System Landscape

System landscape is nothing but arrangement of SAP systems. In other words, it is a key design decision for distributing
SAP application across the servers

we have 3 servers

1.Development - which is used by consultant

within development, we have 3 clients

Dev - 100 - used by functional consultant for functional configuration

Dev -110 - used by ABAPER for technical coding

Dev -200 - used for functional testing, we will copy the configuration from dev 100 to dev 200 by

using T-code SCC1 where we need to input the TR Number and source client

you can verify using the table E070 IN SE16N

2. Quality - which is used by consultant and Business

within quality, we have 2 clients

QAS-200 - used for testing and training

QAS- 210 is pre-production server -- here we will perform cut over activities. every month end they will refresh pre-
production server with production server

From Development to Quality, We Use T-Code SE09

We need to release the sub-TR and then main TR

3. Production-100 is the live server

where users will be postings the transactions

From Development to Production, We Use SEO9 to move the servers

What is client level Configuration

Where ever there is no company code field in the configuration… that is client level setting

Data stored at client level can be accessed by all company code

On the new entries screen of any configuration if there is no company code then its client level

It requires assignment

What is company code level configuration

where ever you find the company code field in the configuration that is company code level configuration

Data stored or created at company code level can be used with in company code.

It does not require assignment

What is country level configuration

Any configuration which is assigned to the country level is known as country level configuration

Hard currency and index-based currency is at country level

Company code name changes

SAP FI

This Module is used for external reporting purpose where we do prepare all the financial
statements like Balance Sheet, Profit and Loss Statement, Cash flow and fund flow etc

General Ledger Accounting

Accounts Payable
Accounts Receivable
Assets Accounting
Bank Accounting

SAP CO
This module is used for internal reporting purpose where we do plan budgeting, planning,
monitoring costs, decision making. Etc

Cost Element Accoutring

Cost Centre Accoutring
Internal orders
Profit Centre Accoutring
Profitability Analysis
Product Costing
Operational Chart of Accounts: To operate daily day to day business transactions, each co. Code must require one chart
of accounts which is called as operating chart of Accounts

Group Char of Accounts: Generally, the group chart of accounts is required for consolidated reporting purpose, where
the co. Codes under the same the company following different operational chart of accounts

Country Specific Chart of Accounts: These charts of accounts are structured according to the legal requirements of a
specific country for local reporting purpose

What is Account Group and what is controls: The Account Group is nothing but a group of similar accounts, in order to
create /maintain GL accounts properly we define GL account groups

Retained Earnings Accounts: the Retained Earnings Accounts is a Balance Sheet Item (liabilities) It is used to transfer the
balances of profit and loss accounts to balance sheet at the end of the fiscal year as a part of year end closing activities

we assign the retained earnings accounts to each profit and loss account by specifying a P& L statement account type in
chart of accounts area of each P&L Account

we can define one or more P&L Statement Account type per char of accounts and assign them to retained earnings
accounts

What is fiscal year variant it is just a two-digit alpha numeric key which specifies how many maximum no of normal
posting periods and how many maximum special periods a fiscal year is having. Additionally, it specifies how the calendar
months are converted as periods and how many days exists in each period

What are special Periods?: A part from 12 normal postings periods, the sap provided max 4 additional posting periods to
a fiscal year as special periods for yearend closing activities purpose the special period starts from 13 to 16

How many types of fiscal year we have in sap? we have two types Calendar Year Specific and Non-Calendar specific

What is year shift?

Sap understands calendar year

to convert calendar year to non-calendar year we have to use year shift

+1 indicates that a fiscal year is later than the calendar year.

What is short end fiscal year?Any fiscal year which is having less than 12 normal periods is called as short end fiscal year.
Generally, we would have the short end fiscal year in the below instances

when we start up the business in the mid of a fiscal year

when we wind up the business in the mid of a fiscal year

when we change the fiscal year type {non calendar to calendar specific or vice versa)

Year-Independent variant : the start date and end date of a fiscal year is same from year to year is called as an year-
independent fiscal year variant

Year dependent Variant: the start and end of date of a fiscal year is different from year to year is called as a year-
independent fiscal year variant

Posting Period Variant: it Is a 4-digit alpha-numeric key which is used to control open and close posting periods in the
co. Code

Field Status Variant: It is a 4-digit alpha numeric key which contains field status group

Field Status group: the field status group is used to control the field status of documents line item during the postings
like supressed, required hide, optional

Posting Key: it’s just a two digits numeric key, which is used to determine the line item whether itis debit or credit it
controls the field status of document line items during the postings it controls Account Types it controls Reverse Posting
key

What is the difference between Posting key and Field status group?

Both controls the field status of document line items during the postings re some differences between them

Posting Key

if we define the field status at posting key level, then the rule will be applicable for all the GL accounts and for all the
company codes in the system. Whereas, if we define the field status at field status group level, then the rule is applicable
only for the G/L accounts where the field status Group was assigned in the particular co. Code
what is the field status priority?

SDRO/HDRO

Field Posting Key (OBa1) Field Status Group (OBCA) Column7

Bus Area O R R

Bus Area O S S

Bus AresR O R

Bus Area S O S

Bus Area S R Error

Generally, we park a document where it requires approval to post it for double check principal purpose. mp Points 1) t
does not update the account balances 2) It can be posted with a single line item. 3) it can be deleted.

HOLD DOCUMENTS

This is used for the purpose of Adjustment Entries Hold

Documents are for Debit and Credit or only Credit also. When we hold the document, it will ask for a Temporary
Document Number which can be anything. We have the option

To delete the hold document also. Hold document will not update the ledger until it is posted as normal Document

#If we made Hold document for Cash Account, then Physical Cash Balance will be SAP Balance+ Hold Documents
amount.

Sample Document The sample document is a template which is used as a reference to post the transactions.

Important Points: 1) Need to maintain a separate document number range interval (No range-X2)

2) It would not be posted. Just stored.

3) It can be deleted

4) It does not update account balances

Advantages: 1) Time saving 2) No chance to skip any provision for month-end closing activities Steps:-1 1Refine Number
Range Interval for Number Range X2
Recurring document

it’s reference document. Generally, we do create the recurring documents for the business transactions in our
organization which are occurring repeatedly with fixed date, fixed amount and from date to date

1) It's a reference document and it doesn't update the account balances.

2) It would be just stored, not posted.

3) It can be deleted.

4) It's one of the month end closing activities in Fl module.

5) Need to maintain a separate document number range intervals for number range X1

What is the difference between direct Quotation and Indirect Quotation?

Direct Quotation:

One unit of foreign currency is quoted for one unit of local currency

Ex

70/1-70

Indirect Quotation:

One unit of local currency is quoted for one unit of foreign currency

Ex:

10624

/70-0.0143

Direct Quotation is always foreign currency to Local Currency

For Ex: 1 USD = 80 INR

Invoice received 1000$ @ 80 INR = 1*80*1000$ = 80000

8000 INR = how much in USD?

1/80*8000 = 1000 USD

Indirect Quotation is always local currency to foreign currency

1/80*1000 = 12.5
Imp Points.

|1) if the exchange rate was entered manually in the document header data during the postings, then the system would
consider the rate

entered here for foreign currency transition.

2) If the exchange rate was not entered, he documents header data during the postings, then the system would consider
the exchange rate maintained against the exchange rate type -m in the forex table by default (assume no default
exchange rate type was maintained in document type level

How to specify the default exchange rate type for foreign currency documents at document type level

SA: M

KR: B

DR g

Only Bal in Local CurrencySet this indicator for the G/l Accounts: where you want the system to update the balances
only in local currency even if you posted the transactions in different foreign currencies

You cannot set this indicator for the below g/l accounts.

1) Where the G/L account currency is in foreign currency

2) Where the G/L act is having recon act type: Customers or vendors

Exchange rate Diff key: It is a key, which is used to maintain g/l acct determination to post valuation differences
[Exchange gain /exchange loss occurred during the foreign valuation as a part of month end closing

Tax Category: Enter the value in this field only for the GL Accounts which are relevant to /Subject to Tax
Posting without Tax Allowed: where the GL Acct is relevant for tax, the tax code must be entered during the postings to
this G/L Acct. However, if you would like to post the transactions without entering the tax code select this indicator
"posting without tax code allowed"

Recon Act Type for Account Type: Enter the value in this field only for the G/L acts related to Accounts
Receivable/Sundry Debtors (Customers), Accounts Payable/Sundry Creditors and Fixed Assets (Assets)

Alternative Account Number: Generally, the Alt Acct number field can be used to enter the act number from the Legacy
system (Previous system). This field is freely-definable, in case, if we use the country-specific chart of accounts, then this
field must be filed with the account number created from the country-specific chart of accounts. This field is completely
optional.

What is the Reconciliation Account?

it is nothing a G/L account which is a balance sheet item. It’s an intermediate account between sub-ledgers and main-
ledger. The reconciliation account is assigned in each and every sub-ledger (Vendors/ Customers). As the result, while
posting the transactions, the values would be updated in vendor master record and as well as to its reconciliation act
assigned. Then, the total balances of all sub-ledgers is equal to the recon act’s balance, which will be shown in the
balance sheet.

Reconciliation Account

A reconciliation account is a G/L account that is linked to the subledger.

For every transaction posted in the sub ledger, the same value will be updated to the corresponding reconciliation
account

Open Item Management

the GLS which cannot carry their balances and has to clear on month basis, quarterly basis, and yearly basis.
these are only balance sheet GLS cannot maintain PL GLS

Open Item Management is only applicable for current assets and current liability

Open Item Management is only applicable for Main GL Accounts

Open Item Management is not applicable for P & L

Accounts for which we should set this indicator for all clearing accounts

GR/IR Clearing Account

O/s Exp Act

Bank sub-Accounts

Discount Clearing Act

Payroll Clearing Act

TDS Payable

Accounts for which we should not set this indicator

Bank Accounts

Tax Accounts

Inventory Accounts

Reconciliation Accounts (Sundry Debtors/ Sundry Creditors)

P&L Accounts

Line-item Display By selecting this indicator, the system will display the values each document wise in the ledger
balances

Sort Key the sort Key is Used to Sort out the documents posted in the particular G/L account

How the data comes to the assignment field Through the value of sort key entered in the g/L accounts Generally, the
assignment field is used to enter reference key of line items. if we don't fill this field, it will automatically be filled
with the value of sort key.

Post Automatically: Set this indicator for the G/L accounts where you want the system to determine the g/l accounts
from account determination tables

Note: - If we set this indicator, always postings are allowed to this g/l accounts internally. No manual postings are
allowed to those GL Accounts

Ex -For which G/L accounts, we should set this indicator.

GR/IR clearing Act

Inventory Accounts (Fi-MM)

Cash Discount Accounts

Cash Journals GL Accounts

Bill-Disc Liability Acct

Recon Act ready for input by selecting this indicator, the reconciliation account (Sundry Debtors Act/Sundry creditors
Act will be in editable mode during the postings to sub ledgers

Relevant to cash flow select this indicator only for cash/bank related GL Accounts

For Sub ledger Accounting Profit Centre is not applicable. It will be derived
Profit centre and cost centre is applicable for GL Account
when two profit centres are not matching at the line-item level the zero-balance splitting will come
into the picture

Passive Splitting Works only during Payment/settlement Transactions

it will pick the profit centre from the existing open item

Ex. Vendor Invoice /customer invoice

if invoice is posted to pc1 then payment entry will pick pc1 as pc by default from invoice

Cost Centre is used for Profit and loss items

cost element accounting is mandatory to use cost centres
cost element is a cost carrier from fi to co or within co

When cost element carriers cost between FI and CO they are called Primary, corresponding general
ledger (G/L) account exists in Financial Accounting (FI) chart of accounts to allow costs to flow..

Secondary Cost Elements: When cost element carries cost within cost accounting (CO), does not flow
to FI...

Cost centre we track cost

Profit centre we track costs/revenues

Primary cost elements refer to fi gl Account

Cost elements are now a part of GL

Account Currency
It comes automatically from company code
and we can change to other foreign currencies
if in case of change to foreign currency then system will not allow you to post any document in any
other currencies

Only Balance is local currency

This field is optional for all the GLS except two. Which are as follows
GR/IR CLEARING ACCOUNT
CASH DISCOUTN CLEARING ACCOUNT

Posting without tax allowed

if any gl sometime used for gst and sometimes not
some gls are used for getting GST INPUT but in the same GL we dont get the GST INPUT

you should be able to post to purchase account with or without tax code.

Base Line Date -- when system starts calculating the credit days

"

clearing document is nothing but which clears the original document

if the vendor document is cleared it will generate a clearing document number for kr invoice

and the document number for kz document type and clearing number will be same

if the document number for kz document is different with the clearing number then its reversed

when we reset the document and clear manually su document is generated

IF WE DONT LINK DEBIT NOTE NUMBER WHILE DOING APP

ITS MAKING THE TOTAL PAYMENT

in app debite note are getting displayed why???

1.Record Purcahse invoice of 10000

Later pass debite note of Rs 5000 (here dont give the reference)
execute app

how much amount its shwoing??

No valid payment method found

I can’t mention payment for debit note since its incoming payment??
2.when we link the debit note with original invoice

then it’s making the right payment

and the payment method also gets updated automatically

if I run app on 8-12-2022 by giving the next payment rate as 10 will system consider the invoice

and If I run app on 16-12-2022 I will lose cash discount

Check the due date of the invoice/line item before running the payment term. Just in case if you are
wondering what is the formula for Due Date, it is Baseline Date + Payment Terms

Global Company Code

3. Global Company Code -It is also known as cross-system company code. This global
company code is used to transfer financial master data like general master data, cost centre

master data, profit centre master data and so on to other system via ALE method. Generally,

it has one to one relation with company code, One company code s one Global Company
Code.
Define global company code-O872
Assign global company code to company code-OBB5/OBY6
Assign chart of account to global company code- OBV7

Net due date = baseline date + credit period

Baseline date means from which date due date is calculated. For example -document date, Posting

date, entry date and no default (manual entry).

Credit period means for how many days credit is given. 0 days, 30 days, 45 days.

Adding V in reference is new thing I have learned,

su01d -- to check with user

The payment run date/posting date for the payment is the date when the document is posted in SAP

The value date is the date when the cash or bank balance account affects.
F110 Run on 20th of the month and bank must process on 25th of month.
in short, Value Dates Run Dates Holiday Days additional days given si the configuration value date
configuration. + it will abo add weekend days.

a.How digits we have in TR and what is the format

10 digits alpha nurnaric value
first 3 digits will be your development system ID and K & 9 are the common letters
Q: How to view the list of TRs you have created
Use the T-code SEO9/SE10
Master data will not save in transport request -throughout the system landscape we need to create
master data separately

SAP Systems provides two types of Ledgers i.e.

1. Leading Ledger "OL'
2. Non-Leading Ledger
The ledgers in financial statements created for the country where
the company registered are called as Leading Ledgers.
The ledgers in financial statements created for the other countries
are called as Non-Leading Ledgers.

Example of Leading Ledger and Non-leading Ledger

The Company is in India and US, where the parent
company is in India.
In India, organizations are required to submit final statements
from 1st April to 3ist March.
In US, Companies should submit financial statements from 1st
January to 31st December.
The main financial reporting is done for the parent company in
India is Leading Ledger and for reporting for the US is Non
Leading Ledger.

0L is pre-defined – it does not require assignment

No is use defined – it requires assignment

While creating the non-leading ledger we should have a cut off dale
Beginning of a Fiscal year, quarterly, Half yearly
When you create ledger, Ledger group will be created automatically by the system with the same name

What is mean by representative ledger

all ledger will be default representative ledger

Extension ledger can be activated at any time, the balance will match as per 0L, the reason while
creating extension ledger we are giving underlying ledger
Extension ledger help to avoid the data duplication

Under Classical GL we need dummy profit Centre. If the system does not find any profit centre, then
system will post this profit centre
at the month end we need to distribute these dummy profit centres to respective profit centres. This is
part of controlling

new GL is part of FI
when you post any document, you will find accounting document and controlling document

in classic gl you will find accounting profit centre and controlling

when you want to use new GL document splitting should be activated. Reason whatever the month end
activities under
classic gl at the end of the month we used to manually those things are automated with the help of
document splitting

Operating concern is a required component to implement Profitability analysis in Controlling

wat is Year Shift Indicator? (Configuration) Formula = Fiscal Year – Calendar year

If no of periods are above 6 Months in next year take next year as fiscal year

Fiori Launch Code

/n/ui2/flp
FBRA reversal of cleared items, first system uncleared the document and reverse the documents

fb08 "Fb08 is only used to reverse an open invoice.

Only Resetting
System will remove the link between invoice and payment document and move both the items to open
status

Rest and reverse

system will remove the link between invoice and payment document and reverse the payment
document and move both the payment document and reversal document to clear items and original
document will be moved to open item status

Negative Postings Allowed

Generally, when you reverse a document the incorrect debit balance is updated to credit side

and in correct credit amount will be updated to debit side

whereas while selecting the indicator when you reverse a document the system will reduce the amount
from the same side

Accrual /Deferral Documents (Month End Provision)

Accrual Expenses Are Expenses A Company Needs To Accounts For But For Which No Invoice Have
Been Received And No Payments Have Been Made
Accrued Expenses Would Be Recorded Under the Section Liabilities on A Company's Balance Sheet

Accrued revenue Are amounts qwed to a company for which if has not yet created invoices for. They
are recorded as assets on a balance sheet.
Deferred expenses Are expenses a company has prepaid. They are recorded as "Assets" on a balance
sheet.
Deferred revenue s income a company has received for its products or services, but has not yet
invoiced for. They are considered "Liabilities" on a
balance sheet.
Accrual concept of accounting: It is the process of accounting all expenses and revenue in the month in
which they are incurred and derived even
though they are not actually paid or received.
FBZP

this functionality is used to read the dues dates based on payment terms and payment to vendors will
be done automatically and system will post clearing entries

Paying co. Code is the one which participating in app and making payment on behalf of sending co.
Codes
5- Next Payment Date– The next payment date is the date on which you will be running F110 again.
This helps in determining if an invoice should be paid now or we should hold off on its payment.

E.g., if an invoice is due on 3/15/2018 and the next payment date is 3/20/2018, the system will make
the payment, but if next payment date is 3/10/2018, the invoice is not paid and it will be paid in the next
payment run.

fi03
fi12_hbank
/bend to exit batch

If single invoice in vendor master and fbzp single invoice for marked item – priority will be for single
invoice in vendor master

Grouping key and single payment for marked item both are enabled and while raising the invoice if you
mentioned the payment method then system will ignore grouping key and it will give priority to single
payment for marked item always ensure that payment method is not mentioned in such cases and or
single payment method for marked item should be unchecked
Integration is nothing but exchange of data between two modules

Procurement to Pay is also know fi-mm integration

Generally, there are two types of PO

1.with PO which is related to MM
2. Without PO which is related to FI

In other words, Two-way match is between PO and IV (Purchase Order - Invoice Verification) and
Three-way match is between PO, GR and IV (Purchase Order -Goods Receipt - Invoice Verification).

Three-way match is the process of comparing the purchase order, invoice, and goods receipt 

Goods is a balance sheet item, it is an asset item, we always purchase assets we don’t purchase
liability, when asset is coming you will debit and when it is going out you will credit
service is profit and loss item

whenever we purchase goods, your assets will increase

so, we create GR/IR Clearing under current liability so that our balance sheet will tally

In case of service... Expenses will increase and as there is no income you are in loss and the result of
p and l will be carried to balance sheet
as gr/ir is liability and the net result if p and l will be carried to balance sheet under liability

The Accounting Entry

MIGO
Inventory A/c Dr 100000
GR/IR A/c CR 100000

MIRO

GR/IR A/c Dr
Vendor A/c Cr

Purchase order
No Accounting Entry
Goods Receipt
Inventory A/c DrInventory is coming from obyc bsx is the transaction key
GR/IR Cr GR/IR is coming from obyc wrx is the transaction key

Invoice Verification GR/IR is coming from obyc wrx is the transaction key
GR/IR Dr vendor is coming from po kbs
Vendor A/c Cr

Payment
Outgoing Bank A/c Cr
Vendor A/c Dr

Bank Reconciliation
Outgoing Bank A/c Dr
Main Bank A/c Cr

PO Account Assignment Category

A ASSEST Assets Dr...GR/IR Cr Dr Is from PO... Cr is from obyc wrx conifg
K COST CENTERExpenses A/c Dr GR/IR Cr Dr Is from PO... Cr is from obyc wrx conifg
F ORDER Expenses A/c Dr GR/IR Cr Dr Is from PO... Cr is from obyc wrx conifg
BLANK MATERIAL Inventory A/c Dr GR/IR Cr dr is from obyc config and cr from wrx confug

Valuation class will determine the nature of materials whether is raw materials finished goods
it plays a key role in account determination
it is an integration point in between MM && FI where we maintain the GLS

raw material will go with moving average price

finished goods will go with std price

Movement type for goods receipt against purchase order is 101

only balances in local currency for material a/c

Material Types are nothing but similar fi account groups which are used to create material master
records

group together valuation area in this activity we create a grouping key for valuation areas. As a
result, we no need to maintain account determination for all
plants separately and it is called valuation modifier
Account key for zero balance is 000

Document splitting method is 12

Table to check Automatic Postings - T030

TSTC – to know z tcodes

S_ALR_87003642 – to open and close periods

fOBH2 -- to copy the number ranges

FAGLGVTR – to carry forward the balances

T012

SUIM

SU53

07E3 - Account Assignment Model to O7E6 - Account Assignment Model

SHDB – Recording

T012 k

T077S – chart of accounts

Once the ledger assignment is done. Always check in SE16N TABLE whether its assigned properly or not

FINSV_F4_LDBUKRS

NRIV – NUMBER RANGES

FCHK

OBH1 – To copy number ranges from one company code to another company code

Okks

LFBK – Bank

SE11 to know the length of GLS

MBEW – material valuation

SE16N – BUT* -- PRESS F4

You can see language level GL names in skat

T030 -- AUTOMATIC POSTING

SE38 RFOB5200 – to change the opening and closing period

Other ways to check table in select that row and click on table or go to sm12 and press enter in lock argument
you will the table
chart of accounts are assigned to operating chart of accounts and operating chart of accounts are assigned to company
code

NEW GL Accounting

1. Parallel Accounting – Every company code needs to maintain different set of account books using
different accounting principle. When a financial transaction happens, financial document is recorded
in different books and this is referred as parallel accounting. Non leading ledger enables parallel
accounting.

it is nothing but generating dynamic reports according to the legal requirements of that county

SAP Delivers two things

Leading Ledger

Non-Leading Ledger

2. Profit Centre & segment Reporting

3. Document Splitting
4. Document with Entry view and GL View
5. FICO Real Time Integration
6. Extended Data structure with FAGLFLEXA

Classic GL:

Classic GL Formula GL Debit = GL Credit which we can generate one thing only what is debit of GL and credit
of GL

We can generate reports at the company code level such as TB and BS

When it’s moved to New GL, we can have dynamic report:

Dynamic report means

GL+BA+SEGMENT+PC DEBIT= GL+BA+SEGMENT+PC CREDIT along with number of currencies

It will check debit is equal to credit at GL, BA, Segment and PC

We can generate reports such as TB BS @ PC Level, GL Level, BA Level, Segment Level

If you post any entry in new GL concept reports will be generated at document currency local currency and
hard currency and group currency

Profit centre concept was there in co module and later it was moved to FI Module from Co Module and they
have named it as new GL concept

Ledger concept: SAP has provided two ledgers

Leading Ledgers – its standard ledger

Non-Leading Ledger
Controlling Area is a highest organizational element in CO Module. Based on this we can generate cost
management reports for internal analysis and decision making

Controlling area can be maintained in two methods

Controlling area as company code  1:1 cross co-code transaction not possible

Cross company code cost accounting  1: N

All Company codes attributes like chart of accounts fiscal year variant and currency will be copied to
controlling area

One company code costing can be reallocated to other co. Code

Here we have two modules fi and co .in ECC they are different modules and s4hana they have merged it –
simple finance

Entry View - whatever data we are providing to the system is called entry view

GL View – how the entry will be updated in the ledger accounts with multiple currencies

No forex rate difference while clearing in LC: by selectin the check box exchange rate difference will not
trigger when we are doing payments in local currency for foreign currency invoices

Controlling Area: Business Commencement Year or company incorporation year or the last year closing
balance of accounting books not sap implementation year
 Document Splitting

We do document splitting based on char of accounts

It is a part of NEW GL functionality which will enable you to pull out financial statements at 3 keys fields

Business Area, Segment, profit centre. It is a mandatory setting in s4hana

Concept of NEW GL is mandatory

It is ideally designed for Sub-ledger postings. for sub-ledgers profit centre is disabled. even if you see the field, it is not
ready for input. we cannot pass profit centre for vendor, customers and assets. They will derive the profit centre from
the offsetting account which is GL Account. GL Account Profit Centre will be split according to customer vendor and
assets line item

Override option is available only for SPL GL transaction

Baseline means profit centre is available in the line item

Inheritance means profit centre is not available in the line item… which means its derived not user input profit centre

Methods

When you activate document splitting it is at client level and de-activation is at Company Code level

Active Splitting: If you are recording a transaction ex. salaries expenses Dr to cash A/c Cr if I enter profit centre on the
debit line splitting will take place as per the transaction then it’s called active splitting

If I input profit centre on the debit line it will automatically copy the profit centre to credit line

If I Input the profit centre on the credit line it will automatically copy the profit centre to the debit line

Passive Splitting: The splitting will take place based on the reference document Example…you have raised a invoice and
given profit centre. While making the payment system will automatically pick the profit centre based on the invoice
document

Zero Balance Splitting: whenever there is difference in debit profit centre and credit profit centre then we need to
create zero balance account Zero Balance Account will get triggered

If you uncheck inheritance then passive splitting will not work

 When you select two different profit centres in two different line item

Total document value = 3000/total line-item value*1 st line item value

Company code specific means – you can mention any currency

Global currency means – its fixed

Fields which will impact financials cannot be edited

Accrual – It means any expenditure and income belong to current month paying or receiving in the next month is called
accrual – outstanding expenses

Deferral – the expenditure or income belongs to next month paying or receiving in the current month – Prepaid Income

Postings Open item management transaction are not possible In Ledger specific postings

If you check the box clearing specific to ledger group by default its open item GL along with balances in local currency

Overview will show manually entered entries

And stimulation will show automatically entries such as discount

Recon. Ready for Input: suppose we have a vendor who supplies materials and services both. as per internal reporting if
you want to see the liability of both separately. then you need to create both reconciliation account and check the box
recon ready for input for both the GL’s and define the alternative reconciliation account so while doing the vendor
invoices you can manually change the GL

Currency conversion settings for company code…here we will input group currency and source currency

Company code settings for ledger,

Accounting principle for company code and ledger

Data Migration
Cut over activity is for implementation/rollout project

We need to perform cutover activity to use production system

Open client activities: Settings maintained in PRD system without TR are part of Open client activities.

 Number Ranges – not all number ranges are part of open client activity – GL number range are part of configuration
 Exchange Rate
 Tax codes
 Material Ledger Activation mandatory in s4haba ckmstart
 Standard Cost Estimates ck40n
 Cost centre planning
 Activity planning kp06 and kp26
 GL Budget uploads glplup
 Cost centre /order budget upload
 Asset gl recon settings 0AMK

2.Master Data Master Data:

GL Master

Vendor Master

Customer Master

Profit centre group

Profit centre

Cost centre group

Cost centre

Cost element group

Cost element

Internal order

Internal order group

Bank master

Asset master

Tax codes

Activity type

Statistical key figure

Commitment items

3.Transaction data

Trial Balance

GL Open Item  balance sheet

GL Non-open Item  balance sheet

GL transactions Upload  P and L

Cash Journal Balances

Vendor open Item

Vendor Open Credit Memo

Vendor Open advances

Vendor open on account payments

Customer open Item

Customer Open Credit Memo

Customer Open advances

Customer open on account payments

Initial stock upload with movement type 561

Depreciation postings AFAB – we don’t post manually

Set Masters

Statical key figures (used in co & assessment, distribution cycles)

We will receive the Trial balance of previous month. (Dec-2022)

Trial balance will contain only one side of accounting entry.
Offsetting account for the trial balance upload will be 'Migration/Takeover' Accounts.
Mostly, migration/take over accounts start with 8 Series in Chart of Accounts.
Sum of all technical/Migration account balance should always be ZERO…
Total TB Balance should also be zero  Y
o
u
If Sum of technical accounts is showing any balance. It means your data migration is not
correct.
We have received TB of Dec-2022

We have to upload opening balances in SAP….

We have to upload the TB in the TB month in SAP with the last date of the month as
posting date.

Posting date for TB (opening balance) upload in SAP will be 31-DEC-2022.

need to open the previous period in the sap leading and non-leading ledgers
 You need to create the number range for Document type for fiscal year
 Define Settings for Legacy Data Transfer. We need give the migration key date and change the status for
ongoing
 Create a customer voucher type as US/UD and given number range and In Classify Document Types for
Document Splitting assign the transaction 0000 and variant as 0001
 And when you check migration GL text. you will find transfer account line item
 In the template in the amount field if you input with negative value then your GL Account posting key is CREDIT
(50) and if you input with Positive Value then your GL Posting key its DEBIT (40)
 BKPFF will be updated in reference transaction in Header Details. which means it has been imported
  TB upload will happen only for implementation and rollout project
 TB is always go-live previous month
 Cut over data is go-live previous month data and catch over is partial data of a particular month its always go
live month until you go live
 Ex: go live is 15 marches then catch over period is 1st march to 14th march
 You will create different document types such as
 US – FOR GL, UK – FOR VENDOR, UD – FOR CUSTOMERS, UA – FOR ASSET (finance customers and vendors)
document types are created based on account types
 A new number range which is not used for regular postings

Scenarios:
1. Only Leading Ledger with One currency.
0L & 10

2. Two ledgers with One currency

0L, NL & 10

3. Two ledgers with two currencies  

0L, NL & 10, 30  

While uploading Opening Balances, we will not allow system to convert Group CCY value.

Any TB difference in Group Currency will be adjusted with FX gain/Loss Accounts.

Asset which has net book value -- Active Asset

Asset which does not have net book value – Expired Asset

We have to create asset master

For prior Year = AS91 Asset is created along with the legacy value
For prior year depreciation is uploaded
For current Year = AS01, asset alone is created, value is uploaded each asset wise separately
For current year we will post depreciation using AFAB in production

Net Book Value = Asset Acquisition value- Accumulated Depreciation

GL Postings

Apart from Vendor, Customer, Assets, whatever entry you are posting is called GL postings

Vendor, Customer, Assets are nothing Sub Ledger

Every Debit and Credit is represented by Account type

In SAP Debit and Credit is identified by single digit Indicator

For Debit – S

For Credit – H

Trial Balance is always extracted from MAIN GL

When they ask you about GL Module. talk about creation of GL master, postings of GL transactions, debit, and credit,
displaying the document, reversing the document, GL line-item Report, trial balance, FSV

Accounts Payable

Basics settings of accounts payable, creation of vendor master data, invoice, credit memo, payment and vendor line-item
reports

Accounts Payable is a sub-ledger which records all vendor transactions

Accounts Payable is connected to Main Ledger (GL Module) via Reconciliation Account

Accounts Payable is by default open item management

All Reconciliation Accounts are open item management by default

Business Partner

If BP Number range is internal system will pick up the next available number

And if vendor number range is external system will take BP number as vendor number

We need to check the number range box for vendor as external or else when we Define Number Assignment
for Direction BP to Vendor system would throw error as vendor group should be external
External Means – we need to give manually

Internal Means - system will generate automatically

If BP and Vendor Number ranges are different, we cannot check the box same number since both of them
have different number ranges

If you want same number ranges then you have to maintain same number ranges from bp and vendor

If BP and Vendor Number are same the flexible grouping will not work

Vendor Master data is stored at

General Data -- Client Level

Company code

Purchase organization data

Document Date: Transaction occurred date between company and party is known as Document Date.

Posting Date: This date will be used to record ledger updating date in SAP system.

Entry Date: This date will be captured by the system with current date and time or application server date
and time.

Note: This date cannot be specified or modified by the end-users.

Translation Date: This date will be used to convert foreign currency transaction into local currency based
on exchange rate values.

Value Date: This date will be used to record encashment date for cash transactions and realisation for bank
transaction.

Base Line Date: This date will be used to calculate due date for customer invoice or vendor invoice.

Due Date: Due date is nothing but payment date for vendor invoices or customer invoices.

Purchase date + credit period = Due Date

Purchase date can be document date, posting date and Entry Date -- This is nothing but baseline date as per SAP
terminology

Due Date = Baseline date + credit Period

Payment Terms

Baseline date – net due date – you will get net date

if its negative it means it is not due

if it is positive means, zit’s over due

if its zero means its due

For Cash discount make sure that you select the relevant item category in document splitting

Day Limit: suppose invoices raised during 1st march to 15th march the due date is 20th march

In day limit you need to put 15 and fixed date you need to give 20 th

And for the invoices raised between 16th march to 31st march the due date is 5th April

You need to create another payment term and, in the day, limit you will give 31 st and fixed date as 5th and additional
month as 1

Fixed Date: Invoices raised from 1st March to 31st March – the due date is 31st irrespective you may raise invoice in any
date but the due date is fixed to 31st

Additional Month: Invoices raised from 1st march to 31st march the due date is next moth 10th

Invoice raised on 1st March – the due date is 10th April in fixed date I need to mention 10 and additional month as 1

If Purchase order is related Material there will no account assignment category it will be BLANK

If Purchase order is related service there will be account assignment category it will be K. Any expenses will require cost
centre. cost object, internal order, WBS element

If Purchase order is related order, then there will be account assignment category it will be F

If Purchase order is related Asset there will be account assignment category it will be A

If Purchase order is related WBS there will be account assignment category it will be P & N

Purchase order may be for Material, services, or assets. we will mention what we want to place the order, terms of
payment

Goods Receipts

For Goods

Raw Material A/c Dr Field Status group G006

GR / IR A/c Cr Current Liability – need to check open item management and sort key PO (14) G045 field
status group

For Services

Cost Centre/Expenses A/c Dr

GR / IR A/c Cr

For Assets

Asset A/c Dr
GR / IR A/c Cr

Account Assignment Category will decide whether to debit Inventory, Expenses, Assets

Here GR/IR is credited

It is an intermediatory account because sometimes the goods might be received first or some time the invoice is
received first before the GRN is done so to have a balance we have an intermediatory account

Before making the payment to the vendor you must ensure that whatever goods and services received are proper or
quality check until then we are not supposed to release the payment to the vendor so we will be holding the liability in
the temporary account which is nothing but GR/IR

Invoice Receipt

GR/IR A/c Dr

Vendor A/c Cr - - - Vendor is coming from PO

Credit Memo

Vendor A/c Dr

Purchases A/c Cr

Payment:

Vendor A/c Dr

outgoing bank a/c Cr

Accounting Entry when discount is given during payment

Vendor A/c Dr

Bank A/c Cr

Discount A/c Cr

When you have stock there is no price difference if its moving average price

In case of standard price there will be price difference

Scenario 1

If Material Price is moving average price and if you have not consumed the stock and if there is any price difference
during miro then system will post the difference to inventory account

Scenario 2

If Material Price is moving average price and if you have partially consumed the stock and if there is any price difference
during miro then system will post the difference to inventory account and price difference account

EBS

Bank Outgoing A/c Dr

Main Bank A/c Cr

Purchases means Expenses. it is of two types

CAPEX  PURCHASE WHICH IS GOING TO GIVE BENEFIT FOR MORE THAN ONE YEAR THAT IS CAPEX

OPEX  PURCHASE WHICH IS GOING TO GIVE BENEFIT FOR LESSTHAN ONE YEAR THAT IS OPEX

When you talk about p2p. talk about delivery date, terms of payment. always use raw material a/c don’t use
inventory. talk about 3-way matching. due date, account assignment category,

Employee Vendor: For any kind of advance payment, we will be using employee vendor

Intercompany vendor: Intercompany vendor is nothing but transactions between two company codes

For One time vendor: always use sort key as 22 since it will show in the line item report as vendor name and city . not for
reconciliation account

Payment Methods

In Partial Method: until we pay the full amount the system would display the original invoice document and part
payment document in open item status

where as in residual method the system would clear the original invoice document first and generate a separate line
item for residual amount and display the residual amount document line item in open item status

In residual Payment original Invoice will be debited… residual amount will be credited and bank account will be credited
Baseline configuration

When they ask you about Baseline configuration. talk about what we have discussed in our practise

Talk from company code to till document posting. ledgers, currency, cost centre, profit centre

Accounts receivable

Accounts receivable is a sub-ledger which records all customer transactions

Accounts receivable is connected to Main Ledger via Reconciliation Account

Accounts receivable is by default open item management

All Reconciliation Accounts are open item management by default

Sales Order – No Accounting Impact

Goods Issue/ PGI

COGS A/c Dr

Finished Goods A/c Cr Note: Always use Finished Goods

 This is a part of FI – MM Integration. Any inventory related GL will come from MM side. But it’s a part of 02C
Cycle
 COGS is an Expenses Account It is a part of P&L
 You are

Billing/Invoicing

Customer A/c Dr

Sales A/c Cr

Credit Memo

Sales A/c Dr

Customer A/c Cr

Customer Payment

Bank Incoming A/c Dr`

Customer A/c Cr

Bank Reconciliation

Main Bank A/c Dr

Bank Incoming A/c Cr

Discount Entry

Bank A/c Dr

Discount A/c Dr

Customer A/c Cr

Purchase + Direct Expenses = COGS

Profit = Sales - COGS

APP, DME, check printing configuration, taxation – PURCHASE TAX, SALES TAX, WITHHOLDING TAX AND
CONFIGURATIONA AND ACCOUTING ENTRIES

Asset Accounting – changes from ECC to s4hana, configuration, cut over activities or data migration activities

Dual Control Functionality for sensitive fields

ECC - S4 HANA changes

 In ECC you may can define 3 currencies where as in S4HANA you can define 10 currencies
 Group of charts
 Fiori
 Line-item display
 House bank Account Id is created in NetWeaver
 Posting periods, it is divided into 3 1st is used for fi postings 2nd is used for special periods 3rd is used for controlling
 Business Partner
 In ECC you can directly go and assign group currency but in S4 HANA when you create controlling are. The
controlling area currency will be by default group currency
 In S4HANA we have extension ledger
 Execute consistency check of ledger settings
 In ECC the data of FI and CO are two different things the data of FI and CO are stored in different tables
 In S4 HANA both FI and CO are part of single table
 Profit centre option is missing in controlling area we find in 0ke5 where in ECC we have the option
 Cost elements in S4HANA are now created as part fs00 GL creation no more separate master data for co
 In gl module fi and co were merged in s4hana

 IN S4HANA NEW GL ENTRIES WILL BE STORED IN ACDOCA

 IN ECC NEW GL ENTRIES WILL GET STORED IN FAGLFLEXA
 GLASSIC GL ENTRIES WILL BE STORED IN GLT0

Controlling

In CO – only expenses and income data will flow from FI to Co Balance sheet data will not flow FI to CO

In FI will call it as expenses and we call it as cost in Controlling

IN FI, we call it as Income and we call it as revenue in controlling

Cost + profit = Price

Application Layer - where is SAP is installed

Presentation Layer - Where GUI is installed

Data base layer - where database Is installed

We cannot generate TB based on document currency because it is not fixed one. It keeps on changing such as USD, GBP

TB in SAP cannot be extracted on a particular date. it can be extracted for a particular month

Controlling Area as company code

Cross company code cross accounting

Controlling Area, we will always use Group currency because we will use the controlling area for multiple company codes
in different countries
When you post anything in Non-Leading Ledger in the document header document status change to L

Account is nothing but language of business which is in T shape

The left hand of any account is know an as debit and right hand of any account is know an as credit

These are broadly classified into 3 types

Personal Accounts it deals with person : debit the receiver and credit the giver

Real Accounts deals with assest : debit what comes in and credit what goes out

Nominal Account : Business Expenses and loss will be on debit side and incomes and gain will be on credit
side

Accounting : The process of learning how to prepare BS,PL and TB is known as Accouting

Accoutancy : what ever therotically we have learn we will implement it its known as accoutancy

Goods : What ever we purchase for re-sale purpose then it is called as goods

Assets :

Recording of transactions Is called as journal its dervied from french jour – a day

Daily transactions we record in a book called journal

Ledger is a french word which mean individual account

Preparation of individual accounts seprately is called as ledger

Rule of Cash Accounts : Debit all the receipts and credit all the payments

The process of transferring journal to ledger is called postings

Subsidary books means subdivison of journal

1. Cash book
2. Purchase book
3. Sales book
4. Purchase return
5. Sales return
6. Bills receivable
7. Bills payable
8. Journal proper

Adjustment is nothing but once books of accounts are closed and still the transaction occurs and those
transaction needs to be adjusted in those periods

As per business entity concept owner is different from business – entity is nothing but recognition

When we are doing accounts, we need to consider ourself as business not as a owner

The accounts will be in business point of view not in owner point of view

Artificial Person

Natural Person -- who are involved in all economic activities.

Representative

Accounting equation: capital + liability = Assets

Liability is the source

Company – means group of companies in sap based on this we generate all consolidation reports like country
wise product group wise segment wise etc in other words company represent the group

The definition of company is optional a company can have any number of company codes

Company codes: it is smallest organization element In FI Module for legal reporting based on this we can
generate all financial reports for internal and external stake holders . company code may be holding company
or subsidiary company or branch company or affiliated company or it may be sister concern. Every legal entity
we need to create a company code in SAP. in other words it is a organization unit in In FI for which a complete
set of books of maintained for external legal reporting

i.e., to prepare legal financial statements. the company code is mandatory

Credit control Area: it is a mandatory component for credit management module based on this we can
control the credit limit of customers at the time of sales order creation, delivery postings and billing
document generation

Financial Management Area: it is a mandatory component for funds management module based on this we
can generate all cash flow reports and funds flow reports. The FM area is taken from the company code when
we assign company code to FM Area more than one company code can be assigned to FM Area

Profit Centre is a smallest organizational element in FI module for generating all financial reports with line of
business for internal stake holders

Segment: It is additional organizational element for generating all financial reports with line of business or
area of business

Business Area: it is an old organizational element for FI to generate all financial reports with the area of
business or line of activities generally the branches the organization can be taken as the business area we can
prepare financial statements for each business area. These financial statements can be used by top
management for the internal analysis purpose the definition of business area is optional

Consolidation of business area: it will be used to consolidate two more business area

Functional Area: It is mandatory component for cost of sales accounting based on this we can analyse
expenses and incomes department wise or functional area wise

Assets: whatever business owns are known as assets

They are classified into 2 types

Current Assets - are nothing but which can be converted in to cash within a year from one balance sheet to
another balance sheet is called as current assets

Liquidity is nothing but assets which can be converted to the cash immediately

Fixed Assets: which cannot be converted to cash within a year of time are known as fixed assets

Grouping: it is nothing but recording similar nature of items under one particular head

Current Liability is nothing but we need to pay in one year time – means from preparation of one BS to
another BS

Long term Liability: nothing but liabilities due for payment will not fall within a year time then those are
nothing but long-term liability Ex: Bank Loan
Fixed Liability

Marshalling order of writing liabilities and assets in balance sheet

Two types of balance sheet

1. Order of liquidity B/s: on the assets side the most liquid asset will be written first  cash in hand and
the least liquid assets will be written last i.e., good will whereas on the liability side the most urgent
payment will be written first i.e., bank over draft and least urgent payment will be written last capital
2. Order of permanence b/s -- completely opposite of order of liquidity in this order on the assets side
the least liquid assets will be shown first and the most liquid assets will be shown last whereas on the
assets side the least urgent payment will be shown first ex: capital and the most urgent payment will
be shown last Ex: Bank Over Draft

Note: Sole traders’ firms, partnership firms’ banks and other business will prepare their balance sheet as per
the liquidity order

Company will prefer their balance sheet in order of permanence

Why retained earnings is a liability account because company has to return back to share holders

Based on Nominal Account P and L is prepared

Trial Balance

Credit is more than Debit  Negative Result

Debit is more than Credit  Positive Result

Assets Liabilities

Expenses Income

In order to make your TB zero

1.If you get TB Negative Result then what ever is more reduce them

2.Whatever Is less increase them

Financial Accounting is to know the position of the business

The rule of ledger is personal accounts and real accounts are supposed to be balanced and nominal accounts
are to be totalled

The sheet which contains the balance of real accounts and personal accounts is known as balance sheet
Asset: Shows Debit Balance

Debit -> Increase in Assets

Credit -> Decrease in Assets

Liability: shows negative Balance

Debit -> Debit decrease in Liability

Credit -> Increase in liability

Capital: shows negative balance

Debit: decrease in capital

Credit: increase in capital

In Ledger specific postings logistics postings not possible

Suppose I have three Ledgers

1. Leading Ledger for IFRS Group Reporting

2. Non Leading Ledger for Local Reporting
3. Managerial Ledger for Internal reporitng
If I want to post in ledger specfic such as 2 & 3 then I have to create a ledger specific group Ex: GR by specific
one of the ledger as representative ledger.. so what ever transactions I have posted in ledger group GR It will
update that GR Ledger group.. there is a conidtion for representative ledger

It should follow same fiscal year and posting period variant of leading ledger or oby6 manage posting period

Functional Currency: if your client business transactions are happening majority in other currency apart from local
currency where there is no physical moment of goods its only on paper

The standard version of controlling is zero

Cost centre is valid for expenses

Only for expenses which we want to have planning and budgeting

Primary cost element – These are fi based GL Account which are transferred from FI Postings to CO

01. Primary cost /Cost Reducing Revenue -it is used for expense related cost element

11. Revenue is used for income related income related cost element

Secondary cost: These are CO based GL Accounts which will be updated In CO

Legal Reporting will be for the whole country ... hence I need to create one company code not multiple code even If I
operate in multiple states in India
We create company code in sap based on legal registration at the country level

Don’t get confuse if people ask how many legal entities have you created in the previous project

We must use one controlling area for the company codes and make sure that they have same operating chart of
accounts and same fiscal year variant for all company codes

Why operating concern – to know the profitability or COPA reports

One Ledger can be mapped to multiple accounting principles

Domestic Vendors

Foreign Vendors

One Time Vendors

Service Vendors

Employee Vendors

Material Vendors
For LSMW if you want to upload the GLs don’t create another recording just assign the files since you have
already made the recording… ensure to put single quote‘001 since excel will convert to 1

When you maintain two different pc in the document system will not allow you to post the document it will
ask you to maintain configuration for 000 – zero balance clearing document

From logistics side business area is mandatory

Logistics is nothing but which talking about inventory – purchases/sales/production

Material is mapped to plant

Universal journal they call because when you look at any financial document data gets updated in multiple
tables

When you want any financial information, you need to refer multiple tables such as bkpf and bseg and
because it will generate multiple document accounting document, material document copa document and
billing document. Each table will have separate tables. In s4hana universal

In General Stimulation will display only GL Account

Discount, Forex Gain/Forex loss Accounts , Taxes are automatically created

#Require invoice reference payment number while making the payment – issued can be resolved through
posting key

if you want to post anything exclusively in CO part then we need to select secondary costs
Time Independent attributes means attributes which is constant, which cannot be changed For eg:
Employee Name, DOB, etc

Time Dependent attributes means attributes which can changes For eg: Designation, Salary, Address
etc,

For Non-Leading ledger for all the document types number range will be same

For leading ledger separate document type will have separate number ranges

Internal Means system will generate the document number

External Means user has to input the number manually

Park Document will be stored at Company code level. It will take internal number range once we delete the
park document one number will get consumed

Whereas Hold Document will be stored at client level. it will take external number range

Implementation Project

Support Project

 Ticket Based Support

 Production Support
 Go-Live Support

Roll-out Project

Enhancement Project

Upgradation Project
ASAP Methodology

Project Preparation Phase

Business Blueprint Phase

Realization Phase

Final Preparation Phase

Sample document will have entry view - Sample X2 – Number Range

If we are creating recurring document with non-sequential date then we must define run schedule

If its sequential dates then run schedule is not required

Relevant to cash flow we need to select for bank and cash GLs

Whenever you talk about field status group talk about required mandatory and supressed

Master data and transaction data will not have TR

p

If you want to re-schedule the dates ensure that next run on and run date should be changed

For ex: I want to run on 02.04.2022 to 02.12.2022

Residual Payment -- Amount Available - Amount

Recurring Documents: Non -sequential and sequential dates. If you are creating recurring document with non-
sequential dates then we must define run schedule. If its sequential date then run schedule is not required

Recurring document will have entry view

`

When you make ledger specific postings it will not show other ledger

After posting the transaction at header level

We can modify referenece and document header text

And at line item level we can modify long text,value datee and assignment

Post automatically means it needs to be triggered automatically

Retained Earnings Accounts should be post automatically

Active splitting means you are inputting manually

For cash and back account select sort key as value date

For revenue Accounts select sort key as G029

For Expenses Accounts select cost accounts G004

Segment is derived from Profit Centre

Difference b/n FBL3N AND FAGLL03 FAGLL03 – we can see Ledger wise
58 – Standard Document Types

Profit Centre hierarchy, profit centre group and profit centre

Any profit centre standard hierarchy can have maximum of 9 nodes and last level should be profit centre

If company code and account currency are same then we can post the document in local currency and foreign
currency

If its different company code and account currency are different then we can post in account currency also

Salaries

BA10 BA30

Inter-company Receivable – BA30 Inter-company Receivable – BA10

Inter-company payable – BA30 Inter-company payable – BA10

Cash Deposited into Bank

Bank A/c Dr

Cash A/c Cr

Cash withdraw from Bank

Cash Dr

Bank A/c Cr

APP

This requires configuration of FBZP Configuration

Payment is identified and made on the basis of company code, vendor, payment method, next payment
date/due date

When payment is manual the amount assigned is always total liability of the vendor

If you make one payment for 3 invoices if any invoices is wrong the reversal is not possible

Ideal approach will be making 3 payments for 3 invoices

FI12_HBank

Fi12

Fchi
Bank Data is part of house bank

Account data is part of Account ID

We define the main GL with in the house bank master level

With its outgoing or incoming we need to define in fbzp – bank determination and in the bank account

f-58 – Payment + Print

FCH5 – MANUAL CHECK

FBZ5 – PRINT CHECK

Cash Journal – it’s an SAP term

In Cash Journal you will not get invoice reference and hence you need to clear manually

Cash Journal will have two number ranges

Internal cash journal number

Cash Journal Accounting Document Number

Internal for cash journal which should be 1 we need to define number range

Once we record and press enter system will generate a dummy number and when we post

And accounting document 02

Cash Journal Document – system will generate automatically

Entry posted in cash journal and General Ledger

You cannot reverse cash journal using fb08

You will be able to find the deleted cash journal document number

Cash GL Always create with relevant to cash flow

You need to create Migration Account for cash migration and create a new business transaction as cash
migration and assign the migration account and make sure that you don’t check the box account modifier.. it
you check then any one can modify… post migration block the migration account
If it’s a new implementation you need 4 steps in cash journal

If cash journal is already implemented in the company code. and for other branches you will create cash
journal only… you will not create document number and business transaction types

When the status Is green the entry posted in GL And Cash Journal

If its yellow it means its updated in cash journal

Entry saved will updated in cash journal

Entry posted will update cash journal and GL

Saved entry can be deleted but posted transactions cannot be deleted

Bank Main – you should be used for BRS purpose only

Bank Incoming -- Open Item Management – Sort Key Value Date Field status G005

Bank Outgoing – Open Item Management - Sort Key Value Date Field Status G005

While making the payment if number in days in positive it is overdue if its negative then its not due

GST is charge on NET Amount

Net Amount + GST Amount = Gross amount

If you don’t update credit note document with original invoice document then when you check customer line-
item report it will you show you credit note number and invoice reference number same i.e., it shows credit
note number in both the fields

Support Incidents

The user has already reversed the transaction later he realized the transaction was correct

He was trying to reverse the original document he got the error document has already reverse

Informed to reverse the reversal document

Created a Separate document type for reversal documents and number ranges it should work only for GL
when we reverse the vendor document it was throwing the below error since we need to check the box K in
document type and KR invoice we need to mention the separate document type in the reversal document
type and we need to add the document type in document splitting configuration also

1.Document posted on 1.11.2022

1010000002

After posting the period has been closed

If you try to reverse by mentioning reversal reason 1 it will not reverse

If you try to reverse by mentioning reversal reason 1 and posting date as current date it will not reverse

Since closing periods are closed in both the cases

If you give reversal reason 2 then also it will not reverse

You need to give reversal reason 02 along with posting date the only it will reverse

1.Document posted on 1.11.2022

1010000002

If you want to reverse on 2.12.2022 it’s not possible with Reason 1 since you need to allow alternative posting periods

Customer posted a document which got updated in Leading Ledger and Non-Leading Ledger and now he
wants to reverse the transaction in non-leading ledger. if I reverse using FB08 it will reverse both the leading
and non-leading ledgers and hence we have used FB01L and we have made ledger specific posting

Customer has 4 open item invoices 1,2,3,4 while making the payment he has selected 1 2 4 and made the
payment later he has realized he has made the wrong payment in this case if we reverse the document all the
3 invoices will get released ... so we need to remove the link from between the payment and invoice using
FBRA we need to give the clearing document number and do the manual clearing
Never delete the settings since you can find field can be changed just uncheck the box

Invoice Double check if you assign same number but if you add space before the invoice then system will
accept and if you add zero also it will accept

Payment Methods in company code. allow foreign currency should be enable to make foreign payments

Later in bank determination in the bank account you need to make sure that currency is blank

And you need to define the bank out going account which is nothing but sub-account

In the paying co. Codes if you select the option no exchange rate then system will calculate exchange rate for
transactions made in company code currency if you make in foreign currency then system will not calcualate
Foreign Currency Re-valuation:

It is the process of revaluation of GL Balances Open Item , GL Non Open Item , Vendor and customers open
item which are other than the local currency

Why we need to do the foreign currency revaluation

To have the right financial reporting

Realized Gain and Realized Loss

During the payment realized gain and loss can be identified and system will post entry

During the month end activity for the open item (other than local currency) which are yet to pay

System will post a unrealized gain/loss based on that particular month last date exchange rate

System will post a temporary entry and same will be reversed in 1 st day of next month automatically

Valuation Method: is nothing but accounting principle

Valuation area: determines which currency you want to perform fcv

Valuation area is assigned to valuation method

Accounting principle is assigned to valuation area

Always valuate means loss/gain system will post

Revalue only if its gain then system will post

Lowest principal value it its loss then system will post

Define valuation methods that specify how foreign currency valuation is to be performed in financial closing
operations.

We will specify valuation procedure and document type

Check Assignment of Accounting Principle to Ledger Group

Assign Valuation Areas and Accounting Principles

In case if you want exchange rate to be calculated on partial payment then you need to do the below settings

Financial Accounting Global Settings

Global Parameters for Company Code

Currencies

Indicate Currency Differences for Partial Payments

You need to select the document type KZ… this document could also been used by other company codes

If anyone inputs the exchange rate manually and if you want to show any warning message

Define Maximum Exchange Rate Difference per Company Code

Foregin Exchange Revaluation
OBA1
OB59
KDF We map open Item GLS along with Recon Account
KDB we map non open itme GL Items

In Delta Logic it will not reverse the entries

it compares the last run with the current run

General Settings

Country Settings
Tax procedure
Date format
Decimal Notation

GENERAL SETTINGS
IN
TAXIN
DD.MM.YYYY
1,234,567.89

US
TAXUS
MM/DD/YYYY

REGION SETTINGS

36- TELANGANA
37-ANDHRA PRADESH
CA-CALIFORNIA

CURRENCY SETTIGNS

EUR
GBP
SGD
CAD

CALENDER

HOLIDAY CALENDER IN US

FACTORY CALENDER IN US

Client Dependent / Client independent

TR Naming Convention
FI_CD_GM00  CD Means Client Dependent

Business Process Discussion

Configuration
Master Data
Transactional Data
Reports
Maintain Calendar  OY05  this will be maintained by HR Module

Fi Enterprises Structure

Define FI Enterprise structure

Variant : it’s nothing but combination of different attributes/features into one

BRS

(BRS) is a statement that reconciles the balances between the bank statement and the book of accounts

Bank Main GL always represents reconciled transactions with bank statement

Bank Sub GL always represents unreconciled transactions with bank statement

Reconciled transactions = appearing in sap/bank statement

Un reconciled transactions = appearing only in bank statement or sap

We compare bank transactions with bank sub GL transactions

EBRS

FEBSTS

We need to use external BTC

Note to Payee  give additional information of 61

With reference to one BTC and combination of plus or minus we can assign only one posting rule
but this can be achieved
With the help of search string its appliable for only 86 not applicable for 61

We will create the search sting and inform the system that go and search for bank charges on forex change
the posting rules

Whenever you come across this text in this 86 line item, take the value from 61 immediately preceding

this line item and for change the posting rule from the interior of Z to double zero A.B.C. to double
IN MT940 format check number should come in 61 filed that too after ending external BTC

==

Cost Centre = Cost Object

Cost object are of two types

1.Real cost object  if you are posting to P and L Account

2.Stastical cost object  if you are posting to Balance sheet Account

Internal order and cost centre

Both are cost object the main purpose is to capture the cost

Cost centre captures the cost for long span of time  from cost centre creation date till the validity expires

Internal order captures the cost belonging to a particular object and belonging to a specified span of time

For ex: a car manufacturing company conducts a campaign for 3 days in a shopping mall

They may incur certain expenses like

Rent for 3 days to be given to the shopping mall

Anchors, Models, performers fees
Fuel Expenses

So, they will create an internal order and captures all the cost belonging to that campaign

Later they will settle the internal order

Why do we need internal order because cost centre captures the cost for the whole life but internal order captures the cost for
Specific period of time and we can settle the internal order

Cost centre can also do it but the problem is you have to calculate the cost for the specific event and for the specific time which cost
Centre cannot do it

Real Internal Order  they can be settled

Statistical Internal order  created only for reporting purpose and they cannot be settled

If internal order is real then the cost centre is statistical object

 Here we can transfer the values from internal order to cost centre

If internal order is statistical object, then the cost centre is real object

Here we cannot transfer the values from internal order to cost centre

Internal order Master data will tell you whether it is real or statistical since it has statistical indicator
Where as for cost centre master data we don’t have the indicator

Assessment and distribution

In distribution we have detailed break up ksv1

It uses primary cost element

In Assessment we do not have detailed break up ksu1

It uses secondary cost element

This will come into picture when we have the common cost

There is two kinds of Cost elements in SAP CO. Primary Cost Elements which is related to Expense GL of SAP FI Module. and Secondary
Cost Element Which is only in SAP CO and it is representing one or more than one Cost element.
In allocation Distribution uses only Primary Cost element i.e. Sender and Receiver is the Primary Cost Element where as in case of
Assessment allocation is uses secondary cost element i.e. Sender is Primary or Secondary Cost element and Receiver is Secondary Cost
element.
 Step 1) Create material group

 Path: SPRO –> IMG –> Logistics-General –> Material Master –> Settings for Key Field –>
Define Material groups

Step 2) Create new valuation class

We will be creating a new valuation class for this purpose which will be assigned to the
material group.

Transaction code to create valuation class – OMSK

Step 3) Assign this valuation class to the material group

 Path: SPRO –> IMG –> Purchasing –> Material Master –> Entry Aid for Items without
Material Master
Step 4) Check and maintain cost center as mandatory

 Transaction code – OME9

And go to details tab

Step 5) Maintain G/L for valuation class

Transaction code – OBYC

Here maintain the valuation class in GBB – VBR 1111 along with G/L.

In our case we maintained the G/L as 400000.

Below is a purchase order which is created before configuration settings.
Taxation is divided in to two types:

Direct Taxation: It is levied on the income or profit of a taxpayer

Withholding Tax

The following two categories of withholding tax types are used.

 Invoice withholding tax types.

Accounting Entry:

Received an Invoice of 100000

Expenses A/c Dr 100000

Vendor A/c Cr 90000
Withholding Tax Cr 10000

 Payment withholding tax types.

Vendor A/c Dr 100000

Bank A/c cr 90000
TDS Payable Cr 10000

Indirect Taxation: An indirect tax is levied on goods and services rather than on income or profits

Tax on Sales and Purchases

a. Input Taxes (Purchase Tax)

Accounting Entries

Purchase A/c Dr
Input Taxes A/c Dr
Vendor A/c Cr

Including all Taxes

This means that the price charged for goods or services or both includes tax in the price. Tax is not
charged separately on the price

Ex: Received a Vendor Invoice worth Rs.4248/- which is including all the taxes @ 18%

Formula to derive the base amount = 4248/1.18

 Purchase A/c Dr = 3600  Profit & Loss Item
Input Tax @ 18% = 648  Current Asset – Balance Sheet Item
Vendor A/c Cr = 4248  Current Liability – Balance Sheet Item

Net Amount + Tax Amount = Gross amount

Excluding all Taxes: This means that the price charged for goods or services or both does not include tax.

Tax is separately charged on the price. For example: If the price of good is Rs 200 exclusive and TAX rate is
5%, then customer needs to pay Rs 210 as the price is exclusive of taxes.

200*1.05 = 210

b. Output Taxes (Sales Tax)

Accounting Entries

Customer A/c Dr
Sales A/c Cr
Output Taxes A/c Cr

SAP uses a technique called ‘Condition Method’ to calculate taxes. The Tax Code is the starting point in the

tax calculation. The tax code is country specific; Tax Rates are defined for each of the tax codes. 

Valuation areas are nothing but the level at which you want to valuate your materials. SAP provides two
levels of valuation Plant level and company code level.

Same material is valuated at different price at different plants even though they are part of the same
company code we use valuation at the plant level

Valuation modifier: if each plant is following different GL Accounts for valuation, then the valuation
modifier needs to be activated

Valuation grouping code: valuation grouping code is used to group valuation area Nothing but plant
If one company code is having 5 plants and all these 5 plants, they want to use same set of GL accounts
then they can create one valuation grouping code and they can assign all these 5 plants to a grouping code
so for the processes same gl account will be triggered for 5 plants

Without enabling the indicator valuation modifier if you try to take the same valuation class you will get
warning key already exist
Scenario -1 Material are not consumed  Price control V

You have purchased 10 qty @ 10 Rs/-

10*10 = 100

During the MIRO the price of 10 qty has been increased 15/-

10*15= 150

Vendor A/c Cr 150

GR/IR 100 Dr

Inventory A/c 50 Dr

Scenario -2 Material are partially consumed

You have purchased 10 qty @ 10 Rs/-

10*10 = 100

During the MIRO the price of 10 qty has been increased 15/-

10*15= 150

Vendor A/c Cr 150

GR/IR 100 Dr

Price Diff 25 Dr

Inventory A/c 25 Dr

Scenario -3 Material are fully consumed

You have purchased 10 qty @ 10 Rs/-

10*10 = 100

During the MIRO the price of 10 qty has been increased 15/-

10*15= 150

Vendor A/c Cr 150

GR/IR 100 Dr

Price diff Dr 10
Scenario - Material are not consumed/Partially Consumed/fully consumed  Price control S

Vendor A/c Cr 150

GR/IR 100 Dr

Inventory A/c 50 Dr

You have purchased 10 qty @ 10 Rs/-

10*10 = 100

During the MIRO the price of 10 qty has been increased 15/-

10*15= 150

Vendor A/c Cr 150

GR/IR Dr 100

Price Diff Dr 50

FI ENTRY – WITHOUT PO

VENDOR A/C CR

TECHNICAL CLEAR DR

ASSET ACCOUNT DR

TECHNICAL CLEARING CR

Depreciation A/c Dr

Accumulated. Depreciation A/c Cr

Sales A/c Cr

Customer A/c Dr

Asset A/c Cr

Acc.Dep Dr

Sales of FA DR
LOSS DR

purchase of asset

Asset A/C (70) Dr

To vendor (31) Cr

Sales of asset

Customer A/C (01) Dr

Asset Sale A/C (50) Cr

Acc. Dep. on Asset (70) Dr

Asset A/C (75) Cr

Asset Sale A/C (40) Dr

Profit on Asset sale (50) Cr or Loss on Asset sale (40) Dr

Deprecation posting

Depreciation A/C Dr

To Acc. Dep A/C Cr

scraping of asset

Asset A/C (75) Cr

Acc. Dep A/C (70) Dr

Loss due to Scrapping A/C (40) Dr

transfer of an asset

ABUMN----->Asset transfer within Company Code

70 Asset debited in NEW Business Area

75 Asset credited in OLD Business Area

70 Acc. Dep debited in OLD Business Area

75 Acc. Dep credited in NEW Business Area

ABT1N------>InterCompany Asset Transfer

OLD Company Code 75 OLD Business Area Asset A/C Credit

OLD Company Code 70 OLD Business Area Acc. Dep Debit

OLD Company Code 40 OLD Business Area Asset sale A/C Debit

NEW Company Code 70 NEW Business Area Asset A/C Debit

NEW Company Code 50 NEW Business Area InterCompanyClearing Credit

A090 we assign the gl accounts for asset

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