Define Company

Enter Transaction code SPRO in the command field

In the next screen Select SAP reference IMG

In next screen Display IMG follow the menu path SAP Customizing Implementation Guide -> Enterprise Structure -> Definition-> Financial Accounting -> Define Company

In the next Screen 1) Press New Entries

In the next Screen Enter the Company Details : 1. 2. 3. 4. 5. 6. Enter a unique Company Id for the Company within your corporate group Enter the Company Name In the Detailed Information Section Enter the Company Address details such as Street , PO Box, Postal Code, City Select Country code for country the company is established Select Default language for the Company for Print forms and Default Texts Select a Local Currency for the Company

After completing all the required information ,press save Enter your customizing request number

and your company is created.

Define Company Code

Enter Transaction code SPRO in the command field

In the next screen Select SAP reference IMG

In next screen Display IMG follow the menu path SAP Customizing Implementation Guide -> Enterprise Structure ->Definition->Financial Accounting->Edit, Copy, Delete, Check Company Code

In the next screen, select activity Edit Company Code Data

In the Change View Company code screen Select New Entries

In the Next Screen Enter the Following Details 1. Enter your Unique Company Code Number 2. Enter Company Name 3. In the Additional Data section Enter City 4. Enter Country for the Company

5. Enter Local Currency 6. Enter Default Language

Click Address Details button on same screen

Enter Address Details for the Company this will appear in print forms 1. In the Name Section Enter Title and Company Name 2. In the Search Term section Enter Search term 1 and 2 3. In the Street Address section enter street, postal code, city, country 4. In the P O Box Address section Enter PO Box and Postal Code 5. In Communication Section Enter appropriate details

After Completing this information Press Save

and Enter your Change Request number.

You have successfully created a new Company code.

Assign Company Code to Company

In the SAP Reference IMG Select the Menu path SAP Customizing Implementation Guide ->Enterprise Structure->Assignment->Financial Accounting->Assign Company Code to Company

In the Next Screen Enter the unique Company ID against the Company Code you Want to assign to this Company.

Press Save

and Enter the Customizing request Number

You have assigned the desired Company code to the Company

How to Create Chart of Accounts

The following tutorial takes you through the steps to create Chart of Accounts Enter Transaction code SPRO in the command field

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path : SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting -> G/L Accounts -> Master Data -> Preparations -> Edit Chart of Accounts List

In the next screen, select New Entries

In the next screen,Enter Following Data : 1. Enter a unique Chart of Accounts Code , maximum length is four 2. Enter a Description for the Chart of Accounts 3. Enter Language in which the Chart of Accounts is created.All accounts have a description in this language.Master Data can only be displayed or maintained in this language 4. Enter the maximum length for G/L Accounts number, it could be maximum to ten digits if number is short then it will prefix zero before it to make it to the maximum length 5. Enter the type of integration between G/L accounts and cost elements 6. Enter Chart of Accounts which is used in the corporate group

After you complete entering this information Press Save

In the next screen, Enter your Change Request number.

You have successfully created a new Chart of Accounts

How to Create Chart of Accounts (COA) Account Group

This tutorial takes you through the steps to create a COA Account Group Enter Transaction code SPRO in the command field

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting -> G/L Accounts -> Master Data -> Preparations -> Define Account Group

In the next screen, select New Entries

In the next screen, Enter following Information 1. Enter the Chart of Accounts key in which the Account Group is to be created 2. Enter unique Account Group key 3. Enter Description for the Account Group 4. Enter the number range for the G/L account to be created in the Account Group

select Field Status from the Application menu

In the next screen, you can change the field status for different sections of the G/L COA Master Data. For example select Account Control

Now you can maintain the status of different fields belonging to Account Control Tab between Suppressed ( Hidden ) , Required , Optional and Display modes.

Note :-The default status of fields is Optional.

After maintaining the field status , press save Enter your change request number

How to Create Retained Earnings Account This tutorial demonstrates how to create Retained Earnings Account Enter Transaction code SPRO in the command field

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path : SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting -> G/L Accounts -> Master Data -> Preparations -> Define Retained Earnings Account

In the next screen, Enter the Chart of Accounts to maintain the Retained Earnings Account

In the next screen, select New Entries from the Application Menu

In the next screen, Enter the following information

1. Enter the P&L statement account type, to determine the retained earnings account for each P&L account.If you are creating a P&L account, you must make an entry here. 2. Enter the G/L Account which will be considered as Retained Earnings account

You can maintain the posting key for this account by selecting posting key in the Application Menu

After this you can assign posting key for Debit and Credit

After maintaining all required information , press save request number

and Enter your change

You have successfully created a Retained Earnings Account.

Enter Transaction FS00 into the SAP command prompt , click execute.

In the Edit G/L Account Screen 1. Enter G/L Account no. 2. Company Code 3. Click Create. Note , SAP provides you an option to create a GL account with reference to another GL account. More on this later in the tutorial.

In the next screen 1. Enter Account Group 2. As per the type of G/L Account you are creating select either the P&L Statement Acct or the Balance Sheet Account radio button. 3. In the Short Text field, enter a short description for the new GL account. 4. In the G/L Acct Long Text field, enter a detailed description for the new GL account.

Click on the Create/Bank/Interest tab. In the Field Status Group, select a GL field status group

Click Save . A new G/L Account is created.

In case you choose to create a new SAP G/L account with reference to a template

Enter a reference G/L account no. and Company

Change the Short Text and G/L acct long text. Validate the other information on the Type/description and Create/bank/interest tabs .

Click Save to create the G/L Account. Posting payroll results to accounting is one of the subsequent activities performed after a successful payroll run. It usually takes place once each payroll period, as well as after each offcycle payroll run. Once you have exited the payroll run, you need to post the payroll results to the appropriate GL accounts (including cost centres). GL psoting does the following

Groups together posting-relevant information from the payroll results. Creates summarized documents. Performs the relevant postings to appropriate GL accounts and cost centers

How posting is evaluated? Each employees payroll result contains different wage types that are relevant to accounting:

Wage types such as standard salary, bonuses, and overtime represent expenses for the company, which are posted to a corresponding expense account. Wage types such as bank transfer, employment tax, employees contribution to social insurance, etc. are the employers payables to the employee, the tax office, etc. and are posted as credits to a corresponding payables or financial account. In addition, there are wage types such as the employers health insurance contribution, which represents an expense for the enterprise and, at the same time, a payable to the social insurance agency. For this reason, such wage types are posted to two accounts once debited as an expense, and once credited as a payable. Other types of wage types also exist, for example accruals, provisions, etc. These types of wage types are usually posted to two accounts, once debited as an expense and once credited as a provision.

Posting to General Ledger is a 2 STEP process :STEP 1) Create a Posting Run

Transaction: PC00_M99_CIPE Overview:

This step creates a posting run based on the payroll results, with a distinctive number, a run type PP, and the accompanying posting documents. The posting run ensures that payroll results for an employee are only posted once Processed payroll results for an employee are flagged If the posting run is successful, it gets the status Documents Created. If the posting run is unsuccessful, it gets the status Incorrect Documents. Relevant error messages will appear in the Output Log.

A posting run can be executed in 3 Modes:

A test run without documents (T) A simulation run with simulation documents (S) A productive run (P)

Test (T) In a test run, the system checks only whether the balance of expenses and payables is zero, as it should be. Simulation (S) In both simulation and productive runs, the system checks all HR and RT tables and the posting information in master data to determine whether they exist and whether they are consistent. Productive Run (P) When you choose Execute Run for a productive run, the system performs the following steps:

Selects the employees and their payroll results for the evaluation Creates a posting run Creates posting documents

Program Input Screen Enter Payroll Area , Selection Criteria , Type of Document Creation , Check Ouput Log , Enter Document Date and Choose a Posting Variant. Click Execute.

Output Log

The log shows whether the posting run was successful for all personnel numbers. You will obtain the list of all employees selected, in RED (indicates errors or imbalance) or GREEN (indicates no errors). In the Output Log, if it is successful posting run, the Doc. Creation will indicate ErrorFree. If it is unsuccessful, the Doc. Creation will indicate Incorrect. Write down the posting run number.

If you select the Document Overview button or double click the Doc. creation line, you can access the document overview screen

STEP 2) Editing a Posting Run Transaction : PCP0 Overview:

This step provides an overview of ALL documents created during the posting run. Alternatively, you can also access the document overview from the Create Posting Run log by choosing the Document Overview button or by double clicking on the Document Creation line. You can drill-down through these documents to identify the reasons for which errors have occurred for unsuccessful posting run (i.e., with an Incorrect status).

Posting Run Status

Initially the posting run status should be Documents created. If status is No documents created and you were expecting documents, go back to the previous Create a Posting Run step and retry. If there are Incorrect documents review the error message and resolve. Once Error are resolved and status is Document Created , Select Release Document Button and status will change to All Document Released Next click Post documents button , Status will change to Documents Posted

How to Block or Delete a G/L Account

Enter Transaction Code FS00 in SAP Command Field

In the next screen 1. Enter the G/L Account you want to block or delete 2. Enter the Company Code

For Blocking In the next step , Press the Block button

In the next screen, you have the blocking options for the G/L Accounts

For Deleting In the next step , Press the Mark for deletion button

In the next screen, you have the deletion options for the G/L Accounts

How to Display Changes in G/L Account Master

Enter the Transaction Code FS04 in the SAP Command Field

In the next screen, Enter the Following 1. Enter the G/L Account Number 2. Enter the Company Code

In the next screen , Select the Field from the list of Changed Fields

In the next screen, List is generated with New Value and Old Value of the field

How to create Financial Statement Version (FSV)

This tutorial takes you through the steps to create a Financial Statement Version

Enter Transaction code SPRO in the command field

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting -> Business Transactions -> Closing -> Document -> Define Financial Statement Versions

In the Next Screen, Select New Entries

In the Next Screen, Enter the Following 1. Enter the FSV Key 2. Enter the Description for the purpose of the FSV 3. Enter the language key designates the language in which you Display texts,Enter texts and Print documents. 4. Enter this indicator which specifies whether keys of f.s items are assigned manually or automatically when the financial statement versions are defined.

5. If we specify a COAhere, only accounts from this chart of accounts can be assigned when you are defining the financial statement. If you do not specify a chart of accounts, accounts from several charts of accounts can be assigned when you define the financial statement. 6. Enter this Indicator that specifies that the group account numbers should be assigned instead of the account numbers when you define the financial statement version. 7. Enter this indicator as it makes possible to assign functional areas or accounts in the financial statement version.

After maintaining the fields , press save

Enter your change request number

After the Financial Statement Version is saved you can edit its structure items by selecting

Financial statement items button

In the next screen, you can maintain nodes in version object A new version has seven basic nodes by default, listed below 1. Financial Statement Notes 2. Not Assigned 3. P+L result 4. Net result : loss 5. Net result : profit 6. Liabilities+Equity 7. Assets

We can maintain node text by double clicking on the node . We can create subitems to the node by selecting the node and pressing the create items button

New item will be created as subnode to the selected node. We can assign accounts or group of Accounts to a node by selecting the node and pressing Assign Accounts . Below is an example of such an assignment. 1. Primary Node Assets 2. Subnode Cash & Cash Equivalents are assigned to Assets . Petty cash is a subnode assigned to Cash & Cash equivalents.Other nodes are also assigned to Cash & Cash Equivalents such as : Checking,Citibank Account, Mellon Bank,Citibank Canada 3. Chart of Account key used for assigning accounts 4. Range of accounts assigned to node Petty Cash 5. Range of Accounts

After Maintaining the structure press Save

and we have successfully created a Financial

How to perform a Journal Entry Posting

This tutorial will take you through the steps involved in Posting a Journal Entry We will take a sample business transaction for the posting. Post General Ledger 5000 units of local currency are drawn from the house bank account in cash and put into petty cash. Enter the transaction code FB50

[break] In the next screen, Enter the document date in header part

Next select button Company Code

Enter the Company Code for the Transaction

In the Item details part , Enter the following 1. Enter Cash Account to be Debit 2. Select Debit 3. Enter Amount to be debited 4. Enter Bank account to be Credited 5. Select Credit 6. Enter Amount to be Credited

[break]Now check the status of the Document in Amount Information section

[break]In the Status Bar Document number is generated which confirms Document Posting.

How to Create a Fiscal Year Variant

Enter the Transaction code SPRO in the SAP Command Field and Press Enter

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path : SAP Customizing Implementation Guide Financial Accounting -> Financial Accounting Global Settings->Fiscal Years -> Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year )

In the next screen, Select New Entries from the Application Toolbar

In the next screen , Enter the following Data 1. Enter two digit unique fiscal year variant key 2. Enter a Description for Variant created. 3. If Fiscal Year is year dependent , that is if start and end dates for fiscal year changes between year, then select this option, normally it is used for shortened fiscal year. 4. If Fiscal Year is same as calendar year , that is Jan Dec , then select this option. 5. Enter the number of posting periods for this fiscal year 6. Enter the number of special posting periods for this Fiscal year, that is used for closing activities.

After entering all required data , Press Save from the standard toolbar

In the next screen, Enter the customizing request number and you have created a new Fiscal year Variant

For Maintaining the period dates , that is if the Fiscal year Variant is not Calendar Year, then we can maintain the Posting period by 1. Select the Fiscal Year Variant you want to maintain the period 2. Select the Periods folder

In the next screen , Maintain the periods for the Fiscal year in Ascending order

After maintaining the periods , Press Save in SAP Standard Toolbar

How to assign Company Code to a Fiscal Year Variant

Enter the Transaction code SPRO in the SAP Command Field and Press Enter

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path : SAP Customizing Implementation Guide -> Financial Accounting -> Financial Accounting Global Settings->Fiscal Years -> Assign Company Code to a Fiscal Year Variant

In the next screen , Assign Company code in the list with the corresponding Fiscal Year Variant

After the assignment , Press Save from the SAP Standard toolbar

In the next screen , Enter the customizing request number

You have successfully assigned Company code to Fiscal Year Variant You can also assign Fiscal Year Variant in the Company code via Company Code Global Parameters Settings.

How to Define Posting Period Variant

Enter the Transaction code SPRO in the SAP Command Field and Press Enter

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path :

SAP Customizing Implementation Guide -> Financial Accounting -> Financial Accounting Global Settings->Document -> Posting Periods -> Define Variants for Open Posting Periods

In the next screen, Press New Entries button

In the next screen, Enter the Following 1. Enter a unique Posting Period Variant Key 2. Enter a Description for the Variant

After maintaining the above information , Press Save from the SAP Standard Toolbar

In the next screen, Enter the Customizing Request number

You have successfully defined a Posting Period Variant

How to Open and Close Periods in Posting Period Variant

Enter the Transaction Code S_ALR_87003642 in the SAP Command Field

In the next screen, Position the Variant you want to maintain and account type for which you want to open or close the periods. Change the period , with following steps

1. Select Posting Period Variant 2. Select Account Type 3. Enter the Account number range for which you want to change the periods 4. Enter the Period to Open as per the Fiscal Year Variant of the Company Code assigned to the Posting Period Variant. 5. Enter the Period to which posting to be Open 6. Enter Any Special Period you want to Open

All Other periods will remain close for posting for the Account range mentioned After maintaining the periods, Press Save from the SAP Standard Toolbar

In the next screen , Enter the customizing request number

You have successfully maintained periods in Posting Period Variant

How to Define Field Status Variant and Field Status Group

Enter the Transaction code SPRO in the SAP Command Field and Press Enter

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path : SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting ->Business Transactions -> G/L Account Posting -> Make and Check Document Settings ->Define Field Status Variants

In the next screen , Select Create from Application Toolbar

In the next screen, Enter the Following 1. Enter a unique Field Status Variant Key 2. Enter Description for the purpose of Field Status Variant

In the next step , 1. Select the new Field Status Variant 2. Select Field Status Groups Folder

In the next screen, 1. Enter Field Status Groups for the Field Status Variant 2. Select Field Status Group and press Choose Detail button

In the next screen, Select the Field Group to maintain the status

In the next screen, Maintain the Field status of the Group Fields

Press Back for the SAP Standard Toolbar Similarly Maintain other Field Groups ,After maintaining all the Groups and Field Status Groups, Press Save from the SAP Standard Toolbar

In the next screen, Enter the Customizing Request number

You have successfully created a Field Status Variant and its Field Status Groups

How to Assign Field Status Variant to Company Code

Enter the Transaction code SPRO in the SAP Command Field and Press Enter

In the next screen Select SAP reference IMG

In next screen-Display IMG navigate the following menu path :

SAP Customizing Implementation Guide -> Financial Accounting -> General Ledger Accounting ->Business Transactions -> G/L Account Posting -> Make and Check Document Settings ->Assign Company Code to Field Status Variant

In the next screen, Maintain Appropriate Field Status Variants for the Company Code Listed

After Maintaining the Field Status Variant for the Company Code , Press Save from the SAP Standard Toolbar

In the next screen, Enter the Customizing Request number

You have successfully assigned the Company Code with Field Status Variant.

How to Define Document Type and Number Range

Enter Transaction Code SPRO in SAP Command Field

In the next screen, Select SAP Reference IMG

In the next screen Display IMG Follow the menu path Financial Accounting -> General Ledger Accounting -> Business Transactions -> G/L Account Posting -> Carry out and Check Document Settings ->Define Document Types

In the next screen, Press New Entries Button from the Application Toolbar

For Maintaining New Document Type In the next screen, Enter the Following 1. Enter a unique Document Type Key

2. Enter the Document Type description 3. Select a number range for the Document Type 4. In Account Type Allowed Section , select the Account type which you would like to do posting 5. Enter Appropriate Selection in the Control Data Section

Press Save button

In the next screen , Enter the Customizing request number to create the new G/L Document Type

For Maintaining new Number Range Press Number range Information Button in the properties section

In the next screen , 1. Enter the Company Code for which you want to maintain the number range 2. Press Change Interval Button

In the next screen , Press Insert Interval Button

In the next screen, 1. Enter a unique number range key 2. Enter the fiscal year for which the range is defined 3. Enter the Start Number and End Number of range without overlapping other Number Ranges 4. Mark it as External if you want to insert the Document number manually during document creation 5. Press Insert Button

In the next screen , the new number range is listed

How to Post a Document with Reference

Enter Transaction code FB50 in the SAP command Field

In the next screen, Select Goto-> Post with Reference from the SAP Standard Menu Bar

In the next screen , Enter the Following 1. Enter the Reference Document Number 2. Enter the Company Code the Document was posted 3. Enter the Fiscal Year in Which it was posted 4. Press Enter

In the next screen,Make appropriate changes in the document

Press Enter , In the next screen , Check the Document

Press Save, to Post the new document

How to Hold a G/L Document Posting

A user may want to temporarily save the document under following conditions

G/L Document is not complete User does not has complete or accurate information User wants to complete or correct the document at a later stage

Under such situations , you can HOLD a document without posting the document amount in the G/L Accounts.

Here is an Demo for Holding a G/L Account Document Enter Transaction Code FB50 for G/L Account Posting in SAP Command Field

In the next screen , Enter the following 1. Enter Document Date 2. Enter G/L Account To be Credited 3. Enter Credit Amount 4. Enter G/L Account To be Debited 5. Enter Debit Amount

Press Hold Button

In the next screen, Enter the Temporary Document Number and Press Hold Document

Check the status bar for the document to Held

How to Park a G/L Document Posting

In SAP ,User can be provided with Limited Authorization Amount for Posting . For example ,an Accounting clerk has authority to post documents to a maximum amount $5000. .While feeding document he finds that the document amount is $10000 for which he does not have the authority . In such cases, SAP has provided Park Facility for the document which allows the user to save the document but the amount is not posted in the G/L Accounts .The document can be later reviewed by High Authority Personnel who has appropriate posting amount authorization. Once approved , the document is posted in G/L Accounts. Here is an Demo for Parking a G/L Account Document Enter Transaction Code FB50 for G/L Account Posting in SAP Command Field

In the next screen , Enter the following 1. Enter Document Date 2. Enter G/L Account To be Credited 3. Enter Credit Amount 4. Enter G/L Account To be Debited 5. Enter Debit Amount

Press Park Button

Check the status for the Park Document Number.

Accounts Receivable