DOCUMENT TYPES AND NUMBER RANGES [T/C: - OBA7]

It is a key which is used to distinguish between different business transactions and classify
the accounting document.

Some of the common document types in FI are:

Trick to remember the document types in SAP.

In sap, if a document type starts with s then it represents general ledger and if d then
customer, if k then vendor and if A then asset.
If a document end with A then it is document, if R then invoice document, if Z then payment
document.

So if we consider both the tables given below:

Let’s take S as the first letter and A as the second letter

From the table what does S means  general ledger and what does A meansdocument.
So here SA means what general ledger document

For general ledger we will not have any invoiced payment document, so there will be no SR
or SZ.
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PATH:
SPRO -->financial accounting (new) --> financial accounting global settings (new) -->
document --> document types --> define document types for entry view

-->select position button

-->Document type SA i.e., g/l account document
-->enter
--> Select document type SA i.e., g/l account document
--> Select details button
--> Number range 01
-->select number range information button
--> Company code
--> Select change intervals button

NO.RANGE YEAR FROM NO TO NUMBER EXTERNAL

01 2023 1 100

Select save button

--> Ignore the message

-->Press enter
-->We get a message the changes were saved

NOTE: NUMBER RANGE INTERVAL WILL NOT BE TRANSPORTED TO PRODUCTION

SERVER CLIENT.

TOLERANCE GROUP

Sap has given 3 types of tolerances

I. G/l accounting clearing tolerance
II. Employee tolerance
III. Customer /vendor tolerance

I. G/L ACCOUNTING CLEARING TOLERANCE [T/C: - OBA0]

 This is used for receipts / payments transactions
 This is mandatory area
 Tolerance groups for GL accounts are purely for open management GL clearing

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First we discuss open item management in sap

OUTSTANDING EXPENSES ACCOUNT

SALARIES ACCOUNT 200000
WAGES ACCOUNT 500000
BANK AC CR RENT ACCOUNT 25000

When we see the account in the month end or yearend we will have so many credits
and so many debits. We do not know which item is pending and how much is pending
because sometimes we make full payment and sometimes we make part payment. So
sap has given open item management concept. If for outstanding expenses account if
we select open item management checkbox at the time of payment, system asks we
are making the payment against which provision. When we specify, the amount is
paid against rent provision the item will be cleared. At any point of time we can see
payable items separately and paid items separately

For an account if we select

A. Open items--> it shows payable transactions i.e., salaries and wages
b. Cleared items --> it shows paid transactions i.e., rent and bank
C. All items --> payable and paid

The same logic will apply for vendors and customers also. At any point of time we
can see vendor wise bill wise payables and customer wise bill wise receivables.

DEFINATION: tolerances are defined in the system to facilitate with the differences
arising out of accounting transactions and to instruct the system on how to proceed
further

🗸 Tolerance are referred as payment differences

🗸 it can be amount tolerance, percentage tolerance or both
🗸 it can be debit or credit

STEPS: -
1. Create tolerance group and specify amount or percentage or both.
Tolerance group Amount Percentage
A 100
B 5%
C 100 5%
D 0

2. Assign tolerance group in general ledger account at the time of creation.

🗸 assigned tolerance group a in outstanding expenses account.

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3. Transactions in outstanding expenses account
OUTSTANDING EXPENSES ACCOUNT
SALARIES ACCOUNT 200000
WAGES ACCOUNT 500000
BANK 25000 RENT ACCOUNT 25000
COMMISSION 100001

4. We are making payment of rs. 100000/- against commission

provision
When tolerance group is not there
OUTSTANDING EXPENSES ACCOUNT:
SALARIES ACCOUNT 200000
WAGES ACCOUNT 500000
BANK 25000 RENT ACCOUNT 25000
BANK 100000 COMMISSION 100001

In the account, commission item will be shown payable rs. 1- Which need not be
paid

If tolerance group a is assigned

OUTSTANDING EXPENSES ACCOUNT:
SALARIES ACCOUNT 200000
WAGES ACCOUNT 500000
BANK 25000 RENT ACCOUNT 25000
BANK 100000 COMMISSION 100001

At the time of payment system CHECKS: -

COMMISSION PROVISION 100001
PAYMENT AMOUNT 100000
DIFFERENCE AMOUNT 1

If the difference amount re. 1 is less than tolerance groups a amount i.e.: 100
system transfers re .1 to payment differences account and clears the transaction

OUTSTANDING EXPENSES ACCOUNT

SALARIES ACCOUNT 200000
WAGES ACCOUNT 500000
BANK 25000 RENT ACCOUNT 25000
BANK 100000 COMMISSION 100001
PAYMENT DIFFERENCE 1

ENTRIES: -
A. COMMISSION PROVISION
COMMISSION A/C DR 100001
TO OUTSTANDING EXPENSES 100001
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B. OUTGOING PAYMENT OF Rs. 100000
OUTSTANDING EXPENSES DR 100001 CLEARED
TO BANK 100000
TO PAYMENT DIFFERENCES 1

Eg: - 2
ASSIGNED TOLERANCE GROUP C i.e.,: - 100 Rs. AND 5%
IN OUTSTANDING EXPENSES ACCOUNT
COMMISSION PROVISION 100001
PAYMENT 99900

AT THE TIME OF PAYMENT SYSTEM CHECKS

PAYABLE AMOUNT 100001 ASSIGNED GROUP C i.e., :-100Rs. AND 5%
100 AND 5% 100001 = 5000.1
PAYMENT AMOUNT 99900
DIFFERENCE 101

First condition i.e.,: -rs. 101 is not within 100 and second condition
I.e.,:- Rs. 101 is within 5000.1. First condition is not satisfied it cannot transfer the
difference to payment difference account automatically and the transaction will not
be cleared automatically.

II. DEFINE TOLERANCE GROUPS FOR EMPLOYEES

In this step we give each employee wise upper limits for posting
🗸 Amount per document
🗸 Amount per open item account item (vendors/customers/balance sheet
accounts where clearing is required)
🗸 Cash discount
🗸 Payment differences

Say we have 1000 users (employees). We have to create 1000 scenarios which take
time. Sap has given short-cut method i.e., employee tolerance groups

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TOLERANCE TOLERANCE TOLERANCE
GROUP - A GROUP - B GROUP - C
100000 1000000 10000000 AMOUNT PER DOCUMENT
100000 1000000 10000000 AMOUNT PER OPEN ITEM ACCOUNT
ITEM
0 5 10 CASH DISCOUNT
0 0 0 PAYMENT DIFFERENCES

IN ACCOUNTS DEPARTMENT: -
A. City office cashier
b. branch cashier
C. factory cashier } assign tolerance group a
D. accountant 1
E. Accountant 2
F. Accountant 3

G. deputy manager accounts} assign tolerance group b

H. manager accounts

I. General Manager accounts} assign tolerance group c

In live environment /in training institutes we create tolerance group blank

USER COMPANY CODE TOLERANCE GROUP TOLERANCE GROUP

SAPUSER YIL USED A CREATE BLANK
SAPUSER ABC TO USE A ONLY CREATE BLANK
SAPUSER XYZ TO USE A ONLY CREATE BLANK

PATH: SPRO –SAP REF IMG  FINANCIAL ACCOUNTING  GENERAL LEDGER ACCOUNTING 
BUSINESS TRANSACTIONS  OPEN ITEM CLEARING  CLEARING DIFFERENCES

--> select new entries button

-->group: -- (keep it blank)
-->company code: yil
-->amount per document- 9999999999 ( it is maximum amount )
--> Amount per open item account item 9999999999
-->cash discount per line item: 1 0
--> permitted payment differences: - (blank)
--> save
-->save in your request

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17. ASSIGN COUNTRY TO CALCULATION PROCEDURE [T/C: - OBBG]
 Calculation procedure means sales tax/gst calculation procedure
 In the demo we understood that we have accounting processes in sap fi
General Accounts Accounts Asset
ledger payable receivable accounting
Purchases Sales
Input tax Output tax

 Tax procedure is required for accounts payable and accounts receivable.

 Sap has made mandatory assignment of tax procedure to country. If we do
not assign tax procedure we cannot post entries for general ledger also.
 Assign tax procedure available in sap - for country india i.e., taxinn ( sales tax
india )/taxus ( sales tax usa ) ( temporary assignment )

Path: spro -->financial accounting (new) --> financial accounting global settings
(new) -->tax on sales/purchases --> basic settings --> assign country to calculation
procedure

--> select position button

--> country in
--> press enter
-->for country in -assign procedure taxus or taxinn
--> save
--> save in your request

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