter to save in your request
Activate documents splitting
Same path
Select document splitting check box
Save
Press enter to save in your request

END USER AREA

Posting of sales (F-22)
Give the document date

:Todays date

Type

:DR

Company code

:BIL

Posting key

:01

Customer Account

:100000

Enter
Amount

:80000

Business area

:BILH

Text

:Sales invoice posting

Posting key

:50

Account

:300010 Sales Steel

Enter
Business area

:BILH

Text

:+

Select profitability segment button (right arrow button profit center steel)
Ignore the warning message press enter
Give the profit center Steel

458

Select continue button

One more item
Posting key

:50

Account no.

:300011 Sales Cement

Enter
Amount

:*

Business area

:BILH

Text

:+

Select profitability Segment right arrow button

Give the profit center

:Cement

Select continue button

Document Simulate
From the menu select Document Simulate
General ledger button
Save
From the menu select Document Display
Select general ledger View button

CENTRAL EXCISE AND SALES TAX

CIN: Country India Version
MM Consultant
SD consultant
FI consultant Creation of accounts and assignment of accounts
Central excise is an Indirect Tax
This will be charged at the time of sales, sales men (Removal of goods)
Central excise registration

:15 digits code

459

(10 digits will be income tax PAN + 5 digits central excise)

Central excise registration will be plant wise
Central excise rates are given in central excise tariff chapter IDs :8 digits code
Under chapter id we have material description and rate
Basic Excise Duty (BED)
14% maximum (now changed to 10%)
Additional excise duty (AED) Products like textiles
15% of basic amount Now no AED
Special Excise Duty (SED)- Tobacco related products
8% on invoice original value
Education cess
2% (on 8% excise duty)
Higher and secondary education cess 1% (on 2% ED)
CEN VAT (Central Excise Value Added Tax) Earlier MODVAT
Where we pay excise duty at the time of purchase, the excise amount can be adjusted when we
pay excise duty on sales to excise dept.
(Though collected from customer)
RG23A

Part 1 Quantity updation Part 2 value updation -

Excise duty on consumable

100% CENVAT same year

RG23C

Part 1 Quantity updation

Part 2 value updation -

Excise duty on Capita Goods

50% current year 50% next year

PLA

Personal Ledger Account

Bank excise credits and debits

ER1

(Excise return 1) (Earlier it was RT12 monthly return)

To pay excise before 5th of next month
To file the return before 10th next month

RG1

Finished goods register

Purchase scenario:
Consumable purchase
Basic price
Excise 8%

VAT 4%

100
8
---108
4.32
-----

capita goods purchase (stores)

200
20
---220
8.8
----

10%

460

112.32

228.8

Goods receipt for consumables

A) Goods receipt entry
Inventory RM local DR
100
To GR/IR clearing RM LCL 100

B) Excise entry
RG 23 A BED
DR
To CENVAT clearing

8
8

Invoice verification for consumables

GR/IR clearing RM LCL
CENVAT clearing A/c
VAT Receivable
To party

DR
DR
DR

100
8
4.32
112.32

Goods receipt for capital goods

A) Goods receipt entry
Inventory stores local DR
To GR/IR clearing stores Local
B) Excise entry

200
200

RG 23C BED
DR
CENVAT on hold
DR
To CENVAT clearing a/c

10
10
20

Invoice verification for capital goods

GR/IR clearing stores LCL
CENVAT clearing a/c
VAT Receivable
To party
Sales scenario
Basic price
Excise rate
14%

VAT 12.50%

DR
DR
DR

200
20
8 .08
228.08

1000
140
----1140
142.5

461

------1283
Sales billing :
Customer A/c
Dr
1283
To Sales
1000
To CENVAT suspense 140
To VAT payable
142.50
Excise invoice creation
CENVAT suspense a/c Dr 140
To Excise duty payable 140
Excise Balances:

Purchase
Payable on sale
To pay

PLA Deposit
PLA A/c
Dr
To Bank

RG23A
8

RG23C
10

PLA

140
5

150
150

Excise utilization
Excise duty payable DR
To RG23A BED
To RG23C BED
To PLA

140
5
6
129

10) Sales tax Payment to Dept

VAT Payable
VAT Receivable
To Bank

143
13
130

VAT Payable Dr
143
To VAT Receivable 13.10
To Bank
129
11) Final balances in excise registers
RG23A

RG23C

462

PLA

129

Purchase /Deposit
Utilized at the time of sale
Closing balance

8
10
150
5
6
129
----------------------------------------------------------------3
4
21
======================================

SAP:
Tax procedures TAXINJ: Formula based
TAXINN condition based
In new implementations TAXINN
Client 000-SAP has given TAXINN and TAXINJ
Excise conditions /Service tax conditions / Education cess conditions /Sales tax conditions.

CENTRAL EXCISE CUSTOMIZATION

Activate Country Version India for specific fiscal year
Path :SPRO-Financial accounting Financial accounting global settings Tax on sales
/purchases Basic settings- India-Activate country version India for specific fiscal years
Select position button
Component
:select IND
Enter
For component IND select active check box
Save
Press enter to save in your request

Check and change settings for tax processing

Path :Up to tax on sales / purchases the path is same Basic settings-Check and change
settings for tax processing
Select new entries button
Process
:B1
Description

:A/P Basic Excise duty (A/P BED)

Tax type

:select 2 (input tax)

Posting indicator

:select 2 (separate line item)

Save
Press enter to save in your request

463

Select back arrow

Select process

:B1

Select copy as button

Change the process to B2
Change the description :A/P CST
Posting indicator

:select 3 (Distribute to relevant expense /revenue items)

Enter & Save

Select

:B1,B2

Select copy as button

Change the process to B3
Change description to APVAT
Enter
Change the description to AR VAT
Other things are common
Press enter and Save
Change process to B5
Change description to AR CST
Change tax type to

:1

Posting indicator

:2 separate line item

Enter and Save

Select B5
Select copy as button
Change the process to B6
Change the description to AR VAT
Other things are common
Press enter & Save

Define condition types:

Path :Up to tax on sales /purchases the path is same -Basic settings-Check calculation
procedure Double click on define condition types
Select new entries button

464

Condition type

:BIL1

Description

:AP Excise BED

Access sequence

:select JTAX (IN: Excise Access)

Condition class

:select D (Taxes)

Calculation type

:select A (percentage)

Condition category

:select D (Tax)

Select item condition check box

Save
Press enter to save in your request
Select back arrow
Select

:BIL1

Select copy as button

Change the condition type change to :BIL2
Change the description to

:APCST

Access sequence

:Change to JST1 (India Sales tax access)

Enter & Save

Select

:BIL2

Select copy as button

Change condition type to

:BIL3

Change description

:A/P VAT

Other things are common

Enter & Save
Define procedures
Path :Up to tax on sales /purchases the path is same Basic settings Check calculation
procedure
Double click on define procedures
Select new entries button
Procedure

:TAXINN

Description

:Sales tax India

Save

465

Press enter to save in your request

Select
:TAXINN
Double click on control data folder

Select new entries button

Step
100
110

120

Condition Description From

type
Select
Base
BASB
amount
Calculated
100
cell

To

Statistics Print

100

Select
statics
check
box

BIL1

150

AP Excise
BED
Basic
+Excise

100

100

110

140

160

BIL2

A/P CST

150

150

170

BIL3

A/P VAT

150

150

Base Account
type
key
Select
362

Select
X

B1

Select
X
Select
X

B2

Select
static
check
box

B3

Save

Assign country to calculation procedure

Path :Up to tax on Sales /Purchases the path is same Basic settings Assign country to
calculation procedure
Select position button
Country

:IN for India

Enter
For country IN assign procedure TAXINN
Save
Press enter to save in your request
466

Define tax codes for sales and purchases

Path :Up to tax on sales / purchases the path is same Calculation Define tax codes for sales
and purchases (Tr code is FTXP)
Give the country
Enter
Tax code
Enter
Give the description
Tax type
Enter
Save

:IN

Tax code

:V1

:V0
:0% Input tax
:V (input tax)

Enter
Description

:V1 Dummy tax code for purchases

Tax type

:V for input tax

Tax percentage rate

:0

Enter & Save

Tax code

:A0

Enter
Description

:0% output tax

Tax type

:A ( out put tax)

Enter & Save

One more tax code
Tax code

:A1

Enter
Description

:Dummy tax code for sales

Tax type

:A (Out put tax)

Enter & Save

Creation of GL masters (FS00)

To Copy

467

200156

RG23A BED A/c Current assets, Loans & Advances to copy 200155 VAT
receivable

200157

RG23C BED A/c Current Assets, Loans and Advances to copy 200155 VAT
receivable

200158

CENVAT on hold Current Assets, Loans and Advances to copy 200155

VAT receivable

200159

PLA Account Current Assets, Loans & Advances to copy 200155 VAT
Receivable

200155

VAT receivable already created

100506

CENVAT A/c clearing current liability provision copy 100505 VAT payable

100507

CENVAT A/c suspense current liability & provisions copy 100505 VAT payable

100508

Excise duty payable A/c current liability & provision copy 100505 VAT payable

100509

CST payable A/c current liabilities & provision X copy 100505

100505

VAT payable already created

Save
Note :In all accounts tax category * posting without check box

Define tax accounts

Path :Up to tax on sales /purchase the path is same posting Define Tax accounts (Tr code is
OB40)
Double click transaction B1 A/P Excise BED
Give the chat of accounts

:BIL

Enter
Save
Select posting key button
Debit

40

Credit

50

Save

468

Press enter to save in your request

Select accounts button
Give the account no.100506 CENVAT clearing A/c
Save
Press enter to save in your request
Select back arrow
Double click on transaction B3 APVAT
Save
Select posting key button
Debit 40
Credit 50
Save
Press enter to save in your request
Select accounts button
Give the A/c no.200155 VAT receivable
Save
Press enter to save in your request

Maintain excise registration

Path :SPRO-Logistic general Tax on goods movements India Basic settings maintain
excise registrations
Select new entries button
Excise registration

:2

(ECC number means excise control code)

ECC no.

1234

Excise Registration no.(15 digits code)

(10 digits PAN other 5 Excise no.)

:123456

Excise range

:Kukatpally range

Excise division

:Kukatpally division

469

Commissionerate

:Hyderaba commissionerate

Excise invoice items(EI)

:999

Select partial credit check box

Save
Press enter to save in your request
Maintain company code settings
Same path
Select new entries button
Select company code

:BIL

Select details button

CENVAT document type

:SA

Utilization FI document type :SA

Select debit account override check box
Select auto adjustment indicator check box
Select immediate credit on capital goods check box
First month

select April

Excise selection days

:30 days

No.of excise invoice selection :999

Excise invoice selection procedure

:FIFO

Save
Press enter to save in your request
Maintain plant settings:
Same path
Select new entries button
Plant
:BILP
Excise registration
:002 (This is plant level)
No.GRS per Excise invoice :select Multiple goods receipt multiple credits
Save
Maintain excise groups:
Same path
Select new entries button

470

Excise group

:2

Description

:Excise group for BILP

Plant

:BILP

Excise registration

:2

No.GRS per excise invoice multiple goods receipts, multiple credits

Select default challan quality in GR check box
Select EI capture check box under MIGO settings
Select post excise Invoice MIGO check box
Select duty different at GR check box
Select update RGI at MIGO check box
Save
Press enter to save in your request
Note :MRO Invoice verification
Maintain series groups
Same path
Select new entries button
Series group
:2
Series description
:BILP series group
Excise registration
:2
Save
Press enter to save in your request
Maintain excise duty indicators:
Same path
Select new entries button
Excise indicator 1
:100% Tax
Excise indicator 2
:50% Tax
Excise indicator 3
:Nil Tax
Save
Press enter to save in your request
Maintain excise defaults:
path :Up to India the path is same Basic settings Determination of excise duty maintain
excise defaults
select new entries button
Tax procedure
CVD condition

:TAXINN
JCV1:

471

A/P BED condition type

:BIL1
A/R BED condition type
:BILA
BED percentage
:BIL 4
Save
Press enter to save in your request
Maintain chapter IDs:(8Digists excise code)
Path :Up to India the path is same Master data Maintain chapter Ids
Select new entries button
Chapter ID
:50000001
Unit of measurement for excise kg
Description as per law :Chemicals
Save
Create request in your Work Bench Request for BIL
save
Select next entry (F8) button
Chapter ID
:55000001
Unit of measurement for excise kg
Description as per law Steel
Save

Specify G/L Accounts per excise transaction

Path :Up to India the path is same Account determination specify GL accounts per excise
transaction
Select new entries button
Excise group

:select 2

Excise transaction type

:GRPO (Excise Invoice for goods receipt against PO)

Company code

:BIL

Chart of Accounts

:BIL

RG23A BED

:200156

RG23C BED

:200157

MODVAT clearing

:100506 (CENVAT clearing )

G/L account per PLA BED

:200159

CENVAT on hold

:200158

472

CENVAT suspense account :100507

PLA on hold

:200159

Save
Press enter to save in your request
The same way the you send the accounts for all excise transaction types.
For excise transaction type DLFC same as above
Save
Note :

PLA on Hold
To Bank

Dr

PLA A/c
Dr
To PLA on Hold A/c
(This is used for next year carry forward)

Specify SAP Script forms

Path :Up to India the path is same Business transactions Excise registers Specify SAP
script forms
Select all the registers of company Code
:IN01
Select copy as button
Change the company code to BIL for Registers and returns
Save press enter to save in your request
Maintain number ranges
Path :Up to India the path is same Tools-Number ranges
Object
:Select J_1IINTNUM (Internally document number to be generated )
Select number rages button
Select change intervals button
Select interval button
Number rage :01
Year

:2008

From no.

:1

To no.

:100000

Save
Ignore the message press enter

473

Select back arrow two times

Object

:Select J_1IRG23A1 (RG23A part 1 no. range object)

Select number rages button

Excise group :select 2
Select change intervals button
Select interval button
No. range

:01

Year

:2008

From number :100001

To number

:200000

Enter & save

Ignore the warning message press enter
Select back arrow two times
Object

:J_1IRG23A2 This is (RG23A part II Number rage object)

Select number rage button

Excise group :2
Select change intervals button
Select interval button
No.range

:01

Year

:2008

From no.

:200001

To no.

:300000

Enter & save

Ignore the warning message press enter
Select back arrow two times
Select object J_1IEXCLOC (Local excise invoice number rage for sales)
Select number ranges button
Series group :2
Select change intervals button
Select interval button
No.range

:01

474

Year

:2008

From number :300001

To number

:400000

Enter & Save

Ignore the warning message press enter
Select back arrow two times
Select object :J_1IINTPR2 despatch series number
Select number ranges button
Excise group :2
Select change intervals button
Select interval button
No.range

:01

Year

:2008

From no.

:500001

To no.

:600000

Enter & save

Ignore the warning message press enter
Excise rates maintenance
Use the Tr code is J1ILN (India local menu) (This have no path)
Path :Indirect taxes -Master data -Excise rate maintenance (Tr code is J1ID)
Select material & chapter ID combination radio button
Select maintain button(F5)
Select new entries button
Material

:BILRM1

Plant

:BILP

Chapter ID

:5000001 Chemicals

Material type

:Raw materials

GR with reference

:select multiple goods receipt , multiple credits

Declared

:1

475

Declaration date

:29.02.2008

One more
Material

:BILFG

Plant

:BILP

Chapter ID

:5500001 Steel

Material type

:RG1

GR with reference

:Multiple goods receipts, Multiple credits

Declared

:1

Declaration date

:29.02.2008

Save
Select back arrow
Select CENVAT determination radio button
Select maintain button
Select new entries button

Give the plant

:BILP

Input material

:BILRM

Output material

:BILFG

Intimation date

:01.04.2008

Save
Select back arrow
Select vendor excise details radio button
Select maintain button
Select new entries button
Vendor

:2001

Excise indicator for vendor :1 ( 100% Tax)

Type of vendor

:select manufacturer

Save
Select back arrow
Select customer excise details radio button

476

Select maintain button (F5)

Select new entries button
Give the customer no. :200101
Excise indicator for customer

:select 1 (100% Tax)

Save
Select back arrow
Select excise indicator for plant radio button
Select maintain button
Select new entries button
Company code

:BIL

Plant

:BILP

First month

:select April

Excise indicator for company :select 1 (100% Tax)

Save
Select back arrow
Select excise indicator for pant and vendor radio button
Select maintain button
Select new entries button
First column excise indicator :select 1
Second column excise tax indicator for vendor

:select 1 (100% Tax)

Third column excise tax indicator for vendor

:Select 1 (100% tax)

Save
Select back arrow
Select excise indicator for plant & customer radio button
Select maintain button
Select new entries button
First column excise tax indictor for company

:select 1 (100% tax )

Second column Excise indicator for vendor :Select 1 (100% tax)

Third column excise tax indicator vendor :select 1 (100% tax)
Save

477

Creation of condition records

(FV11) (No path this one)
Condition type

:select BIL1 AP Excise basic

Select key combination button

Select plant /vendor /material radio button
Enter
Plant

:BILP

Vendor

:2001

Material

:BILRM1

Amount

:8 (Excise rate & Tax rupees)

Valid from

:01.04.2008

Valid to

:31.03.2009

Tax code

:V0

Save
Select back arrow
Condition type

:BIL3 A/P VAT

Select key combination button

Select plant /vendor /Material radio button
Plant

:BILP

Vendor

:2001

Material

:BILRM1

Amount

:4

Valid from

:01.04.2008

Valid to

:31.03.2009

Tax code

:V0

Save
SD Excise customization
SD consultant job
Define condition types

478

Path :SPRO-Sales & Distribution basic functions Pricing Pricing control Define
condition types
Double click on maintain condition types
Select new entries button
Condition type

:BIL4

Description

:A/R Basic excise duty (AR BED)

Access sequence

:JEXC (India Excise Access)

Plus/ Minus

:Select A Positive

Condition class

:select A discount or Surcharge

Calculation type

:select A (Percentage )

Select Item condition check box

Select amount /percentage check box
Save
Press enter to save in your request
Select back arrow
Select
:BIL4
Select copy as button
Change the condition type to BILA
Description A/R Excise BED (100% copy)
Access sequence

:select JDUM (India 100 copy of other fields are values)

Enter & Save

Select BIL4 & BILA
Select copy as button
Change condition type to BIL5
Description

:A/R CST

Access sequence

:select JCST (India Central Sales Tax :Access)

Plus / Minus

: Blank

Calculation type

:A (Percentage)

Condition class

:change to D (Taxes)

Condition category

:select D (Tax)

Enter

479

Change the condition type to BIL6

Description

:AR VAT

Access sequence

:change to JLST (India Local sales tax access)

Plus or Minus

:Blank

Calculate type

: A (Percentage)

Condition class

:select D taxes

Condition category

:select D tax

Enter & save

Define account keys:
Path :SPRO-Sales & Distribution Basic functions Account assignment/costing Revenue
account determination Define and assign account keys Double click define account key
Select new entries button
Account key
:B4
Name
:A/R Excise BED
Account key
Name

:B5
:AR CST

Account key
:B6
Name
:AR VAT
Save
Press enter to save in your request
Check and change settings for tax processing
Path :SPRO-Financial accounting Financial accounting global settings Tax on sales
/Purchases Basic settings Check and change settings for tax processing
Select B2 and B3
Select copy as button
Change the process to B5
Change the description to A/R CST
Tax type

:select 1 (Output tax)

Posting indicator

:select 2 (separate line item)

Enter
Change process to

:B6

480

Change the description to A/R VAT

Tax type

:change to 1 Output tax

Enter & save

Save in your request
Define tax accounts:
Path :up to Tax on sales /Purchases the path is same Posting Define tax accounts (Tr code
is OB40)
Double click on truncation

:B5 AR CST

Give your Chart of Accounts :BIL

Enter
Save
Select posting key button
Debit

:40

Credit

:50

Select save button

Press enter to save in your request
Select accounts button
Give the account no.100509 CST (payable)
Save
Press enter to save in your request
Select back arrow
Double click on transaction :B6 ARVAT
Save
Select posting key button
Debit :40
Credit :50
Save
Press enter to save in your request
Select accounts button
Give the account no.100505 VAT payable

481

Save
Press enter to save in your request
Maintain pricing procedures
Path :SPRO-Sales & Distribution Basic functions Pricing pricing control Define and
assign pricing procedures
Double click on maintain pricing procedures
Select new entries button
Procedure
:BIL
Description
:BIL domestic Pricing procedure
Save
Press enter to save in your request
Select
:BIL
double click on control data folder
Select new entries button

Step

Condition Description From

type
PR00
Price

To

Subtotal

100

100

A/R Basic
excise duty

100

100

210

Basic
+Excise

100

200

400

Base value

100

--

A/R BED
(100%

200

200

100

200

410

BIL 4

BILA

Require Statistics Print

482

Select
Check
box ()
Select
Check
box ()

Account
key
ERL

Select
Check
box ()
B4

Select
Check
box ()
Select
Check
box ()
Select
Check

box ()

copy) Basic
+Excise
420

450
460
500

400

BIL5
BIL6

AR CST
AR VAT
Basic
+Excise+
Sales tax

420
420
420

410

Select
Check
box ()
X
X

460

B5
B6

Select
Check
box ()

Save

Define pricing procedure determination

Path :Up to pricing control the path is same Define and assign pricing procedures ( Tr code
is OVKK)
Double click on define pricing procedure determination
Select position button
Sales organization
:BILS
enter
For BILS change the pricing procedure to BIL
Save
Press enter to save in your request
Define tax determination rules
Path :SPRO-Sales and Distribution Basic functions Taxes Define tax determination rules
Select new entries button
Tax country
:IN
Sequence
:1
Tax category
:BIL5
Tax country
:IN for India
Sequence
:2
Tax category
:BIL6 Name:A/R VAT
Save
Press enter to save in your request
Define tax relevancy of mater records:
Same path
Double click on customer taxes
Select new entries button

483

Tax category
Name
BIL5
A/R CST
BIL5
A/R CST
BIL6
A/R VAT
BIL6
A/R VAT
Save
Press enter to save in your request

Tax classification
0
1
0
1

Description
Nil Tax
Taxable
Nil Tax
Taxable

Tax classification
0
1
0
1

Description
Nil Tax
Taxable
Nil Tax
Taxable

Select back arrow

Double click on material taxes
Select new entries button
Tax category
BIL5
BIL5
BIL6
BIL6

Name
A/R CST
A/R CST
A/R VAT
A/R VAT

Save
Press enter to save in your request
Assign delivering plants for tax determination (OX10)
Same path
Select position button
Plant
:BILP
Enter
Select plant
:BILP
Select details button
Select address button(Shift +F5)
Region
:select AP (Andhra Pradesh)
Enter & Save
Press enter to save in your request
Assignment of accounts for automatic postings
Tr code is VKOA
Double click on Table 1
Select new entries button
Application area

:V

Condition type

:KOFI

Chart of Accounts

:BIL

484

Sales organization

:BILS

Account assignment group for customer :01 domestic revenues

Account assignment group for customer :03 finished goods

Account assign group for account key :B4 AR Excise duty

GL Account 100507 (Send VAT suspense account)
Save
Press enter to save in your request
SD END USER AREA
Assign tax classification material master (Tr code is MM02)
Give the material no.BILFG
Press select view button
Select sales :sales organization data 1
Select organization levels button
Plant

:BILP

Sales organization

:BILS

Distribution channel :BD

Enter
For tax classification tax category BIL5 0 taxable
For tax classification tax category BIL6 1 taxable
Save
Enter tax classification in customer master (Tr code is XD02)
Select the customer
Company code

:200101
:BIL

Division

:BS

Select customer sales area button

Double click on sales organization

:BILS

Enter
Select sales area data button

485

Select billing documents tab

For tax category

:BIL6

Tax classification

:1 (taxable)

Save

Creation of condition records (Tr code is VK11)

Condition type

:select BIL4 A/R basic excise duty

Select key combination button

Select material radio button
Enter
Sales organization

:BILS

distribution channel

:BD

Material

:BILFG

Amount

:10

Valid from to

:01.04.2008

Valid to

:31.03.2009

Save
Select back arrow
Select condition type BILA (A/R BED 100% copy)
Select key combination button
Select sales organization radio button
Enter
Sales organization

:BILS

Amount

:100

Valid from

:01.04.2008

Valid to

:31.03.2009

Save
Select back arrow
Condition type

:select BIL6 AR VAT

Select key combination button

486

Select country /Plant/Region /Material radio button

Enter
Country

:IN

Plant

:BILP

Region

:AP

Material

:BILFG

Amount

:4 (Percentage)

Valid from

:01.04.2008

Valid to

:31.03.2009

Tax code

:select A1 (Dummy tax code for sales)

Save
To check whether 0% input tax code and 0% output tax code assigned to company code to BIL
Path :SPRO-Financial accounting Financial accounting global settings Tax on sales
/Purchases -posting -Assign tax codes for non taxable transactions(OBCL)
Select position button
Company code

:BIL

enter
For company code

:BIL

Input tax code

:V0

Output tax code

:A0

Company code

:BIL

enter
For company code

:BIL

Input tax code

:V1

Output tax code

:A1

Save
Press enter to save in your request
Creation of Purchase order (ME21N)
Purchase org

:BILR

487

Company code

:BIL

Vendor

:2001

Enter
Give the purchasing group

:BIL

Item

:10

Material

:BILRM1

PO Quantity

:100 Kgs

Net price

:75

Currency

:INR

Plant

:BILP

Enter
Select invoice tab
Tax code

:select V1 dummy tax code for purchases

Enter
Select Taxes button
Select back arrow
Save
Not the purchase order no.4500017094

To open material periods for January (MMPV)

From company code

;BIL

period

:10

Fiscal year

:2008

Select check and close period radio button

Execute
Ignore the warning message press enter
(Note : Use the Tr code J1EI for creation of Excise Invoice nos following the other steps same
above)
Give the Excise invoice no. and date
Goods receipt ( Tr code is MIGO)

488

Select goods receipt

Give the purchase order no.4500017094
Enter
Quantity in delivery note

:100 kgs

Select item ok check box

Select where tab
Storage location

:HYD

Press enter
Select excise invoice tab
Give the excise invoice no.1
:Todays date

Excise invoice Date

Save
Select display button
Enter
Select document information tab
Select FI documents button
Select back arrow
Select excise invoice tab
Select more data button
Select part 2 tab
Select accounting document no.
Invoice verification (MIRO)
Invoice date

:05.01.2009

Posting date

:11.01.2009

Reference

:51

Select calculate tax check box

Text

:Invoice verification

Tax code

:V1 (Dummy tax code)

Purchase order no.

:4500017094

Enter

489

Give the amount

:8424

Enter
Business area

:BILH

Select payment tab

:Base line date (Todays date)

Payment term

:0001

Enter & Save

From the menu select invoice document display
Select follow on documents button
To print excise registers: (Tr Code is J1ILN)
Path :Indirect taxes Registers Excise tax Extract (J2I5)
Excise group

:2

Start date

:01.01.2009

End date

:31.01.2009

Select any register radio button

Select RG23A part I check box
Select RG23A part II check box
Execute
Enter
Select back arrow
Select print utility program (TR code is J2I6)
Select RG23A part 1 radio button
Execute
Excise group
Start date

:2
:01.01.2009

End date

:31.01.2009

Execute
Output device

:LP01

Select print preview button

Select back arrow two times
Select RG23A part II radio button

490

Execute
Excise group

:2

Start date

:01.01.2009

End date

:31.01.2009

Execute
Output devise

:LP01

Select print preview button

To view sales tax register (Tr code is J 1 I L N)
Indirect taxes Registers Sales tax sales tax register (J1I2)
Company code
Tax code
LST condition type
Execute

:BIL
:V1
:BIL3

SD EXCISE
Creation of sales order (VA01)
Order type

:OR

Sales organization

:BILS

Distribution channel :BD

Division

:BS

Enter
Sold to party

:200101

PO Number

:2

PO date

:Todays date

Required delivery date :Todays date

Delivery plant

:BILP

Payment terms

:0001

Item

:10

Material

:BILFG

491

Order quantity

:10 Kgs

Enter
Ignore the message press enter
Select item

:10

From the menu select GotoItem conditions

From the menu select Edit In complication log (Ctrl +F8)
Select save button
Note the sales order no.11771
Delivery (Tr code is VL01N)
Give the shipping point

:BILH

Order no.

:1171

Enter
Actual goods inward received date
Select item

:Todays date

:10

Select picking tab

Picked quantity

:10 Kgs

Select post goods issue button

From menu select out bound delivery Display
Enter
From the menu select Environment-Document flow
Keep the cursor on go goods delivery no.
Select display document button
Select accounts document button
Select account document no.
Post :

Inventory FG
IN/DE Stock FG

700
700

Sales Billing (VF01)

Select the delivery no.

492

Select execute button

Save
From the menu select billing document display
Select accounting button
Select accounting document no.
Excise invoice creation (Tr code is J1ILN)
Path :Indirect taxes Sales /Out bond movements-Excise invoices For sales order Out going
Excise invoice create /Change /Display (Tr code is J1IIN)
Select from billing button (F5)
Enter
Excise group to

:2

Serious group

:2

Select utilization button (F6)

Save
Ignore the warning message press enter
CENVAT suspense A/c Dr
To Excise duty payable
Go and see sales billing display (VF03)
Give the billing document no.90036108
Select accounting button
Select accounting document no.
RG23A BED posting (F-02)
Give the document date

:Todays date

Type

:SA

Company code

:BIL

Posting key

:40

Account no.

:200156 (RG23A BED)

Enter
Amount

:50000

493

Business area

:BILH

Text

:RG23A Debit

Posting key

:50

Account no.

:200105 Bank account

Enter
Amount

:*

Business area

:BILH

Text

:+

Document Simulate & Save

PLA Deposit (F-02)

Give the document date

:Todays date

Type

:SA

Company code

:BIL

Posting key

:40

Account no.

:200159 (RG23A BED)

Enter
Amount

:100000

Business area

:BILH

Text

:PLA deposit

Posting key

:50

Account no.

:200105 Bank account

Enter
Amount

:*

Business area

:BILH

Text

:+

Document Simulate & Save

Excise duty payment: (Tr code is (J1ILN)

494

Path :Indirect taxes Sales /Out bond movements fortnightly payment (J2IUN)
Company code

:BIL

Plant

:BILP

Excise group

:2

Period

:01.03.2009

Business area

:BILH

to

Todays date

Execute
RG23A Utilized

:6.60

Select duty button

Select Simulate button (F7)
Select right mouse button
Select continue button
Save
Go and see the document (FB03)
Document no.
Company code
Fiscal year
Enter

:38
:BIL
:2008

FINANCIAL STATEMENT VERSION

Balance Sheet and Profit & Loss account format creation

In India Companies Act Schedule VI format
Summary

Schedules

Amount

Share capital
Equity share capital
Preference share capital

100000
100001

General Reserves

100101

Reserves & Surplus

495

Capital Reserve

100102

Secured loans
Unsecured loans
By using 0-9 levels we can get all 3 versions consultant creates 2 versions Summary Schedules
In 000 Client SAP has given for India Bain.
Path :SPRO-Financial Accounting General ledger Accounting-Business transactionsClosing Document-Define financial statement versions.
Select new entries button
Financial statement version

:BIL1

Name

Balance Sheet and Profit & Loss account

Maintain Language

:EN

Select item keys automatic check box

Chart of Accounts

:BIL

Save
Press enter to save in your request
Select financial statement item button
Keep the cursor on AML1
Select create items button
Give the items

:Balance Sheet
:Profit & Loss account
:Net profit /Loss transfer to Balance Sheet

Enter
Kept the cursor on profit and loss account
Double click on No text exists against Liability +Equity
Give item

:Liabilities

Enter
Double click no text exists against Assets
Give the item Assets
Enter
Keep the cursor on Assets

496

Press select button (beside reassign button)

Keep the cursor on Balance sheet
Select resign (Shift+F6) button
Select subordinate radio button
Enter
Keep the on liabilities
Press select button (F9)
Keep the cursor on Balance Sheet
Select resign button (Shift+F6)
Select subordinate radio button
Enter
Keep the cursor on Profit & Loss account
Select create item button
Give the items

:Income

Give the items

:Expenditure

Enter
Save
Press enter to save in your request
Keep the cursor on Liabilities
Select create items button
Give the

Share capital
Reserves & Surplus
Secured loans
Unsecured loans

Enter
Keep the cursor on Assets
Select create items button
Give the items

:Net Fixed Assets

:Net Current Assets
:Misc. expenditure to the extent not written off Eg: Preliminary exp.

Enter

497

Keep the cursor on Income

Select create items button
Give the heads

:Sales
:Other Income
:Inc/Dec in Stocks

Enter
Keep the cursor on expenditure
Select create item button

Expenditure :
Raw material consumption
Personnel expenses
Manufacturing expenses
Administration Expenses
Interest
Depreciation
Enter and Save
Double click no text existent against net result :Profit
Give the item :Net profit transferred from P & L Account
Enter
Keep the cursor on Net profit transfer from P & L Account
Press select button (F9)
Keep the cursor on reserves & Surplus
Select reassign button (shift +F6)
Select subordinate radio button
Enter
Double click on no text exists against net result loss
Item

:Net loss transferred from P & L Account

Enter
Keep the cursor on net loss transferred from P & L Account
Press select button (F9)

498

Keep the cursor on Misc. Expense to extend not written off

Select reassign button
Select subordinate radio button
Enter
Save

Assignment of accounts are to be assigned to the last note

Keep the cursor on Share Capital

Select assign accounts button
Enter
From Account

:100000

To Account

:100099

Select debit check box

Select credit check box
From Account

:100101

To

:199999

Select debit check box

Select credit check box
Note :Expect 100000 all are same
Enter
Keep the cursor on net fixed assets
Select assign accounts button
From Account

:200000

To Account

:299999

Select debit check box

Select credit check box
Enter
Keep the cursor on sales
Select assign accounts button
From account

:300000

499

To account

:399999

Select debit and Credit check box

Enter
Keep the cursor on Raw material consumption
Select assign account button
From account

:400000

To account

:499999

Select Debit and Credit check box

Enter
Keep the cursor net profit/loss transferred to Balance Sheet
Select Assign account button
From account

:100100

Select Debit & Credit Check box

Enter & Save
To check whether all accounts assigned or not
Select check button
Select non assigned account check box
Enter & Save
Liabilities
Sources of Funds:

Share capital

Reserves & Surplus

Secured loans
Unsecured loans

Amount
100000
100001
100002
100003
------100100
100101
100102

X
X
-----X
=====

Total Liabilities
Double click on liabilities
Start of group Liabilities

500

End of group total liabilities

Select display total check box

Enter
Double click on share capital
Start of group

:Source of funds

End of group

:Share capital

Select display totals check box

Enter
Double click on Reserves & Surplus
End group :Reserves & Surplus
Select display total check box
Enter
Note :Same way secured and unsecured loans
Double click on assets
Start of group :Assets
End of group :Total Assets
Select display total check box
Enter
Double click on Net fixed Assets
Start of group :Application of funds
End of group :Net fixed Assets
Select display total check box
Enter
Double click on Misc. expenditure to extend not written off
End group Misc. expenditure to the expend not written off
Select display totals
Enter
Double click on Profit & Loss Account
End of Group

:Net Profit /Loss for the year

Select display total check box

501

Enter
Double click on Income
Start of group :Income
End of Group

:Total Income

Select display total check box

Enter
Double click on sales
End of Group :Sales
Select display total check box
Enter
Double click on Expenditure
Start of group :Total expenditure
Select display total check box
Enter
Double click on Raw material consumption
End of group :Raw material consumption
Select display total check box
Enter
Double click on net profit /Loss transferred to Balance sheet
Start of group :Net Profit /Loss transferred to balance Sheet
Select display total check box
Enter
Double click on No text exist against P & L result
Item

:Net profit/Loss transferred to Balance Sheet

End of Group: Net profit/Loss transferred to Balance Sheet

Select display total check box
Enter & Save
Open one more session :
Path :Accounting-Financial Accounting General Ledger-Information systemGeneral
Ledger reports-Balance Sheet/Profit loss Statement /Cash flow-General Actual/Actual
comparisons- Balance sheet/Profit Loss Statement (S_ALR_87012284)

502

Company code

:BIL

Business area

:BILH

Financial Statement version :BIL1

Reporting year

:2008

Reporting period

:1 to 16

Comparison year

:2007

Comparison periods

:1 to 16

Select classical list radio button

Select special evaluations tab
Balance sheet type

:1 (Standard Financial Statement )

Select output control tab

Company code summarization :Select 1 (Balance sheet per company code)
Business area summarization :select 1(Balance Sheet per business area)
Summary report

:3

Comparison type

:1

Note :2 types of comparison in SAP

2008
2007
Sales
100
75
1) Percentage of Increase
Current year Previous year *100
---------------------------------Previous year
100-75/75*100=33.3

2) Percentage of growth

Scaling

:Current year *100

-------------------Previous year
100/75=133

:5/2

Scaling note :
A) Only Rupees without paise

0/0

B) Rupees with paise

0/2

503

C)Rupees in lakhs without decimals

5/0

D)Rupees in mission without decimals

6/0

E)Rupees in crores without decimals

7/0

F)Rupees in laksh Thousands in decimals 5/2

Sales
Rupees in lakhs (100000)

5 Decimals

987654321.55

2 decimals

2 decimals

9876.54

Select execute button

Select back arrow
Select special evaluations tab
Give the display currency dollar execute

ASSET ACCOUNTING REPORTS:

1.Depreciation forecast
Path :Accounting Financial accounting Fixed assets Information system Reports on
asset accounting Depreciation for cost Depreciation on capitalized assets (Depreciation
simulation) (Tr code is S_ALR_87012936)
Give the company code
Report date
Execute

:BIL
:31.03.2011

2. Fixed asset schedule as per schedule VI of companies Act

Gross
block
in the
beginni
ng year

Additio
ns
during
the
year

Sales
/Transf
ers
during
the
year

Gro
ss
bloc
k in
the
year
end

Dep.f
or the
year
end

Acc.Dep Dep.f
.in the
or the
beginnin year
g of
year

Dep
on
sales
/Trans
fer

Acc.D
ep in
the
year

Net
bloc
k in
the
year
end

Net
block
in the
beginni
ng

Information systems Accounting Financial accounting Fixed assets Asset History sheet
(Tr code is AR02

504

Give your company code

:BIL
Report date
:31.03.2009
Select group totals only radio button
Execute
(Note :Retirement mean sale of asset)
Select asset button
Double click on asset retirement

PROJECT
BIL group (to go for ERP)
Packages available Cost / Feature/Time
ERP Packages
SAP
Oracle Financials
JD Edwards
People soft
Decided to go for SAP Consulting firms Cost/Support /Experience
1)
2)
3)
4)
5)

WIPRO
Infosys
Satyam
Intell
Zensar

Buy SAP package from SAP-India Bangalore with the support of WIPRO Hyderabad vendors.
Implement all the modules at all locations (BIG Bang project) or in a phased manner
BIL
A) Project Manager
B) Accounts Manager
C)Cost Accountant
D) Purchase Manager

WIPRO
A) Project Manager
B) FI Consultant
C)Co Consultant
D)MM Consultant

505

E) Sales Manager
F)IT Staff

E)SD Consultant
F) BASIS Consultant
G) ABAP Programmers

Kick of Date means Start date

Form a staring committee
BIL Senior people
WIPRO Senior people
Project Mangers BIL and WIPRO
BIL core team members As is process existing process and requirements from SAP
WIPRO- Study the process and prepare to be process
GAP reports Write to SAP the requirement /through programmer/work around /user exits.
WIPRO-Customization based clients requirement .
BIL core team Testing
WIPRO Customization document
Before going live
Training to the BIL company users will be given
Fix ago live date:
Customization will be transported from development client to production client.
Up load masters in production client
Upload balances in production client
Give the number ranges in production client.
On go live date :Enter transactions in production client.
Support: For the issues raised by BIL end users.
Rollouts : Implementing SAP in different locations afterwards

1.
2.
3.
4.

ASAP Methodology (ASAP Accelerated SAP)

Project Preparation
Business blue print
Realization
Final preparation

506

5. Go and live and support

OSS mean Online Support Service
Land Scape
1. Development Quality testing Production
Send box All scenarios configuration selected scenario Testing
2. Development Production
R/ 3 Structure
Presentation application data base

SAP Package data stored in data base server

507