FI-GL

Give some examples of GL accounts that should be posted automatically through the system
and how is this defined in the system.

Stock and Consumption accounts are instances of GL accounts that should be automatically
posted to. In the GL account master record, a check box exists wherein the automatic posting
option is selected called “ Post Automatically Only”

What is a Account group and where all is it used?

An Account group controls the data that needs to be entered at the time of creation of a master
record. Account groups exist for the definition of a GL account, Vendor and Customer master. It
basically controls the fields which pop up during master data creation.

What is a field status group?

Field status groups control the fields which come up when the user does the transactions. The
options available are one can have the fields only for display or one can suppress it or make it
mandatory. So there are three options basically.. The field status group is stored in the FI GL
Master

What is the purpose of a “Document type” in SAP?

A Document type is specified at the Header level during transaction entry and serves the
following purposes :

It defines the Number range for documents

It controls the type of accounts that can be posted to eg Assets, Vendor, Customer, Normal GL
account

Document type to be used for reversal of entries

Whether it can be used only for Batch input sessions

What is a Financial Statement Version?

An FSV(Financial Statement Version) is a reporting tool and can be used to depict the manner in
which the final accounts like Profit and Loss Account and Balance Sheet needs to be extracted
from SAP. It is freely definable and multiple FSV's can be defined for generating the output for
various external agencies like Banks and other Statutory authorities.

How are input and output taxes taken care of in SAP ?

A tax procedure is defined for each country and tax codes are defined within this. There is
flexibility to either expense out the Tax amounts or Capitalise the same to Stocks.

What are Validations and Substitutions ?

Validations/Substitutions in SAP are defined for each functional area eg Assets, Controlling etc at
the following levels

1. Document level
2. Line item level

These need to be specifically activated and setting them up are complex and done only when it is
really needed. Often help of the technical team is taken to do that.

Is it possible to maintain plant wise different GL codes?

The valuation group code should be activated. The valuation grouping code is maintained per
plant and is configured in the MM module. Account codes should be maintained per valuation
grouping code after doing this configuration.

Is Business area at company code Level?

No. Business area is at client level. Which means other company codes can also post to the
same business area.

What are the different scenarios under which a Business Area or a Profit Center may be defined?

This question is usually very disputable. But both Business Areas and Profit centers are created
for internal reporting. Each has its own pros and cons but many companies nowdays go for Profit
center as there is a feeling that business area enhancements would not be supported by SAP in
future versions.

There are typical month end procedures which need to be executed for both of them and many
times reconciliation might become a big issue. A typical challenge in both of them is in cases
where you do not know the Business Area or Profit Center of the transaction at the time of
posting.

What are the problems faced when a Business area is configured?

The problem of splitting of account balance is more pertinent in case of tax accounts. Also SA

Is it possible to default certain values for particular fields? For e.g. company code.

Yes it is possible to default for certain fields where a parameter id is present. Go to the input field
to which you want to make defaults. Press F1, then click technical info push button. This open a
window that displays the corresponding parameter id (if one has been allocated to the field) in
the field data section. Enter this parameter id using the following path on SAP Easy access
screen System �� User profile �� Own data. Click on
parameter tab. Enter the parameter id code and enter the value you require to default. Save the
usersettings.

Which is the default exchange rate type which is picked up for all SAP transactions?

The default exchange rate type picked up for all SAP transactions is M (average rate)

Is it possible to configure the system to pick up a different exchange rate type for a

particular transaction ?

Yes it is possible. In the document type definition of GL, you need to attach a different exchange
rate type.

What are the Customizing prerequisites for document clearing?

Account must be managed on the open item management. This tick is there in the General
Ledger Master Record called Open Item Management. It helps you to manage your accounts in
terms of cleared and uncleared items. A typical example would be GR/IR Account in SAP(Goods
Received/Invoice Received Account)

Explain the importance of the GR/IR clearing account.

GR/IR is an interim account. In legacy system if the goods are received and the invoice is not
received the provision is made, in SAP at the Goods receipt It passes the accounting entry
debiting the Inventory and crediting the GR/IR Account .Subsequently when an invoice is recd
this GR/IR account is debited and the Vendor account is credited. That way till the time that the
invoice is not received the GR/Ir is shown as uncleared items.

How many numbers of line items in one single entry you can have?

No of line items in one document you can accommodate is 999 lines.

In Assignment Field in the Document you get some reference, which comes from where?

This is on the basis of Sort key entered in the master.

How do you maintain the number range in Production environment? By creating in Production or
by transport?

Number range is to be created in the production client. You can transport it also by way of
request but creating in the production client is more advisable

In customizing “ company code productive “ means what? What it denotes?

Once the company code is live this check box helps prevent deletion of many programmes
accidently. This check box is activated just before go live..

Accounts

Accounts Receivable and Accounts Payable

At what level are the customer and vendor code stored in SAP?

The customer and vendor code are at the client level. That means any company code can use
the customer and vendor code by extending the company code view.

How are Vendor Invoice payments made?

Vendor payments can be made in the following manner:

Manual payments without the use of any output medium like cheques etc

Automatic Payment program through cheques, Wire transfers, DME etc.

How do you configure the automatic payment program?

The following are the steps for configuring the automatic payment program:-

Step 1 Set up the following:

Co. code for Payment transaction

Define sending and paying company code.

Tolerance days for payable

Minimum % for cash discount

Maximum cash discount

Special GL transactions to be paid

Step 2 Set up the following:

Paying company code for payment transaction

Minimum amount for outgoing payment

No exchange rate diff

Separate payment for each ref

Bill/exch payment

Form for payment advice

Step 3 Set up the following:

Payment method per country

Whether Outgoing payment

Check or bank transfer or B/E

Whether allowed for personnel payment

Required master data

Doc types

Payment medium programs

Currencies allowed

Step 4 Set up the following:

Payment method per company code for payment transactions

Set up per payment method and co. code

The minimum and maximum amount.

Whether payment per due day

Bank optimization by bank group or by postal code or no optimization

Whether Foreign currency allowed

Customer/Vendor bank abroad allowed

Attach the payment form check

Whether payment advice required

Step 5 Set up the following:

Bank Determination for Payment Transactions

Rank the house banks as per the following

Payment method, currency and give them ranking nos

Set up house bank sub account (GL code)

Available amounts for each bank

House bank, account id, currency, available amount

Value date specification

Where do you attach the check payment form?

It is attached to the payment method per company code.

Payment terms for customer master can be maintained at two places i.e. accounting view and
the sales view. Which is the payment term which actually gets defaulted in transaction?

The payment term in the accounting view of the customer master comes into picture if the
transaction originates from the FI module. If an FI invoice is posted (FB70) to the customer, then
the payment terms is defaulted from the accounting view of the customer master.

The payment term in the sales view of the customer master comes into picture if the transaction
originates from the SD module. A sales order is created in the SD module. The payment terms
are defaulted in the sales order from the sales view of the customer master.

Payment terms for vendor master can be maintained at two places i.e. accounting view and the
purchasing view. Which is the payment term which actually gets defaulted in transaction?

The payment term in the accounting view of the vendor master comes into picture if the
transaction originates from the FI module. If an FI invoice is posted (FB60) to the Vendor, then
the payment terms is defaulted from the accounting view of the vendor master.

The payment term in the purchasing view of the vendor master comes into picture if the
transaction originates from the MM module. A purchase order is created in the SD module. The
payment terms are defaulted in the purchase order from the purchasing view of the vendor
master.
Explain the entire process of Invoice verification from GR to Invoice verification in SAP with
accounting entries?

A goods receipt in SAP for purchased material is prepared referring a purchase order.

When goods receipt is posted in SAP the accounting entry passed is:-

Inventory account Debit

GR/IR account credit

A GR/IR (which is Goods receipt/Invoice receipt) is a provision account which provides for the
liability for the purchase. The rates for the valuation of the material are picked up from the
purchase order.

When the invoice is booked in the system through Logistics invoice verification the entry passed
is as follows:-

GR/IR account debit

Vendor credit

How are Tolerances for Invoice verification defined?

The following are instances of tolerances that can be defined for Logistic Invoice Verification.

c. Small Differences

d. Moving Average Price variances

e. Quantity variances

f. Price variances

Based on the client requirement, the transaction can be “Blocked” or Posted with a “Warning”
in the event of the Tolerances being exceeded.

Tolerances are nothing but the differences between invoice amount and payment amount or
differences between goods receipt amount and invoice amount which is acceptable to the client.

Can we change the reco account in the vendor master? If so, and how? What is the impact on
the old balance?

Reconciliation account can be changed in the vendor master provided that authority to change
has been configured. Also any change you make to the reconciliation account is prospective and
not retrospective. The old items and balances do not reflect the new account only the new
transactions reflect the account.

assign the points...

Ranjit