SAP FI-CO

Vol-1

MAHESH JAVAAJE

SANDYAXEROX
Gayatry nagar,Ameerpet,HYD.
CELL : 9676543657
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ENTERPRISE STRUCTURE CONFIGURATION

Creating Top Company:

The smallest organizational unit for which individual financial statements are created according to the relevant legal
requirements. A company can include one or more company codes.

The definition of the company organizational unit is optional.

A company’s financial statements also form the basis of consolidated financial statements.

All of the company codes within a company must use the same chart of accounts and fiscal year. However, each
company code can have a different local currency.

PATH: SPRO->Enterprise Structure->Definition->financial Accounting->Define Company.

Transaction Code: OX15

Database Table: T880

Click on IMG activity and click on New Entries in displayed window so it give following
window.

Give the required details as above screen shows. Now click save button and click on back button to go back
to SPRO screen.

When u click on save button the following window will display:

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Now just click clicks enter button or click on continue button.

Define Credit Control Area:

PATH: SPRO->Enterprise Structure->Definition->financial Accounting-> Define Credit Control Area.

Transaction Code: OB54

Database Table: T014, T014T

Click on IMG activity and click on New Entries in displayed window so it gives following
window.

Give the required details as above screen shows. Now click save button and click on back button to go back.

In the next screen just fill the Description against your credit control area which you created above as follow.

Edit, Copy, Delete, Check Company Code

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Now click save button and click on back button to go back to SPRO screen.

Edit, Copy, Delete, Check Company Code:

Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be
created. This includes the entry of all transactions that must be posted and the creation of all items for legal
individual financial statements, such as the balance sheet and the profit and loss statement.

The definition of the company code organizational unit is obligatory.

The company code is the central organizational unit of external accounting within the SAP System. You must define
at least one company code before implementing the Financial Accounting component. The business transactions
relevant for Financial Accounting are entered, saved, and evaluated at company code level.

You usually create a legally independent company in the SAP System with one company code. However, you can
also define a company code according to other criteria. A company code could also be a separate, but not
independent, commercial place of work. This is necessary for example, if the place of work is actually situated in a
different country and evaluations therefore have to be carried out in the appropriate national currency and in
accordance with other tax and legal specifications.

If you want to manage the accounting for several independent companies simultaneously, you can set up several
company codes in one client. You must set up at least one company code in each client.

If you use other components of the SAP System, you have to make assignments between the company code as the
central organizational unit of Financial Accounting, and the organizational units of the other components. This is
necessary to ensure that data can be transferred between the components.

PATH: SPRO->Enterprise Structure->Definition->financial Accounting-> Edit, Copy, Delete, Check Company

Code.

Transaction Code: OX02

Database Table: T880
Click on IMG activity and display following window.

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Now double click in “Edit Company Code Data” or select this line and click on chose button , so it

will take to another window now click on New Entries in displayed window so it gives following
window.

Now click save button so it will address window as follow:

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Once you filled all above required just click on continue button so it will save all the settings and to go back
click on back button to go back to SPRO screen.

Define Business Area:

Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility
in a company. Movements in value entered in Financial Accounting are assigned to business areas.

Financial statements can be created for business areas for internal purposes.

The definition of the business area organizational unit is optional.

Business areas are used in external segment reporting (over and above company codes), based on the significant
areas of operation of a company (for example, product lines, branches).
To post items in a business area, enter the business area when you enter the business transaction. However, the
business area can also be derived from other account assignments, such as the cost center. To enable the system to
do this, you must define the business area in the cost center master record.

PATH: SPRO->Enterprise Structure->Definition->financial Accounting->Define Business Area.

Transaction Code: OX02

Database Table: TGSB, TGSBT

Click on IMG activity and click on New Entries in displayed window so it give following
window.

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Like above any number of business area’s you can create.

Now click save button and click on back button to go back to SPRO screen.

Define Functional Area:

Account assignment characteristic that sorts operating expenses according to functions, for example:
1. Production
2. Administration
3. Sales
4. Research and development
You can enter the functional area in the master data of the following objects:
1. G/L account
2. Cost element
3. Cost center
4. Orders
Order type
Internal orders
Sales order for make-to-order production and requirements class
Maintenance, service, and QM order
Production order, product cost controller, and cost object hierarchy
5. WBS elements
Project profile and project definition
WBS element
6. Networks
Network type
Network header
Network activity
During posting, the system derives the functional area from the master data of the assigned objects.

In order that expenses can be sorted according to corporate functions, the system derives the functional area for the
following postings.
• Primary postings (postings in Financial Accounting) to a profit and loss account
• Secondary postings (allocations in Controlling)

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The functional area is derived for both objects involved in the allocation.
No functional area is derived in the following cases:
• Postings to balance sheet accounts
• When creating statistical key figures in Controlling

The system derives the functional area after saving. The derived functional area is thus first available in the
document created and not on the entry screen.

The system derives the functional area according to the following logic:
...
• The system derives the functional area from the master data of the assigned objects. If an object is assigned
during a posting, the system checks whether a functional area has been entered in the master record of the
object. The system retains this functional area. However, it may be overwritten by subsequent checks.

• The system derives the functional area from the master record of the G/L account or the cost element. The
system checks whether a functional area is entered in the master record of the cost element or the P&L account.
This functional area overwrites the functional area derived from the assigned object.

• The system derives the functional area via substitution for the component Financial Accounting, Event 0005. If
a functional area has already been defined, this is overwritten with the functional area obtained via substitution.

Definition of a substitution is necessary:

• Where you are not able to enter a functional area in the master data of an object, for example business process
or real estate objects.
• When you want to specify exceptions where derivation from the object should not occur.

PATH: SPRO->Enterprise Structure->Definition->financial Accounting-> Define Functional Area

Transaction Code: OKBD

Database Table: TFKB, TFKBT

Click on IMG activity and click on New Entries in displayed window so it give following
window.

Now click save button and click on back button to go back to SPRO screen.

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Maintain FM Area

PATH: SPRO->Enterprise Structure->Definition->financial Accounting-> Maintain FM Area

Transaction Code: OKBD

Database Table: FM01, FM01T

Click on IMG activity and click on New Entries in displayed window so it give following
window.

Now click save button and click on back button to go back to SPRO screen.

Define Segment:

Division of a company for which you can create financial statements for external reporting.

You can enter a segment in the master record of a profit center. The characteristic Segment is only released in
combination with the characteristic Profit Center. If no segment is specified manually during posting (only possible
for transactions in Financial Accounting), the segment is determined from the master record of the profit center. This
profit center can also be assigned manually or derived. If you want to apply different rules to derive the segment
during posting, you can define your own rules for this.

IAS requires for segment reporting primary and secondary segmentation, which have different reporting depth. A
distinction is made between the following types of segment:

Business segment
A business segment is a distinguishable subactivity of a company that relates to the manufacture of a product or the
provision of a service and that has risks and revenues that differ from those in other business segments.

Geographical segment

A geographical segment is a distinguishable subactivity of a company that relates to the manufacture of a product or
the provision of a service within a specific field of business. The risks and revenues of a geographical segment differ
from the subactivities in other fields of business.
You can choose which segment type you want to have as the primary or the secondary segmentation. You can use
the Segment dimension for the primary segmentation. You can represent the secondary segmentation in your system.
You can do this by including a user-defined field Region in your general ledger accounting, for example.

PATH: SPRO->Enterprise Structure->Definition->financial Accounting-> Define Segment

Database Table: FAGL_SEGM, FAGL_SEGMT

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Click on IMG activity and click on New Entries in displayed window so it give following
window.

Now click save button and click on back button to go back to SPRO screen.

Define, copy, delete, check plant:

PATH: SPRO->Enterprise Structure->Definition-> Logistics - General-> Define, copy, delete, check plant

Transaction Code: OX14

Database Table: T001W
Click on IMG activity and click on Define Plant in the following window.

Now click on New Entries in displayed window so it give following window.

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Now click on save button so it will display address window as follow.

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Click on enter button or click on continue button so it will save, click on back button to go back to SPRO
screen.

Define Location:

PATH: SPRO->Enterprise Structure->Definition-> Logistics - General-> Define Location

Database Table: T499S

Click on IMG activity and now click on New Entries in displayed window so it give following
window.

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Now click on save button so it will display address window as follow.

Click on enter button or click on continue button so it will save, click on back button to go back to SPRO
screen

Define, copy, delete, check division:

PATH: SPRO->Enterprise Structure->Definition-> Logistics - General-> Define, copy, delete, check division

Transaction Code: OVXB

Database Table: TSPA, TSPAT
Click on IMG activity and click on Define Division in the following window

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Now click on New Entries in displayed window so it give following window

Now click on save button and click on back button to go back to SPRO screen.

Define, copy, delete, check sales organization:

PATH: SPRO->Enterprise Structure->Definition-> Sales and Distribution-> Define, copy, delete, check sales
organization

Transaction Code: OVX5

Database Table: TVKO, TVKOT
Click on IMG activity and click on Define Sales Organization in the following window.

Now click on New Entries in displayed window so it give following window

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Now click on save button so it will display address window as follow.

Click on enter button or click on continue button so it will save, click on back button to go back to SPRO
screen

Define, copy, delete, check distribution channel:

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PATH: SPRO->Enterprise Structure->Definition-> Sales and Distribution-> Define, copy, delete, check distribution
channel

Transaction Code: OVXI

Database Table: TVTW, TVTWT
Click on IMG activity and click on Define Distribution Channel in the following window.

Now click on New Entries in displayed window so it give following window

Now click on save button and click on back button to go back to SPRO screen

Maintain sales office

PATH:: SPRO->Enterprise Structure->Definition-> Sales and Distribution-> Maintain sales office

Transaction Code: OVX1

Database Table: TVBUR, TVKBT

Click on IMG activity and Now click on New Entries in displayed window so it give following
window

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Now click on save button so it will display address window as follow.

.

Click on enter button or click on continue button so it will save, click on back button to go back to SPRO
screen

Maintain sales group:

PATH: SPRO->Enterprise Structure->Definition-> Sales and Distribution-> Maintain sales group.

Transaction Code: OVX4

Database Table: TVGRT, TVKGR.

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Click on IMG activity and now click on New Entries in displayed window so it give following
window

Now click on save button , and click on back button to go back to SPRO screen

Maintain storage location

PATH: SPRO->Enterprise Structure->Definition-> Materials Management-> Maintain storage location.

Transaction Code: OX09

Database Table: T001L, TWLAD
Click on IMG activity it will ask plant as follow.

Enter plant and click enter or continue button .

now click on New Entries in displayed window so it give following window

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Enter the storage location and description and save it.

Click on this Select this

line.

Now select your storage location and pre on “Address of Storage Location” under dialog structure. So it will display

the following window on this click on New Entries

In the above widow enter number 1 and click on save button so it will display address widow as follow.

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Click on enter button or click on continue button so it will save, click on back button to go back to SPRO
screen

Maintain purchasing organization

PATH: SPRO->Enterprise Structure->Definition-> Materials Management-> Maintain purchasing organization.

Transaction Code: OX08

Database Table: T024E

Click on IMG activity it will display following window on this click on New Entries .

in above screen fill required data and save button and click on back button to go back to SPRO screen

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Define, copy, delete, check shipping point:

PATH: SPRO->Enterprise Structure->Definition-> Logistics Execution -> Define, copy, delete, check shipping
point.

Transaction Code: OVXD

Database Table: TVST, TVSTT
Click on IMG activity it will display following window on this click on Define Shipping Point.

click on New Entries . And fill the required fields as follow.

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Now click on save button so it will display address widow as follow.

Click on enter button or click on continue button so it will save, click on back button to go back to SPRO
screen

Maintain loading point

PATH: SPRO->Enterprise Structure->Definition-> Logistics Execution -> Maintain loading point

Transaction Code: OVX7

Database Table: TVLA, TVLAT
Click on IMG activity it will display following window on this Define Shipping Point and click enter.

click on New Entries . And fill the required fields as follow.

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Now click on save button and click on back button to go back to SPRO screen.

Maintain transportation planning point

PATH: SPRO->Enterprise Structure->Definition-> Logistics Execution -> Maintain transportation planning point.

Transaction Code: OVXT

Database Table: TTDS, TTDST

Click on IMG activity it will display following window on this click on New Entries . And fill
the required fields as follow

Now click on save button so it will display address widow as follow.

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Click on enter button or click on continue button so it will save, click on back button to go back to SPRO
screen

ASSIGNMENT

Assign company code to company:

PATH: SPRO->Enterprise Structure-> Assignment -> Financial Accounting -> Assign company code to company.

Transaction Code: OX16

Database Table: T001
Click on IMG activity it will display following window, click on position button so
it will display the following small window:

On this entry your company code and pres enter or click on continue button. So it will display your company code at
the top of window as follow.

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In above screen 1102 is your company code for that you have to assign your top company code 1101.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign company code to credit control area

PATH: SPRO->Enterprise Structure-> Assignment -> Financial Accounting -> Assign company code to credit
control area.

Transaction Code: OB38

Database Table: T001
Click on IMG activity it will display following window, click on position button so
it will display the following small window:

On this entry your company code and pres enter or click on continue button. So it will display your company code at
the top of window as follow.

Against to your company code assign your credit control area.

Now click on save button to save and to back click on back button to go back to SPRO screen.

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Assign company code to financial management area:

PATH: SPRO->Enterprise Structure-> Assignment -> Financial Accounting -> Assign company code to financial
management area.

Transaction Code: OF18

Database Table: T001
Click on IMG activity it will display following window, click on position button so
it will display the following small window:

On this entry your company code and pres enter or click on continue button. So it will display your company code at
the top of window as follow.

Against to your company code assign your FM Area.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign plant to company code:

PATH: SPRO->Enterprise Structure-> Assignment -> Logistics - General-> Assign Assign plant to company code.

Transaction Code: OX18

Database Table: T001K, T001W, TASSIGN_MM_T001W
Click on IMG activity it will display following window, click on new Entries button .

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In the above screen enter your company code and plant.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign Business Area to Plant/Valuation Area and Division:

PATH: SPRO->Enterprise Structure-> Assignment -> Logistics - General-> Assign Business Area to
Plant/Valuation Area and Division

Transaction Code: OMJ7

Database Table: T134G, T134H
Click on IMG activity it will display following window, click on Plant/valuation area – Division button

It will display following window, click on new Entries button .

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Now fill the details of plant, division, business area.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign sales organization to company code:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution  Assign sales organization to
company code

Transaction Code: OVX3

Database Table: TASSIGN_SD_VKORG, TVKO
Click on IMG activity it will display following window, click on position button so
it will display the following small window:

On this entry your sales organization and pres enter or click on continue button. So it will display your company
code at the top of window as follow.

To your sales organization assign your company code.

Now click on save button to save and to back click on back button to go back to SPRO screen.

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Assign distribution channel to sales organization:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Assign distribution channel to sales
organization.

Transaction Code: OVXK

Database Table: V_TVKOV_ASSIGN, TVKOV
Click on IMG activity it will display following window, click on new Entries button .

In the above screen assign distribution channel to sales organization.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign division to sales organization:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Assign division to sales
organization.

Transaction Code: OVXA

Database Table: V_TVKOS_ASSIGN, TVKOS
Click on IMG activity it will display following window, click on new Entries button .

In the above window assign division to sales organization.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Set up sales area:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Set up sales area.

Transaction Code: OVXG

Database Table: V_TVTA_ASSIGN, TVTA

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Click on IMG activity it will display following window, click on new Entries button .

Assign sales organization to distribution channel and distribution channel to division.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign sales office to sales area:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Assign sales office to sales area

Transaction Code: OVXM

Database Table: V_TVKBZ_ASSIGN, TVKBZ
Click on IMG activity it will display following window, click on new Entries button .

In this screen assign sales organization to distribution channel, distribution channel to division, division to sale
office.
Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign sales group to sales office:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Assign sales group to sales office.

Transaction Code: OVXJ

Database Table: V_TVBVK_ASSIGN, TVBVK
Click on IMG activity it will display following window, click on new Entries button .

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In this screen sales group is assigned to sales office.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign sales organization - distribution channel – plant:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Assign sales organization -
distribution channel – plant.

Transaction Code: OVX6

Database Table: V_TVKWZ_ASSIGN, TVKWZ
Click on IMG activity it will display following window, click on new Entries button .

Assign sales organization to distribution channel and distribution channel to plant.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign sales area to credit control area:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Assign sales area to credit control
area.

Transaction Code: OVFL

Database Table: V_TVTA_KKB, TVTA

Click on IMG activity it will display following window, click on button.

So your sales area will appears at top of screen.

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Assign credit control area to sales area.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Define Rules By Sales Area:

PATH: SPROEnterprise Structure Assignment  Sales and Distribution Business Area Account
Assignment Define Rules By Sales Area.

Transaction Code: OVF2

Database Table: V_TVTA_GRE, TVTA

Click on IMG activity it will display following window, click on button.

Now pres enter so your sales organization display on the top of window.

In this step assign Rule 1 to your sales organization.

“1-Business area determination from plant/division (T134G)”

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Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign purchasing organization to company code

PATH: SPROEnterprise Structure Assignment  Materials Management  Assign purchasing organization to

company code.

Transaction Code: OX01

Database Table: V_T024E_ASSIGN, T024E

Click on IMG activity it will display following window, click on button.

Type your purchasing organization and pres enter so that will appears on the top of the scree.

Now assign your company code to your purchasing organization.

Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign purchasing organization to plant:

PATH: SPROEnterprise Structure Assignment  Materials Management  Assign purchasing organization to

plant

Transaction Code: OX17

Database Table: W_T024W_ASSIGNT024W
Click on IMG activity it will display following window, click on new Entries button .

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Now click on save button to save and to back click on back button to go back to SPRO screen.

Assign shipping point to plant

Assign purchasing organization to plant:

PATH: SPROEnterprise Structure Assignment  Logistics Execution Assign shipping point to plant

Transaction Code: OVXC

Database Table: OVXC, TVSWZ

The following widow will display now pres ctrl+f

In the small window type your plant and pres enter so your plant will appears on the top of screen as follow.

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Double click on your plant

Flag on the heck box which

is your shipping point

In this screen double click on your plant so it will display another window on this small window search your
shipping point and flag the check box and pres enter or continue button so your shipping point will assign to your
plant.

Like above your assignment will be completed.

Now click on save button to save and to back click on back button to go back to SPRO screen.

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Define Common Distribution Channels

PATH: SPRO Sales and Distribution Master Data Define Common Distribution Channels.

Transaction Code: VOR1

Database Table: TVKOV, TVTA

Click on IMG activity and click on so it will display the following window:

In the above window enter your sales organization and pres enter or click on continue button.
It will display your sales organization on the top of window as follow:

In this screen assign your distribution Channel to your sales organization.

Now click save button and click on back button to go back.

Define Common Divisions

PATH: SPRO Sales and Distribution Master Data Define Common Divisions

Transaction Code: VOR2

Database Table: TVKOS, TVTA

Click on IMG activity and click on so it will display the following window:

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In the above window enter your sales organization and pres enter or click on continue button.
It will display your sales organization on the top of window as follow:

In the above screen assign division to your sales organization.

Now click save button and click on back button to go back.

FISCAL YEAR

You have the following options for defining your fiscal year variants in relation to the calendar year:

Fiscal year same as calendar year

Fiscal year differs from calendar year (non-calendar fiscal year). The posting periods can also be different to the
calendar months.

Your fiscal year is year-dependent

This means that the fiscal year only applies to a specific calendar year.

Fiscal Year Same as Calendar Year

If your fiscal year is the same as the calendar year, the following specifications apply:

• The fiscal year begins on January 1.

• Twelve posting periods are available.
• The periods correspond to calendar months. You do not have to define the individual periods. The system
automatically uses the calendar months.

Non-Calendar Fiscal Year

If your fiscal year differs from the calendar year, you must specify:

• How many posting periods you require

• How the system should determine the posting period and fiscal year from the posting date during posting:
• To enable the system to determine the posting period, specify month and day limits for the end of each
period.

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Fiscal Year
Since your fiscal year is not the same as the calendar year, you have to specify the year displacement for each
posting period. You can use the entries -1, 0, and +1 for this.

In the illustration that follows, your fiscal year begins on April 1 and ends on March 31. The period limits
correspond to the beginning and end of the calendar months.

Since the fiscal year does not correspond to the calendar year, you specify how the fiscal year is to be determined by
entering the year displacement. If you post with a posting date of 02/03/99, the system uses your definition of the
fiscal year variant to determine that posting period 11 is in fiscal year 1998.

Posting Periods Do Not Correspond To Calendar Months. If you are using a non-calendar fiscal year, and your
posting periods do not correspond to the calendar months, define the difference by specifying the day of the period
end.

Your fiscal year begins on April 16 and ends on April 15. The start and end of your posting periods do not
correspond to the start and end of a calendar month.

You must split the period 12/16 to 01/15 in two posting periods, since you require different specifications for the
year displacement. This means that for posting period 9, you have to define two posting periods (with year
displacements 0 and -1).

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In the example given, the system would determine the following posting periods and fiscal years from the posting
dates given:

Posting Date Year Displacement Period Fiscal Year

20.12.1998 0 9 1998

13.01.1999 -1 9 1998

Year-Dependent Fiscal Year Variants

You can define a year-dependent fiscal year variant. This is a fiscal year variant that only applies to a specific
calendar year.

To do this, select the field Year-dependent when you define your fiscal year variants. You then have to enter the
period ends, defined by month and day limits, for each calendar year.
In this case, the year displacement specifications refer to the calendar year for which you have defined posting
periods. The year is displayed when you maintain the period ends.

Special Periods
Special posting periods that subdivide the last regular posting period for closing operations.
Irrespective of how you have defined your fiscal year, you can also use special periods. Special periods subdivide
the year-end closing period. They therefore merely divide the last posting period into several closing periods. This
enables you to create several supplementary financial statements.

A fiscal year usually has 12 posting periods. In General Ledger Accounting, you can define up to four special
periods.
If you do not need 12 posting periods, you can use the posting periods that are not required as special periods. If you
use these additional closing periods, you must specify the number you require in the field No. special periods. when
defining the fiscal year variants. You cannot exceed a maximum of 16 periods.

When posting to special periods, you must take the following into consideration:
• The posting date must fall within the last regular posting period.
• You have to enter the special periods in the document header in the Period field, since the special periods
cannot be determined automatically by the system.

Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) LedgersFiscal
Year and Posting PeriodsMaintain Fiscal Year Variant (Maintain Shortened Fisc. Year).

Transaction code: OB29

Database Table: T009, T009T

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Click on (IMG Activity), it will take to another screen. Here pres on .

Click on save button to save the activity and go back to SPRO screen.

NOTE: If your Fiscal Year is Non-Calendar year (with 12 months) the following way is to perform the activity.

Click on (IMG Activity), it will take to another screen. Here pres on .

2) Double click on
this structure 1) Select this line

Click on save button to save the activity and select the line which you just enter and double click on periods
option under dialog structure, so it will take to another screen as follows.

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Click on save button to save the activity and go back to SPRO screen.

NOTE: If your Fiscal Year is Non-Calendar year with 24 months the following way is to perform the activity.

Double click on
this structure
Select this line

Click on save button to save the activity and select the line which you just enter and double click on periods
option under dialog structure, so it will take to another screen as follows.

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Click on save button to save the activity and go back to SPRO screen.

Assign Company Code to a Fiscal Year Variant

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) LedgersFiscal
Year and Posting Periods Assign Company Code to a Fiscal Year Variant.

Transaction code: OB37

Database Table: T001, T882

Click on (IMG Activity), in this screen click on button, so it will display an small
window:

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Enter your company code and pres enter button or click on continue button. Your company code will display on the
top of the screen as follow.

Now enter your Fiscal Year Variant.

Click on save button to save the activity and go back to SPRO screen.

POSTING PERIODS

When you record a document, you enter the posting date. When you post the document, the system uses the posting
date specified to automatically determine the posting period. The posting period consists of a month and a fiscal
year.
These are both displayed in the document overview. The posting period determined is entered in the document and
the transaction figures for this period are updated.

For postings to the previous fiscal year, the system carries out the following adjustments:
For balance sheet accounts, the system adjusts the carry forward balance of the accounts concerned in the current
fiscal year.

For profit and loss accounts, the profit or loss carried forward to the retained earnings account is adjusted.

Define Variants for Open Posting Periods

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) LedgersFiscal
Year and Posting Periods Posting Periods Define Variants for Open Posting Periods.

Transaction code: OBBO

Database Table: T010O, T010P
Click on (IMG Activity), it will take to another screen. Here pres on .

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Enter new variant and description in this screen.

Click on save button to save the activity and go back to SPRO screen.

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Assign Variants to Company Code

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) LedgersFiscal
Year and Posting Periods Posting Periods Assign Variants to Company Code.

Transaction code: OBBP

Database Table: T001

Click on (IMG Activity), in this screen click on button, so it will display an small
window:

Enter your company code and pres enter button or click on continue button. Your company code will display on the
top of the screen as follow.

In this screen assign your posting periods variant (which you created in above step) to your company code.

Click on save button to save the activity and go back to SPRO screen.

Open and Close Posting Periods

You define posting periods in your fiscal year variants. You can open and close these posting periods for posting. As
many periods as you require can be open for posting simultaneously.

Usually, only the current posting period is open for posting, all other posting periods are closed. At the end of this
posting period, the period is closed, and the next posting period is opened. Special periods can be open for closing
postings during the period-end closing. You have the following options for opening and closing posting periods.
Posting Period Variants

You can specify which company codes are open for posting in a posting period variant. Posting period variants are
cross-company code and you have to assign them to your company codes. The posting periods are then opened and
closed simultaneously for all company codes via the posting period variants.

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Working with posting period variants is recommended if you are responsible for a large number of company codes.
Since you only have to open and close the posting period once for the variant, your work is considerably reduced.
Account Type

You can differentiate the opening and closing of posting periods by account type. This means that for a specific
posting period, postings can be permitted to customer accounts, but not to vendor accounts. For each posting period
that should be open, you must always specify at least account type. You can exercise more detailed control by
specifying further account types.

Using the minimum entry, when you enter the posting date in the document header, the system checks whether the
posting period determined in the posting period variant can be posted to. As soon as you then enter an account
number, in a second step, the system checks whether the posting period is permitted for the account specified.

Account Interval

You can differentiate the opening and closing of posting periods by account intervals. This means that you only
open a posting period for posting to a specific account.

Account intervals always apply to G/L accounts. If you want to open sub ledger accounts, you have to enter the
corresponding reconciliation account and the account type.
During the closing operations, you can, for example, use the reconciliation accounts to close customer and vendor
accounts before G/L accounts. This allows you to prevent further postings to these accounts after you have
confirmed the balances with your customers and vendors. Balance confirmation is one of the prerequisites for
further closing operations.

You can open and close posting periods only for specific users. To do this, enter an authorization group at document
header level. This authorization group is effective only in time period 1 and prevents users who do not have the
appropriate authorization for the authorization object F_BKPF_BUP (accounting document: Authorization for
posting periods) from posting in periods which are only open for time period 1.

Example:

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) LedgersFiscal
Year and Posting Periods Posting Periods Open and Close Posting Periods.

Transaction code: OB52

Database Table: T001B
Click on (IMG Activity), it will take to another screen. Here pres on .

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Enter the parameters as the client required.

Click on save button to save the activity and go back to SPRO screen.

Define Ledgers for General Ledger Accounting

Ledger

A ledger is a section of a database table. A ledger only contains those dimensions of the totals table that the ledger is
based on and that are required for reporting.

In General Ledger Accounting, you can use several ledgers in parallel. This allows you to produce financial
statements according to different accounting principles, for example. You create a ledger for each of the general
ledgers you need.
A ledger uses several dimensions from the totals table it is based on. Each dimension of the totals table represents a
subset of the coding block. You can also include customer fields in your ledgers. To do this, you have to add the
customer field to the coding block and then include this field in the totals table that the ledger is based on.

Non-leading ledger

The non-leading ledgers are parallel ledgers to the leading ledger. They can be based on a local accounting principle,
for example. You have to activate a non-leading ledger for the individual company codes.

Posting procedures with sub ledger or G/L accounts managed on an open item basis always affect all ledgers. This
means that you cannot perform ledger-specific postings to sub ledger or G/L accounts managed on an open item
basis. If you manage G/L accounts on an open item basis to monitor accounting aspects such as reserve allocations
and reversals, you need to take additional measures in your internal controls system.

Non-leading ledgers can have different fiscal year variants and different posting period variants per company code
to the leading ledger of this company code. The second and third currency of the non-leading ledger must be a
currency that is managed as second or third currency in the respective company code. However, you do not have to
have a second and third currency in the parallel ledgers; these are optional. Alternative currencies are not possible.

Rollup ledgers

In addition to your parallel ledgers, you can also define a rollup ledger for special reporting purposes. In a rollup
ledger, you can combine summarized data from other ledgers in General Ledger Accounting. This enables you to
compile cumulated reports on different ledgers.

Day ledgers

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You use a day ledger to create a day ledger if you want to create reports for average balances (reports for displaying
average daily balances). You can activate the day ledger for drilldown reporting.
You may not define day ledgers as the leading ledger or as the representative ledger in a ledger group.

NON – LEADING LEDGERS

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Ledgers
Ledgers Define Ledgers for General Ledger Accounting

Database Table: T881; FAGL_TLDGRP; FAGL_TLDGRPT; FAGL_TLDGRP_MAP; V_FAGL_T881

Click on (IMG Activity), it will take to another screen. Here pres on .

Click on this F4
function to get this
Totals Table

Click on save button to save the activity and go back to SPRO screen.
Define and Activate Non-Leading Ledgers

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Ledgers
Ledgers Define and Activate Non-Leading Ledgers

Database Table: V_FAGL_T882G, T882G

Click on (IMG Activity), It will display an small window and ask for a ledger:

Enter your one of the non-leading ledgers (X1) and pres enter or click continue button so it will take to another
screen. Now pres button.

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C1: Currency type First Currency

FV: Fiscal year variant
VAR: Posting Periods Variant

In this screen enter relevant parameters save it and go back to SPRO screen and again pres the same IMG
activity.

Now enter your another non-leading ledger (x2) and pres enter or click continue button so it will take to another
screen. Now pres button.

Click on save button to save the activity and go back to SPRO screen.

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Activate Cost of Sales Accounting

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Ledgers
Ledgers Activate Cost of Sales Accounting.

Database Table: T001

Click on (IMG Activity), so will take you to screen there click on button so it will
display following small window:

Enter your company code and pres enter button or click on continue button. Your company code will display on the
top of the screen as follow

Click on this so it
will display options

Options or 1. Inactive 2. In preparation 3. Active

Out of above 3 options select Active option against your company code.

Click on save button to save the activity and go back to SPRO screen.

Define Field Status Variants

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) LedgersFields
Define Field Status Variants.

Transaction Code: OBC4

Database Table: T001F, T001G, T001V, T001W

Click on (IMG Activity), it will take open the screen.

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2) After selecting
FSTV click on this
copy as button 1) Select this FSTV

in this screen select “1000” Field status variants and pres Cops as Button so it will display the following screen.

In the above screen change the FStv and field status name as follow.

1) click on
this button

After changing the name of variant and description just pres enter button it will display an small information
window. Now we have to click on “Copy all ” it will display another information button just pres enter or continue
button.

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Your field status is copied:

Click on save button to save the activity and go back to SPRO screen.

Assign Company Code to Field Status Variants

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) LedgersFields
Assign Company Code to Field Status Variants.

Transaction Code: OBC5

Database Table: T001

Click on (IMG Activity), so will take you to screen there click on button so it will
display following small window:

Enter your company code and pres enter button or click on continue button. Your company code will display on the
top of the screen as follow

In the above screen assign you field status variant to your company code:

Click on save button to save the activity and go back to SPRO screen.

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DOCUMENT TYPES

Document types we distinguish between original documents and IT documents. Examples of original documents are
receipts, invoices, checks, or bank statements. Examples of IT documents are accounting documents, sample
documents, or recurring entry documents.

The accounting document reproduces the original document in the system. All other IT documents are used as entry
tools. Each document then remains in the system as a coherent unit until it is archived.

Documents are essential for checking the accuracy of postings in the compact journal and general ledger. For this
reason, each posting is based on a document.
Documents represent the link between the business transaction and posting in accounting.

Only complete documents can be posted in the SAP system. "Complete" means that the balance from the debit and
credit items is zero. Further conditions for posting a document are that you must enter the basic account assignment
data, such as document date, posting date, document type, posting key, account number, and amounts. You must
make entries in all the required fields (these are defined as "required" during system configuration).

A document consists of a document header and at least two document line items:

● Document Header

The document header is a part of the document that contains information that applies to the entire document, such as
the document date and document number. It also includes controlling information such as the document type.

● Document Line Item

The document line item is a part of the document that contains information on an item. This includes the amount, an
account number, whether the item is a debit or credit, and additional information depending on the transaction to be
posted. A document line item can also contain additional account assignments (for example, profit center, cost
center) and an explanatory text.

• Document Views

You can display a document in two different views in General Ledger Accounting:

● Entry View

In the entry view, a document contains the document line items originally entered or transferred from the original
component.

● General Ledger View

In the general ledger view, a document contains the document line items originally entered or transferred from the
original component, split line items generated by document splitting, or additionally generated clearing items.
Documents in the general ledger view always apply to a specific ledger.

You can display the posted documents in the entry view and in the general ledger view. For more information, see
Document Display.

The document type has the following functions:

Differentiating between business transactions. The document type tells you instantly what sort of business
transaction is in question. This is useful, for example, when displaying line items for an account.

Controlling the posting to account types (vendor, customer, or G/L accounts). The document type determines which
account types that particular document can be posted to.

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Assigning document numbers:

A number range is assigned to every document type. The numbers for the documents you create are taken from this
number range. The original documents from one number range should be stored together. In this way, the document
type controls document storage.

To ensure that the document numbers in the leading ledger as well as those in the non-leading ledgers do not present
any gaps, you should define a document type with its own number range for postings from valuations to the leading
ledger. You then use this document type for valuation postings to the non-leading ledgers as well. Notwithstanding,
you assign a distinct number range to this document type for postings from valuations to non-leading ledgers.

In General Ledger Accounting, the document types you define for the documents in the entry view need to be
different to those for the documents in the general ledger view:

Document Types for Documents in Entry View

For your leading ledger, you can use the document types delivered by SAP or you can define your own document
types.

For your non-leading ledgers, you only need to define separate document types for documents in the entry view for
those ledgers that are used as the representative ledger in a ledger group.

Document Types for Documents in General Ledger View

For the leading ledger, the document in the entry view corresponds to the document in the general ledger view.
Consequently, you do not need to define separate document types for documents in the general ledger view.

For your non-leading ledgers, you only need to define separate document types for documents in the general ledger
view if the fiscal year variant of the non-leading ledger differs from the fiscal year variant of the leading ledger in a
given company code.

Define Document Types for Entry View

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Document
Document Types Define Document Types for Entry View

Transaction Code: OBA7

Database Table: T003, T003T

Click on (IMG Activity), so will take you to screen as follow.

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Select this details

button

Select Document
Type

Select one of the document type and select details button.

Like above for every document type it has its own parameters as per the transaction requirement. SAP has provided
all the Document Types for an industry so no need to prepare any new one.

If you want to prepare any new Document Type pres on and fill the parameters as follow:

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Click on save button to save the activity and go back to SPRO screen.

Define Document Types for Entry View in a Ledger

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Document
Document Types Define Document Types for Entry View in a Ledger

Database Table: T003, T003T

Click on (IMG Activity), so it will display the follow window.

“X1” is the Non-Leading Ledger which we created in above steps.

Now pres enter or click on continue button and pres

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Click on save button to save the activity and go back to SPRO screen.

Now again Click on (IMG Activity), “Define Document Types for Entry View in a Ledger “so it will display the
follow window

“X2” is the Non-Leading Ledger which we created in above steps.

Now pres enter or click on continue button and pres

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Click on save button to save the activity and go back to SPRO screen.

Define Document Types for General Ledger View

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New)

DocumentDocument Types Define Document Types for General Ledger View

Click on (IMG Activity), so it will display the follow window.

“X1” is the Non-Leading Ledger which we created in above steps.

Now pres enter or click on continue button and pres

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Click on save button to save the activity and go back to SPRO screen.

Now again Click on (IMG Activity), “Define Document Types for General Ledger View “so it will display the
follow window

“X2” is the Non-Leading Ledger which we created in above steps.

Now pres enter or click on continue button and pres

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Click on save button to save the activity and go back to SPRO screen.

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DOCUMENT NUMBER RANGES

In the SAP System, every document is assigned a number that identifies it uniquely within a fiscal year and
company code.

There are two types of number assignment:

External (by the user)

The accounting clerk enters the number of the original document during document entry, or the number is
transferred automatically from a pre-invoicing system. A prerequisite is that the document numbers are unique. The
system checks whether the number entered already exists and prevents users from assigning the same number twice.
Numbers assigned to documents that have been archived however, can be reused.

Internal (by the system)

The system automatically assigns a sequential number. The accounting clerk transfers this SAP document number to
the printed original document and then files it using this number. This method is used if the original documents do
not have a unique document number. This is the case, for example, with vendor invoices.
You use a number range to define how the document number is assigned. Each document type has a specific number
range from which the document number is selected.

When you reverse documents, the system automatically assigns a number for the reverse document. To do this, the
system requires a document type that has internal number assignment. Every document type with external number
assignment must therefore be assigned a reverse document type that has internal number assignment.
Documents posted with a document type that has internal number assignment are reversed by the system using the
same document type if you do not specify a separate reverse document type.

Defining Number Ranges

You can define number ranges as follows:

You can define number ranges for each company code. Thus, each company code can use the same number interval.
You can define number range intervals as year-specific.

You define number ranges in the system separately for master records and documents. You can therefore use the
same number range keys for both master records and documents.

In the Financial Accounting (FI) component, you can also define alphanumeric number ranges. In this case,
however, the document numbers can only be assigned externally.

It is advisable to select year-specific number ranges. You therefore only need smaller intervals and can store the
document numbers separately according to fiscal years. You therefore avoid documents from the old and New Year
alternating in January.

Since documents may be kept in the system for an indefinite amount of time, you need to define intervals that are
large enough to handle this factor.

To do this, you need to determine the volume of documents created each year for document types that use the same
number range.

Multiply the number of documents by the number of years the system can retain a document for. This gives you the
required interval capacity.

Specify an interval a little larger than that to make sure it is sufficient.

For every number range, you must specify the following parameters:
• A key
• A validity date (a year value) until which the number range is valid (see 2 in the following diagram)

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• An interval from which the numbers are chosen (see 3 in the following diagram) The intervals for number
ranges must not overlap.

Define Document Number Ranges for Entry View

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Document
Document Number Ranges Define Document Number Ranges for Entry View

Transaction Code: FBN1

Click on (IMG Activity), so will take you to screen as follow.

Now enter your company code and pres on Edit Intervals button it will go to another screen as follow.

Now click on insert inter intervals button so it will display an separate window as follow.

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After entering above data pres enter or click on insert button so the data which you entered will com to mail
screen.

Now again click on insert inter intervals button so it will display same window and enter another number range and
interval.

These 2 are Non-Leading

Number ranges, these also
should be maintain in this
screen

Note: in the above screen we have to maintain the Non-Leading ledger Number ranges also.
Click on save button to save the activity and go back to SPRO screen.

Define Document Number Ranges for General Ledger View

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Document
Document Number Ranges Define Document Number Ranges for General Ledger View.

Transaction Code: FBN1

Click on (IMG Activity), so will take you to screen as follow.

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Now enter your company code and pres on Edit Intervals button it will go to another screen as follow.

Now click on insert inter intervals button so it will display an separate window as follow.

After entering above data pres enter or click on insert button so the data which you entered will com to mail
screen.

Now again click on insert inter intervals button so it will display same window and enter another number range and
interval.

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After entering above data pres enter or click on insert button so the data which you entered will com to mail
screen.

Click on save button to save the activity and go back to SPRO screen.

Define Posting Keys

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PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Document Define
Posting Keys.

Transaction Code: OB41

Click on (IMG Activity), so will take you to screen as follow.

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Like above all posting keys are available in sap.

Put curser on one of the key and select details button as follow:

The above screen shows the parameters of each posting key. If your want to create new one just click on Create
button and give maintain parameters and save it.

Most of all required posting are provided by SAP so need to create any new one.

GENERAL
CUSTOMERS VENDORS ASSETS MATERIALS
LEDGER
Transaction Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
Posting key 0 1 2 3 4 5 7 7 8 9

0:Accounting Document 40 50 70 75
1: Invoice / Credit Memo 01 11 21 31
2: Reverse Invoice / Credit
02 12 22 32
Memo
3: Bank Charges / Reverse
03 13
Bank Charges
4: Other Receivable
04 14 24 34
Payments
5: Outgoing / Incoming
05 15 25 35
Payments
6: Payment Clearing 06 16 26 36
7: Other Clearing 07 17 27 37
8: Payment Clearing 08 18 28 38
9: Spl GL Transaction 09 19 29 39

0: Inventory Taking 80 90

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1: Inventory Cost 81 91
2: Inventory Difference 82 92
3: Prince Difference 83 93
4: Consumption 84 94
5: Changes in Stock 85 95
6: GR / IR 86 96
9: Stock Inward Movement 89 99

The above table describes how posting keys are formulated for each transaction.

Define Tolerance Groups for Employees

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Document
Tolerance Groups Define Tolerance Groups for Employees.

Transaction Code: OBA4

Database Table: T043T

Click on (IMG Activity), so will take you to screen here click on it will take to following screen.

Maintain above parameters and save

Click on save button to save the activity and go back to SPRO screen.

Define Tolerance Groups for G/L Accounts

PATH: SPROFinancial Accounting (New) General Ledger Accounting (New) Business Transactions
Open Item Clearing Clearing Differences Define Tolerance Groups for G/L Accounts.

Transaction Code: OBA0

Database Table : T043S

Click on (IMG Activity), so will take you to screen here click on it will take to following screen.

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Click on save button to save the activity and go back to SPRO screen.

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Define Tolerances (Vendors)

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Business
Transactions Outgoing Payments Menual Outgoing Payments Define Tolerances (Vendors).

Transaction Code: OBA3

Database Table: T043G, T043GT

Click on (IMG Activity), so will take you to screen here click on it will take to following screen.

Click on save button to save the activity and go back to SPRO screen.

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Chart of Account

Chart of Accounts
The chart of accounts list is a directory of all charts of accounts that can be used in a client. This is a list of all G/L
accounts used by one or several company codes.

For each G/L account, the chart of accounts contains the account number, account name, and the information that
controls how an account functions and how a G/L account is created in a company code.You have to assign a chart
of accounts to each company code. This chart of accounts is the operating chart of accounts and is used for the daily
postings in this company code.

You have the following options when using multiple company codes:
You can use the same chart of accounts for all company codes
If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual
company codes to the same chart of accounts. This could be the case if all company codes are in the same country.
In addition to the operating chart of accounts, you can use two additional charts of accounts

If the individual company codes need different charts of accounts, you can assign up to two charts of accounts in
addition to the operating chart of accounts. This could be the case if company codes lie in multiple countries.

The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When
creating the balance sheet or the profit and loss statement, you can choose whether to balance the company codes
which use different charts of accounts together or separately.

Structure
Charts of accounts can have three different functions in the system:

• Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your company code during
daily activities. Financial Accounting and Controlling both use this chart of accounts.
You have to assign an operating chart of accounts to a company code.

• Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the
company to provide reports for the entire corporate group.
The assigning of an corporate group chart of accounts to a company code is optional.

• Country-specific chart of accounts

The country-specific chart of accounts contains the G/L accounts needed to meet the country's legal requirements.
This allows you to provide statements for the country's legal requirements.
The assigning of an country-specific chart of accounts to a company code is optional.

The operating chart of accounts is shared by Financial Accounting as well as Controlling. The accounts in a chart of
accounts can be both expense or revenue accounts in Financial Accounting and cost or revenue elements in
cost/revenue accounting.

G/L account master data in the chart of accounts area contains information about the G/L account that is valid for
all company codes. The chart of accounts area also contains data that controls how a G/L account is created in the
company code-specific area.

To make certain that company codes using the same chart of accounts can also use the same G/L accounts, a master
record is created for the G/L account in the chart of accounts and in the company code-specific areas.

The following information is contained in the chart of accounts area of a G/L account master record.
• The chart of accounts

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• The account number and account name (short and long text)
• The indicator that specifies whether the account is a balance sheet account or an P&L statement account.

At the start of a new fiscal year, the balance of a balance sheet account is carried forward to itself. With P&L
statement accounts, you must specify the account to which the profit or loss is carried forward at the end of a fiscal
year.

The account group

With the account group, you group similar accounts together and control the creating and changing of master
records. They control

The account number interval in which the account number must lie.
The screen layout for creating G/L accounts in the company code-specific area. This means that you can define
whether fields require an entry, may have an entry, or are hidden when creating or changing a master record in the
company code-specific area.

Edit Chart of Accounts List

If you enter a chart of accounts in the chart of accounts list, note the importance of the following settings:
Maintenance language

The chart of accounts is created and changed in one language, the maintenance language. This means that the names
of the G/L accounts are created and changed in the maintenance language. If the chart of accounts is used by
multiple company codes using varying languages, you can translate the account names into the languages needed.

Group chart of accounts

You can assign an alternative group chart of accounts to the chart of accounts.
Length of the G/L account number

You can define the length of the G/L account numbers. The maximum length is ten characters. Internally, the system
keeps the account numbers with a ten character length. The system pads purely numeric account numbers with
zeroes from the left, and alphanumeric account numbers from the right.

PATH: SPROFinancial Accounting (New) General Ledger Accounting (New) Master Data G/L
Accounts Preparations Edit Chart of Accounts List.

Transaction Code: OB13

Database Table: T004, T004T

Click on (IM Activity), so will take you to screen here click on it will take to following screen.

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Click on save button to save the activity and go back to SPRO screen.

Define Account Group

The account group is a summary of accounts based on criteria that effects how master records are created.

The account group determines:

• The number interval from which the account number is selected when a G/L account is created.
• The screen layout for creating G/L accounts in the company code-specific area

When you create a G/L account in the chart of accounts area, you must specify an account group. Using the account
group, you can group the G/L accounts according to functional area. The account group also defines the set up when
creating a G/L account in the company code and chart of accounts. By defining the number interval and the screen
layout, you simplify G/L account creation by reducing the number of entry fields.

The account group contains the following definitions:

Number interval

If you create a G/L account with this account group, you must select a number from this number interval. Account
number 131000 for G/L account petty cash would be rejected as incorrect since it does not fall within the number
interval of account group "Liquid funds". However, you could create this account using the account number 101000.
The number intervals for G/L account groups can overlap. As a result, for G/L accounts that you do not want to
assign to any special functional area, you can create a separate account group that has a number interval already
contained in a different account group.

PATH: SPROFinancial Accounting (New) General Ledger Accounting (New) Master Data G/L
Accounts Preparations Define Account Group.

Transaction Code: OB13

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Database Table: T077S, T077Z

Click on (IM Activity), so will take you to screen here click on it will take to following screen.

Click on save button to save the activity and go back to SPRO screen.

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Define Retained Earnings Account

PATH: SPROFinancial Accounting (New) General Ledger Accounting (New) Master Data G/L
Accounts Preparations Define Retained Earnings Account.

Transaction Code: OB53

Click on (IM Activity), so will ask for Chart of accounts as follow:

In this screen enter your chart of accounts and pres enter or continue button.
It will display the following screen as follow:

Now click save button it will display following warning message.

Now just pres enter button twice and back to SPRO screen.

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Assign Company Code to Chart of Accounts

Transaction Code: OB62

Database Table: T001

It will display an screen in that pres so it will display following window:

Enter your company code and pres enter or click on continue button so it display your company code on the top of
your screen.
Against to your company code assign your chart of accounts as follow:

Click on save button to save the activity and go back to SPRO screen.

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Definition

G/L account master data in the chart of accounts area contains information about the G/L account that is valid for all
company codes. The chart of accounts area also contains data that controls how a G/L account is created in the
company code-specific area.

To make certain that company codes using the same chart of accounts can also use the same G/L accounts, a master
record is created for the G/L account in the chart of accounts and in the company code-specific areas.
Structure

The chart of accounts:

The account number and account name (short and long text)
The indicator that specifies whether the account is a balance sheet account or an P&L statement account.
At the start of a new fiscal year, the balance of a balance sheet account is carried forward to itself. With P&L
statement accounts, you must specify the account to which the profit or loss is carried forward at the end of a fiscal
year.

The account group:

With the account group, you group similar accounts together and control the creating and changing of master
records. They control. The account number interval in which the account number must lie. The screen layout for
creating G/L accounts in the company code-specific area. This means that you can define whether fields require an
entry, may have an entry, or are hidden when creating or changing a master record in the company code-specific
area.

Balances in Local Currency Only:

When creating a G/L account in a company code, you can decide whether the transaction figures should only be kept
in the local currency for this account.

You have to set this indicator for clearing accounts you use to clear line items in various currencies with one local
currency amount and without posting any exchange rate differences that may occur.
• Do not set this indicator for A/P A/R reconciliation accounts.

You have to set the indicator for the following accounts:

• Cash discount clearing accounts
• Clearing accounts for goods receipt / invoice receipt

The indicator is usually set for the following balance sheet accounts:
• Accounts without open item management in which no foreign currencies are managed
• You manage a clearing account for goods received and invoices received. This account is posted to
menually. You post the incoming invoices in an invoice currency and the goods received in all cases in the
local currency.

Defining the Tax Category

In tax accounts, you can specify the type of tax on sales/purchases (input or output tax) that can be posted to the
account.
In rare cases, it is useful to assign a certain tax code to an account. You enter the tax code in the master record in this
case. Only this tax code can be used when posting to this account. If a G/L account is not tax relevant, you may
make no specification in this field. For more information on sales tax and other taxes in your system, see the
documentation FI General Topics.

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Defining "Posting without Tax Allowed":

If you select this indicator, no tax code needs to be entered when posting to this account. If a tax code is entered, it is
checked according to the tax category for this account.

You use this indicator if taxable and non-taxable postings are to be entered to an account at the same time. In such a
case, you normally set up your own tax code to allow for non-taxable transactions. However, this is not possible -
for example - for tax entry with jurisdiction code, since no jurisdiction code can be specified for customers abroad.
You would then allow postings without tax codes for the corresponding expense or revenue accounts.

This indicator is not needed for invoice verification postings, since the account assignments are generally derived
from the purchase order. The indicator is therefore not checked by the system for these postings.

For items with no tax code, no tax information is created, and they are not contained in the tax report lists.

Define "Reconciliation Account for Account Type":

You use this field to indicate G/L accounts as being reconciliation accounts. For each sub ledger account, you must
keep at least one reconciliation account in the general ledger. When you post to an account in the sub ledger, the
system automatically posts to the corresponding reconciliation account.

The "Receivables from goods and services" account is an example of a reconciliation account for customers. Enter
Customer in the Reconciliation account for account type field. Enter a Vendor in this field for a vendor
reconciliation account.

Using the reconciliation account procedure, it is possible to create a balance sheet and a profit and loss statement at
any time, since the amounts posted to sub ledger accounts are also posted automatically in the general ledger.
During regular reconciliation, you check whether the balance of the reconciliation account matches the balance of
the corresponding sub ledger account.

You define reconciliation accounts by specifying in the G/L account master record the account type (such as fixed
assets, vendor or customer) for which the account is to be used. In this way, the account can only be assigned to
accounts in the corresponding sub ledger. You set the assignment of the sub ledger account to a reconciliation
account in the master record of the sub ledger account. You cannot post to reconciliation accounts menually .

You have created a reconciliation account "Receivables" for accounts receivable. You must specify the account
number of the reconciliation account in the master records of the customer accounts. The system checks whether the
named reconciliation account is permitted for the account type "customer".

Defining "Open Item Management”:

If you set the "Open item management" indicator in the master record for an account, the line items in this account is
marked as open or cleared.

The balance of an account with open item management is equal to the balance of the open items. General ledger
accounts are kept with open item management if you need to check whether there is an offsetting posting for a given
business transaction.
You should use open item management for bank clearing accounts, clearing accounts for goods receipt/invoice
receipt, and salary clearing accounts.

Bank accounts, however, do not use open item management.

If you subsequently define open item management for a G/L account, this entry only applies to the items which are
posted afterwards. At the date of the change, the account must display a zero balance.
Also, when canceling this indicator, the balance must be zero. You therefore have to clear the remaining open items
before making the change in the master record.

Defining "Line Item Display":

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If you set the "Line item display" indicator in the master record for an account, all line items that have been posted
to this account are displayed if they have not been archived.

You use line item display to display the document line items from the account. For line item display, the system lists
all the line items for an account.

For accounts with line item display, the system uses special indices to define the link between the account and the
document. For accounts with many transactions, a corresponding number of indices must be defined and read for
line item display. This means that when posting items to such accounts and displaying line items, additional storage
space and system time are required. Therefore, you should not use line item display for the following accounts:

• Reconciliation accounts (detailed information is contained in the sub ledger)

• Sales revenue accounts (detailed information in the Sales and Distribution application module)
• Material accounts (detailed information in the "Materials Management" application module)
• Tax accounts (detailed information is not needed since tax data is contained and checked in the document).

Defining the Field Status Group:

You use this field to define which fields are displayed when you post accounting transactions to a G/L account. A
field may have one of the following statuses:
hidden (suppressed)
Entry required (required field)
Ready for input (optional field)

CREATE G/L ACCOUNTS AS BELOW

G/L Account No 100000 101000 120000 120001 120002 120003 120004 130000
Your Your Your Your Your Your Your Your
Company Code Company Company Company Company Company Company Company Company
Code Code Code Code Code Code Code Code
TYPE/DESCRIPTION TAB
Account Group LIABILITIES LIABILITIES LIABILITIES LIABILITIES LIABILITIES LIABILITIES LIABILITIES LIABILITIES

P&L Statement Acct / Balance Balance Balance Balance Balance Balance Balance Balance
Balance Sheet Account sheet Sheet Sheet Sheet Sheet Sheet Sheet Sheet

Short Text / G/L Acct Share Retained GR/IR Excise Duty Cess CST Loan
Vat Payable
Long Text capital Earnings Account Payable Payable Payable Account

CONTROL DATA TAB

Only Balance in Local
X X X X X X X X
Currency
Tax Category NO NO - + + + + NO
Posting with out Tax
NO NO X X X X X NO
allowed

Recon. Account for Acct

NO NO NO NO NO NO NO NO
Type

Open Item Management NO NO X X X X X X

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001 `001
CREATE/BANK/INTEREST TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO NO NO NO NO NO NO

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Relevent to Cash Flow NO NO NO NO NO NO NO NO

House Bank NO NO NO NO NO NO NO NO
Account ID NO NO NO NO NO NO NO NO

Interest Indicator NO NO NO NO NO NO NO NO

Interest Cal. Frequency NO NO NO NO NO NO NO NO

G/L Account No 150000 151000 152000 160000 199999 210000 211000

Your Your Your Your Your Your Your
Company Code Company Company Company Company Company Compan Compan
Code Code Code Code Code y Code y Code
TYPE/DESCRIPTION TAB
LIABILITIE LIABILITIE LIABILITIE LIABILITIE LIABILITIE
Account Group Assets Assets
S S S S S

P&L Statement Acct / Balance Balance Balance Balance Balance Balance Balance
Balance Sheet Account Sheet Sheet Sheet Sheet Sheet Sheet Sheet

Down
Down
payment Zero
Short Text / G/L Acct Sundry payment Outstanding cash in SBI Main
Request Balance
Long Text Debitors From Expenses hand Bank
From Account
Cutomer
Vendor
CONTROL DATA TAB
Only Balance in Local
NO NO NO X X X X
Currency
Tax Category NO NO NO NO NO NO
Posting with out Tax
NO NO NO NO NO NO
allowed

Recon. Account for Acct D

K Vendors k Vendors NO NO NO NO
Type Customers

Open Item Management NO NO NO X NO NO NO

Line Item Display X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001
CREATE/BANK/INTEREST TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO NO NO NO NO NO

Relevent to Cash Flow NO NO NO NO NO X X

House Bank NO NO NO NO NO NO SBI

Account ID NO NO NO NO NO NO sbi -1
Interest Indicator NO NO NO NO NO NO NO

Interest Cal. Frequency NO NO NO NO NO NO NO

G/L Account No 211001 211002 220000 220001 220002 220003 220004 221000
Your Your Your Your Your Your Your Your
Company Code Company Company Company Company Company Company Company Company
Code Code Code Code Code Code Code Code

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TYPE/DESCRIPTION TAB
Account Group Assets Assets Assets Assets Assets Assets Assets Assets

P&L Statement Acct / Balance Balance Balance Balance Balance Balance Balance Balance
Balance Sheet Account Sheet Sheet Sheet Sheet Sheet Sheet Sheet Sheet

SBI SBI Finished Excise Raw

Short Text / G/L Acct Cess
Check Check Goods Duty VAT Paid CST Paid Material
Long Text Paid
Deposit Issue Inventory Paid Inventory

CONTROL DATA TAB

Only Balance in Local
X X X X X X X X
Currency
Tax Category NO NO NO - - - - -
Posting with out Tax
NO NO NO X X X X X
allowed

Recon. Account for Acct

NO NO NO NO NO NO NO NO
Type

Open Item Management X X NO X X X X NO

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001 `001

CREATE/BANK/INTEREST
TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO X NO NO NO NO X

Relevent to Cash Flow X X NO NO NO NO NO NO

House Bank SBI SBI NO NO NO NO NO NO

Account ID sbi -2 sbi -3 NO NO NO NO NO NO
Interest Indicator NO NO NO NO NO NO NO NO

Interest Cal. Frequency NO NO NO NO NO NO NO NO

G/L Account No 222000 250000 251000 252000 260000 261000 262000 300000
Your Your Your Your Your Your Your Your
Company Code Compan Company Compan Compan Company Compan Company Compan
y Code Code y Code y Code Code y Code Code y Code
TYPE/DESCRIPTION
TAB
Account Group Assets Assets Assets Assets Assets Assets Assets Incomes
P&L
P&L Statement Acct / Balance Balance Balance Balance Balance Balance Balance
Stateme
Balance Sheet Account Sheet Sheet Sheet Sheet Sheet Sheet Sheet
nt
Down
Down Payment Accumelate Asset
Short Text / G/L Acct Inventor Sundry Payment Request d Machine Under Sales
Long Text Clearing Debitors To to Depreactio a/c Constructio Revenue
Vendors Custome n a/c n a/c
r
CONTROL DATA TAB
Only Balance in Local
X NO NO NO NO NO NO x
Currency

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Tax Category NO + NO NO NO NO NO +
Posting with out Tax
NO X NO NO NO NO NO x
allowed
D D
Recon. Account for Acct K
NO Customer Custome Assets Assets Assets NO
Type Vendors
s r

Open Item Management NO NO NO NO NO NO NO NO

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `002 `003 `004 `001

CREATE/BANK/INTERE
ST TAB
Field Status Group G001 G001 G001 G001 G002 G003 G004 G001

Post Automatically Only NO NO NO NO NO NO NO NO

Relevent to Cash Flow NO NO NO NO NO NO NO NO

House Bank NO NO NO NO NO NO NO NO
Account ID NO NO NO NO NO NO NO NO

Interest Indicator NO NO NO NO NO NO NO NO

Interest Cal. Frequency NO NO NO NO NO NO NO NO

G/L Account No 310000 311000 312000 350000 351000 400000 400010 400020
Your Your Your Your Your Your Your Your
Company Code Company Company Company Company Company Company Company Company
Code Code Code Code Code Code Code Code
TYPE/DESCRIPTION TAB
Expense Expense Expense
Account Group Incomes Incomes Incomes Incomes Incomes
s s s
P&L P&L P&L P&L P&L P&L P&L P&L
P&L Statement Acct /
Statemen Statemen Statemen Statemen Statemen Statemen Statemen Statemen
Balance Sheet Account
t t t t t t t t

Exchang Revenue Profit on Cost of Stock Inventory

Short Text / G/L Acct Discount Interest
e Rae on Sale Sale of Goods Transfer Differenc
Long Text Recived Recived
Gain of Asset Asset a/c Sold a/c Loss a/c e a/c

CONTROL DATA TAB

Only Balance in Local
x x x x x x x x
Currency
Tax Category NO NO NO NO NO NO NO NO
Posting with out Tax
NO NO NO NO NO NO NO NO
allowed

Recon. Account for Acct

NO NO NO NO NO NO NO NO
Type

Open Item Management NO NO NO NO NO NO NO NO

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001 `001

CREATE/BANK/INTERES
T TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO NO NO NO NO NO NO

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Relevent to Cash Flow NO NO NO NO NO NO NO NO

House Bank NO NO NO NO NO NO NO NO
Account ID NO NO NO NO NO NO NO NO
Your
Interest Indicator NO NO NO NO NO NO NO
Indicator

Interest Cal. Frequency NO `01 NO NO NO NO NO NO

G/L Account No 400030 400040 400100 401000 410000 411000 412000 413000
Your Your Your Your Your Your Your Your
Company Code Compan Compan Company Compan Compan Compan Compan Compan
y Code y Code Code y Code y Code y Code y Code y Code
TYPE/DESCRIPTION
TAB
Expense Expense Expense Expense Expense Expense Expense
Account Group Expenses
s s s s s s s
P&L P&L P&L P&L P&L P&L P&L
P&L Statement Acct / P&L
Stateme Stateme Stateme Stateme Stateme Stateme Stateme
Balance Sheet Account Statement
nt nt nt nt nt nt nt
Raw Purchase
Price Material Indirect
Short Text / G/L Acct Material of Salaries Bonus Wages
Differenc Scraping Wages
Long Text Consumptio material a/c a/c a/c
e a/c a/c a/c
n a/c a/c
CONTROL DATA TAB
Only Balance in Local
x x x x x x x x
Currency
Tax Category NO NO NO NO NO NO NO NO
Posting with out Tax
NO NO NO NO NO NO NO NO
allowed

Recon. Account for Acct

NO NO NO NO NO NO NO NO
Type

Open Item Management NO NO NO NO NO NO NO NO

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001 `001

CREATE/BANK/INTERE
ST TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO NO NO NO NO NO NO

Relevent to Cash Flow NO NO NO NO NO NO NO NO

House Bank NO NO NO NO NO NO NO NO
Account ID NO NO NO NO NO NO NO NO
Interest Indicator NO NO NO NO NO NO NO NO

Interest Cal. Frequency NO NO NO NO NO NO NO NO

G/L Account No 414000 415000 416000 417000 417100 418000 419000 420000
Your Your Your Your Your Your Your Your
Company Code Company Company Company Company Company Company Company Company
Code Code Code Code Code Code Code Code
TYPE/DESCRIPTION
TAB

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Expense Expense Expense Expense Expense Expense Expense
Account Group Expenses
s s s s s s s
P&L P&L P&L P&L P&L P&L P&L
P&L Statement Acct / P&L
Statemen Statemen Statemen Statemen Statemen Statemen Statemen
Balance Sheet Account Statement
t t t t t t t
Repairs
Power & Machine Testing Medical
Short Text / G/L Acct & Interest Rent & Canteen
Engineerin Maintains Expense Expense
Long Text Maintains Paid a/c Rates a/c exp a/c
g a/c a/c s a/c s a/c
a/c
CONTROL DATA TAB
Only Balance in Local
x x x x x x x x
Currency
Tax Category NO NO NO NO NO NO NO NO
Posting with out Tax
NO NO NO NO NO NO NO NO
allowed

Recon. Account for Acct

NO NO NO NO NO NO NO NO
Type

Open Item Management NO NO NO NO NO NO NO NO

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001 `001

CREATE/BANK/INTERE
ST TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO NO NO NO NO NO NO

Relevent to Cash Flow NO NO NO NO NO NO NO NO

House Bank NO NO NO NO NO NO NO NO
Account ID NO NO NO NO NO NO NO NO
Your
Interest Indicator NO NO NO NO NO NO NO
Indicator

Interest Cal. Frequency NO NO NO NO `01 NO NO NO

G/L Account No 421000 422000 423000 423100 425000 430000 431000 432000
Your Your Your Your Your Your Your Your
Company Code Company Company Company Company Company Company Company Company
Code Code Code Code Code Code Code Code
TYPE/DESCRIPTION TAB
Account Group Expenses Expenses Expenses Expenses Expenses Expenses Expenses Expenses

P&L Statement Acct / P&L P&L P&L P&L P&L P&L P&L P&L
Balance Sheet Account Statement Statement Statement Statement Statement Statement Statement Statement

Telephone Vehicle Freight Internal Bank Exchange

Short Text / G/L Acct Traveling Advertisement
Expenses Mainteenance Outwards Transport Charges rate loss
Long Text exp a/c exp a/c
a/c a/c a/c a/c a/c a/c

CONTROL DATA TAB

Only Balance in Local
x x x x x x x x
Currency
Tax Category NO NO NO NO NO NO NO NO
Posting with out Tax
NO NO NO NO NO NO NO NO
allowed

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Recon. Account for Acct
NO NO NO NO NO NO NO NO
Type

Open Item Management NO NO NO NO NO NO NO NO

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001 `001

CREATE/BANK/INTEREST
TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO NO NO NO NO NO NO

Relevent to Cash Flow NO NO NO NO NO NO NO NO

House Bank NO NO NO NO NO NO NO NO
Account ID NO NO NO NO NO NO NO NO

Interest Indicator NO NO NO NO NO NO NO NO

Interest Cal. Frequency NO NO NO NO NO NO NO NO

G/L Account No 440000 441000 442000 443000 444000 450000 451000 451100
Your Your Your Your Your Your Your Your
Company Code Company Company Company Company Company Company Company Company
Code Code Code Code Code Code Code Code
TYPE/DESCRIPTION TAB
Account Group Expenses Expenses Expenses Expenses Expenses Expenses Expenses Expenses

P&L Statement Acct / P&L P&L P&L P&L P&L P&L P&L P&L
Balance Sheet Account Statement Statement Statement Statement Statement Statement Statement Statement

Discount Sales Sales Sales Marketing Loss on

Short Text / G/L Acct Audif fee Professional
Allowed Deduction Expenses Commission Expenses Sale of
Long Text a/c Charges a/c
a/c a/c a/c given a/c a/c Asset a/c

CONTROL DATA TAB

Only Balance in Local
x x x x x x x x
Currency
Tax Category NO NO NO NO NO NO NO NO
Posting with out Tax
NO NO NO NO NO NO NO NO
allowed

Recon. Account for Acct

NO NO NO NO NO NO NO NO
Type

Open Item Management NO NO NO NO NO NO NO NO

Line Item Display X X X X X X X X

Sort Key `001 `001 `001 `001 `001 `001 `001 `001

CREATE/BANK/INTEREST
TAB
Field Status Group G001 G001 G001 G001 G001 G001 G001 G001

Post Automatically Only NO NO NO NO NO NO NO NO

Relevent to Cash Flow NO NO NO NO NO NO NO NO

House Bank NO NO NO NO NO NO NO NO
Account ID NO NO NO NO NO NO NO NO

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Interest Indicator NO NO NO NO NO NO NO NO

Interest Cal. Frequency NO NO NO NO NO NO NO NO

G/L Account No 451110 452000

Your Your
Company Code Company Company
Code Code
TYPE/DESCRIPTION TAB
Account Group Expenses Expenses

P&L Statement Acct / P&L P&L

Balance Sheet Account Statement Statement

Short Text / G/L Acct Depreciation

Long Text a/c

CONTROL DATA TAB

Only Balance in Local
x x
Currency
Tax Category NO NO
Posting with out Tax
NO NO
allowed

Recon. Account for Acct

NO NO
Type

Open Item Management NO NO

Line Item Display X X

Sort Key `001 `001

CREATE/BANK/INTEREST
TAB
Field Status Group G001 G001

Post Automatically Only NO NO

Relevent to Cash Flow NO NO

House Bank NO NO
Account ID NO NO
Interest Indicator NO NO

Interest Cal. Frequency NO NO

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Creation of Customer Account Group

Define Account Groups with Screen Layout (Customers)

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Customer
Accounts Master Data Preparations for Creating Customer Master Data Define Account Groups with Screen
Layout (Customers).

Transaction Code: OBD2

Database Table: T077D

Click on (IM Activity), so will take you to screen here click on it will take to following screen.

Click on save button to save the activity and go back to SPRO screen.

Define Screen Layout per Company Code (Customers)

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Customer
Accounts Master Data Preparations for Creating Customer Master Data Define Screen Layout per Company
Code (Customers).

Transaction Code: OB21

Database Table: T079D

Click on (IM Activity), so will take you to screen here click on it will take to following screen.

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Just enter your company code and pres enter button.

Click on save button to save the activity and go back to SPRO screen.

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Create Number Ranges for Customer Accounts

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Customer
Accounts Master Data Preparations for Creating Customer Master Data Create Number Ranges for Customer
Accounts.

Transaction Code: XDN1

Click on (IM Activity),

so will take you to screen here click on (Change Intervals ) button.

It will take to another screen in this screen click on (Insert Interval) button so it will display following
screen.

Now pres enter key or click on insert button. So it will take the entry to main screen.

Click on save button to save the activity and go back to SPRO screen.

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Assign Number Ranges to Customer Account Groups

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Customer
Accounts Master Data Preparations for Creating Customer Master Data Assign Number Ranges to Customer
Account Groups.

Transaction Code: OBAR

Database Table: T077D

Click on (IM Activity), click on button so it display following small window.

Enter your Account group and pres enter or continue button so your account group will display on the top of screen
as follow:

Against to your customer account group assign your number range which your created in the above steps:

Click on save button to save the activity and go back to SPRO screen.

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Creation Account Group of Vendors

Define Account Groups with Screen Layout (Vendors)

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Vendor Accounts
Master Data Preparations for Creating Vendor Master Data Define Account Groups with Screen Layout
(Vendors)

Transaction Code: OBD3

Database Table: T077K, T077Y

Click on (IM Activity), so will take you to screen here click on it will take to following screen.

Click on save button to save the activity and go back to SPRO screen.

Define Screen Layout per Company Code (Vendors)

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Vendor Accounts
Master Data Preparations for Creating Vendor Master Data Define Screen Layout per Company Code
(Vendors)

Transaction Code: OB24

Database Table: T079K

Click on (IM Activity), so will take you to screen here click on it will take to following screen.

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Click on save button to save the activity and go back to SPRO screen.

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Create Number Ranges for Vendor Accounts

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Vendor Accounts
Master Data Preparations for Creating Vendor Master Data Create Number Ranges for Vendor Accounts

Transaction Code: XKN1

Click on (IM Activity),

so will take you to screen here click on (Change Intervals ) button.

It will take to another screen in this screen click on (Insert Interval) button so it will display
following screen.

Now pres enter key or click on insert button. So it will take the entry to main screen.

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Click on save button to save the activity and go back to SPRO screen.

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Assign Number Ranges to Vendor Account Groups

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Vendor Accounts
Master Data Preparations for Creating Vendor Master Data Assign Number Ranges to Vendor Account Groups

Transaction Code: OBAS

Database Table: T077K

Click on (IM Activity), click on button so it display following small window.

Enter your Account group and pres enter or continue button so your account group will display on the top of screen
as follow:

Against to your customer account group assign your number range which your created in the above steps:

Click on save button to save the activity and go back to SPRO screen.

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Scenario in General Ledger Accounting

The scenario combines Customizing settings from different business views. In these Customizing settings, you
specify which posting data is transferred from different application components in General Ledger Accounting, such
as cost center update or profit center update.

For each scenario, the system transfers the posting data relevant for General Ledger Accounting from the actual and
plan documents.

Overview of the Scenarios Delivered by SAP

Scenario Fields Filled Technical Field Name

Cost center update Cost center RCNTR
Sender cost center SCNTR
Preparation for consolidation Trading partner RASSC
Transaction type RMVCT
Business area Business area RBUSA
Trading partner business area SBUSA
Profit center update Profit center PPRCTR
Partner profit center PRCTR
Segment reporting Profit center PRCTR
Segment PSEGMENT
Partner segment SEGMENT
Cost of sales accounting Functional area RFAREA
Partner functional area SFAREA

You have to set up cost of sales accounting. The Functional Area field is not filled automatically by the assignment
of the scenario to your ledger.

Assign Scenarios and Customer Fields to Ledgers

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Ledgers
Ledger Assign Scenarios and Customer Fields to Ledgers

Database Table: FAGL_LEDGER_SCEN

Click on (IMG Activity),

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Select your ledger and double click on Scenarios so it will display another screen now click on .

Click on this F4 function to

assign scenarios

Click on save button to save the activity, it will display the following information window:

Just pres enter key or click on continue button and back to first screen.

Now select your another ledger.

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Select your ledger and double click on Scenarios so it will display another screen now click on .

Click on save button to save the activity, it will display the following information window:

Just pres enter key or click on continue button and back to SPRO screen.

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DOCUMENT SPLITTING

Document splitting allows you to display documents using a differentiated representation. In the representation, line
items are split according to selected dimensions. In this way, you can draw up complete financial statements for the
selected dimensions at any time.

Using the document splitting procedure, you can also create a segmented display of a (partial) balance sheet
according to a set of legal requirements (for example, IAS) or according to areas of responsibility.

In addition, you can allocate at the time of posting additional costs (such as realized or valuated exchange rate
differences) to the CO account assignment objects to which the costs relate. Assets can also be subsequently
capitalized at the time of posting.

Features
You can use the document splitting procedure to split up line items for selected dimensions (such as receivable lines
by profit center) or to effect a zero balance setting in the document for selected dimensions (such as segment). This
generates additional clearing lines in the document.

Document Splitting Process

For document splitting to be possible, the system classifies the individual line items as well as the documents. This
takes place using your settings in Customizing. Depending on how a document is classified, the splitting rule
selected for a document specifies how the document is split and for which line items.
SAP delivers a set of standard splitting rules. You can also define your own rules.

Sub functions of Document Splitting

The following functions are part of document splitting:

1. Passive document splitting

2. Active document splitting

Passive document splitting

The system creates a reference to existing account assignments. These account assignments are used as the basis for
line items to be split. The system applies all account assignments that you have defined as document splitting
characteristics in Customizing.

If you have set the Zero Balance Setting indicator for the document splitting characteristic, the system then creates
any necessary clearing lines to ensure that the characteristics produce a balance of zero in each document.

Passive document splitting comprises all document splitting processes, for example, clearing processes that are
determined program-internal and that you cannot control with settings in Customizing. The processes of passive
document splitting are used for the processes of active document splitting and thus the splitting of the document
itself.

By contrast, active document splitting comprises all processes used to split the document itself. You control active
document splitting using settings in Customizing.

In these processes, the system creates a relationship to existing account assignments after document entry. Let us
suppose you want to enter a document to clear two receivables. The account assignments of the line items of
receivables are transferred into the line item to be created. The line items can be split. The system applies all account
assignments that you have defined as document splitting characteristics in Customizing.
The system edits the following processes in passive document splitting depending on the business process to split
the document:

• Clearing
Receivable clearing items are created here that form the basis for the line items to be split

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• Invoice Reference
A reference to one or more invoices is created here. The reference results from the document entry by entering the
invoice. The invoice in turn forms the basis for the line items to be split.

• Zero Balance Setting per Document (Final Process):

You can define document splitting characteristics for the general ledger as relevant for the balance sheet. To do this,
you set the Zero Balance Setting indicator for the characteristic. In this case, the system ensures that those
characteristics produce a balance of zero in each document by creating clearing lines. You can then create (partial)
balance sheets on these characteristics. If you have partner characteristics in the document, these are also filled.
Partner characteristics describe the sender and receiver relationships within a posting item.

Two different procedures are used when creating clearing lines:

If the partner characteristics are filled in the documents (for example, transfer of goods), then the document balance
is formed on the characteristics used in the balance sheet, and their partner characteristics. The clearing lines are
created in accordance with this balance since the partner assignments already exist.

If the partner characteristics are not filled in the documents then the system forms two-sided clearing lines according
to an amount procedure. The generated clearing lines then receive the partner assignment from the corresponding
clearing line.

Active document splitting

In this sub function, the line items are split according to the settings in Customizing (the classification of the
document and the splitting rule assigned to the document).

Active document splitting comprises all processes used to split the document itself. You control active document
splitting using settings in Customizing.

By contrast, you cannot control passive document splitting. This is defined program-internal and comprises all other
document splitting processes such as clearing processes.

Active document splitting comprises the following functions:

The system splits the line items according to the classification of the document for a business transaction and the
assigned splitting rule. You define the classifications and the splitting rule in Customizing and can adjust them there.
The splitting rule describes the relationships between sender and receiver of document splitting characteristics based
on classified posting lines.

You can use document splitting only for documents that can be uniquely assigned to a business transaction.

Example:
You want to enter a payment and an invoice in a document. However, the document cannot be assigned uniquely to
a business transaction. The document cannot be posted.
You can also define splitting rules across company codes. The company code clearing lines get the account
assignments from the related company codes.

Example 1: Invoice
A vendor invoice is entered with the following items:

Posting
Account Segment Amount
Key
31 Payables 100.00-
40 Expense 0001 40.00
40 Expense 0002 60.00

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Document splitting then creates the following document in the general ledger view:

Posting
Account Segment Amount
Key
31 Payables 0001 40.00-
31 Payables 0002 60.00-
40 Expense 0001 40.00
40 Expense 0002 60.00

Example 2: Payment
The payment for the above vendor invoice then contains the following items when entered (PK = posting
key):

PK Account Segment Amount

50 Bank 95.00-
25 Payables 100.00
Cash Discount
50 0001 2.00-
Received
Cash Discount
50 0002 3.00-
Received

Document splitting then creates the following document in the general ledger view:

PK Account Segment Amount

50 Bank 0001 38.00-
50 Bank 0002 57.00-
25 Payables 0001 40.00
25 Payables 0002 60.00
Cash Discount
50 0001 2.00-
Received
Cash Discount
50 0002 3.00-
Received

Overview of Document Splitting Process

Business Transaction: Payment with Residual Items without Invoice Reference

Two receivables of EUR 600 and EUR 400 are to be cleared.

This example shows the program-internal process flow and the processes of active and passive document splitting.

Process Flow:

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Business Process: Payment (Entry View)

Account Amount AcctAssgmt/ Item Category

PartnerAssgmt
Initial situation: Business process Bank 900 S3

Receivable 1000-

Residual item 100

I. Interpretation of Customizing

 Derivation of business transaction (for Bank 900 S3 04000 (cash

example, payment/standard) account)
 Assignment of item category
 Check validity of item categories for Receivable 1000- 02000
(customer)
business transaction
Residual 100 02000
item (customer)

II. Passive Document Splitting for Clearing

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 Passive document splitting: the Bank 900 S3 04000 (cash

amounts are determined program-internal account)
from the original document
Receivable 400- S1 02000
 Cannot be set in Customizing
 Creating receivable clearing lines (customer)
Receivable 600- S2 02000
(customer)
Residual 100 02000
item (customer)

III. Active Document Splitting

 Active document splitting since it Bank 900 S3 04000 (cash

can be set in Customizing account)
 Residual items without invoice
reference are split based on the receivable Receivable 400- S1 02000
clearing items (passively) that were split in (customer)
the previous step Receivable 600- S2 02000
(customer)
Residual 40 S1 02000
item (customer)
Residual 60 S2 02000
item (customer)

This is an example of document splitting without residual items. Residual items with invoice reference are split
passively!

IV. Passive Document Splitting: Zero Balance Setting

 Passive document splitting (in Bank 900 S3 04000 (cash

Customizing you can only set that zero account)
balances are calculated.)
 After the previous process steps, a Receivable 400- S1 02000
balance remains on account assignments S1, (customer)
S2, and S3. Additional clearing lines need to Receivable 600- S2 02000
be created. In this way, the partner (customer)
characteristics are also filled.
 Residual item 40 S1 02000
 * Zero balance posting (Free (customer)
balancing units) Residual item 60 S2 02000
(customer)
Clearing 360- S3 / S1 01001*

Clearing 360 S1 / S3 01001*

Clearing 540- S3 / S2 01001*

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Clearing 540 S2 / S3 01001*

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Classify G/L Accounts for Document Splitting

PATH: SPROFinancial Accounting (New) General Ledger Accounting (New) Business Transactions
Document Splitting Classify G/L Accounts for Document Splitting.

Database Table: T8G17

Click on (IMG Activity), it will display the following small window.

Enter your company code and pres enter key or click on continue button, so it will take u to another screens follow
now pres on button.

Enter the above specifications.

Click on save button to save the activity and go back to SPRO screen.

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Creation of Zero Balance GL account

PATH: Accounting Financial Accounting  General Ledger Master Records  G/L Accounts  Individual
Processing FS00 - Centrally.

Transaction Code: FS00

In the above screen enter G/L Account no, Company Code and click on create button.

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In the above screen with first tab “Type/Description” give required parameters and go to tab “Control Data”

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In the above screen maintain required parameters and go to another tab “Create/Bank/Interest”

In above maintain parameters.

Click on save button to save the activity and go back to SPRO screen.

Define Zero-Balance Clearing Account

In the standard system, you can balance each business area to zero by means of adjustment postings.

You can use the balance sheet adjustment to do this. When you post a document, the system checks the business
area balance and if this is not zero it marks this document for the balance sheet adjustment. Program SAPF180A
reads the marked documents, calculates the adjustment postings required, and updates these in its own database
tables. A second program, SAPF180, reads the adjustment posting tables and on this basis posts the accounting
documents required.

The adjustment postings are posted to a clearing account. This account fulfills the function of a receivable or
payable from a business area against all other business areas.

• The balance sheet adjustment generates summarized transfer postings to the clearing account.

• You can run a balance sheet adjustment as often as you require.

• You cannot however run the balance sheet adjustment without first activating the business area balance
sheets for the company code in question.

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• You can display the calculated adjustment postings for each individual document from the document
display.

PATH: PROFinancial Accounting (New) General Ledger Accounting (New) Business Transactions
Document Splitting Define Zero-Balance Clearing Account.

Database Table: T8G30B

Click on (IMG Activity), it will display the following window.

Select the line and double click on “Accounts” under Dialog Structure.

The above small window will display so enter your chart of accounts and pres enter or click on continue button.

It will take u to another screen there click on button.

Use this F4 function

to assign GL account

In the above by using F4 function assign Zero Balance GL account which you created.

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Click on save button to save the activity and go back to SPRO screen.

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Creation of SBI Main Bank GL account

PATH: Accounting Financial Accounting  General Ledger Master Records  G/L Accounts  Individual
Processing FS00 - Centrally.

Transaction Code: FS00

In the above screen enter G/L Account number, Company Code and pres Create button

After entering above parameters go to next tab “Control Data”

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After entering above parameters go to next tab “Create/Bank/Interest”

Click on save button to save the activity

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Creation of SBI Cheque Deposit GL account

Enter new G/L Account number in G/L Account field and pres create button .

Specify the parameters as the following screen:

After entering above parameters go to next tab “Control Data”

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After entering above parameters go to next tab “Create/Bank/Interest”

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Click on save button to save the activity

Creation of SBI Cheque Issue GL account

Enter new G/L Account number in G/L Account field and pres create button .

Specify the parameters as the following screen:

After entering above parameters go to next tab “Control Data”

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After entering above parameters go to next tab “Create/Bank/Interest”

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Click on save button to save the activity

Define House Banks

PATH: SPROFinancial Accounting (New) Bank Accounting Bank AccountsFiscal Define House Banks

Transaction code: FI12

Database Table: T012, T012D, T012K, T012T

Click on (IMG Activity), it will take to another screen. Here pres on .

Enter your company code and pres enter key or click on continue key.
It will take u to another screen there click on .

After giving above parameters click on button.

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In the above window give complete address details and pres enter or pres on continue button.
Now save the screen.

Double click on “Bank Accounts” under Dialog Structure. It will take you to another screen there click on
.

Click on this button for

next entry

Click on this F4
function to select GL
account

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In the above screen give all the required specifications. Click on F2 function of G/L field to assign relevant GL
account which we already created and click on next button for next entry.

Click on this button for

next entry

Click on this F4
function to select GL
account

In the above screen give all the required specifications. Click on F2 function of G/L field to assign relevant GL
account which we already created and click on next button for next entry.

Click on this F4
function to select GL
account

In the above screen give all the required specifications. Click on F2 function of G/L field to assign relevant GL
account which we already created.

Click on save button to save the activity and go back to SPRO screen.

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Define Number Ranges for Checks

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts Payable Business
Transactions Outgoing Payments Automatic Outgoing Payments Payment Media Check Management
Define Number Ranges for Checks.

Transaction code: FCHI

Click on (IMG Activity),

Click on this
change button

In the above screen specify above 3 parameters and pres on Change button .

It will take you to another screen now click on this create button . So it will display following “Create
Lot”window:

Pres enter key or click continue button and again now click on this create button .

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Pres enter key or click continue button so the entries will insert to main window.
Click on save button to save the activity and go back to SPRO screen.

Assign House Bank details to relevant GL Accounts

PATH: Accounting Financial Accounting  General Ledger Master Records  G/L Accounts  Individual
Processing FS00 - Centrally.

Transaction Code: FS00

Enter the “SBI main bank” GL account number in “G/L account” field and click on Edit button

Go to “Create/Bank/interest” tab. As in following screen assign House Bank details.

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Save the screen.

Enter the “sbi cheque deposit a/c” GL account number in “G/L account” field and click on Edit button

Go to “Create/Bank/interest” tab. As in following screen assign House Bank details.

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Save the screen.

Enter the “sbi cheque issue a/c” GL account number in “G/L account” field and click on Edit button

Go to “Create/Bank/interest” tab. As in following screen assign House Bank details.

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Click on save button to save the activity and go back to SPRO screen.

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Creation of Vendors (Sundry Creditors) Reconciliation Account

PATH: Accounting Financial Accounting  General Ledger Master Records  G/L Accounts  Individual
Processing FS00 - Centrally.

Transaction Code: FS00

Enter G/L Account number, Company Code and pres on Create Button .

The following screen will appear:

Enter the above parameters.

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Select next tab “Control Data”

Enter the above parameters.

Select next tab “Create/Bank/Interest”

Enter the above parameters:

Click on save button to save the activity.

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Creation of Customers (Sundry Debtors) Reconciliation Account

PATH: Accounting Financial Accounting  General Ledger Master Records  G/L Accounts  Individual
Processing FS00 - Centrally.

Transaction Code: FS00

Enter G/L Account number, Company Code and pres on Create Button .

The following screen will appears:

After entering above parameters go to next tab “Control Data”

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After entering above parameters go to next tab “Create/Bank/Interest”

Click on save button to save the activity and go back to SPRO screen.

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Creation of Customer Master Record

PATH: Accounting Financial Accounting Accounts Receivable Master Records Maintain Centrally
XD01 – Create.

Transaction Code: XD01

Database tables: KNA1, KNB1, KNB5, KNVP, KNVV, KNVD

When you enter into the transaction it will display the following box.

Maintain the above parameters and pres enter key or click on continue button.

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In above screen under “Address” tab we maintain full address details.

Now go to another tab “Payment Transactions”

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In the above screen maintain customer bank details.

Now click button at the top of window.

It will display company code related tabs as follow:

Click on F4 function to
assign GL account

In the above screen under “Account Management” tab assign Customer Reconciliation GL Account which we
created and maintain parameters as above.

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Now click on button so it will display sales area related tabs as follow:

Under “Sales” tab:

Maintain all above parameters under “Sales” tab.

Go to “Shipping” tab and maintain parameters as follow:

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In the above screen under “shipping” tab after maintaining parameters go to “Billing Documents” tab

Now under this tab maintain above parameters.

Click on save button to save the activity

Once u click on save button it display the following information and it contain the customer number.

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To go back to SPRO screen.

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Creating Vendor Master Record

PATH: Accounting Financial Accounting Accounts Payable Master Records Maintain Centrally XK01
– Create.

Transaction code: XK01

Database Tables: LFA1, LFB1, LFM1, LFM2, LFBK, LFB6

When you enter into the transaction it will display the following window.

Maintain above parameters and pres enter key so it will take to another screen.

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After entering above parameters pres on enter button two times so it will take to another screen

In above screen we maintain the vendor bank details. Now pres enter button so it will take to another screen:

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In above screen assign vendor reconciliation Account and other parameters and pres enter button 3 times so it will
take to another screen.

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After entering above parameters just pres enter 2 times so it will display following window:

Click on YES button so your vendor will be created.

It will display the above message at the bottom of the screen with vendor number.

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NOTE: Before start posting create all G/L accounts in your company code as I given the table at
the end of this book.

G/L Posting F-02

PATH: AccountingFinancial AccountingGeneral LedgerPostingF-02 - General Posting

Transaction code: F-02

In the following entry we are going to post is an G/L related “Office Rent paid”. For this the normal G/L entry is:

Rent/Rats A/C Dr 25000/-

SBI Cheque issue A/C 25000/-

It will display the following screen:

In the above screen:

1) Document Date : The date is when transaction is performed
2) Posting date : The date is you are posting this entry or document
3) Type : Document Type
4) Company Code : In which Company code this Document is being raised
5) Period : In which month this Document is being raised
6) Currency/Rate : Document Currency
7) PstKy : Posting key of 1st line item
8) Account : Debit G/L Account Number

In the above screen maintain required parameters and pres enter button.
So it will take you to following screen:

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In the above screen:

1) Amount : Document Amount
2) Text : Description of the document
3) PstKy : G/L Credit Posting Key
4) Account : Credit G/L Account

Now click on button so it will display the following screen:

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In the above screen maintain all parameters and pres enter button it will display the following screen:

In the above screen give “ * ” symbol in “Amount” Coolum and “ + ” symbol in “Text” Coolum and pres enter
button so it copy the values and Text from previous screen.

No go to Menu bar “Document - Simulate” so it will display the following screen:

In the above screen you can watch the entry.

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To post the entry either click on save button or go to Menu bar “Document - Post”
While posting it will gives you the following message.

In the message it gives Document number for your entry from number interval which you had given to SA document
type.
Now back to easy access screen.

Report 1 - Display/Change Line Items

Note: The above entry will get update with all ledgers like Leading ledger and Non-Leading ledger. This you can
view in following 3 reports.

PATH: Accounting Financial Accounting General Ledger Account FBL3N - Display/Change Line Items

Transaction Code: FBL3N

By the above transaction code it will display the following screen:

In the above screen enter you company code, select radio button “All Items” and click on Executive button. So it
will display the following report.

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View it and back to easy access screen.

Report 2 - FAGLB03 - Display Balances (New)

Note: The above entry will get update with all ledgers like Leading ledger and Non-Leading ledger. This you can
view in following 3 reports.

PATH: Accounting Financial Accounting General Ledger Account FAGLB03 - Display Balances (New)

Transaction Code: FAGLB03

By the above transaction code it will display the following screen:

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2. Click on this
Multiple
Selection button

5. Click on
this executive
button
1. Click on this button and select your
Non-Leading ledger

3. Select your G/L accounts from

which you want to draw reports

4. Click on this executive

button

In the above screen select G/L Accounts for which you want to draw the report and executive the report so it will
show the following report: (Follow the steps as I shown above boxes)

Now double click on above Debit, Credit, Balance amounts, so it will show detail report as follow: (I showen only
Balance one)

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Back to easy screen.

Note: The above report is shown on “Z2” Non-Leading Ledger. Now you can change the Non-Leading Ledger to
another (Z1) and draw the report

Report 3 - FAGLL03 - Display/Change Items (New)

Note: The above entry will get update with all ledgers like Leading ledger and Non-Leading ledger. This you can
view in following 3 reports.

PATH: Accounting Financial Accounting General Ledger Account FAGLL03 - Display/Change Items
(New)

Transaction Code: FAGLL03

By the above transaction code it will display the following screen:

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2. Select the
G/L’s as you
required

4. Select
executive
button

1. Change the ledger as

you required

3. Select this
Radio Button

In the above screen select the Non-Leading ledger, G/L accounts and executive the activity. So it will show the
following screen:

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View the above report and back to easy access screen.

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FB01L - Enter General Posting for Ledger Group

PATH: AccountingFinancial AccountingGeneral LedgerPostingFB01L - Enter General Posting for

Ledger Group
Transaction Code: FB01L

Here we are posting to a Non-Leading Ledger that is (X2)

Here we are posting a “Telephone expenses paid”. For that the following entry will arise:

Telephone expenses a/c Dr 44454/-

SBI Cheque Issue a/c 44454/-

Enter into the above transaction:

Enter you Non-Leading

Ledger

In the above screen maintain the Document date, Document Type (SA), Company code, Posting date,
Currency/Rate, Ledger Grp, PstKy (Posting Key), Account (Your Telephone Expenses G/L a/c number as you
created).

Once you maintain the above parameters pres enter button so it will display the next screen as below:

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In the above screen give amount for debit item, enter Text, posting key (PstKy) and Cash in hand G/L a/c number in
Account field for credit entry.
Now pres on button, so it will display the following screen:

NOTE: In the above screen enter Cost Center, Profit Center if create only, if don’t create them you can leave
blank those fields

In the above screen enter Business area, Cot Center, Profit Center, Segment, Functional Area and pres enter button
so it display the following screen:

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In the above screen enter “ * “ symbol to Amount field and “ + ” symbol to Text field.

No go to Menu bar “Document - Simulate” so it will display the following screen:

In the above screen you can watch the entry.

To post the entry either click on save button or go to Menu bar “Document - Post”
While posting it will gives you the following message.

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In the message it gives Document number for your entry from number interval which you had given to SA document
type.

Now back to easy access screen.

To view reports go to following transaction:

Report 1: FBL3N
Report 2: FAGLB03
Report 3: FAGLL03
Report 4: FS10N

Executive above reports with Leading and Non-Leading Ledgers (X1, X2)

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Posting G/L Entry with Enjoy Transaction

PATH: AccountingFinancial AccountingGeneral LedgerPostingFB50 - Enter G/L Account Document

Transaction Code: FB50

By this transaction you can post similar nature multiple transactions at a time.
With the above transaction the following screen will display:

To simulate click on
this Button

NOTE: In the above screen enter Cost Center, Profit Center if create only, if don’t create them you can leave
blank those fields

In the above screen you enter multiple debits and a credit and simulate the screen.

In the above screen you can view simulated entry. Now click on save the button to save the entry.

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After you save the screen it displays the above information with Document number.
Back to easy access screen.

To view report goes to following transaction:

Report 1: FBL3N
Report 2: FAGLB03
Report 3: FAGLL03
Report 4: FS10N

Executive above reports with Leading and Non-Leading Ledgers (X1, X2)

Enter G/L Account Document for Ledger Group

PATH: AccountingFinancial AccountingGeneral LedgerPosting FB50L - Enter G/L Account Document

for Ledger Group

Transaction Code: FB50L

By this transaction you can post similar nature multiple transactions at a time.
With the above transaction the following screen will display:

Enter your
Non-Leading
Ledger

NOTE: In the above screen enter Cost Center, Profit Center if create only, if don’t create them you can leave
blank those fields

In the above screen you enter multiple debits and a credit and simulate the screen.

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In the above screen you can view simulated entry. Now click on save the button to save the entry.

After you save the screen it displays the above information with Document number.
Back to easy access screen.

To view report goes to following transaction:

Report 1: FBL3N
Report 2: FAGLB03
Report 3: FAGLL03
Report 4: FS10N

Executive above reports with Leading and Non-Leading Ledgers (X1, X2)

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Posting Customer Credit Invoice

PATH: AccountingFinancial AccountingAccounts ReceivableDocument EntryF-22 - Invoice – General

Transaction code: F-22

With above transaction the following screen appears:

In the above screen enter Document Date, Posting Date, Document Type, Company Code, Currency/Rate, Pstky
(Posting Key) and Account (Customer number).

After above parameters click on enter button so it display another screen as below:

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In the above screen enter Amount of invoice, Bus.Area (business area), Text, Pstky (Posting Key) and Account
(Sales account number).

Once you maintain above all parameters click on enter button, so it display the following screen:

In the above screen give “ * ” to amount field and give “ + ” to Text so it will copy previous screendata to this
screen
Now click on button so it will display the following screen:

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NOTE: In the above screen enter Cost Center, Profit Center if create only, if don’t create them you can leave
blank those fields

In the above screen maintain required parameters as I showen and pres enter button.

Now go to Menu bar (Document + Simulate)

Now go to Menu bar “Document + Post”, so it will post the transaction and give following message:

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In the above message is give document number for above transaction from the interval which we maintain for the
Document type “DR”.

Back to easy access screen.

Customer Reports

PATH: Accounting Financial Accounting Accounts Receivable Account FBL5N - Display/Change

Line Items

Transaction code: FBL5N - Display/Change Line Items

By the above transaction code the following screen displays:

In the above screen select your customer, company code, land select radio button All items, and click on Executive
button so it will display the below screen:

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This red button

indicates “Open Items”

In the above screen it shows report as we posted credit invoice.

The red symbol “ ” indicates “Open Item” that means the invoice is raise on credit based but not cleared (not yet
paid).

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Standard Clearing Credit Customer Invoice

PATH: Accounting Financial Accounting Accounts Receivable  Document Entry F-28 - Incoming
Payments

Transaction code: F-2

By the above transaction code it display following screen:

In the above screen:

• Enter Document Date, Posting Date
• Enter Document type, Company code
• Enter Posting Period, Currency/Rate
• Enter Account under Bank Data (in this field give SBI Cheque Deposit G/L Account Number)
• Enter Amount (In this Field Enter the Credit Invoice Amount which you want to clear)
• Enter Busniess Area, Profit Center
• Enter Account under Open item Selection (In This field Enter Your Customer Number from whom you
received amount)

Once you enter above all parameters pres on enter button so it will display the following screen:
.

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Double click on this amount so it

will de-activate

To clear this
field should
be zero

In the above screen under “Account items” you be having many open items (In Blue color). We have do deselect all
other open items (To Deselect items just Double click on other items one by one so they convert into black color)
except one which you are going to clear now.

Always after maingk changer “Non Assigned” field should be Zero.

Not go to Menu bar “Document – Simulate”, so it display the following screen:

To post the entry go to Menu bar “Document - Post”, so it post the entry and shows the following message:

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In the above screen it gives the Clearing document number form DZ document type.
Back to easy access screen:

Reports

PATH: Accounting Financial Accounting Accounts Receivable Account FBL5N - Display/Change

Line Items
Transaction code: FBL5N - Display/Change Line Items

By the above transaction code the following screen displays:

In the above screen select your customer, company code, land select radio button All items, and click on Executive
button so it will display the below screen:

This is your cleared

invoice

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In the above screen you can view the cleared item.

Back to easy access screen.

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Clearing Open Item “Partial Payment”

Note: post one open item with transaction code: F-22 (for example I had an open item worth Rs.150000 /-)

PATH: Accounting Financial Accounting Accounts Receivable  Document Entry F-28 - Incoming
Payments

Transaction code: F-28

By the above transaction code it display following screen:

Note: In this transaction I am clear 45000 as Partial Payment.

In the above screen maintain all parameters as required as above and pres enter button so it will display the
following screen:

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1. Click on this tab

2. Double click on this field. It will

show amount we receiving.

• In the above screen first go to “Partial Pmt” tab.

• Under “Account Items” if you have multiple items deselect all other line items except one which you want
to clear.
• Under “Payment amount” it will display full invoice amount so double click on that amount, now
automatically it will changes the amount to actual Partial amount which we are suppose to clear today.
• Not Assigned field will be zero now.

Not go to Menu bar “Document – Simulate”, so it displays the following screen:

To post the entry go to Menu bar “Document - Post”, so it post the entry and shows the following message:

In the above screen it gives the Clearing document number form DZ document type.
Back to easy access screen:

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Reports

PATH: Accounting Financial Accounting Accounts Receivable Account FBL5N - Display/Change

Line Items
Transaction code: FBL5N - Display/Change Line Items

By the above transaction code the following screen displays:

In the above screen select your customer, company code, land select radio button All items, and click on Executive
button so it will display the below screen:

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In the above screen you can view the cleared item of Rs.45,000/- as credit item (in SAP the credit entries will be
shown by “ - ” symbol at the end of amount for example “Rs.45000-”)

Till you clear the balance amount those line items won’t be convert to green symbol.

Note: clear the balance amount in normal/Standard clearing and view the report

Back to easy access screen.

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Clearing Open Item “Residual Payment”

Note: post one open item with transaction code: F-22 (for example I had an open item worth Rs.100000 /-)

PATH: Accounting Financial Accounting Accounts Receivable  Document Entry F-28 - Incoming
Payments

Transaction code: F-28

Note: In this transaction I am clear Rs.60000/- as Partial Payment.

By the above transaction code it display following screen:

In the above screen maintain app required parameters as I shown above and click on enter button so it will display
the following screen:

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1. Select this tab (Residual Items)

2. Double click on this button so

it will show only balance to be
received amount

• In the above screen first go to “Res.items” tab.

• Under “Account Items” if you have multiple items deselect all other line items except one which you want
to clear.
• Under “Payment amount” it will display full invoice amount so double click on that amount, now
automatically it will changes the amount to actual Partial amount which we are suppose to clear today.
• Not Assigned field will be zero now.

Not go to Menu bar “Document – Simulate”, so it displays the following screen:

To post the entry go to Menu bar “Document - Post”, so it post the entry and shows the following message:

In the above screen it gives the Clearing document number form DZ document type.

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Back to easy access screen.

Reports

PATH: Accounting Financial Accounting Accounts Receivable Account FBL5N - Display/Change

Line Items
Transaction code: FBL5N - Display/Change Line Items

By the above transaction code the following screen displays:

In the above screen select your customer, company code, land select radio button All items, and click on Executive
button so it will display the below screen:

In the above screen it will we can view it has cleared the whole credit invoice entry of Rs.100000 and showes only
balance of Rs.40000/- only.

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It won’t show the cleared amount of Rs.60000/- in the report that we have to mention in text only.

Now clear the balance in normal/Standard clearing of Rs.40000/- and view the entry in report.
Back to easy access screen.

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Posting Vendor Credit Invoice

PATH: AccountingFinancial AccountingAccounts PayableDocument EntryF-43 - Invoice – General

Transaction Code: F-43

With above transaction code it will display the following screen:

In the above screen enter Document Date, Document type (KR), Company code, Posting Date, Currency/Rate,
PstKy (Posting key), Account (Vendor number).

After you enter above parameters pres on enter button so it will display the following screen:

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In the above screen enter Amount (Invoice Amount), text for credit information,
Enter PstKy (Debit G/L posting key), Account (Purchases G/L account number).

Once you enter the above parameters pres enter button so it will display the following screen:

In the above screen for Amount field enter “ * ” symbol and for Text field enter “ + ” symbol and pres enter button
and click on button so it will display the following scereen:

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In the above screen enter those parameters and click on enter button.

Now go to Menu bar “Document + simulate”, it will display the following screen:

In the above screen you can view the G/L entry. Now go to Menu Bar “Document + Post” so it will post the entry
and give the following message.

In the above message it displays the Document number for the above entry from KR number range.

Back to easy access screen.

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Report on Vendor Line Items

PATH: AccountingFinancial AccountingAccounts PayableAccountFBL1N - Display/Change Line Items.

Transaction Code: FBL1N

By above transaction code the following screen display:

Hear you can select specific

vendor also

In the above screen select radio button “All items” and click on or cick F8 button so it will display the following
screen:

View line items and back to easy access screen.

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Standard Vendor Line Item Clearing

PATH: AccountingFinancial AccountingAccounts PayableDocument Entry Outgoing PaymentF-53 –

Post.

Transaction Code: F-53

By above transaction code the following screen displays:

In above screen maintain Document date, Posting date, Document type, Company code, Period, Currency/Rate,
under Bank date maintain Account (SBI Cheque issue G/L a/c number), Amount (Amount which you are clearing
now), text, under Open Item Selection maintain Account (give your Vendor number) and pres enter button, so it will
display the following screen:

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• In the above screen under “Standard” tab.

• Under “Account Items” if you have multiple items deselect all other line items except one which you want
to clear.
• Not Assigned field will be zero now.

Not go to Menu bar “Document – Simulate”, so it displays the following screen:

To post the entries go to Menu bar “Document - Post”, so it post the entry and shows the following message:

In the above message it gives an Vendor Clearing document number for KZ document number.
Back to easy access screen.

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Report with Standard Vendor Credit Invoice Clearing

PATH: AccountingFinancial AccountingAccounts PayableAccountFBL1N - Display/Change Line Items.

Transaction Code: FBL1N

By above transaction code the following screen display:

Hear you can select specific

vendor also

In the above screen select radio button “All items” and click on or cick F8 button so it will display the following
screen:

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In the above screen you can view cleared credit invoice.
Back to easy access screen.

Partial Payment Clearing to Vendor Line Item

PATH: AccountingFinancial AccountingAccounts PayableDocument Entry Outgoing PaymentF-53 –

Post.

Transaction Code: F-53

Note: for this clearing post one Vendor Open Item for Rs.300000/-
By above transaction code the following screen displays:

In above screen maintain Document date, Posting date, Document type, Company code, Period, Currency/Rate,
under Bank date maintain Account (SBI Cheque issue G/L a/c number), Amount (Amount which you are clearing
now), text, under Open Item Selection maintain Account (give your Vendor number) and pres enter button, so it will
display the following screen:

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Double click on this so

it will display the
clearing amount

Deselect these lint

items

• In the above screen under “Partial Pmt” tab.

• Under “Account Items” if you have multiple items, deselect all other line items except one which you want
to clear.
• Under “Payment amount” it will display full invoice amount so double click on that amount, now
automatically it will changes the amount to actual Partial amount which we are suppose to clear today.
• Not Assigned field will be zero now.

Not go to Menu bar “Document – Simulate”, so it displays the following screen:

To post the entries go to Menu bar “Document - Post”, so it post the entry and shows the following message:

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In the above message it gives a Vendor Clearing document number for KZ document number.
Back to easy access screen.

Report with Standard Vendor Credit Invoice Clearing

PATH: AccountingFinancial AccountingAccounts PayableAccountFBL1N - Display/Change Line Items.

Transaction Code: FBL1N

By above transaction code the following screen display:

Hear you can select specific

vendor also

In the above screen select radio button “All items” and click on or cick F8 button so it will display the following
screen:

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In the above screen we can view Rs.300000- /- with Document type KR and Rs.175000/- with Document Type KZ.

Above it shows against Rs.300000- - invoice we cleared Rs.175000/-.but booth line items lies at one place till we
clear rest of the payment.

With “Standard clearing” clear the rest of the amount (That is Rs.1250000/-) also then total invoice related line
items will be cleared, View the report again after standard clearing.
Back to easy access screen.

Residual Payment Clearing to Vendor Line Item

PATH: AccountingFinancial AccountingAccounts PayableDocument Entry Outgoing PaymentF-53 –

Post.

Transaction Code: F-53

Note: for this clearing post one Vendor Open Item for Rs.200000/-
By above transaction code the following screen displays:

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In above screen maintain Document date, Posting date, Document type, Company code, Period, Currency/Rate,
under Bank date maintain Account (SBI Cheque issue G/L a/c number), Amount (Amount which you are clearing
now), text, under Open Item Selection maintain Account (give your Vendor number) and pres enter button, so it will
display the following screen;

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• In the above screen under “Residual item” tab.

• Under “Account Items” if you have multiple items, deselect all other line items except one which you want
to clear.
• Under “Payment amount” it will display blank field against the invoice which we are clearing now, so
double click on that amount, now automatically it will changes the amount to actual Partial amount which
we are suppose to clear today.
• Not Assigned field will be zero now.

Not go to Menu bar “Document – Simulate”, so it displays the following screen:

To post the entries go to Menu bar “Document - Post”, so it post the entry and shows the following message:

In the above message it gives a Vendor Clearing document number for KZ document number.
Back to easy access screen.

Report with Standard Vendor Credit Invoice Clearing

PATH: AccountingFinancial AccountingAccounts PayableAccountFBL1N - Display/Change Line Items.

Transaction Code: FBL1N

By above transaction code the following screen display:

Hear you can select specific

vendor also

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In the above screen select radio button “All items” and click on or click F8 button so it will display the following
screen:

In the above screen you can view the total invoice will be cleared and it shows only the outstanding amount in open
item.

Clear the balance amount in standard payment methods and view the report.

Back to easy access screen

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CURRENCY EXCHANGE CONFIGURATION

In Financial Accounting, you have to specify for each of your company codes, in which currency ledgers
should be managed. This currency is the national currency of the company code, that is, the local currency
(or company code currency). From a company code view, all other currencies are then foreign currencies.

You can manage ledgers in two parallel currencies in addition to the local currency, for example, group
currency or hard currency.

In order for the system to translate amounts into various currencies, you must define exchange rates. For
each currency pair, you can define different exchange rates and then differentiate between them by using
exchange rate types.

Parallel Currencies in Financial Accounting

In Financial Accounting, you can define up to two parallel currencies in addition to the local currency.
Your ledgers are thereby managed in these parallel currencies in addition to the local currency.

You can use various different currency types as parallel currencies. You define the currency for a
currency type when you define the organizational units.

• Group Currency: You define the group currency when you define your client.
• Company Currency: You define the company currency when you define the company that is
assigned to
• your company code.
• Hard Currency: You define the hard currency when you define the country that your
company code is
• assigned to.
• Index-Based Currency: You define the index currency when you define the country that your
company code
• is assigned to.

You can use a maximum of two parallel currencies (second and third local currencies).
If you have defined the group currency as the second local currency, this has no additional effects. In all
other cases, in the application component Special Purpose Ledger you have to define an additional ledger
in which transaction figures are managed.

Features
If you manage your ledgers in parallel currencies, this has the following effects:
• During posting, the amounts are also saved in the parallel currencies. The amounts are translated
automatically, but you can also enter them manually.
• G/L account transaction figures are also updated in the parallel currencies.
• Exchange rate differences also arise in the parallel currencies.
• You can also carry out a foreign currency valuation in the parallel currencies.

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Check Exchange Rate Types

Path: SPROSAP NetWeaverGeneral SettingsCurrenciesCheck Exchange Rate Types

Transaction Code: OB07

Database Table: TCURV, TCURW

After above path or transaction code click on IMG activity it will display the following screen:

In the above screen check exchange rate type “M” is available or not, if available just back to SPRO
screen. If it is not available click on New Entries and enter following parameters as below.

Now just save the activity and back to SPRO screen.

NOTE: in the above step “M” is standard exchange rate type, instead of that we can give any new one
also.

Define Translation Ratios for Currency Translation

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Path: SPROSAP NetWeaverGeneral SettingsCurrencies Define Translation Ratios for

Currency Translation

Transaction Code: OBBS

Database Table: TCURF

After above path or transaction code click on IMG activity it will display the following screen:

In the above window just click on button so it will display another screen as below:

Like above screen the exchange rate type “M” should assigned with other currency with your company
code currency and transaction ration as 1:1.

In our case, our company code currency is “INR” and I am dealing with “USD” currency so I had given
that combination with transaction ratio.

NOTE: if you created your own exchange rate type in above step in this screen instead of “M” give that
one.

In the above screen those entries are not available click on New Entries and give parameters as below:

Save the activity and back to SPRO screen.

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Enter Exchange Rates

Path: SPROSAP NetWeaverGeneral SettingsCurrencies Enter Exchange Rates

Transaction Code: OB08

Database Table: TCURF, TCURR

After above path or transaction code click on IMG activity it will display the following screen:

In this field give your own

Exchange Rate Type if have
maintain in the first step.

In the above screen enter the parameter as I shown. In this step we maintain the exchange rate between
two currencies.

Just click enter button so it will display the following message window:

Just click on Maintain button so it will display the following another window:

In this window click on save button so it will save the activity. And click on back button.
Again click on save the activity and back to SPRO screen.

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Define Countries in mySAP Systems

Path: SPROSAP NetWeaverGeneral Settings Set Countries Define Countries in mySAP

Systems

Database Table: T005, T005T, T05X

After above path click on IMG activity it will display an screen so click on so it
will display an small window as below:

In the above small window enter your country “IN” and click on continue button or pres enter so your
country will display top of screen as below:

In the above screen select your country and click on details button so it will display the following
screen:

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In the above screen just enter your required currency to “INDEX-BASE CURR” & “HARD
CURRENCY” fields.
Save the activity and back to SPRO screen.

Create G/L accounts as below

G/L Account No 312000 432000

Your Your
Company Code Company Company
Code Code
under TYPE/DESCRIPTION TAB
Account Group REVENUES EXPENSES
P&L Statement Acct / Balance Sheet P &L
P &L Account
Account Account
Gain from
exchange
Retained
Short Text / G/L Acct Long Text rate
Earnings
difference
a/c
under CONTROL DATA TAB
Only Balance in Local Currency NO NO
Tax Category NO NO
Posting with out Tax allowed NO NO
Recon. Account for Acct Type NO NO
Open Item Management NO NO
Line Item Display X X
Sort Key `001 `001
under CREATE/BANK/INTEREST TAB
Field Status Group G001 G001
Post Automatically Only NO NO
Relevant to Cash Flow NO NO
House Bank NO NO
Account ID NO NO
Interest Indicator NO NO
Interest Cal. Frequency NO NO

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Define Accounts for Exchange Rate Differences

PATH: SPRO Financial Accounting (New)  General Ledger Accounting (New)  Business
Transactions  Open Item Clearing Define Accounts for Exchange Rate Differences

Transaction Code: OB09

Database Table: T030H

By the above path or transaction click on IMG activity so it will display the following window:

In the above window enter your chart of accounts and click on enter button so it will display an other
screen now click on New Entries so it will display the following screen:

In the above screen:

G/L Account : In this field enter your sundry Creditors G/L account no
Loss : In this field enter your Exchange Rate Loss G/L account no
Gain : In this field enter your Exchange Rate Gain G/L account no

After entering above parameters click on next button so it will display the following screen

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In the above screen:

G/L Account : In this field enter your sundry Debtors G/L account no
Loss : In this field enter your Exchange Rate Loss G/L account no
Gain : In this field enter your Exchange Rate Gain G/L account no

After entering above parameters click on Save button to save the activity and back to SPRO screen.

Now raise an invoice of either customer or vendor with USD any other currency at different exchange
rate like 45$ or 40$ and clear them with less exchange rate or higher exchange rate against invoice so
your exchange rate difference gain or loss G/L’s will get update.

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Parking Documents

These documents are used to enter or store incomplete documents in SAP. These documents can be complete or
checked and then post at a later date. Parked document information won’t be update with any of G/L till is post
again.
You can park data relating to customers, vendors, G/L accounts, and asset accounts. There is an additional fast entry
function for G/L accounts. For assets, you can only enter acquisitions. Furthermore, you can park tax information
and special sales, but you cannot park special sales for bills of exchange or down payments.
SAP provides two transactions for document parking: the standard transaction and the single screen transaction
(Enjoy).
You can also check the document for completeness. For example, the system checks whether the document balance
is zero and whether entries have been made in all required entry fields (such as posting key and account number).
The authorization checks performed for document parking are basically the same as those performed for standard
document entry and processing. The assignment of authorizations enables the system to differentiate between users
who can only park documents and those who can park and post documents.
No tolerance checks are performed. The system checks for erroneous entries. For example, you cannot enter an
undefined business area. You can use account assignment models when parking documents, but not reference
documents.

PATH: AccountingFinancial Accounting General Ledger PostingF-02 - General Posting

Transaction Code: F-02

By above transaction code it will display the following screen,

In the following transaction we are trying post “Machinery Maintains exp”

In the above screen give all information as I shown.

Posting key is 40 (G/L Debit) and account is Machine maintains exp G/L.
Now pres enter button so it will display the following screen:

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In the above screen I has provided debit amount as “125000/-” and cost center but I don’t have credit information
now so I am parking this entry in the middle as below:

Now go to menu bar “Document + Park” it will display the following screen:

Above document has been parked with Document number 100010.

Posting Parked Document

PATH: Accounting Financial Accounting General Ledger Document Parked Documents FBV0 -
Post/Delete

Transaction Code: FBV0

By above transaction code it will display the following screen,

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In the above screen enter Company Code, Parked Document Number, Fiscal Year and pres enter button so it will
display the following screen:

In the above screen it display the debit item as I parked with that information now I am giving credit information
like document header text, posting key, account.
Provide information to above screen and pres enter button it will display the following screen:

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In the above screen give “ * ” to a mount Coolum and pres enter button
Go to menu bar “Document + Post” it will display the following screen with information as below:

In the above screen it shows the information saying parked document was posted.
Now view report the database and G/L’s are updated.

Sample Document

Sample document is a template for original accounting document. Sample documents as reference document entered
specifically for posting with sample documents. A sample document does not update G/L’s
These documents hold separate number range that is “X2” this is assigned to number range under your company
code.

During document entry, you can have data from another document defaulted. The items from this reference
document can be:

• Transferred without changes

• Used for reverse postings

• Changed

• Omitted

• Enhanced

In contrast to an accounting document, sample documents do not update transaction figures. They serve merely as
data sources for an accounting document. Their advantage is that you can change or enhance them. You therefore
use a sample document rather than an accounting document if you need a reference document for which you want to
define the layout yourself.

You use a sample document as a reference document in which assignment to more than one cost center is defined.
If you want to assign to other cost centers, you can change the values in the sample document. If you use an
accounting document as a reference document, you cannot make these changes because you also have to change the
account assignments relevant for accounting.

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You enter sample documents with a special function to ensure that these documents cannot be accidentally posted as
accounting documents.

If you store a sample document, the system automatically assigns a number to this special document. To do this, the
system uses the number interval X2. This number range may only be used by the system. You cannot assign it to any
document type. You have to set up this number range in all the company codes where sample documents are used.
You have to use key X2 for this number range.

Define Number Range for Sample Document

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New)

DocumentDocument Number RangesDocuments in Entry ViewDefine Document Number Ranges for Entry
View.

Transaction Code: FBN1

In the above screen enter your company code and click on “change intervals” button.
It will display the following screen.

In the displayed screen click on it will display following window:

In the above window enter “X2”, year, From Number, and To number interval and click on enter button.
Save the activity and back to SPRO screen.

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Creation of Sample Document

PATH: AccountingFinancial AccountingGeneral LedgerPostingReference DocumentsF-01 - Sample

Document

Transaction Code: F-01

In this example I am creating sample document for G/L entry:

Marketing Expenses G/L a/c Dr 150000/-

To SBI Cheque issue G/L 150000/-

By above transaction it will display the following screen:

In the above screen enter:

Document Date, Posting Dates, Document Type, Company Code, Currency, PstKy(Posting Key as Debit
G/L 40), and Account (Marketing Expenses G/L number)
After entering above all information pres enter it will display the following screen:

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In the above screen enter:

Amount(Amount for debit line item), text, PstKy(Credit posting key as 50), Account(Credit G/L SBI
cheque issue number)
After providing all above information pres enter button so it will display the following screen

In the above screen enter “*” to amount, “+” to text fields and pres enter so it will copy the information from
previous screen.
Not go to menu bar “Document + post”. It will post it entry

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After post it will issue an message with Sample Document number as above.
Back to easy access screen.

To view or change Sample Document

PATH: AccountingFinancial AccountingGeneral LedgerDocumentReference DocumentsSample

DocumentFBM2 – Change

By above transaction it will display the following screen:

In the above screen enter your Sample document number which you want to post now to “Document Number ” field
and enter information to “Company code”, “Fiscal Year”
Pres enter button so it will display the following screen:

In above screen either click on either of the line items and make changes if need and save the document.

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Posting Sample Document

PATH: Accounting Financial Accounting General Ledger Posting F-02 - General Posting

By above transaction it will display the following screen:

In the above screen just click on “Post with reference” button it will display the following screen:

In the above screen enter your Sample document number which you want to post now to “Document Number ” field
and enter information to “Company code”, “Fiscal Year”

Pres enter button two times so it will display the following screen:

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In the above screen go to menu bar “Documents + Post” it will post the entry and display the following information
message.

The above message shows document posted number.

(NOTE: like above any number of time you can post the same document.)

Delete Sample Document

PATH: Accounting Financial Accounting General Ledger  Document  Reference Documents  Sample
Document F.57 – Delete

Transaction Code: F.57

By above transaction it will display the following screen:

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In the above screen enter your Company code, Document Number (Sample Document Number of which you want
to delete), Fiscal year, Reference docyment type.
Deflat the check box “Test Run”
Now click on execute button so it will display the following window:

In the above window click on “Yes” button.

At final it will display the above information window about deleted documents details.

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Recurring Entries

Definition

Periodically recurring entries posted by the recurring entries program based on recurring entry documents. This
process is comparable to the standing order you give to your bank to deduct your rent, premium payments, or loan
repayments.

Recurring entries are business transactions that are repeated regularly, such as rent or insurance. The following data
never changes in recurring entries:

• Posting key

• Account

• Amounts

You enter this recurring data in a recurring entry original document. This document does not update the transaction
figures. The recurring entry program uses it as a basis for creating accounting documents.

The system uses the recurring entry original document that you enter as a reference. It is not an accounting
document and therefore does not affect the account balance.

In the recurring entry document, you define when a posting is to be created with this document. You have two
options for scheduling. Postings can be made periodically or on a specific date:

• For periodic postings, specify the first and last day of execution, as well as the interval in months.

• If you want to specify certain dates, enter a run schedule in the recurring entry original document.

Recurring Document has separate number range that is “X1” to this number range we need to assign number interval
to you company code.

Define Number Range for Sample Document

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New)

DocumentDocument Number RangesDocuments in Entry ViewDefine Document Number Ranges for Entry
View.

Transaction Code: FBN1

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In the above screen enter your company code and click on “change intervals” button.
It will display the following screen.

In the displayed screen click on it will display following window:

In the above screen we gave “X1” as number range and interval for present fiscal year.
Save the activity and back to easy access screen.

Creation of Recurring Document

PATH: Accounting Financial Accounting General Ledger Posting Reference Documents FBD1 -
Recurring Document

Transaction code: FBD1

By the above transaction it will display the following screen:

In this example I am posting following entry:

Office rent a/c Dr 5000/-

Salary a/c Dr 6000/-
Land Lease a/c Dr 7000/-
Audit Fee a/c Dr 8000/-
To SBI cheque issue a/c 26000/-

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In the above screen enter values:

Company code
First run on (From which date the run schedule start)
Last run on (On which date the run schedule ends)
Interval in months
Run date (On which date the entry has to be run)
Pstky (Debit posting key)
Account (Debit G/L Account number)

Enter all above parameters and click on enter button so it will display the following screen:

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In the above screen I entered amount for previous debit item, cost center (if CO is active and Cost Centers are
created)
Another debit posting key and another G/L a/c number for next line item and click on enter button so it will display
the following screen:

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In the above screen I entered amount for previous debit item, cost center (if CO is active and Cost Centers are
created)
Another debit posting key and another G/L a/c number for next line item and click on enter button so it will display
the following screen:

In the above screen I entered amount for previous debit item, cost center (if CO is active and Cost Centers are
created)
Another debit posting key and another G/L a/c number for next line item and click on enter button so it will display
the following screen:

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In the above screen I entered amount for previous debit item, cost center (if CO is active and Cost Centers are
created)

Credit posting key and Credit G/L a/c number for next line item and click on enter button so it will display the
following screen:

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In the above screen put “*” symbol to amount field and “+” symbol to Text field and pres enter button.
Now go to menu bar “Document + post” it will display the following message.

In the above message it shows the Recurring document number

Back to easy access screen.

Creation of Run Schedule

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Document
Recurring Entries Define Run Schedules

Transaction Code: OBC1

Database table: T054, T054T

By above transaction it will display the following screen click on

In above screen enter new Run Schedule name and description.

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Save the activity and back to SPRO screen.

Enter Run Dates

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Document
Recurring Entries Enter Run Dates

Transaction Code: OBC2

Database table: T054A

By above transaction it will display the following window:

In above window enter Run schedule and pres enter it will display the following screen in it click on

In the above screen enter the schedule dates to which you want to run the recurring document.
Save the activity and back to SPRO screen.

View Recurring Document

PATH: AccountingFinancial AccountingGeneral LedgerPeriodic ProcessingRecurring EntriesF.15 –

Lists

Transaction Code: F.15

By above transaction it will display the following screen:

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Fill the above parameters and click on executive button so it will display the following screen:

Back to easy access screen.

Execute Recurring Document

PATH: AccountingFinancial AccountingGeneral LedgerPeriodic ProcessingRecurring Entries F.14 -

Execute

Transaction Code: F.14

By above transaction it will display the following screen:

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In the above screen enter the parameters like:

Company Code
Document Number
Fiscal Year
Settlement period
Batch Input Session Name

Enter the above parameter and click on Executive button so it will display the following message.

The above message says the Batch input Session was created with name we gave in above screen

To executive the sessions go to menu bar “Services + Batch Input + Session” it display the following screen:

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In the above screen we can view your session with your session name, so select that and click on “Process” button it
will display the following window:

In above window select “Display errors only” radio button and click “Process” button. It thee is o any error s it will
executive session and display the following information

In the above window just click on “Exit batch input” button.

Check you G/L report with Transaction Code: FBL3N

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Maintain Terms of Payment (Discount with Customer)

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness

TransactionsOutgoing Invoices/Credit MemosMaintain Terms of Payment

Transaction Code: OBB8

Database Table: T052, T052U, TVZB, TVZBT

By above transaction code it will display the following screen, click on :

In the above screen enter “Payt Terms” code to payment term

“Sales text” description to payment term
“Account type” either Customer or Vendor flag the check box or booth
“Default baseline date” either Document date, Posting date, Entry date
“Payment terms” Discount percentages and No of days.

(NOTE: The above payment term we are doing for customer if we need to create payment tern to vendor
under Account type select Vendor check box and all other process is same)

In the above screen under “Payment Terms” that means if the customer is paying money in first 12 days he will get
12% of discount, if he pay from 12 days to 20 days from base line date he will get 8% of discount after that he wont
get any discount.

Save the activity and back to easy access screen.

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Assign the Payment term to Customer Master

PATH: Accounting Financial AccountingAccounts ReceivableMaster RecordsMaintain CentrallyXD02

- Change

Transaction code: XD02

In the above screen enter your company code and customer code and pres enter button so it will enter in to customer
master data.

Now in the customer master click on , it will display the following screen:

In the above screen under “Payment Transactions” Tab to “Terms of Payment” field enter you payment terms code
and save the activity.
Back to easy access screen.

Assign “Discount Allowed” G/L account to Transaction Key

Transaction code: OBXI

NOTE: Transaction key is “SKT”

By this transaction code it will display the following box:

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In the above box enter your chart of account and click on enter button, it display the following screen:

In the above screen just click on save button so it will display the following screen:

In the above screen enter your “Discount Allowed” G/L account number.
Save the activity and back to easy access screen.

Posting Customer Invoice

PATH: AccountingFinancial Accounting Accounts ReceivableDocument EntryF-22 - Invoice – General

Transaction Code: F-22

In the following screen:

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In the above screen enter required information and pres enter so it will display the following screen as below:

In the above screen we enter invoice amount, posting key, Credit G/L account, but the payment terms will appear
automatically because we assign terms of payment code to customer and the same customer we taken in the first
screen above to raise the invoice.

Now pres enter button so it will display the following screen:

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In the above screen we enter “*” to Amount field and “+” to text field,
Click on button and assign Profit center information and pres enter button.
Then go to Menu Bar “Document + Simulate”
The following screen appears:

No to post the entry either click on save button or , go to Man bar “Document + post” your entry will be posted.

Clearing Customer Invoice

NOTE: Clearing customer invoice with in 12 days with an 12% of discount

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PATH: AccountingFinancial AccountingAccounts ReceivableDocument EntryF-28 - Incoming Payments

Transaction Code: F-28

By the above transaction it will display the following screen:

Give the invoice amount

after the discount

In the above screen maintain all parameters as I shown.

In amount Coolum give after discount amount (In the above example100000*12%/100 = 88000)

Now pres enter button so it will display the following screen:

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In the above screen deselect all other line items except one which you clearing now.
Go to menu bar “Document + Simulate”.
It will display the following screen:

In the above screen you can view the entry to clearing customer open item with discount.
Now go to menu bar “Document + Post”, it will post the entry as issue the following message.

Back to easy access screen.

Now view the reports:

FBL5N: Customer Report
FBL3N: G/L Report.

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TAX ON SALES AND PURCHASES

Tax is calculated from expenses or revenues, which is a base amount. A base amount may include cash discount or
not. If it includes it is a net base amount otherwise it is gross amount. It varies from country to country. To
determine the base amount, whether to include cash discount or not , set the indicator in basic settings of taxes on
sales/purchases.

You can use the SAP System to manage various types of tax according to the legal requirements of a country or a
region. The Financial Accounting components Accounts Receivable (FI-AR), Accounts Payable (FI/AP), and
General Ledger provides the following comprehensive tax functions:

Tax calculation: The system calculates tax amounts with or without cash discount based on the tax base amount.

Tax posting: The system posts the tax amounts to defined tax accounts.

Adjustments: The system corrects tax amounts, in the case of cash discount or other deductions, for example.

Tax reporting: You can use the system to create tax returns.

Tax on Sales and Purchases

Taxes on sales and purchases are levied on every sales transaction in accordance with the principles of VAT. This
applies to input and output tax, for example.

Input tax is calculated using the net invoice amount and is charged by the vendor.
Output tax is calculated using the net price of products and is charged to the customer.

Companies can offset input tax against output tax, paying the balance to the tax authorities. Tax authorities can set a
nondeductible portion for input tax which cannot then be claimed from the tax authorities.

The Accounts Receivable, Accounts Payable, and General Ledger application components support the calculation
and posting of tax as follows:

• The tax amount can be determined upon request

• The tax amount is checked by the system at document level

• The tax amount is posted to the tax accounts automatically

• A tax adjustment can be performed automatically, if required, for cash discount postings and other deductions

These transactions are controlled using Customizing, whereby the following specifications need to be made:

• To determine the tax amount, the system calculates a base amount, the composition of which varies from
country to country. You determine whether the base amount for tax calculation is to include the specified cash
discount amount. This information must be defined for each company code.
• To enter and determine taxes automatically, a tax code is required, which will include the tax rate prescribed by
law.
• The tax amount is generally posted automatically. For posting, specify the tax accounts to which the individual
taxes are to be posted.
• In a G/L account master record, you can specify whether the account is a tax account, and if so, which tax type
(input tax or output tax) can be posted to the account. For all other G/L accounts, you can use the master record
to specify a tax rate and a tax type, or specify that it is not tax-relevant.

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NOTE: in India the taxes or INPUT TAX (Tax on purchases), OUTPUT TAX (Tax on sales)

INPUT TAX

• Excise Duty Paid

• CESS Paid
• VAT Paid
• CST Paid If the tax is with in the State VAT will be calculated, If the tax is out of
state CST will be calculated
OUTPUT TAX

• Excise Duty Payable

• CESS Payable
• VAT Payable If the tax is with in the State VAT will be calculated, if the tax is
• CST Payable out of state CST will be calculated

Step 1: Define Condition type

You determine the calculation type for a condition type in Customizing. This determines how the system calculates
prices, taxes, discounts and surcharges for a condition. When setting up condition records, you can enter a different
calculation type than the one in Customizing. At present all available calculation types are permitted. The field
‘Calculation type’ can however not be accessed if this field is left empty. After the data release has been printed, if
the field has not been completed manually, the proposal is automatically taken from Customizing. After this it is no
longer possible to make manual changes.

If you use different calculation types for what are otherwise the same conditions (for example, percentage, as a fixed
amount or quantity-dependent), you do not have to define different condition types in Customizing. You can set a
different calculation type when maintaining the individual condition records.

Condition Types in the Standard Version of the SAP System

The standard system includes, among many others, the following predefined condition types:

Condition type Description

PR00 Price
K004 Material discount
K005 Customer-specific material discount
K007 Customer discount
K020 Price group discount
KF00 Freight surcharge (by item)
UTX1 State tax
UTX2 County tax
UTX3 City tax

Condition type Structure:

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What calculation the system carries out in that step depends on the following control indicators:

• Access sequences
• Condition class
• Calculation type
• Condition category

Access Sequences: An access sequence is a search strategy that the system uses to find valid data for a particular
condition type. It determines the sequence in which the system searches for data. The access sequence consists of
one or more accesses. The sequence of the accesses establishes which condition records have priority over others.
The accesses tell the system where to look first, second, and so on, until it finds a valid condition record. You
specify an access sequence for each condition type for which you create condition records.

The access sequence enables the system to access the data records in a particular sequence until it finds a valid price
or value

Condition class: This is Preliminary structure of condition types. It determines whether condition type is Discount
or surcharge, Taxes, Prices Etc.

Calculation type: Determines how the system calculates prices, discounts, or surcharges in a condition. For
example, the system can calculate a price as a fixed amount or as a percentage based on quantity, volume, or weight.
The calculation type can be set when generating new condition records. If this does not happen, the calculation type
maintained here is valid for the condition record.

Condition category: A classification of conditions according to pre-defined categories (for example, all conditions
that relate to freight costs).

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Tax on
Sales/Purchases Basic Settings Check Calculation Procedure.

Transaction Code: OBYZ

Database Table: T685, T685A, T685T

By the above transaction code it display following screen:

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In the above screen double click on “Define condition types” so it will display another screen so click on
it will display he following screen:

In the above screen maintain parameters like Condition type, Condition class, Calculation type, Condition Category
and click on (Next) button.

It will display the following new screen:

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In the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.

It will display the following new screen:

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In the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.

It will display the following new screen:

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In the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.

It will display the following new screen:

In the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.
It will display the following new screen:

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In the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.
It will display the following new screen:

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the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.
It will display the following new screen:

The above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation.

Type, Condition Category and click on (Next) button.

It will display the following new screen:

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the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Save) button to save the activity.
Back to SPRO screen.

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Step 2: Check and Change Settings for Tax Processing

In this activity you make the necessary specifications for posting taxes. In doing this you specify under a process
key the following indicators:

Tax type: Output tax, input tax, additional taxes, or "not tax-relevant" can be specified as the tax type.

Non deductibility: This is of tax amounts for this, tax amounts are marked as not deductible.

Posting indicator: Here you specify whether the tax amount is posted separately or distributed to expense or
revenue items.

Tax not relevant to cash discount (Not discount relevant): This indicator is set only for Canada. If you select it,
the system does not take into account the corresponding tax amount when determining the tax base.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Tax on
Sales/Purchases Basic Settings Check and Change Settings for Tax Processing

Transaction Code: OBCN

Database Table: T007B, T687, T687T

By the above transaction code it displays following screen, click on it will display he following
screen:

In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Next) button.

It will display the following new screen:

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In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Next) button.

It will display the following new screen:

In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Next) button.

It will display the following new screen:

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In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Next) button.

It will display the following new screen:

In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Next) button.

It will display the following new screen:

In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Next) button.

It will display the following new screen:

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In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Next) button.

It will display the following new screen:

In the above screen maintain Process, Description, Tax Type, Posting Indicator and click on (Save) button, so it
save the activity.

Back to SPRO screen.

Step 3: Define Procedure

A calculation procedure is defined for each country, each containing the specifications required to calculate and post
tax on sales/purchases. Each calculation procedure contains several tax types, which are called condition types in the
procedure.

The system defaults condition types when you define a tax code. The condition type (such as input or output tax)
specifies the base amount on which the tax is calculated and the account key that is used to post the tax. The
specifications necessary for calculating and posting tax have been defined for the condition type and account key.

The calculation procedure determines the amount on which the individual condition types are calculated. This can be
the base amount (total of expense and revenue items) or a subtotal. Incoming acquisition tax, for example, is not
calculated based on the expense or revenue items, but on the tax amount for outgoing acquisition tax. The column
Fr.level determines the amount on which tax is calculated.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Tax on
Sales/Purchases Basic Settings Check Calculation Procedure

Transaction Code: OBYZ

Database Table: T683, T683S, T683T, T683U, T685, T685A, T685T
By the above transaction it will display the following screen:

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in the above screen double click on “Define Procedures” so it will display an screen click on button
so it display the following screen.

In the above screen give procedure name and description and select the same entry and click on “Control Data”
under Dialog Structure.

So it will display the following screen, click on :

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Step: Number that determines the sequence of the conditions within a procedure.

CTyp(Condition Type) : Condition types which we already created in the above steps those indicate each activity
or tax in above case.

Fro, To (From , To): This indicates which tax should calculate on which base amount.

For example take: 20 “1102Excise duty paid”, for this tax the fields Fro, To fields I had given as 10, 10 That means
“1102Excise duty paid” should calculate on “1102 Base Amount”.

Take 30 “1102Cess paid”, for this tax the fields Fro, To fields i had given as 10, 20 That means “1102Cess paid”,
should calculate on “1102 Base Amount + 1102Excise duty paid”

AccKey: in this field assign Account Keys to respective Condition types as we created in above steps.

After we maintain above parameters save the activity and back to SPRO screen.

Step 4: Assign Country to Calculation Procedure

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Tax on
Sales/Purchases Basic Settings Assign Country to Calculation Procedure

Transaction Code: OBBG

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Database Table: T005

By the above transaction it will display the a screen on that click on button so it will
display the following small box:

In the above box give country “in” and click on enter button so it will show country “in” on the top to screen as
below:

Use this F4 function to select

your Procedure

In the above screen against “IN” assign your Calculation Procedure which we created in above step select it by using
F4 function.

Save the activity and back to SPRO screen.

Step 5: Define Tax Codes for Sales and Purchases

Tax codes are used to:

• Check the tax on sales/purchases amount in the document

• Calculate the amount of tax on sales/purchases automatically on request

• Calculate the non-deductible input tax portion

• Check if a tax account with tax type (input or output tax) can be posted to

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• Determine the tax account

You define a tax code by entering a two-digit code to represent a tax percentage rate.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Tax on
Sales/Purchases Calculation Define Tax Codes for Sales and Purchases

Transaction Code: FTXP

Input Tax codes

By the above transaction it displays the following window:

In the above screen give your country “IN” and click enter button so it will display the following screen as below:

In the above screen enter Tax Code as you want and pres enter button.
Note: Here I given “i0” for input tax

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In the above screen:

Tax Code: In this field Tax Code will copy automatically so give detail description. We define a tax code by
entering a two-digit code to represent a tax percentage rate.

Tax Type: It indicates whether this Tax Code is Input tax or Output Tax.You use the tax type to specify whether
the tax is an input tax or output tax. The system uses the tax type to check that you are posting to an account with an
allowed code. An error message is output if necessary. This happens, for example, if you enter a tax code for input
tax when posting to a customer account for which only output tax codes are allowed. For every individual tax type,
there are country-specific definitions for whether the tax amount fields and the fields for the percentage
specifications are ready for input.

Tax Type “V”: Input Tax

Tax Type “A”: Output Tax

In above screen I had given “V” so it is Input Tax indicator.

CheckID: Indicator which determines that an error message should be issued if the tax amount is not
correct. If the indicator is not set, a warning message appears in place of the error message. The check indicator
determines that if the tax amount is not correct, the error must be corrected. This means that you can prevent
users from posting incorrect amounts of output tax. If you do not set a check indicator, the system issues a warning
in the case of a different tax amount; a correction does not have to be made. This is necessary for input tax postings,
since the tax amount on the incoming invoice is the amount users must enter when posting the invoice.

Enter the above parameters and click on enter button so it will display the following screen:

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In the above screen I assigned all zeros to all input taxes so it is 0% tax indicator.
Save the activity so it will display the following screen:

In the above screen we creating another input tax indicator with “I1”.

In the above screen against Tax code field give “I1” and pres enter button so it will display the following screen:

In the above screen:

Tax Code: In this field Tax Code will copy automatically so give detail description.
Tax Type: It indicates whether this Tax Code is Input tax or Output Tax
V: Input Tax
A: Output Tax
In above screen I had given “V” so it is Input Tax indicator.
CheckID: Indicator which determines that an error message should be issued if the tax amount is not
correct. If the indicator is not set, a warning message appears in place of the error message.

Enter the above parameters and click on enter button so it will display the following screen:

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In above case I had given taxes to Excise duty, Cess, Vat. That says if client is doing purchases with the state this
tax indicator is used (For India).

Save the activity. So it displays the following screen:

In the above screen we creating another input tax indicator with “I2”.

In the above screen against Tax code field give “I2” and pres enter button so it will display the following screen:

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In the above screen:

Tax Code: In this field Tax Code will copy automatically so give detail description.
Tax Type: It indicates whether this Tax Code is Input tax or Output Tax
V: Input Tax
A: Output Tax
In above screen I had given “V” so it is Input Tax indicator.
CheckID: Indicator which determines that an error message should be issued if the tax amount is not
correct. If the indicator is not set, a warning message appears in place of the error message.

Enter the above parameters and click on enter button so it will display the following screen:

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In above case I had given taxes to Excise duty, Cess, CST. That says if client is doing purchases out of the state this
tax indicator is used (For India).

Save the activity. So it displays the following screen:

Output Tax Codes

In the above screen enter Tax Code as you want and pres enter button.
Note: Here I given “O0” for Output tax

In the above screen:

Tax Code: In this field Tax Code will copy automatically so give detail description.
Tax Type: It indicates whether this Tax Code is Input tax or Output Tax
V: Input Tax
A: Output Tax
In above screen I had given “A” so it is Output Tax indicator.
CheckID: Indicator which determines that an error message should be issued if the tax amount is not
correct. If the indicator is not set, a warning message appears in place of the error message.

Enter the above parameters and click on enter button so it will display the following screen:

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In above case I had given 0% taxes to Excise duty, Cess, VAT, and CST. That says if client is doing sales out of the
state or with in the state this tax indicator is used (For India) if tax is 0%.

Save the activity. So it displays the following screen:

In the above screen enter Tax Code as you want and pres enter button.
Note: Here I given “O1” for Output tax

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In the above screen:

Tax Code: In this field Tax Code will copy automatically so give detail description.
Tax Type: It indicates whether this Tax Code is Input tax or Output Tax
V: Input Tax
A: Output Tax
In above screen I had given “V” so it is Input Tax indicator.
CheckID: Indicator which determines that an error message should be issued if the tax amount is not
correct. If the indicator is not set, a warning message appears in place of the error message.

Enter the above parameters and click on enter button so it will display the following screen:

In above case I had given taxes to Excise duty, Cess, VAT. That says if client is doing sales with in the state this tax
indicator is used (For India).

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Save the activity. So it displays the following screen:

In the above screen enter Tax Code as you want and pres enter button.
Note: Here I given “O2” for Output tax

In the above screen:

Tax Code: In this field Tax Code will copy automatically so give detail description.
Tax Type: It indicates whether this Tax Code is Input tax or Output Tax
V: Input Tax
A: Output Tax
In above screen I had given “V” so it is Input Tax indicator.
CheckID: Indicator which determines that an error message should be issued if the tax amount is not
correct. If the indicator is not set, a warning message appears in place of the error message.

Enter the above parameters and click on enter button so it will display the following screen:

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In above case I had given taxes to Excise duty, Cess, CST. That says if client is doing sales out of the state this tax
indicator is used (For India).

Save the activity and back to SPRO screen.

Step 6: Create relevant G/L Accounts

PATH: Accounting Financial Accounting General Ledger Master Records G/L Accounts Individual
Processing FS00 – Centrally

INPUT
INPUT INPUT INPUT INPUT INPUT INPUT INPUT INPUT
FIELD NAME VALUE
VALUE VALUE VALUE VALUE VALUE VALUE VALUE VALUE

G/L ACCOUNT NO 220001 220002 220003 220004 120001 120002 120003 120004
SAVE
SAVE
COMPANY CODE 1102 1102 1102 1102 1102 1102 1102 1102

LIABILITI
ACCOUNT GROUP ASSETS ASSETS ASSETS ASSETS LIABILITIES LIABILITIES LIABILITIES
ES SAVE

P&L STATEMENT Balance Balance Balance Balance

Balance sheet Balance sheet Balance sheet Balance sheet
ACCT/BALANCE sheet sheet sheet sheet SAVE
account account account account
SHEET ACCT account account account account

EXCISE EXCISE CST

SHORT TEXT / LONG CESS CESS VAT SAVE
DUTY VAT PAID CST PAID DUTY PAYABL
TEXT PAID PAYABLE PAYABLE
PAID PAYABLE E

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ACCOUNT
INR INR INR INR INR INR INR INR
CURRENCY SAVE

ONLY BALANCE IN SAVE

X X X X X X X X
LOCAL CURRENCY

TAX CATEGORY - - - - + + + + SAVE

POSTING WITHOUT
X X X X X X X X
TAX ALLOWED SAVE

OPEN ITEM
X X X X X X X X SAVE
MANAGEMENT

LINEITEM DISPLAY X X X X X X X X SAVE

SORT KEY 001 001 001 001 001 001 001 001 SAVE

FIELD STATUS
G001 G001 G001 G001 G001 G001 G001 G001 SAVE
GROUP

(“X” indicate to flag the check box)

• Open Purchases G/L Account and go to “Control Data” tab in the FS00 screen. In that tab assign “>” symbol to
“Tax Category” field and flat the “Posting Without Tax Allowed”

• Open Sales G/L Account and go to “Control Data” tab in the FS00 screen. In that tab assign “<” symbol to “Tax
Category” field and flat the “Posting Without Tax Allowed”

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Step 7: Define Tax Codes for Sales and Purchases

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Tax on
Sales/Purchases Posting Define Tax Accounts

Transaction Code: OB40

By the above transaction it displays the following window:

These are the account keys we

created. Double click on this
one by one to assign G/L

In the above screen you can view your Tax Account Keys. For each account key you need to assign G/L accounts as
you created in Transaction Code FS00.

To assign G/L accounts:

Now double click on Transaction “001” so it will display the following screen:

In the above screen give your chart of account and click on enter button so it will display the following screen:

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In the above screen just click on Save button, so it will display the following screen:

In the above screen click on Posting Key button so it will display the following screen:

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In the above screen assign “40 – G/L Debit” Posting key to Debit field, assign “50 – G/L Credit” Posting key to
Credit field and save the activity.

Click on “Accounts” button so It displays the following screen:

This is Excise duty paid account

key so assign that G/L account

Click on F4 function to assign

relevant G/L account.

In above screen assign Excise duty Paid G/L account number and save the screen.
Back to main screen.

NOTE: As I shown above G/L Account assignment do all other assignment’s to all account key for input and output
taxes.

Step 8: Assign Tax Codes for Non-Taxable Transactions

In this activity you define an incoming and outgoing tax code for each company code, to be used for posting non-
taxable transactions to tax-relevant accounts. Transactions posted like this are, for example; goods issue delivery,
goods movement, goods receipt purchase order, goods receipt production order, order accounting.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Tax on
Sales/Purchases Posting Assign Tax Codes for Non-Taxable Transactions

Transaction Code: OBCL

Database Table: T001

By the above transaction it displays following screen:

Click on button so it will display the following small box:

In the above box enter your company cods, and click on enter button so your company code will display at the top of
screen below:

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In the above screen against to your company code assign 0% Input Tax code and Output Tax Code.
Save the activity and back to SPRO screen.

Posting Customer Invoice with Output taxes

PATH: AccountingFinancial AccountingAccounts ReceivableDocument EntryF-22 - Invoice – General

Transaction Code: F-22

In the above screen enter Document Date, Document Type, Company Code, Posting Date, Period,
Currency/Rate, PstKy(Posting Key – Customer Debit), Account(Customer Number).

After entering above all parameters pres enter button so it will display the following screen:

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In the above screen enter Amount, flag check box Calculate tax, text, PstKy(G/L Credit Posting key), Account(G/L
Credit account number).

After entering above parameters pres on enter button so it will display the following screen:

In the above screen enter “ * ” symbol to Amount field, “ + ” symbol to Text symbol, give Output Tax code to Tax
Code field and click on button, so it will display the following screen:

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In this case tax is output tax so I had given “O1” and sales is with in state so CST tax wont calculate.
If tax is out of state take tax Code as “O2” then CST will calculate and VAT wont calculate.

NOTE: In the above screen enter Cost Center, Profit Center if create only, if don’t create them you can leave
blank those fields

In the above screen enter Business area, Profit Center, Segment, Functional Area and click on enter button.
Now go to Manu bar and “Document + simulate”

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Sales are with in state so CST tax won’t calculate VAT will calculate. If tax is out of state take tax Code as “O2”
then CST will calculate and VAT won’t calculate.

Go to Manu bar “Document + Post”, so it will post the entry and gives the following information message.

Back to easy access screen.

Report in G/L

PATH: Accounting Financial Accounting General Ledger  Account FBL3N - Display/Change Line Items

Transaction Code: FBL3N

By the above transaction code it display selection screen on this click on multiple selection button so it will
displays following screen:

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Select these G/L

accounts

This is copy button

click on this

Now click on copy button , so it will take you to precious screen as below:

Now click on executive button so it displays the following screen:

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Posting Vendor Invoice with Input Tax

PATH: Accounting Financial Accounting Accounts Payable Document Entry F-43 - Invoice – General

Transaction code: F-43

By the above transaction code it display the following screen:

In the above screen enter Document Date, Document Type, Company Code, Posting Date, Period,
Currency/Rate, PstKy(Posting Key –Vendor Credit), Account(Vendor Number).

After entering above all parameters pres enter button so it will display the following screen:

In the above screen enter Amount, flag check box Calculate tax, text, PstKy(G/L Credit Posting key), Account(G/L
Debit account number).
After entering above parameters pres on enter button so it will display the following screen:

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In the above screen enter “ * ” symbol to Amount field, “ + ” symbol to Text symbol, give Output Tax code to Tax
Code field and click on button, so it will display the following screen:

In this case tax is Input tax so I had given “I1” and Purchases is with in state so CST tax won’t calculate.
If tax is out of state take tax Code as “I2” then CST will calculate and VAT won’t calculate.

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In the above screen enter Business area, Profit Center, Segment, Functional Area and click on enter button.
Now go to Manu bar and “Document + simulate”

In this case tax is Input tax so I had given “I1” and Purchases is with in state so CST tax won’t calculate.
If tax is out of state take tax Code as “I2” then CST will calculate and VAT won’t calculate.

Go to Manu bar “Document + Post”, so it will post the entry and gives the following information message.

Back to easy access screen.

Report in G/L

PATH: Accounting Financial Accounting General Ledger  Account FBL3N - Display/Change Line Items

Transaction Code: FBL3N

By the above transaction code it display selection screen on this click on multiple selection button so it will
displays following screen:

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Select required G/L

accounts

Select this copy button to

executive

Now click on copy button , so it will take you to precious screen as below:

Now click on executive button to get report.

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Back to easy access screen.

Create required following G/L’s as I shown below

To create G/L account go to Transaction Code: FS00

G/L Account No 140000 446000 263000

Your Your Your
Company Code Company Company Company
Code Code Code
TYPE/DESCRIPTION TAB
Account Group LIABILITIES Expenses Assets
P&L
P&L Statement Acct / Balance Balance
Statement
Balance Sheet Account Sheet Sheet
Account
Bad
Provision Debits
Short Text / G/L Acct Bab
for Bad Special
Long Text Debits a/c
debits a/c Reserve
a/c
CONTROL DATA TAB
Only Balance in Local
X X NO
Currency
Tax Category NO NO NO

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Posting with out Tax
allowed

Recon. Account for Acct D

NO NO
Type Customers

Open Item Management NO NO NO

Line Item Display X X X

Sort Key `001 `002 `003
CREATE/BANK/INTEREST TAB
Field Status Group G001 G002 G003

Post Automatically Only NO NO NO

Relevant to Cash Flow NO NO NO

House Bank NO NO NO
Account ID NO NO NO
Interest Indicator NO NO NO

Interest Cal. Frequency NO NO NO

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Define Methods

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness

TransactionsClosingValuateReserve for Bad DebtDefine Methods

Transaction Code: OB04

Database Table: T030F

Through above transaction code or path it will display the following screen, click on New Entries button.

In the above screen:

Prov (Provision Method) : In this field give any name to identify the activity
Per :
M (Month) : In this field we enter the number of months after the due date of the
receivable. If the due date according to the entry is reached or
exceeded, a provision is set up with the selected percentage rate.
Pec 1 (Percentage) : In this field we enter percentage according to Provision to cal Bad
Debits
after the deadline has expired.

After entering the above parameters save the activity and back to SPRO screen.

Define Accounts for Reserve for Bad Debt

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness

TransactionsClosingValuateReserve for Bad Debt Define Accounts for Reserve for Bad Debt

Transaction Code: OBXD

Database Table:

Through above transaction code or path it will display the following Box:

In the above box enter your chart of accounts and click on enter button so it will display another screen as
below:

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In the above screen select all check boxes and click on save button so it will display the following screen:

In the above screen:

1. First enter your Provision method as we above created

2. Under Debit assign your “Bad Debit” G/L account number
3. Under Credit assign your “Provision for Bad Debits” G/L account number

Save the screen and back to SPRO screen

Maintain Accounts

Transaction Code: FBKP

Through above transaction code it will display the following screen:

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In the above screen click on Special G/L so it will display following screen:

In the above screen double click on “D E Reserve for Bad Debt” line so it will display the following box

In the above box enter Chart of Accounts and click on continue button so it will display another screen as
below:

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In the above screen under “Recon.acct” enter your “Sundry Debtors” G/L account number and under
“Special G/L account” enter your “Bad Debit Special Reserve” G/L account Number.

Save the activity and back main Easy access screen.

• Now post a Customer invoice at very past date with minimum of 4 or 5 months past date using
Transaction code: F-22

Receivables Transfer Posting (Gross)

PATH: Accounting Financial Accounting Accounts Receivable Periodic Processing Closing

Valuate F103 - Receivables Transfer Posting (Gross)

Transaction Code: F103

By above transaction code it will display the following screen:

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In the above enter details:

Customer Account : Enter your customer number to whom we just posted entry

Company Code : Enter your company code

Provision Method : Enter Provision method which we created in above steps

After entering all above parameters click on executive button so it will display the following screen:

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In the above screen it display the report which are the invoices are picking for the process and other
details as above.

Now click on back button once

On displayed screen go to menu bar to “System + Services + Batch Input + Sessions” it will display the
following screen:

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In the screen select “SAPF103” session and click on button so it will display a window as
below:

In the above box select “Display Errors Only” and click on “Process” button.

So it will update your “Bad Debit Reserve” A/L account.

REPORT

Transaction Code: FBL3N

It will display the following screen:

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In the above screen:

G/L Account : Enter your “Bad Debit Reserve” A/L account

Company Code : Enter your company code
Select All Items Radio Button under “Line Item Selection” Screen

Now click on Executive button so it will display the following report:

Reserve for Bad Debt (Gross)

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PATH: Accounting Financial Accounting Accounts Receivable Periodic Processing Closing
Valuate F104 - Reserve for Bad Debt (Gross)

Transaction Code: F104

By above transaction code it will display the following screen:

In the above enter details:

Customer Account : Enter your customer number to whom we just posted entry
Company Code : Enter your company code
Provision Method : Enter Provision method which we created in above steps
Generate postings : Flag the check box to
After entering all above parameters click on executive button so it will display the following screen:

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Now click on back button once

On displayed screen go to menu bar to “System + Services + Batch Input + Sessions” it will display the
following screen:

In the screen select “SAPF104” session and click on button so it will display a window as
below:

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In the above box select “Display Errors Only” and click on “Process” button.

So it will update your “Bad Debit Reserve” A/L account.

REPORT

Go to transaction code FBL3N and give all Bad Debit G/L accounts and executive button so it will
display the following report

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CASH JOURNAL

A double-entry compact journal managed in account form that records the postings for cash transactions.

By setting the cash balance at the beginning of the day, the cash journal shows the cash balance at any time by
adding the cash receipts and deducting the cash expenses. The cash journal also serves as a basis for entries in the
general ledger and thereby represents the "Cash" G/L account.

The cash journal is a sub ledger of Bank Accounting. It is used to manage a company's cash transactions. The
system automatically calculates and displays the opening and closing balances, and the receipts and payments totals.
You can run several cash journals for each company code. You can also carry out postings to G/L accounts, as well
as vendor and customer accounts.

The cash journal is a single-screen transaction. This means that you can enter, display, and change cash journal
documents on one screen.

Entering, saving, and posting cash journal entries

You can save cash journal entries locally in the cash journal. The system also calculates the balances. The cash
journal entries saved are then posted to the general ledger.

For a cash journal document, you can carry out CO account assignments, and have taxes, including withholding
taxes, calculated by the system with reference to business transactions, taking account of tax jurisdiction codes, for
example.

Displaying follow-on documents

You can also display the follow-on documents arising for the cash journal entries posted.

Defining cash journal business transactions

As well as defining cash journal business transactions in Customizing, you can also, if necessary, define a new
business transaction while you are making entries in the cash journal.

Printing the cash journal

You can print all cash journal entries posted in the time period displayed. You select the print form in Customizing.

Printing receipts

You can print the cash journal entries saved. You select the print form in Customizing.

Deleting cash journal entries saved

If you have the appropriate authorization, you can delete cash journal entries that have been saved.

Displaying all cash journal documents that have been deleted

You can display all the cash journal documents that have been deleted within a specific time period.

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Changing the cash journal

You can change the cash journal and the company code while you are processing entries.

Create G/L Account for Cash Journal

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCash JournalCreate

G/L Account for Cash Journal

Transaction Code: FS00 or FS01

FIELDS ENTRIES
G/L Account G/L account number (From Assets number range)
Company code 1102 (Your Company Code)
Account Group Assets
P&L Statement acct / Balance sheet Account Balance Sheet Account
Short text / G/L acct Long Text Cash Journal – 1
Only Balance in Local Crcy X (Flag the check box)
Line item display X (Flag the check box)
Sort Key 001
Field statue group G001
Post automatically only X (Flag the check box)

Save the G/L account and back to SPRO screen.

Amount Limit

You use these functions to define limit values for the FI cash journal; where these limits are reached and exceeded,
the user is prompted (in an information dialog box) to run certain activities. The check is always performed in the
first local currency of the company code. In the countries of the European Union, these functions are used to draw
attention to the legal requirement for identifying the payer.

You do not have to enter a company code. The entry is then valid for all company codes within a client that use the
currency specified as the first local currency.

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCash Journal

Amount Limit

Database Table: TCJ_MAX_AMOUNT

By above transaction it will display the following screen click on :

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In the above screen maintain parameters like your company code, currency, Valid from (Date) and Amount.

After maintain save the activity and back to SPRO screen.

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Define Number Range Intervals for Cash Journal Documents

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCash Journal Define

Number Range Intervals for Cash Journal Documents

By above transaction it will display the following screen

In above screen enter you company code and click on so it will display another screen.
In display screen click on so it will display the following windiw:

In above window enter number range as “01” and for that give any number interval as I shown above.
Click on enter button and save the screen.

Back to SPRO screen.

Set Up Cash Journal

To set up a new cash journal for a company code, enter the appropriate data for the following fields:

Company code: Company code in which you want to run the cash journal

Number: Random number for cash journal identification; you can run several cash journals in each company code

G/L account: G/L account to which you want to post the cash journal business transactions, usually the petty cash
account.

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Currency: Currency in which you want to run the cash journal. You are free to choose the cash journal currency. If
you want to run a cash journal whose currency does not correspond to that of the company code, you have to
consider the following details in the corresponding cash journal G/L account master data:

- The indicator Balances in local currency only should not be set

- The account currency must correspond to the company code currency

You can run several cash journals with different currencies in one cash journal G/L account. Several cash journals
with the same currency in one G/L account is however not possible. If you want to run several cash journals in the
same currency in one company code, you have to select different cash journal G/L accounts.

Cash Journal Closed: Indicator that a cash journal is closed

Document types for:

• G/L account postings

• Outgoing payments to vendors
• Incoming payments from vendors
• Incoming payments from customers
• Outgoing payments to customers

Name: Automatic language-dependent cash journal identification name, for example, Cash journal 1 SAP AG

Authorization group: Enables access protection for specific objects

NOTE: If you use extended withholding tax in your company code, you have to make the corresponding settings for
posting payments.

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCash Journal Set Up

Cash Journal

Database Table: TCJ_CJ_NAMES, TCJ_C_JOURNALS

By above transaction it will display the following screen click on :

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Define Business Transaction

• Company code: The company code in which the business transactions should be created

• Business transaction number: Random number that uniquely identifies the business transaction (these
numbers are automatically assigned by the system)

• Business transaction type:

1. E (Expense)
2. R (Revenue)
3. B (Cash transfer cash journal to bank)
4. C (Cash transfer bank to cash journal)
5. D (Customers-incoming/outgoing payment)
6. K (Vendors-outgoing/incoming payment)

• G/L account: Expense or revenue account for the offsetting postings of G/L account postings, for
example 400000 or 800000;
Caution: You must not make entries in the fields for business transaction types D and K.

• Tax code: Determines the business transaction control Caution: You may only make entries in this field
for business transaction types E and R.

• Cash journal business transaction: Random, automatic language-dependent indicator for the business
transaction, for example, SAP Shop or Taxi.

• Business transaction block: Indicator that a business transaction is blocked for additional postings.

• Account Modifiable during Document Entry: Indicator that you can change the G/L account during
document entry.
If you set the indicator, you can change the G/L account assigned to the business transaction during
document entry. The account defined is therefore a default value. If no account is defined, you have to enter
an account during document entry. You can set the indicator for business transactions of the category E, R,
C, and B.

• Tax Code Modifiable during Document Entry: Indicator that you can change the tax code during
document entry.
If you set the indicator, you can change the tax code assigned to the business transaction during document
entry. The tax code defined is therefore a default value. If no tax code is defined, you have to enter one
during document entry provided this is required for the account. You can set the indicator for business
transactions of the category E and R.

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCash Journal Create,

Change, Delete Business Transactions

Database Table: TCJ_TRANSACTIONS, TCJ_TRANS_NAMES

By above transaction it will display the following screen click on :

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Set Up Print Parameters for Cash Journal

In order to print the cash journal and the cash journal receipts, you have to set up the corresponding print program
parameters per company code.

• Enter the appropriate company code.

• Specify the following print program parameters per company code:

• For the cash journal:

- Print program
usually RFCASH00

- Report variant
For example, with entries FI_CASH_BB (Opening balance text),
FI_CASH_EB (Closing balance text), FI_CASH_CF (C/F text),
FI_CASH_SI (Signature text)

• For the cash journal receipts:

- Correspondence type
For example

- SAPC1 Accounting document: If you set the indicator Accounting documents, the receipts are printed
based on the FI documents. If you do not set the indicator, you can print all the documents saved in the cash journal
based on the cash journal documents. Not setting theindicator is therefore recommended.

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCash Journal Set Up

Print Parameters for Cash Journal

Database Table: TCJ_PRINT

By above transaction it will display the following screen click on :

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In the above screen enter above parameters.

Save the activity and back to SPRO screen.

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ExtendidWithholding Tax

Tax that is charged at the beginning of the payment flow in some countries. Usually, the party that is subject to tax
does not pay the withholding tax over to the tax authorities himself.

When a customer that is authorized to deduct withholding tax pays invoices from a vendor subject to withholding
tax, the customer reduces the payment amount by the withholding tax proportion. The customer then pays the tax
withheld directly to the appropriate tax authorities (see diagram).

Withholding Tax

An exception to this rule is self-withholding. The vendor subject to tax then has the right to pay the tax to the
authorities himself.

Use

To calculate, pay, and report the withholding tax, the SAP System provides two functions:

· Classic Withholding Tax (all Releases)

· Extended Withholding Tax (from Release 4.0)

For each company code, you can decide whether you want to use classic or extended withholding tax. Since the
extended withholding tax option includes all the functions of classic withholding tax, SAP recommends the use of
extended withholding tax (see below: Table of Classic and Extended Withholding Tax Functions).

If you have previously used classic withholding tax, and now wish to change over to extended withholding tax, you
must first convert the withholding tax data in all the company codes affected.

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Classic and Extended Withholding Tax Functions

Individual Functions Classic Extended

Withholding Withholding Tax
Tax
Withholding tax on outgoing payment X X
Withholding tax on incoming payment X
Withholding tax posting at time of payment X X
Withholding tax posting at time of invoice X
Withholding tax posting on partial payment X
Number of withholding taxes for each document item Max. 1 Several
Withholding tax base: Net amount X X
Modified net amount X
Gross amount X X
Tax amount X
Modified tax amount X
Rounding rule X
Cash discount considered X
Accumulation X
Minimum/maximum amounts and exemption limits X
Number assignment on document posting (certificate X
numbering)
Calculation formulas X X

Country Version India comes ready configured with all the settings you need to track and remit withholding taxes
under the following sections of the Income Tax Act, 1961:
· Payments to contractors and subcontractors (Section 194 C)
· Insurance commission (Section 194 D)
· Rent (Section 194 I)
· Fees for professional or technical services (Section 194 J)
· Interest other than interest on securities (Section 194 A) (only supported in the Extended Withholding Tax
solution)

Country Version India offers you two solutions for handling withholding tax (also known as tax deducted at source
or TDS). You can either use the Classic Withholding Tax solution or the Extended Withholding Tax solution.

Taxes withheld under each section are treated differently with regard to the time limits for remitting tax to the
authorities, providing the taxpayer with a withholding tax certificate, and filing an annual return. In addition, the
formats for the withholding tax certificates and the returns also differ.

The Income Tax Act requires you to calculate taxes as soon as you enter an invoice. However, if you make a down
payment to a vendor before you have received an invoice from it, you withhold tax on the down payment. Then,
once the invoice arrives, you clear the down payment against it.

When you prepare your annual returns, the act also requires you to make provisions for taxes on services received
but not yet invoiced.

Country Version India complements the generic Classic Withholding Tax and Extended Withholding Tax
solutions with additional functions that meet the needs of the Income Tax Act. These functions allow you to:

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• · Ensure that you remit taxes within the due date
• · Track and report withholding tax surcharges separately
• · Adjust withholding taxes when you clear a down payment against an invoice
• · Prepare withholding tax certificates and annual returns
• · Calculate withholding tax on provisions

Extended Withholding Tax

With extended withholding tax, you can process withholding tax from both the vendor and customer view.

In Accounts Payable, the vendor is the person subject to tax, and the company code is obligated to deduct
withholding tax and pay this over to the tax authorities on the vendor’s behalf. In Accounts Receivable, the company
code itself is subject to tax, and the customers that do business with this company code deduct withholding tax and
pay this over to the tax authorities on the company code’s behalf. In both cases, the business partner of the
person/entity subject to tax deducts the tax and pays it over to the tax authorities.

Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending
on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is
posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is
reduced by the withholding tax amount.

The key concept in extended withholding tax is the distinction between withholding tax type and withholding tax
code.

• While withholding tax types represent basic calculation rules,

• Withholding tax code specific features of these rules - in particular the percentage rate
• You can define any number of withholding tax codes for a given withholding tax type.

If a particular transaction requires more than one kind of withholding tax, this is covered in the SAP System by
defining more than one withholding tax type. When entering a line item, you can enter withholding tax data for each
of these withholding tax types.

The following special features also exist:

• In some countries, such as Argentina and Italy, other kinds of posting are required for certain business
transactions. Instead of the payment amount being reduced by the withholding tax amount, the withholding
tax is posted as an offsetting entry to an expense account You make the relevant settings in the withholding
tax code.
• Where cleared items are reset, the clearing document is automatically reversed if it contains withholding
tax data. For withholding tax types with accumulation, the accumulation base amount is adjusted if the
payment document is reversed.

Using the Extended Withholding Tax solution, you can withhold and report tax under all sections of the Income
Tax Act listed in Withholding Tax.

Since a company may consist of more than one entity responsible for withholding taxes, each of which is identified
by a separate TAN, you use a separate SAP organizational unit to represent each entity, the section code.

Country Version India comes with sample customizing settings for all of the aforementioned sections of the Income
Tax Act. The settings include:
• Withholding tax types
• Withholding tax codes

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• Official withholding tax keys, which represent the different sections of the Income Tax Act
• Recipient types, which represent the categorization of taxpayers into "companies" and "others," again, as
per the Income Tax Act You must also customize your own section codes.

Day-to-Day Activities

You are required to calculate taxes either when you enter an invoice or when you make any sort of payment,
whichever comes first. Since a full payment is seldom made before the invoice arrives, that means in effect that you
withhold taxes when you enter an invoice or a down payment.

When you enter a vendor invoice or make a down payment that is liable to withholding tax, the system
automatically creates line items for the appropriate taxes, including surcharges. Since different taxes need to be
remitted on different dates, depending on the section of the Income Tax Act, the system also calculates and records
each line item's due date.

If you first make a down payment (and withhold tax on it) and then enter the vendor invoice later on, you have to
clear the invoice against the down payment so that you do not withhold tax on the same item twice.
As far as your receivables are concerned, you also enter withholding tax certificates sent to you by your customers,
as proof of tax that they have withheld on payments to you.

Periodic Processing
At the end of each period, you make provisions for taxes on services received.
The authorities in India require you to remit taxes following a specific procedure. First, you create a remittance
challan with a list of the withholding tax items that you are remitting. You then send the challan to the authorities,
along with the check. Once the check has been cashed, the bank sends you a bank challan to confirm the payment.
You then enter the bank challan in the system.

The system automatically tracks each withholding tax item's remittance challan and bank challan.

When you have remitted the tax, you can print out withholding tax certificates for all taxes that you have withheld,
using functions specific to Country Version India.

Before you create your annual returns, you can also check for any customers that have not yet sent you a
withholding tax certificate for tax that they have withheld from you.

Again, with receivables, if you make interest payments to your customers, you must also withhold tax on them as
appropriate.

Journal entry for a Withholding Tax as below:

Purchases/ rent/ job work on contract a/c DR *****

To Vendor/ Contractor *****
To TDS a/c *****
To Surcharge a/c *****
To Education Cess on TDS a/c *****
To Education Cess on surcharge a/c *****
To Higher Education Cess on TDS a/c *****
To Higher Education Cess on Surcharge a/c *****

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In the above entry in credit side we have withholding tax line items like:

• TDS a/c
• Surcharge a/c
• Education Cess on TDS a/c
• Education Cess on surcharge a/c
• Higher Education Cess on TDS a/c
• Higher Education Cess on Surcharge a/c

All the above different taxes we have to create as Tax Type and Tax code in SAP, that configuration we do in the
following steps.

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Check Withholding Tax Countries

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Check Withholding Tax Countries

It will display another screen click on so it will display the following screen:

In the above screen enter your country and W/Tax City

Save the activity and back to SPRO screen.

Define Withholding Tax Type

In one business transaction, several kinds of withholding tax may have to be withheld. The SAP System uses
withholding tax types to reflect this. Several withholding tax types can be defined in the system; one or more can
be assigned in the vendor master record.

The withholding tax type governs the way in which extended withholding tax is calculated and is defined at country
level. As far as the time of posting for withholding tax amounts is concerned, there are two different categories of
withholding tax types:

• Withholding tax type for posting at time of invoice

• Withholding tax type for posting at time of payment

Withholding tax types classify different withholding taxes according to such features as:

• Point at which the tax is posted

• Method of calculating tax base amount
• Accumulation

Several withholding tax codes can be assigned to one withholding tax type.

withholding tax types for calculating tax at invoice posting and another one for calculating tax at payment posting.
All of the withholding tax types are customized so that certificate numbers are not assigned at this level. They are
assigned by the programs that you use for printing the withholding tax certificates instead.

When you have defined the withholding tax types, define the withholding tax codes and recipient types.

When you enter a document that is liable to tax, the system automatically applies the tax type and tax code
appropriate to that vendor or customer.

Make the following entries:

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• General data

Define the name of the withholding tax type.

• Calculation

Define the details for calculating the withholding tax base amounts and the rounding rules for the withholding tax
amount.
You also determine whether the withholding tax amount is to be both calculated and posted or only calculated (the
latter is the case in France, for example).

• Base amount

Field Meaning

Net amount The withholding tax base amount is the line item net amount.

Modified net The withholding tax base amount is equal to line item net amount plus a number of specific tax
amount amounts. The processing keys for the tax amounts to be totaled have to be specified for this
withholding tax type in a separate activity in Customizing.

Gross amount The withholding tax base amount equals the line item gross amount.

Tax amount The withholding tax base amount equals the tax amount of the line item.

Modified tax The withholding tax base amount is equal to the total of certain specific tax amounts. The
amount processing keys for the tax amounts to be totaled have to be specified for this withholding tax
type in a separate activity in Customizing.

You can define dependencies between withholding tax types via the field’s reduced base amount or Inherit base. If
the field Reduce base is selected in a withholding tax type, the withholding tax base amount is reduced by the
withholding tax amount of the dependent type. Alternatively, you can select the field Inherit base. The withholding
tax base amount then corresponds to the withholding tax amount of the dependent type.

The final amount used for the withholding tax calculation is calculated by applying the proportion subject to tax
(defined in the withholding tax code) to the base amount defined here in the withholding tax type.

• Rounding rules

You have the following options for rounding withholding tax amounts:

• Commercial (W/tax comm. round.)

• Rounding up (Round w/tax amount up)
• Rounding down (Round w/tax amount)

• Accumulation type

Here you define whether withholding tax base amounts and withholding tax amounts should be accumulated for this
withholding tax type, and if so, for what period.

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If the law permits withholding tax exempt amounts over a specific time period (for example, monthly, annually), the
amounts posted in this period must be retained. This ensures that withholding tax is posted as soon as the exempt
amount is exceeded. In the SAP System, this is reflected by accumulation. You can accumulate amounts for
calendar years, quarters, or months.

Since with accumulation, accumulated amounts are already included in the calculation of the withholding tax
amounts for the current payment in the period, the accumulation cannot be used for summation.

If you have activated accumulation for a withholding tax type, the accumulated withholding tax base amount in the
current period (month, quarter, year) is added to the withholding tax base amount of the line item for which the
withholding tax amount is to be calculated. The withholding tax amount is determined by applying the withholding
tax rate or formula (scale) to this total, and subtracting the withholding tax amount accumulated in the period
concerned. A formula is a series of staggered withholding tax rates valid for different withholding tax base amount
intervals. The current withholding tax base amount and the tax amount itself are added to the corresponding values
in the accumulation table. Accumulation is entered per customer/vendor account, withholding tax type, and
withholding tax code in the local currency of the company code concerned.

To prevent a withholding tax posting as soon as the accumulated withholding tax amount exceeds a defined
maximum, select the field Acc. w/tax to max.

• Control data

Here you define

o Whether manually entering the withholding tax base amount or the withholding tax amount is
permitted during document entry

o Whether you want to suppress withholding tax certificate numbering.

• Information for regional withholding tax

You can enter regional codes here. The regional code ensures that the withholding tax is reported and paid to the
relevant tax authorities.

• Definition of minimum and maximum amounts

Here you define whether you want to maintain minimum and maximum amounts at withholding tax type level or
withholding tax code level.

PATH: SPROFinancial Accounting (New) Financial Accounting Global Settings (New) Withholding
TaxExtended Withholding TaxCalculationWithholding Tax TypeDefine Withholding Tax Type for
Invoice Posting

Database Table: T059P, T059U

By the above PATH it will display the following window:

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In the above window enter country code and click on enter button.

It will display another screen click on so it will display the following screen:

In the above screen maintain parameters as I shown and click on next entry button so it will display the
following screen:

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In the above screen maintain parameters as I shown and click on next entry button so it will display the
following screen:

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In the above screen maintain parameters as I shown and click on next entry button so it will display the
following screen:

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In the above screen maintain parameters as I shown and click on next entry button so it will display the
following screen:

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In the above screen maintain parameters as I shown and click on next entry button so it will display the
following screen:

After maintain the above all parameters click on save the button to save the activity.
Back to SPRO screen.

Define Withholding Tax Keys

Systems object that you use to classify withholding tax items according to which section of the Income Tax Act they
belong to. This information is required in TDS returns.

Whenever you post a withholding tax item, assign it a withholding tax code as normal. Since each withholding tax
code is also assigned to an withholding tax key, the system automatically knows which section of the Income Tax
Act you have withheld the tax under.

When you prepare a TDS return, it shows which section of the Income Tax Act you withheld each item under.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Basic Settings Define Withholding Tax Keys

Database Table: T059O, T059OT

By the above PATH it will display the following window:

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In the above window enter country code and click on enter button.

It will display another screen click on so it will display the following screen:

In the above screen enter the section code and description.

Save the activity and back to SPRO screen

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Check Recipient Types

A system object that you use to classify payment recipients as legal persons or natural persons, for the purposes of
withholding tax reporting.

For each withholding tax type, create two entries as follows:

Recipient Type Text

CO Companies
OT Others

• Country Version India comes with sample settings for the sample withholding tax types provided.
• Enter the recipient type in each vendor master and each customer master.
• The TDS returns separate the information about taxes withheld on legal persons and on natural persons.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Basic Settings Check Recipient Types

Database Table: T059C, T059D

By the above PATH it will display the following window:

In the above window enter country code and click on enter button.

It will display another screen click on so it will display the following screen:

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In the above screen enter Check Recipient Types along with W/Tax type, save the activity and back to SPRO screen.

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Check Income Types

In this activity you check the revenue types for the withholding tax report.

You use the revenue type to classify your (foreign) vendors by revenue. You need the revenue types as a
specification for the withholding tax report.

1. Check the list of revenue types in the standard system and make any necessary adjustments.

2. Store the revenue type in the withholding tax code under "Specifications for the withholding tax report".
For more information on this, read the Check withholding tax code chapter.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Basic Settings Check Income Types

Database Table: T059E, T059G

By the above PATH it will display the following window:

In the above window enter country code and click on enter button.

It will display another screen click on so it will display the following screen:

In the above screen enter income types save the activity and back to SPRO screen

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Define Business Places

PATH: SPRO Cross-Application Components General Application Functions Nota fiscal CNPJ Business
Places Define Business Places

By the above screen it will display the following window:

In the above window enter Company Code and click on enter button.

It will display another screen click on so it will display the following screen:

In the above screen enter business place and description.

Click on save button it will display the following window:

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Enter above parameters and click on enter button and back to SPRO screen.

Define Section Codes

A system object that represents the organizational unit responsible for collecting and remitting withholding tax, as
identified by a TAN. Each company can have more than one TAN, so in the SAP system, a company code can also
have multiple section codes.

When you post a document with a withholding tax item (for example, a vendor invoice or a credit memo), enter the
section code in order to make sure that the tax item is assigned to the correct TAN.

In order to ensure that you always enter a section code, we recommend that you create a validation for this field.

When you print withholding tax certificates, each of your section codes can define its own forms, depending on
which format is required by the income tax office. The certificate supplied with the standard system also shows the
address data from the section code.

Each TAN holder files its own tax returns. When you prepare a TDS return, you enter the TAN holder’s section
code on the selection screen. The annual returns then show only the withholding tax items that are assigned to that
section code.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Basic Settings South Korea Define Section Codes

By the above PATH it will display the following window:

In the above window enter Company Code and click on enter button.

It will display another screen click on so it will display the following screen:

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In the above screen enter new section code and assign you business place which you created and click on save
button so it will display the following window:

Enter above parameters and click on enter button.

Back to SPRO screen.

Define Business Places

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Basic Settings India Define Business Places

In the display another screen click on so it will display the following screen:

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In the above screen assign section code to your company code.

Save the activity and back to SPRO screen.

Assign Factory Calendars to Business Places

In this IMG activity, you effectively specify which days the tax offices that you work with are open. The system
uses this information when you post a vendor invoice, so that it can allow for public holidays when it
determines the tax due date.

This activity is optional. If you do not make any entries, the system still determines the tax due date, but without
reference to any factory calendar.

You have maintained factory calendars for each of the calendars followed by the tax offices.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Basic Settings India Assign Factory Calendars to Business Places

In the display another screen click on so it will display the following screen:

In the above screen with your company code assign section code, factory calendar and rule.
Save the activity and back to SPRO screen.

Maintain Tax Due Dates

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In this IMG activity, you maintain the various tax due dates. Because due dates can differ, depending on the
withholding tax type and recipient type, you can maintain the dates at this level. Make sure that you maintain entries
for all the recipient types that you use.

For each permutation of official withholding tax key and recipient type, specify when the tax has to be remitted.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Basic Settings India Maintain Tax Due Dates

In the display another screen click on so it will display the following screen:

In the above screen to your country assign Official Tax key, Recipient type and no of tax due date days.
Save the activity and back to SPRO screen.

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Define Withholding Tax Codes

You define the tax base and rate in the withholding tax code. You make the settings for each country and
withholding tax type. You can therefore define as many withholding tax codes as required for each withholding tax
type.

Country Version India comes with a sample tax code for each of the sample withholding tax types provided. The
basic-rate withholding tax codes are set to 2%; the surcharge tax codes are set to 0.4%. For reporting purposes,
assign each withholding tax code to a withholding tax key.

Make the following settings:

• General data

Define the description of the withholding tax code, and where necessary, the official withholding tax key.

Official withholding tax keys are used on official forms when reporting taxes,

• Base amount

Define the portion to be taxed. This percentage rate is used to determine the final withholding tax base
amount and is applied to the withholding tax base amount calculated as a result of the setting in the withholding tax
type.

• Posting

Define a posting indicator. This can have one of the following values:

Value Name Description

1 Normal posting The withholding tax amount is deducted from the vendor line item
amount (posting at invoice entry) or from the payment amount
(posting at time of payment), and the system creates a line item for
the withholding tax.

2 Offsetting entry to The withholding tax amount is multiplied by the factor 1/(1-p), where
G/L account/No p stands for the withholding tax rate of the withholding tax code. The
reduction in system creates two withholding tax line items with opposing
subledger debit/credit signs.

This option is incompatible with withholding tax scales. (This

function is only relevant for Argentina, when using the "grossing up"
option).

3 Offsetting entry to The system creates two withholding tax line items with opposing
G/L account: debit/credit signs.

• Calculation

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Define the withholding tax rate or the information for using calculation scales (formulas).

For the withholding tax rate, you can enter either a percentage rate between 0 and 100, or you can enter a
fraction. The system then uses this rate to calculate the withholding tax amount from the withholding tax base
amount.

If you set the indicator Withholding Tax Formulas, the system calculates the withholding tax amount from the
withholding tax base amount using one of the scales defined for this withholding tax type/code combination.

All calculations are made in the respective local currency. This means that you have to maintain the minimum
and maximum for the withholding tax amount, the minimum base amount, the withholding tax exempt base amount,
and the scales in the local currency of the company code.

• Reporting information

Where necessary, define the region, the provincial code, and the type of income.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Calculation Withholding Tax Codes Define Withholding Tax Codes

Database Table: T059Z, T059ZT

By the above PATH it will display the following window:

In the above window enter country code and click on enter button.

It will display another screen click on so it will display the following screen:

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We configure in the above activity to calculate TDS of @2% on total value of invoice or contract amount or ect.
In the above screen enter all parameters as I shown and click on next entry button so it will display the
following screen

We configure in the above activity to calculate Surcharge on TDS @0.2000% on 2% of TDS value.
In the above screen enter all parameters as I shown and click on next entry button so it will display the
following screen

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We configure in the above activity to calculate Education Cess on TDS @0.044% on 2% of TDS value.
In the above screen enter all parameters as I shown and click on next entry button so it will display the
following screen.

We configure in the above activity to calculate Education Cess on Surcharge @ 0.4400% on 0.200% of Surcharge
value
In the above screen enter all parameters as I shown and click on next entry button so it will display the
following screen.

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We configure in the above activity to calculate Higher Education Cess @ 0.0220% on 2% if TDS value
In the above screen enter all parameters as I shown and click on next entry button so it will display the
following screen.

We configure in the above activity to calculate Higher Education Cess @ 0.0220% on 0.20% of surcharge value
In the above screen enter all parameters as I shown and click on save button to save entire activity, and back to
SPRO screen

Portray Dependencies Between Withholding Tax Types

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PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Calculation Withholding Tax Base Amount Portray Dependencies Between
Withholding Tax Types

Database Table: T059P, T059U

By the above PATH it will display the following window:

In the above window enter country code and click on enter button it will display the following screen:

In the above screen each tax in withholding tax is liked with one number as “W/Tax type no”
In the above screen double click on “N3 W/TAX EDUCATION CESS ON TDS” so it will display the following
screen:

The above screen is “N3 - W/Tax of Education Cess on TDS” and this is calculate on TDS. TDS is with number
“1” so we should assign that number to N3 as above.

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In the above screen assign no “1” to Depend. On type no field save the activity.

When you save it will automatically display the following screen.

Now double click on “N4 – W/TAX EDUCATION CESS ON SURCHAGE” so it will display the following
screen:

The above screen is “N4 – W/TAX EDUCATION CESS ON SURCHAGE” and that should calculate on
“Surcharge”, surcharge is with number “2”.so we have assign number 2 to this tax as above.

Save the activity and back to following screen:

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In above screen double click on “N5 – W/TAX HIGHER EDUCATION CESS ON TDS” so it will display the
following screen:

The above screen is “N5 – W/Tax Higher Education Cess on TDS” and that should calculate on TDS. The TDS is
with number “1”. We have to assign that number to above tax as I shown.
Save the activity and back to following screen.

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In the above screen click on “N6 W/TAX HIGHER EDUCATION CESS ON SURCHARGE” so it will display the
following screen:

The above screen is with “N6 – W/Tax Higher Education Cess on Surcharge” and it should calculate on Surcharge.
Surcharge is with number “2”.
So it assigned number “2” to above tax in this screen.
Save the activity and back to SPRO screen.

Define Min/Max Amounts for Withholding Tax Codes

If the legal requirements permit minimum, maximum, or exempt amounts for the withholding tax base amount or the
withholding tax amount, you can define these here.

All calculations are made in the respective local currency. This means that you have to maintain the minimum and
maximum for the withholding tax amount, the minimum base amount, the withholding tax exempt base amount, and
the withholding tax scales in the local currency of the company code.

You can define the minimum and maximum amounts at one of two levels, depending on the setting on the
corresponding withholding tax type for base amounts or withholding tax amounts .

• Define Min/Max Amounts for Withholding Tax Types

• Define Min/Max Amounts for Withholding Tax Codes

Make the following settings:

• Withholding tax minimum amount

If the withholding tax amount calculated is lower than the minimum amount you specify here, then the system
calculates the withholding tax amount as being zero.

• Withholding tax maximum amount

If the withholding tax amount calculated is higher than the withholding tax maximum amount you specify here,
then the system uses this maximum amount in the withholding tax calculation.

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• Minimum base amount

If the withholding tax base amount is lower than the minimum base amount you specify here, then the system
calculates the withholding tax amount as being zero. If the withholding tax base amount exceeds the minimum base
amount specified here, the system uses the whole base amount to calculate the withholding tax (compare
Withholding tax base exempt amount).

• Withholding tax base exempt amount (only possible at withholding tax code level)

If the withholding tax base amount is lower than the withholding tax base exempt amount, then the system
calculates the withholding tax amount as being zero.

If the withholding tax base amount exceeds the withholding tax base exempt amount specified here, then the system
uses the base amount as reduced by the exempt amount for the withholding tax calculation.

For accumulation, the total accumulated base amount is checked against the minimum base amount or the
withholding tax base exempt amount. In contrast, the withholding tax amount as reduced by the values already
accumulated is checked against the withholding tax minimum amount or the withholding tax maximum amount.

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Calculation Minimum and Maximum Amounts Define Min/Max Amounts for
Withholding Tax Codes

Database Table: T059MINMAX

By the above PATH it will display the following window:

In the above window enter country code and click on enter button.

It will display another screen click on so it will display the following screen:

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The amount we gave in the above screen will be exempted from the basic while calculation of tax TDS.
Now click on next entry button for another entry as below:

In the above screen provide exemption amount for surcharge. Save the activity and back to SPRO screen.

Assign Withholding Tax Types to Company Codes

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Company Code Assign Withholding Tax Types to Company Codes

Database Table: T001WT

It will display a screen click on so it will display the following screen:

In the above screen we assigned withholding tax type “N1” to company code.
Now click on next entry button to assign next entry as below:

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In the above screen we assigned withholding tax type “N2” to company code.
Now click on next entry button to assign next entry as below:

In the above screen we assigned withholding tax type “N3” to company code.
Now click on next entry button to assign next entry as below:

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In the above screen we assigned withholding tax type “N4” to company code.
Now click on next entry button to assign next entry as below:

In the above screen we assigned withholding tax type “N5” to company code.
Now click on next entry button to assign next entry as below:

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In the above screen we assigned withholding tax type “N6” to company code.
Now click on save button to save the activity and back to SPRO screen.

Activate Extended Withholding Tax

PATH: SPRO Financial Accounting (New) Financial Accounting Global Settings (New) Withholding Tax
Extended Withholding Tax Company Code Activate Extended Withholding Tax

Database Table:

By the above PATH it will display the following screen, in that screen click on so it will
display the following box

In the above box enter your company code and pres enter it will appears on the top to screen as below:

Flag the check box against to your company code to activate W.tax .
Save the activity and back to SPRO screen.

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Creation of required G/L a/c’s for Withholding Tax

The following 4 G/L account creates with following PATH:

PATH: AccountingFinancial AccountingGeneral LedgerMaster RecordsG/L AccountsIndividual

ProcessingFS00 - Centrally

P&L
Short
Statement Only
Text / Field Post
G/L a/c Compan Acc. acct / balance Open item Line Item Sort
G/L Acct Status Automatic
Number y .Code Group Balance in Local Management Display Key
Long Variant ally only
Sheet Currency
Text
Account
Balance
130000 1102 Liabilities Sheet TDS a/c X X X 001 G001 X
Account
Balance
Surcharge
131000 1102 Liabilities Sheet X X X 001 G001 X
a/c
Account
Balance
Education
132000 1102 Liabilities Sheet X X X 001 G001 X
Cess a/c
Account
Balance Higher
133000 1102 Liabilities Sheet Education X X X 001 G001 x
Account Cess a/c

Define Accounts for Withholding Tax to be Paid Over

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPostingAccounts for Withholding TaxDefine Accounts for Withholding Tax to be Paid
Over

With the above PATH it will display the following window:

enter your company code it above window and click on enter button so it will display the following screen:

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In the above screen flag the check box as shown to W/tax Code, Type and save the screen so it will display the
following screen:

This is your TDS G/L

account

This is your Surcharge

G/L account

This is your Education

Cess G/L account

This is your Higher

Education G/L account

In the above screen we assign G/L accounts with respective W/Tax type and W/Tax code to transaction key “WIT”.

Save the activity and back to SPRO screen.

Specify Document Type (Accounts Payable)

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPosting India  Remittance Challans Document Types Specify Document Type
(Accounts Payable)

Database Table: J_1IEWT_CUST

It will display a screen click on so it will display the following screen:

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In the above screen enter you Company Code and Document Type as “SA” (General Ledger Document Type).

Save the activity and back to SPRO screen.

Remittance Challan

A document, in India, that you present to a bank when depositing any form of withholding tax that you have
retained.

The challan states how much tax is being deposited. A separate challan is required for each form of withholding tax.

Maintain Number Groups

In this and the following IMG activities, you set up the numbering for the remittance challans.

Since you must create one challan for the taxes in each section of the Income Tax Law (official withholding tax
keys), and for separate tax offices (business place), you must create different number range objects
for each permutation of official withholding tax key and business place.

The procedure is as follows:

1. For each permutation of tax key and business place, create a number group.

2. For each number group, create a number range.

3. Assign each number group to a number range.

In this activity, you group together the permutations of company code, business place, and official withholding tax
key that you want to remit withholding tax for. You can assign the same group number to more than one
permutation, if you need to.

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPosting India  Remittance Challans Maintain Number Groups

Database Table: J_1IEWTNUMGR_N

It will display a screen click on so it will display the following screen:

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In the above screen provide information like company code, section code, official W/Tax Key and new entry to
Number Group.

Save the activity and back to SPRO screen.

Assign Number Ranges to Number Groups

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPosting India  Remittance Challans Assign Number Ranges to Number Groups

Database Table:
It will display a screen click on so it will display the following screen:

in the above screen give number group as we created in previous step and IntNR (internal number assignment) any
new entry.

Save the activity and back to SPRO screen.

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Maintain Number Ranges

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPosting India  Remittance Challans Maintain Number Ranges

By the above PATH it will display an screen click on button so it will display the following
screen:

In the above screen go to menu bar “Group + Insert” it will display the following window:

In the above box enter your Company Code and click on enter button so it will display the following window:

In the above window maintain text, mention present year and give any number interval.
Click on enter button so the entry will appear in main screen below:

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In the above screen:

Flag the check box of your number interval which you just created in the above screen.
Double click on your Internal number range which you created in above step
Now double click on “Element/Group”, so your number range will assign to your number range text as below:

Now save the above activity and back to SPRO screen.

Maintain Number Groups and SAPscript Forms

In this IMG activity, you specify which SAP script forms you want to use to print the withholding tax certificates.
These forms are used when you:

• Print withholding tax certificates for vendors

• Print withholding tax certificates for customers

Country Version India comes with a form, J_1IEWTCERT, which you can use as the basis for creating your own
forms.

For each type of withholding tax (official withholding tax key):

Specify which SAP script form you want to use If different tax offices require different forms, you can enter
different forms for different offices.

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Specify what number group you want for each certificate. This information determines which number range the
system uses to number the certificates. You assign the number range to the number group in the next two activities.

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPosting India  Withholding Tax Certificates for Vendors and Customers  Maintain
Number Groups and SAPscript Forms

It will display a screen click on so it will display the following screen:

In the above screen maintain the parameters with SAP Script form and new number group.
Save the activity back to SPRO screen.

Assign Number Ranges to Number Groups

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPosting India  Withholding Tax Certificates for Vendors and Customers  Assign Number
Ranges to Number Groups

It will display a screen click on so it will display the following screen:

in the above screen give number group as we created in previous step and IntNR (internal number assignment) any
new entry.

Save the activity and back to SPRO screen.

Maintain Number Ranges

PATH: Financial Accounting (New) Financial Accounting Global Settings (New) Withholding TaxExtended
Withholding TaxPosting India  Withholding Tax Certificates for Vendors and Customers  Maintain
Number Ranges

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By the above PATH it will display an screen click on button so it will display the following
screen:

In the above screen go to menu bar “Group + Insert” it will display the following window:

In the above box enter your Company Code and click on enter button so it will display the following window:

In the above window maintain text, mention present year and give any number interval.
Click on enter button so the entry will appear in main screen below:

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In the above screen:

Flag the check box of your number interval which you just created in the above screen.
Double click on your Internal number range which you created in above step
Now double click on “Element/Group”, so your number range will assign to your number range text as below:

Now save the above activity and back to SPRO screen.

Maintain Company Code Settings - Excise Registrations

PATH: SPTO Logistics - General Tax on Goods Movements India Basic Settings Maintain Company
Code Settings

It will display a screen click on so it will display the following screen:

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In the above screen enter your company code and First Month of Fiscal year.
Save the activity and back to SPRO screen.

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Assign Withholding Tax to Vendor Master Data

PATH: Accounting Financial Accounting Accounts Payable Master Records Maintain Centrally XK02
– Change

By above PATH it will display the following screen

In the above screen enter your vendor number, company code, purchase organization and flag the check box of
“Withholding tax”, now click on enter button so it will display the following screen

These are all W/Tax ID’s issue by tax

authorities optimal to assign

In the above screen enter the shown parameters like assigning all withholding type, codes to vendor.
Save the vendor master data back to easy access screen.

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Posting Vendor Invoice

PATH: AccountingFinancial AccountingAccounts PayableDocument EntryF-43 - Invoice – General

Transaction Code: F-43

In this case assume company had given a job work on contract to a person and that person is treated as vendor in
sap. So today we are paying him total contract amount and deducting tax from that.

In above screen give dates, document type, period, company code, currency at bottom of screen vendor credit
posting key and vendor number.
After providing above information pres enter button it will display the following screen:

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In the above screen give contract amount, business place, section code, debit posting key and debit G/L account
number and click on enter button it will display another screen as below:

In the above window it shows all taxes that are going to be affect. Just pres enter button or click on continue button
so it will take you to below screen:

In the above screen give “*” symbol to amount field and “+” symbol to text field.
Now click on button so it will display the following screen.

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NOTE: In the above screen enter Cost Center, Profit Center if create only, if don’t create them you can leave
blank those fields

In the above screen give information to business area, Cost Center, Profit Center, Segment, Functional Area and pres
enter button or click on continue button.

NOTE: If activated or configuration in CONTROLLING steps and created cost centers, profit centers then only you
assign those fields or you can leave them blank.

Now go to menu bar and click on “document + simulate” it will display the following screen:

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To post above entry again go to menu bar “document + post” so it will post the entry and give following
information:

In the above information it will show the document number and posted information.
Back to easy access screen.

Report

PATH: AccountingFinancial AccountingGeneral LedgerAccountFBL3N - Display/Change Line Items.

Transaction code: FBL3N

In the displayed select required all tax relevant G/L a/c number s and executive the screen it will display the
following report screen

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Create Remittance Challan

PATH: AccountingFinancial AccountingAccounts PayableWithholding TaxIndiaExtended Withholding

TaxRemittance of Withholding TaxJ1INCHLN - Create Remittance Challan

Transaction code: J1INCHLN

By above PATH it will display the following screen:

In the above screen enter parameters as above like:

1) Company code 7) Vendor (Vendors numbers against whom we are paying tax)
2) Fiscal Year 8) Recipient Types (As we created in W/Tax Configuration)
3) Business Place/ Section Code 9) Document Date
4) Document Number (The number which is
assigned to Posted document) 10) Posting Date
5) Posting Dates (Date when invoice is raised) 11) Bank Account (Your SBI check issue G/L a/c number)
6) Section (Tax section at which tax is deducted) 12) Business Area

In the above screen enter all above information and click on “Executive” button so it will display the following box:

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In the above box select “Document Number” radio button and click on enter button or click on continue button so it
will display the following screen:

In the window simple

click on this button

In the above window it is showing all taxes which we are paying to bank for challan.
Now click on back button simple so it will display the following window.

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Double click on this line

item

In the above window it shows one line item with an amount of Rs 1/- from “SBI Cheque issue G/L”, double click on
that line item it will display the following screen:

In this field delete this Rs 1/- and

give “*” symbol.

In the above screen it displays Rs 1/- in Amount line. Delete that Rs 1/- and give “*” symbol in that and pres enter
button then go to menu bar “Document + simulate” so it will display the following window.

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In the above window it shows payment of taxes to bank through SBI cheque issue to bank for challan. So it is a
reversal entry of invoice in regard of taxes.
Go to menu bar “Document + Post” to post the entry so it will display the following screen

In above screen it shows clearing and creating remittance challan. Back to easy access screen.

Report

PATH: AccountingFinancial AccountingGeneral LedgerAccountFBL3N - Display/Change Line Items.

Transaction code: FBL3N

In the displayed select required all tax relevant G/L a/c number s and executive the screen it will display the
following report screen

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In the above screen you can view all open items of taxes are cleared.

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Enter Bank Challan

PATH: AccountingFinancial AccountingAccounts PayableWithholding TaxIndiaExtended Withholding

TaxRemittance of Withholding Tax J1INBANK - Enter Bank Challan

Transaction code: J1INBANK

By above PATH it will display the following screen:

Click on this F4
function to assign
Challan clearing

In the above screen enter:

1) Company code,
2) Fiscal year,
3 Challan clearing number (Click on F4 function and select your latest or required challan number it will
automatically display on screen and other 2 fields will fill automatically)
4) Bank challan number (give any new number that ma be alphanumeric),
5) Bank challan date,
6) Bank key (your house bank key).

Now click on Executive button so it will display the following information:

In the above screen you can view the information of challan update.
Back to easy access screen.

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Certificates Print

PATH: AccountingFinancial AccountingAccounts PayableWithholding TaxIndiaExtended Withholding

Tax Certificates J1INCERT - Print

Transaction code: J1INCERT

By above PATH it will display the following screen:

In the above screen:

1) Company code 6) Bank Challan Numbers
2) Fiscal Year 7) Bank Challan Dates
3) Business Place / Section code 8) Vendors
4) Section 9) Certificate Date
5) Posting dates 10) Signatory
11) Designation
12) Place of Printing
Give all above information and click on execute button so it will display the following window:

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In the above window to “Output Device” field give “LP01” and flat check box “Print Immediately”.
Now click on Print Preview. It will display the following report as TDS certufucate.

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---------------------------------------------------***--------------------------------------------------

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Define Posting Keys and Posting Rules for Check Deposit

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCheck

DepositDefine Posting Keys and Posting Rules for Check Deposit

Database Tables: T028D, T028E, T033F, T033G, T033I, T033J

By the above PATH it will display the following box:

In the above box give your chart of accounts and pres on enter button or click on continue button so it will display
another screen. Now click on button so it will display the following screen:

In the above screen enter 3 account symbols like “Main Bank, CheckDeposit, CheckIssue”.
Pres enter button and save the activity.

Now click on “Assign Accounts to Account Symbol” under Dialog Structure right side of the screen it will display
the following screen click on first:

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In the above screen we assigned G/L accounts to each account symbols which we created in first step above.
Save the activity and click on “Create Keys for Posting Rules” and click on button so it will display
the following screen:

In the above screen give new posting rule for checkdeposit clearing, pres enter button and click on save button to
save activity.

Now double click on “Define Posting Rules” and click on button so it will display the following
screen:

In this case General Entry will be as below:

SBI Check Deposit G/L a/c Dr *****

To Customer a/c *****

In the above screen:

Posting Rule : give the posting rule which we created in above screen in “Create keys for
posting rules step”

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Posting Area : It specifies whether the entry should post to “Bank Accounts” or ”to Sub
ledger Accounts”

Posting Key : The Posting Key indicates whether the entry should go with Debit side of G/L
or Credit side of G/L.
Acct Symbol : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted
Document Type : It is which indicates the nature of entry
Posting Type : Which specifies about Purpose of the entry posting. In the above case 8:
Clearing Credit Sub ledger Accounts.

Save the above screen and back to SPRO screen:

Create and Assign Business Transactions

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCheck Deposit

Create and Assign Business Transactions.

Database Tables: T028H, T028I

In the following displayed screen click on button so it will display the following screen:

In the above screen:

Tran (Transaction): In this field you can give any new code
+ - Field : in this field take “+” symbol if bank balance increases like check deposit to house
bank and take “- ” symbol when check issue that meat house bank balance
decreases.
Post.rule : Posting rule which we created in above steps with relevant to transaction assign in
this field.
In the above screen enter the parameters, save the activity and back to SPRO screen.

Define Variants for Check Deposit

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsCheck

DepositDefine Variants for Check Deposit

By the above screen it will display a screen on that click on new entries button, it will display the following
screen:

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In the above screen enter new variant, description in Name field and no of lines as “1”.
Pres enter button so it will display the following screen:

2) Double
click on
this line

1) Enter Lgth
(Length) as 14 and 3) Change
pres enter button this number
to 06

4) Click on this
continue button

In the above screen:

1. First enter 14 in Lgth field

2. Click on “10- DIGIT CHECK NUMBER” line so it will display a small box as you saw above
3. Change the “Output Lgth” to 06
4. Click on continue button or pres enter button

So it will insert a line under “Fields of the Variant” as below:

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1) Double click
on this line

2) Click on this
continue button

In the above screen:

First pres “Page Down” button on the key board so “Possible Fields” in above screen will drage up with other fields.

1. Double click on “CUSTOMER NUMBER” field so it will display the small box as above.
2. In the box don’t change any Length just pres enter button or click on continue button.

It will add another line to “fields of the variant” as below

1) Double click
on this line

2) Click on this
continue button

In the above screen:

1. Double click on “INVOICE REFERENCE” field so it will display the small box as above.
2. In the box don’t change any Length just pres enter button or click on continue button.

It will add another line to “fields of the variant” as below

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2) Click on this
continue button

1) Double click
on this line

In the above screen:

1. Double click on “INVOICE DATE” field so it will display the small box as above.
2. In the box don’t change any Length just pres enter button or click on continue button.

It will add another line to “fields of the variant” as below

1) Double click
on this line

2) Click on this
continue button

In the above screen:

1. Double click on “INVOICE DATE” field so it will display the small box as above.
2. In the box don’t change any Length just pres enter button or click on continue button.

It will add another line to “fields of the variant”.

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Now click on save button to save the activity and take back to first screen as below:

In the above screen you can view your variant just created, keep the curser on that and click on activate button
and back to SPRO screen.

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Post a sales invoice to customer

To post one or moor sales transaction to customer use Transaction code: F-22

(For example assume I had posted an invoice to customer with an amount of Rs 15000/-)

View the Report

To view reports go to Transaction Code: FBL5N (Customer Line Items), FBL3N (G/L Lineitems)
In these reports you can view openitem of customer invoices

Enter check Deposit

PATH: Accounting Financial Accounting Banks Incomings Check Deposit FF68 - Manual Entry

Transaction Code: FF68

By above transaction it will display the following screen:

In the above screen:

Bank Key : In this field enter your House Bank key (Check House Bank configuration)
Bank Account : In this field enter your Check Deposit bank account number (Check House Bank
configuration)
Currency : Enter your Currency
Group : Any new identification for the activity
Transaction : The Check Deposit Transaction which your created in above step

With above details enter few other details like dates and other.
After entering above all parameters Go to menu bar “Settings + Specifications” so it will display the following
window:

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In the above screen:

Start Variant : Select your variant which you created above step
Cust.Matchcode ID : Select “D” which used to search customer by company code
Processing Type : Select “4” which used to process the statement through online

Now pres enter button two times so it will display the following screen:

In the above screen:

Amount : Amount of customer invoice (customer openitem)

Check : Check number which is given by customer
Customer : Customer number
Inv.ref : Invoice document number
Doc.date: Document date

After entering all items like above pres enter and save the screen it will automatically go back to first screen as
below:

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In the above screen go to menu bar “Check deposit trans + Print + Individual list” so it will display the following
window:

In the above window in “Output Device” field give “LP01”, flag check box “Print Immediately” and click on “Print
preview”. It will display the following screen:

Back to main screen.

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Again go to menu bar “Check deposit trans + Post + Individual List” so it will display the following screen:

It shows no of items posted and information related errors in transaction.

Report

To view reports go to Transaction Code: FBL5N (Customer Line Items), FBL3N (G/L Lineitems)
In these reports you can view cleared item of customer invoices

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With this function, you can manually enter bank account statements you receive.
Statement entry is usually a two-step process:
 First, you enter the account line items in the system. Various tools are available to help you with this. You
can vary the row format for entering individual transactions.
In addition, the system supports individual account determination and checks data consistency.
 The second step is to post the line items you have entered.

The account assignment variant can be changed at any time during processing. You can also enter more than one
value in an account assignment field. The system highlights account assignment fields for which you do this.

When you enter your data, payment advices created in SAP Cash and Liquidity Management using memo record
entry can be automatically transferred to the bank statement.

There are various selection criteria for doing this. For example, you can select all payment advices entered within a
certain planning period or on a specific statement date.

When you process the data, you can delete from the entry screen any memo records that do not match the bank
account statement.

If you entered the wrong beginning or ending balance, you can correct it in the entry screen.

Posting Specifications

In the manual bank statement function, you can create up to two postings for each line item.
 A bank account posting (for example, debit bank account and credit bank clearing account)
 A sub ledger posting (for example, debit bank clearing account and credit customer account with clearing)

Define Posting Keys and Posting Rules for Manual Bank Statement

PATH: SPROFinancial Accounting (New) Bank AccountingBusiness TransactionsPayment

TransactionsManual Bank Statement Define Posting Keys and Posting Rules for Manual Bank Statement

By the above PATH it will display the following box:

In the above box give your chart of accounts and pres on enter button or click on continue button so it will display
another screen. Now click on button so it will display the following screen:

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In the above screen enter bank related transaction as Accounts Symbols in above activity.
Save the activity and double click on “Assign Accounts to Account Symbol” and click on
It will display the following screen:

In the above screen to all your Account Symbols assign respective G/L accounts.
Save the activity and click on “Create Keys for Posting Rules” and click on
So it will display the following screen:

In the above screen create new posting rules as above.

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Save the activity and double click on “Define Posting Rules” and click on
So it will display the following screen:

In the above screen the G/L entry will as below:

SBI Main Bank G/L a/c Dr *****

To SBI Check Deposit G/L *****

Fields should field as below:

Posting Rule : give the posting rule which we created in above screen in “Create keys for
posting rules step” for check deposit.
Posting Area : It specifies whether the entry should post to “Bank Accounts” or ”to Sub
ledger Accounts”
Posting Key (Debit) : The Posting Key indicates whether the entry should go with Debit side of G/L
or any other
Acct Symbol(Debit) : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted at debit side
Acct Symbol(Credit) : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted at Credit side
Document Type : It is which indicates the nature of entry
Posting Type : Which specifies about Purpose of the entry posting. In the above case 5:
Clearing Credit G/L Accounts.

After entering above all parameters click on next entry button so it will display the following screen:

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In the above screen the G/L entry will as below:

SBI Check Issue Clearing G/L a/c Dr *****

To SBI Main Bank G/L a/c *****

Fields should field as below:

Posting Rule : give the posting rule which we created in above screen in “Create keys for
posting rules step” for Check issue clearing.
Posting Area : It specifies whether the entry should post to “Bank Accounts” or ”to Sub
ledger Accounts”
Posting Key (Credit) : The Posting Key indicates whether the entry should go with Credit side of G/L
or any other
Acct Symbol(Debit) : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted at debit side
Acct Symbol(Credit) : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted at Credit side
Document Type : It is which indicates the nature of entry
Posting Type : Which specifies about Purpose of the entry posting. In the above case 4:
Clearing Debit G/L Accounts.

After entering above all parameters click on next entry button so it will display the following screen:

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In the above screen the G/L entry will as below:

Bank Charges G/L a/c Dr *****

To SBI Main Bank G/L a/c *****

Fields should field as below:

Posting Rule : give the posting rule which we created in above screen in “Create keys for
posting rules step” for Bank Charges.
Posting Area : It specifies whether the entry should post to “Bank Accounts” or ”to Sub
ledger Accounts”
Posting Key (Debit) : The Posting Key indicates whether the entry should go with Debit side of G/L
or any other
Posting Key (Credit) : The Posting Key indicates whether the entry should go with Credit side of G/L
or any other
Acct Symbol (Debit) : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted at debit side
Acct Symbol (Credit) : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted at Credit side
Document Type : It is which indicates the nature of entry
Posting Type : Which specifies about Purpose of the entry posting. In the above case 1:
Posting to G/L Account.

After entering above all parameters click on next entry button so it will display the following screen:

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Fields should field as below:

Posting Rule : give the posting rule which we created in above screen in “Create keys for
posting rules step” for Check Dishonor.
Posting Area : It specifies whether the entry should post to “Bank Accounts” or ”to Sub
ledger Accounts”
Posting Key (Credit) : The Posting Key indicates whether the entry should go with Credit side of G/L
or any other
Acct Symbol (Credit) : Give the right Account Symbol which we created in first step in above screen.
It indicates the G/L account which should be posted at Credit side
Document Type : It is which indicates the nature of entry
Posting Type : Which specifies about Purpose of the entry posting. In the above case 7:
Posting to G/L Account.

After entering above parameters click on save button to save the activity and back to SPRO screen.

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Create and Assign Business Transactions

PATH: SPRO Financial Accounting (New) Bank Accounting Business Transactions Payment
Transactions Manual Bank Statement Create and Assign Business Transactions

Through above transaction it will display the following screen click on :

In the above screen:

Tran (Transaction): In this field you can give any new code
+ - Field : in this field take “+” symbol if bank balance increases like check deposit to house
bank and take “- ” symbol when check issue that meat house bank balance
decreases.
Post.rule : Posting rule which we created in above steps with relevant to transaction assign in
this field.

In the above screen enter the parameters, save the activity and back to SPRO screen.

Bank Statement

PATH: Accounting Financial Accounting Banks Incomings Bank Statement FF67 - Manual Entry

Transaction Code: FF67

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AUTOMATIC PAMENT PROGRAM
With the payment program you can process local and international payment transactions involving your customers
and vendors. With this program we can pay all vendor at a time(Who ever vendors you want to involve in payment
program)

Prerequisites

The Payment Methods, House Banks, and Forms you use must be defined or adapted before the payment run is
executed.

If the above-mentioned steps are to be carried out automatically, the payment program requires the following
information:

• Rules according to which it can determine the open items to be paid and, if expedient, group them together
for payment. For example, you can specify grace periods for incoming items, which are taken into
consideration when calculating the due date.

• Specifications for selecting the payee. You can enter an alternative payee in your customer/vendor's master
record or in the document itself.

• Rules used by the payment program to select the payment methods. You can specify payment methods via
your customer or vendor's master record or via the open items, or you can have the payment program select
them using specified rules.

• Rules used by the payment program to select the house bank from which the payment is made. House
banks are banks where your company (company code) maintains accounts. You can specify a house bank in
your customer/vendor's master record or in the line item, or you can have the payment program select it
using specified rules.

• Specifications for automatic postings. The payment program requires information such as document types,
posting keys and accounts, in order to carry out the automatic postings.

You set the rules for controlling the payment program

• In the customer/vendor master record

• In the line items

• via configuration of the payment program

• With individual specifications for each payment run

Process Flow

1. It determines the open items to be paid and creates a proposal list. You can process the proposal list on-line.
Among other things, you can change payment methods or banks, block items, or cancel payment blocks.

2. The payment program carries out payment using the proposal list. The payment run includes only the open
items contained in the proposal list. The payment program posts documents and provides the data for the
form printout and for creating the data carriers, the payment advice notes and the payment summaries.

3. It uses the print program to print the forms and create the data carriers.

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Set Up All Company Codes for Payment Transactions

In this activity, you make specifications for all company codes involved in payment transactions.

For each company code, you make the following specifications:

Sending company code:

The sending company code is the company code that is known to the business partner.

When making cross-company code payments, you can specify the sending company code as well as the paying
company code for each company code. If the sending company code is different from the paying company code,
the system notes the sending company code in the payment transfer medium or payment advice. This note is
information for the business partner.

Furthermore, the sending company code affects how the system groups items from different company codes into one
payment. Items are only grouped into one payment for company codes with the same paying company
code and the same sending company code.

If the sending company code is not specified, the system automatically regards the paying company code as the
sending company code.

Paying company code:

You assign a paying company code to each company code. This means that you can have one company code process
payment transactions centrally for several company codes.

Separate payment per business area

Use payment method supplements:

Select the field if you wish to use payment method supplements, and then define the payment method supplements
in the activity Define Payment Method Supplements. If you wish to display the Payment method supplement field in
the line item display for customers and vendors, you can define the corresponding display variants. The same applies
to the functions for displaying payments and paid items when displaying payment
proposals. For this, choose the following activities:

Define Line Layout

• Make Settings for Displaying Payments

• Make Settings for Displaying Line Items

Cash discount and tolerance:

The payment program uses these entries to determine the cash discount strategy for the company code.

Special G/L transactions:

Specify which special G/L transactions are to be settled for
customers and vendors.
Example: FPA
F = Down payment request
P = Payment request
A = Down payment on current assets

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness

TransactionsOutgoing PaymentsAutomatic Outgoing PaymentsPayment Method/Bank Selection for Payment
ProgramSet Up All Company Codes for Payment Transactions

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Database Table: T042

Through above PATH it will display the screen click on :

In the above screen maintain the parameters as I shown,

Save the screen and back to SPRO screen

Set Up Paying Company Codes for Payment Transactions

In this activity, you make the following specifications for the paying company codes:

Data for controlling the payment program:

Here you specify the minimum amount for which an incoming or outgoing payment is created, for example. You
can define additional amount limits for the payment method. To do so, choose the activity Set Up Payment Methods
per Company Code for Payment Transactions.

Specifications for paying with bills of exchange:

You can show or hide the settings for paying with bills of exchange.

Forms and sender details for advice notes and EDI accompanying sheets:
If you wish to print payment advice notes or an EDI accompanying sheet, specify the form name. Specify also the
SAP script text modules that contain details about the sender that are to be printed on the payment advice note. You
can go directly from this transaction to the transaction for editing forms and text modules.

The standard system contains forms for payment advice notes and EDI accompanying sheets which you can copy
and adjust to meet your requirements.

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PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness
TransactionsOutgoing PaymentsAutomatic Outgoing PaymentsPayment Method/Bank Selection for Payment
Program Set Up Paying Company Codes for Payment Transactions

Database Table: T042B, T042T

Through above PATH it will display the screen click on :

In the above screen enter the above parameters and save the activity.
Back to SPRO screen.

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Set Up Payment Methods per Country for Payment Transactions

The payment method specifies the procedure, such as check, transfer or bill of exchange, by which payments are
made.

The following payment methods are usual in Accounts Payable and Accounts Receivable:

Payment Methods in the System

Accounts payable Accounts receivable

Check Bank collection
Transfer Bank Direct Debit
Postal giro transfer Refund by check
Bills of Exchange Refund by bank transfer
Check/bill of exchange Bank bills
Bill of exchange
payment request

You define the payment methods in two steps:

...
• You first make all the specifications that are required for each payment method in each country. This is
necessary for all the payment methods used by your organization in each country. If you have companies
(company codes) in Germany, France and the USA for example, you define the payment method "check"
for each country.
• You then define the payment methods you use for each company code. When in this configuration
function, you also specify the conditions of their use.

In this activity, you specify which payment methods are to be used in each country. You enter the following details
for the payment method:

Country-Specific Specifications for the Payment Method:

• Payment method either for incoming or outgoing payments

• Characteristics for classifying payment method: Here you specify the type of payment method in
question (such as check or bank transfer) and any other features of that payment method (the payment
method is used for personnel payments, for example). When you select a payment method, only the
characteristics that are appropriate for that payment method are displayed. This means that you can only
select fields that are relevant for the selected payment method.

• Required entries in master record: Here you determine which specifications in the master record control
whether the payment method is used (such as bank details or collection authorization).

Note: If the required details have not been entered in the master record, the payment method cannot be used.

• Posting specifications: You specify how the payment is to be posted, for example (such as which
document type is to be used).

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You also specify which currencies are to be permitted, dependent on the country and payment method. If you leave
the currency table blank, this means that all currencies are permitted.
Note: If the payment method only allows payments in local currency, the system ignores any currencies specified.

If you use the Payment Medium Workbench, read the documentation under Make Settings for Payment Medium
Formats from Payment Medium Workbench in the section Payment Media.

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness

TransactionsOutgoing PaymentsAutomatic Outgoing PaymentsPayment Method/Bank Selection for Payment
Program Set Up Payment Methods per Country for Payment Transactions

Database Table: T042Z

Through above PATH it will display the screen click on :

In the above screen maintain above parameters,

Save the activity and back to SPRO screen:

Set Up Payment Methods per Company Code for Payment Transactions

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In this activity, you specify which payment methods can be used per company code and determine the conditions
under which a payment method should be used.

• Amount limits for payments within which the payment program can select the payment method

Note: You always have to specify a maximum amount, otherwise the payment method cannot be used. If you
specify the payment method in an open item, the payment program ignores the amounts you enter here.

• Specifications for grouping items for payment (such as single payment for marked items)

• Specifications for foreign/foreign currency payments

• Specifications for optimizing bank selection

• Specifications for the form to be used for the payment medium

• Specifications for issuing payment advice notes

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness

TransactionsOutgoing PaymentsAutomatic Outgoing PaymentsPayment Method/Bank Selection for Payment
Program Set Up Payment Methods per Company Code for Payment Transactions

Database Table: T042E

Through above PATH it will display the screen click on :

In the above screen maintain required parameters as above.

Save the activity and back to SPRO screen.

Set Up Bank Determination for Payment Transactions

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In this activity, you make settings that the payment program uses to select the banks or bank accounts from which
payment is to be made. You define the following:

Ranking order of banks:

You specify which house banks are permitted and rank them in a list.

Bank accounts:
For each house bank and payment method (and currency, if required), you specify which bank account is to be used
for payments.

Available amounts:
For each account at a house bank, you enter the amounts that are available for the payment run. You enter separate
amounts for incoming and outgoing payments. Specifying available amounts enables you to control which bank
account is to be used for payments. You can specify the amounts depending on the value date at the bank.

Value date:
You specify how many days elapse between the posting date of the payment run and the value date at the bank,
dependent on the payment method, bank account, payment amount, and currency. You can have the system
determine the value date, taking into account the bank calendar and any individual arrangements made with
the bank. To do so, choose the activity Define Value Date Rules

Fees/Charges:
You define the charges that are printed on the bill of exchange forms (standard practice in Spain).

PATH: SPROFinancial Accounting (New) Accounts Receivable and Accounts PayableBusiness

TransactionsOutgoing PaymentsAutomatic Outgoing PaymentsPayment Method/Bank Selection for Payment
Program Set Up Bank Determination for Payment Transactions

Database Table: T042A, T042D, T042I, T042V

Through above PATH it will display the screen click on it will display the following
window:

In the above box enter your company code and click on continue button or click on enter button so your company
code will appears on the top as below:

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In the above screen select your company code and click on “Ranking order”.
It will display another screen click on

In the above screen enter required parameters and click on “Bank Account”
It will display another screen click on

In the above screen enter required parameters and click on “Available Amounts”
It will display another screen click on

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In the above screen enter required parameters and click on “Value Date”
It will display another screen click on

In the above screen enter required parameters and click on save button to save the activity, back to SPRO screen.

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Assign Payment Method to Vendor Masters

In the master record you can either:

• Specify a single payment method, if, for example, you have already defined a specific payment method
with a business partner, or

• Specify multiple payment methods, one of which will be selected by the payment program according to
your specifications during the payment run.

If you specify a payment method in the open items, it will override the specification in the master record. A
payment method defined in the open items must not exist in the master record.

The payment method with which you want to pay must always be specified in the customer or vendor master record
or in the open item.

NOTE: The following activity we have to do with all vendors or to those vendors to whom we want to pay
through APP

Change Vendor Master Data

PATH: Accounting Financial Accounting Accounts Payable Master Records Maintain Centrally XK02
– Change

Transaction code: XK02

In the above screen enter your vendor number, company code, purchase organization and flag the check box
“Payment Transactions” so it will display the following screen:

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In the above screen assign your payment method to vendor master data which you created in above steps.
Save the master data and back to easy access screen.

NOTE: assign your payment method to your all vendor master data’s to whom you want to run the APP program

Post open items or post purchase invoice using Transaction Code: F-43
Using above transaction code post purchase invoices to more than 1 vendor like 2 or 3 vendors

Look into the vendor report with Transaction Code: FbL1N

Looking into the G/L report with Transaction Code: FBL3N

In both cases you can view open items with all vendors and G/L’
Now we have to run “Automatic Payment Program” to clear all vendors at a time through check.

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RUN PAYMENT PROGRAM

Selection of the Payment Method by the Payment Program

Before every payment run you must specify which payment methods may be used in the payment run. If a payment
method is specified in open items or in the master record of the customer/vendor and if that payment method is
permitted for that payment run, the payment program selects this payment method. The payment method in the open
items takes precedence over any payment method defined in the master record.

If several payment methods are specified in the master record and none in the item, then the payment program
selects a payment method. The program checks (in the sequence in which you entered them) whether each of the
payment methods you specified for the payment run can be used. To be able to be used, a payment method must
satisfy the following conditions (among others):

• The payment method must be specified in the customer/vendor master record or open items.
• The master record must contain the specifications needed for the payment method.
• For foreign payments, the payment program checks whether the payment method in question allows
payments to customer/vendors or banks located abroad.
• In the case of payments in foreign currency the payment method must be allowed for foreign currency
payments.
• The permissible minimum and maximum amounts must be adhered to for the payment amount.
• For payment, a bank permissible for the payment method under consideration is determined.

If one of the specified payment methods meets all the above conditions, this payment method is used. Otherwise, the
program carries out all the checks for the next payment method in the list you entered.

PATH: Accounting Financial Accounting Accounts Payable Periodic Processing F110 – Payments

Transaction Code: F110 – Payments

By above PATH it will display the following screen:

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In the above screen enter:

Run Date: enter date when we running APP

Identification: in this field enter new code to identify the activity

Click on "PARAMETER" tab so it will display the following screen:

In the above screen enter:

Posting Date : Enter the date on which date the payment should be entered.
Docs entered up to : The date which you enter in this field till that date the open
items will be picked for the APP process.
Customer item due by : The date which you enter in this field till that date the open
items will be picked for the APP process
Company code : Enter your company code.
Pmt Meths : Enter the Payment Method which you created in the above
Steps.
Next p/date : In this field enter the next date when you want to run the APP
again.
Vendor : Enter all vendors numbers who you want to be paid through
APP.

After entering above all parameters click on save button to save the activity.
Now click on "STATUS" tab so it will display previous screen on it click on (Schedule proposal)
button, so it will display the following window:

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In the above screen flag the check box "Start Immediately" and pres enter button or click on continue button.
It will display the following screen with following message:

In the above screen we can see the message was "Proposal is ready to be started"

Now click on enter button continuously till the above message changes like below:

In the above screen the message changed as "Payment proposal has been created"
Now click on button so it will display the following window:

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In the above window select "All accounting clerks" and pres enter button or click on continue button so it will
display the following screen:

Double click on this

line item first

In the above screen double click on first line so it will display the following screen:

Double click on this

line item first

In the above screen double click on first line so it will display the following window:

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In the above window click on "Reallocate" so it will display the another window as below:

In the above window enter:

Payment method : Enter your Payment Method as your created

House Bank : Enter your house bank and bank account

Now pres enter button or click on continue button so it will display another screen now click on back button once it
will take you to following screen:

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In the above screen now you can see the green symbol (in round) that indicates, that amount is can be paid.

The process we have to do with all payments to what ever the payment's to be done.

Now click on back button till we get following screen:

In the above screen under status tab you can see the new message "Payment proposal has been edited",

Now click on "Printout/data medium" so it will display the following screen:

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In the above screen enter any variant to "RFFOAVIA" program and click on so it will
display the following screen:

Program run date : Enter the date when we are running this program
Identification Feature : Enter any new identification code
Paying company code : Enter your company code
No of sample printouts : Make it zero all ways
Print immediately : flag this check box

In the above screen enter the parameters as i shown and click on so it will display the following
screen:

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In the above screen enter text to "Meaning" field,

Click on save button to save the activity and click on back button till display the following screen:

In the above screen now enter any variant to "RFFOUS_C" program and click on button

so it will display the following window:

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In the above screen enter the parameters like:

Program run date : Enter the date when we are running this program
Identification Feature : Enter any new identification code
Paying company code : Enter your company code
Payment Method : Enter your Company using Payment Method

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House bank : Enter your House Bank from which bank you want to pay
Account ID : Enter your SBI check issue bank ID
Check lot number : Enter your House Bank Lot Number
Currency : Enter your company code currency
Print Control : Enter printer and flag all check all check boxes
No of sample printouts : Make it zero
Do not void any checks : Flag this check box

After entering all above parameters as i shown click on so it will display the following screen:

In the above screen enter text to "Meaning" field, and click on save button to save the activity now click on back
button2 times it will display the following scdreen:

Now again click on save button and click on "STATUS" button so it will display that status screen.
Click on so it will display the following window:

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In the above window flag the check box "Create Payment Medium" and click on continue button or click enter
button so it will display the following message in status window as below:

In the above screen it display the message "Payment run is ready to be started" now pres enter button till you get
following window:

In the above screen the message will display as "Payment run has been carried out, Posting orders: 2 generated , 2
completed"

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Now click on so it will display the following window:

In the above window in the "Job Name" field instead symbol "?" give some name or identification.

Now click on enter button or click on continue button so it will display the following message:

Now go to following PATH:

Go to menu bar "system + services + output control" so it will display the following screen:

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In the above screen just click on executive button so it will display the following screen:

Now in the above screen flag the check box and click on display content button so it will display the following
screen.

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The above two letters are the corresponding letters with check information to different vendors.

Now check with vendor report the line items will be automatically cleared.
To check vendor line items go to transaction code: FBL1N

Check also checks register as below:

PATH: Accounting Financial Accounting Accounts Payable Environment Check Information Display
FCHN - Check Register

By above PATH it will display the following screen:

in the above screen enter parameters and click on executive button so it will display the following check information
which we issued to vendor:

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Dunning Procedures

If the business partners may fall behind on payments you can send them a payment reminder or a dunning notice to
remind them of their outstanding debts.

The SAP System allows you to dun business partners automatically. The system duns the open items from business
partner accounts in which the overdue items create a debit balance. The dunning program selects the overdue open
items, determines the dunning level of the account in question, and creates a dunning notice. It then saves the
dunning data determined for the items and accounts affected.

You can use the dunning program to dun both customers and vendors. It may be necessary to dun a vendor if he or
she has a debit balance as a result of a credit memo. If a customer is also a vendor, you can offset the account
balances against one another.

If you wish to use the automatic dunning procedure, you have to make settings in the following places before using
the system and while it is operational:

• · In Customizing for Financial Accounting (IMG)

• · In the master data for your customers or vendors
• · When you post documents

Once you have decided in which countries you wish to use the automatic dunning procedure, adjust your settings to
meet the country-specific business requirements. In the USA, for example, debtors are not usually dunned. In
Customizing, you can make company code-specific settings so that the fields for dunning are hidden for the
company code USA.

You use the following attributes to control the dunning program, and you can configure them according to the needs
of your company:

• · DUNNING PROCEDURE
•
The dunning procedure controls how dunning is carried out by the system. You can define as many dunning
procedures as you like.
•
• · DUNNING LEVEL
•
The dunning levels are calculated based on the number of days open items are in arrears. You can also have the
system calculate the dunning levels based on the dunning amount or a percentage paid (sales-related dunning
level determination).
•
You can determine more than one dunning level per dunning procedure.
•
• · DUNNING AREAS
•
A dunning area is an organizational unit within a company code used for the dunning process.
A dunning area can be a division or a sales organization. You assign a dunning area to an open item when you
are posting. You can dun items separately by dunning area.
•

The SAP System allows you to use either the automatic dunning program, which duns all overdue items in
accordance with your selection criteria, or, if required, you can dun individual customers or vendors

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You have the following options and functions for dunning:

Payment deadline, interest on arrears, and You can enter a specific payment deadline in the dunning
dunning charges notice, as well as interest on arrears and dunning charges
(both calculated by the dunning program).
Dunning currency If all the open items in an account have been posted in the
same currency - either local currency or a foreign
currency, the dunning program uses this currency.
Otherwise, the dunning program uses the local currency
of the company code. The items are displayed in
document currency in the dunning notice, and the totals in
local and foreign currency.
Cross-company code dunning You can combine the overdue items for one customer or
vendor from several company codes in one dunning run,
and issue the items in one dunning notice.
Dunning for head office/branch If your customer or vendor has both a head office and
relationships branch offices, dunning notices are sent to the head office.
However, you can also send dunning notices to the branch
offices.
Dunning one-time accounts You can dun a one-time account just like any other
business partner account. All the items for a one-time
account that have the same address are grouped in one
dunning notice. The dunning date and level are updated in
the item, not in the account master record.
Dunning history The dunning history provides you with information on all
of the dunning runs you have executed and the dunning
notices you have sent (overdue items, dunning totals, and
so on). If required, you can also select by account type,
company code, and/or customer or vendor.

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STEP 1:

PATH: SPRO->Financial Accounting (New) ->Financial Accounting Global Settings (New) ->Accounts
Receivable and Accounts Payable->Business Transactions->Dunning-> Dunning Procedure-> Define Dunning
Procedures.

Transaction code: FBMP

The following screen will appear:

Pres on New Procedure the following screen appear and fill the required fields.

In the above screen enter:

Dunn.Procedure : In this field enter new procedure code or any identification

Name : In this field give any description or text

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Dunning Interval in Days : Enter the number days required between each dunning level
No.of dunning levels : Enter required no of dunning levels (Max of 9 dunning levels)
Standard transaction dunning : flag this check box
Ref.Dunning procedur for texts: enter same identification which we enter in Dunn.procedure field

Now click on Dunning Levels button so it will take to following screen.

in the above screen flag all check boxes against to 1. calculate interest, 2. Always dun, 3. Print all items

now click on Charges Button . It will display the following window.

In Currency field give required currency and click on continue button .The following screen appears.

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In above screen give dunning levels as many we maintain and charges for each dunning level as I did in above
screen
click on Minimum Amounts button so it will go to the following screen.

It will display the following window.

In Currency field give required currency and click on continue button .The following screen appears.

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In the above screen fill the required fields and click on Dunning texts button. The following
window will appears.

In this fill your company code and select Customer and click on continue button .The following screen appears.

In the above screen pres on New company code button so it will display small widow as
below:

1102

Give your company code and continue button so your company code will appears on top of screen.

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Flag the check boxes of 1. Dunning by dunning area, 2. Separate notice per dunning level.

Save the screen and pres on back button.

Now click on Dunning texts button the following window will appear.

Click on this F4 functionality so it will opens

another screen as follow.

If you click on this F4 functionality the following screen appears.

Click on this Dunning Form

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If you click on above dunning form it will display the following screen.

Now double click on “Language EN Activ original language” so it will copy the form automatically to fields. as
follow.

Now pres on back button , so it will take to 1st screen now pres on save button.

STEP 2:

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Assign Dunning to Customer Master

TRANSACTION CODE: XD02

Not go to customer change screen (xd02) and assign dunning procedure to all the customer masters to whom you
want to be involved in dunning procedure as follow.

STEP 3:

TRANSACTION CODE: F-22

Not post some credit sales invoices in past dates to customers to whom you want to be involved in this process.

RUN THE DUNNING PROCESS

The automatic dunning program runs according to the dunning process described below. It enables you to regularly
check your ledgers for overdue receivables, and then create payment reminders for these business partners.

Process Flow

The dunning process consists of several sub processes that must be carried out in a specific order (see figure below).

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Creating Dunning Proposals

Start the dunning program and enter the company codes for the dunning run. You can restrict the selection to
specific accounts. During the dunning run, the dunning program determines the accounts and items that must be
dunned, the dunning level, and all other details required for dunning. The dunning program creates a dunning
proposal list. The dunning proposal list can be created as often as required since the dunning data for the item and in
the account is not updated until the dunning notices have been printed.

Only those accounts that contain a dunning procedure in the master record are included in the dunning run.

Editing Dunning Proposals

You can edit the dunning proposal as follows:

• Set dunning blocks

• Reset dunning blocks
• Change dunning levels

Printing Dunning Notices

The print program prints the dunning notices. At the same time, the relevant dunning data is stored in the items and
the master record of the business partner.

The dunning forms and texts that you use must be defined or adapted before the dunning run is executed. You
determine the items and accounts to be dunned and the dunning texts when you configure the dunning program. This
involves defining rules governing how the program determines the data it needs.

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During the dunning run, the dunning program determines all customer (and vendor) items and accounts for which
dunning notices can be issued. This is the basis of the dunning proposal.

The dunning proposal is output in the form of a list that contains all items and accounts for which dunning notices
can be issued (that is, they are overdue). The list is sorted according to account and dunning level.

You can process the dunning proposal further.

Make sure that you have made the settings for the following features:

• Dunning procedure
• Company code data
• Dunning data in the customer master record (or vendor master record)
• Blocking of open items (if required)
• Dunning parameters

You control the dunning program via the settings you make for the dunning procedure. Further control can be
exercised via the settings you make in the customer or vendor master record, via the open items, and by the
parameters for the dunning run.

You control dunning via:

· Company Code-Specific Specifications:

One of the factors these specifications determine is which company codes are dunned.

· Dunning Procedure

This contains the most important specifications for controlling dunning. These include the dunning frequency, the
dunning levels, and the grace days for the due date determination.

· Customer/Vendor Master Record

In the master record, you specify which dunning procedure should be used for that account. The dunning program
stores the date of the last dunning run and the dunning level in the master record. If an account is not to be dunned,
enter a dunning block.

· Open Items

You can block items from being dunned, or specify that an item is only to be dunned up to a certain dunning level.
The dunning program notes the date of the last dunning run for the item and the dunning level.

· The Parameters for the Dunning Run.

These include the company codes and accounts that are to be checked during the dunning run, and the posting date
up to which documents should be taken into account.

The automatic dunning program uses these criteria to check the items and accounts for the following:

• Whether they are overdue

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• Charges and interest
• Dunning levels

The dunning program duns open items in customer and vendor accounts if the overdue items result in a debit
balance. When you configure the dunning program, you can specify additional criteria for determining whether
accounts or their open items are to be dunned.

You make the most important specifications via the dunning procedure. You define this procedure with a four
character alphanumeric key. It determines:

· The dunning frequency and/or the dunning interval with which accounts are dunned.

· The grace days and the minimum numbers of days in arrears for the purposes of determining whether the open
items and accounts should be dunned. This data is used only to determine the due date of the open items and
whether an account should be dunned.

· The number of dunning levels. For each dunning level, you determine the number of days a line item must be in
arrears to be assigned a particular dunning level. This dunning level then determines the wording of the dunning
notice.

· The transactions to be dunned. You can select whether standard and/or special G/L transactions are dunned with
the same procedure. Examples of special G/L transactions are payment requests, bill of exchange payment requests,
down payments, and down payment requests. Bill of exchange payment requests are used in Spain, France, and
Italy.

You can set up one or more dunning procedures. Several procedures are necessary if you want to dun accounts
differently according to the above mentioned criteria.

You specify which procedure is used for an account in the master record of the account concerned. Enter this
procedure in the company code-specific area.

Although you never send more than one payment reminder to certain of your customers, you send up to three
different dunning notices to all other customers. As a result, you define two dunning procedures: A single-level
procedure and a 3-level procedure. Enter the single level dunning procedure in the master records of customers who
should receive only one payment reminder. Assign the 3-level dunning procedure to all other customers.

STEP 4:

PATH: Accounting->Financial Account in->Accounts Receivable->Periodic Processing->F150 – Dunning.

By the above PATH it will display the following screen:

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In the above screen enter information:

Run on : Enter date when you are running the program

Identification : Enter any new identification name
In the above screen under Status box you can view the information message "No parameters maintained"

After maintain above information click on "Parameter" tab so it will display the following screen:

In the above screen maintain parameters like:

Dunning Date : Give the date when you are running dunning program
Document posted up to : Give the date till the customers open items should be picked for the
dunning process
Company code : Give your company code
Customer : Give the customer range that whom you want to involve in the
dunning

After you maintain above parameters save the screen and click on status tab to go back.

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It will display the following screen:

In the above screen the message under Status was changed to "Parameters were maintained"
Now click on button so it will display the following window:

In the above window to "Output Device" field give "LP01" default printer and click on continue button or click on
enter button so it will display the following window:

In the above screen:

Start date : Maintain date

Start Immediately: Flag that check box

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Now click on button so it will display the following window:

In the above screen under the Status window it will display the information like:

"Dun.Selection scheduled for 22.07.08 at 19.01.38

Dun.selection is scheduled"

now click on enter button till above message change as below:

"Dun.Selection scheduled for 22.07.08 at 19.01.38

Dun.selection is complete"

It will display the following window with different options:

in the above window click on button so it will display the following small window:

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Just pres enter key or click on continue button so it will display the following list screen:

The above screen will display all list of invoices and othe details which are coming into dunning process in this
program:

Now click on back button so go back to main screen and click on so it will display the
following small window:

In the above window to "Output Device" field give "LP01" default printer and click on continue button or click on
enter button so it will display the following window:

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In the above screen just click on "Print" button so it will display the following screen:

In the above screen under Status window it will display new message as:

"Dun.printout scheduled for 22.07.08 at 19:13:27

Dun.printout is scheduled"

Now click on enter button till the above message changes as below:

"Dun.printout scheduled for 22.07.08 at 19:13:27

Dun.printout is complete"

so it will display the following screen:

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in the above screen click on "Dunn.history" button so it will display the following screen:

In the above screen:

Account type : In this field give customer id "D"

Company code : Give your company code
Customer : Give Customer range who are involved in dunning

After entering above information click on executive button so it will display the following screen:

In the above screen keep your curser on customer line item and click on
So it will display the following window:

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In the above screen click on so it will display 1st dunning letter as below:

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the above letter is 1st dunning letter to display next dunning letter click on back button till you get following screen:

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In the above screen click on so it will display the following window:

Enter "Output Device" as "LP01" and click on continue button so it will display the following screen

In the above window:

Company code : Give your company code

Customer : Give your customer to whom you are running 2nd dunning letter
Run on :
Dunning date : Enter future dates (according to the intervals maintain between
dunning levels)
Document posting up to :

After maintaining above information click on button so it will display the following another dunning
letter.

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Activities Required in Enterprise Structure, Assignment

1) Define Sales Organization

2) Define Distribution Channel
3) Maintain sales office
4) Maintain sales group
5) Define Shipping Point
6) Assign sales organization to company code
7) Assign distribution channel to sales organization
8) Assign division to sales organization
9) Set up sales area
10) Assign sales office to sales area
11) Assign sales group to sales office
12) Assign sales organization - distribution channel – plant
13) Assign sales area to credit control area
14) Define Rules By Sales Area
15) Assign shipping point to plant

Define Condition Types

PATH: SPROSales and DistributionBasic FunctionsPricingPricing ControlDefine Condition Types

Transaction code: VOK0

Database Table: T685, T685A, T685T

By above transaction it will display the following screen:

In the above screen click on “Maintain Condition Types”. So it will display the following screen:
In the following screen click on button, so it will display the following screen:

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In the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.

It will display the following new screen:

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the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.

It will display the following new screen:

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the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Next) button.

It will display the following new screen:

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the above screen maintain parameters like Access sequence, Condition type, Condition class, Calculation type,
Condition Category and click on (Save) button to save the activity.

Back to SPRO screen.

Define Access Sequences

PATH: SPROSales and DistributionBasic FunctionsPricingPricing ControlDefine Access Sequences.

Transaction Code: VOKX

By above transaction it will display the following screen:

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In the above screen double click on “Maintain Access Sequences”.

It will displays a screen on that click on .
An small box will appears as below:

In the above box provide “Access Sequence” as “MWST” and click on enter button.
It will display Access Sequence on the top of window as below:

In the above screen select MWST and click on “Accesses” under Dialog Structure.
So it takes to another screen click on so it will display as below:

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In the above screen give “40” to “NO” field and “368” to “TAB” field and pres enter button twice.
Now select your line which you enter above and click on “Fields” under Dialog Structure so it will display following
screen:

Just save the activity and back to SPRO screen.

Define And Assign Pricing Procedures

PATH: SPROSales and DistributionBasic FunctionsPricingPricing Control Define And Assign Pricing
Procedures

Transaction Code: DFP4

Database table: T683, T683S, T683T, T683U

By above transaction it will display the following screen:

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In the above screen double click on “Maintain Pricing Procedures”.

It will display a screen on that click on .
A small box will appear as below:

In the above screen give “RVAA01” for “Procedure” field and pres enter button so it will appears at the top of
window:

In the above screen select “Procedure” RVAA01 and click on copy button so it will display the following
screen:

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In the above first change the name of “Procedure, Description” and click on enter button so it will display another
small window as I shown above on that click on “Copy all” it will display an information message box just click
enter button. It will also display few warning messages just keep pressing enter button and at last save the activity.
It will display the following screen

In the above screen select your pricing procedure and click on “Control Data” under Dialog Structure.

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In the above screen:

1) To select all steps click on select all button

2) Now De-Select required steps as I given step numbers below:
STEP CTYP Description
a. 11 - PR00 - Price
b. 101 - KA00 - Sales Promotion
c. 104 - K007 - Customer Discount
d. 105 - K004 - Material
e. 908 - - Net Value
f. 940 - VPRS - Cost
g. 950 - - Profit Margin
3) After you De-Select above Condition types now click on Delete button . So all selected Condition types
will be deleted and De-Selected conditions will be there only.
4) Now save the activity and click on button in the same screen.

It will display the following screen:

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In the above screen we assign the Condition, Fro (From), To value and save the activity and back to SPRO screen.

Define pricing Procedure Determination

PATH: SPROSales and DistributionBasic FunctionsPricingPricing Control Define And Assign Pricing
Procedures

Transaction Code: OVKK

Database table: T683, T683S, T683T, T683U, T683V

By above transaction it will display the following screen:

In the above screen double click on “Define Pricing Procedure Determination”.

so it will display another screen in that click on it will go with following screen:

In the above screen we assign value like:

1. Sales organization
2. Distribution Channel
3. division
4. Document Pricing Procedure
5. Customer pricing Procedure

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6. Pricing Procedure
7. Condition Type

After entering all above values save the screen and back to SPRO screen.

Define Tax Determination Rules

PATH: SPRO Sales and DistributionBasic FunctionsTaxesDefine Tax Determination Rules

Transaction Code: DFS1

Database Table: TSTL

By above transaction it will display the following screen click on it will go with following screen:

In the above screen we assigned our Tax Conditions to country.

Save the activity and back to SPRO screen:

Define Regional Codes

PATH: SPRO Sales and DistributionBasic FunctionsTaxes Define Regional Codes

Transaction Code: OK09

Database Table (Regional Codes): T005E, T004F

Database Table (City Codes): T685, T685A, T685T

By the above screen it will display the following screen:

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In the above screen double click on “Define County Code”.
Click on in displayed screen as below:

Save the activity and click on back button till you get following screen:

In the above screen double click on “Define City Code”

Click on in displayed screen as below:

In the above screen enter above values.

Save the activity and back to SPRO screen.

Assign Delivering Plants For Tax Determination

Define Regional Codes

PATH: SPRO Sales and DistributionBasic FunctionsTaxes Assign Delivering Plants For Tax
Determination

Transaction Code: OVK6

Database Table: T001W

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By the above screen it will displays a screen now click on it will display the following
box:

In above box enter you plant number and click on enter button so it will display on top to window as below:

In the above screen select your plant and click on details button .
So it will display the following screen:

To assign Country, City

code click on F4 function
an assign.

In the above screen assign “Country Code”, “City Code”.

Save the activity and back to SPRO screen.

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Define Tax Relevancy Of Master Records

PATH: SPRO Sales and DistributionBasic FunctionsTaxes Define Tax Relevancy Of Master Records

Transaction Code: OVK3

Database Table: TSKD, TSKDT

By the above transaction it will display the following screen:

In the above screen double click on “Customer Taxes”, it will display other screen:
Click on in displayed screen as below:

In the above screen maintain values as I shown.

Save the activity and click on back button till you get following screen:

Transaction Code: OVK4

Database Table: TSKM, TSKMT

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In the above screen double click on “Material Taxes”, it will display other screen:
Click on in displayed screen as below:

Enter the above values, save the activity and back to SPRO screen.

Check Master Data Relevant For Account Assignment

PATH: SPROSales and Distribution Basic Functions Account Assignment/Costing Revenue Account
Determination Check Master Data Relevant For Account Assignment

Transaction Code: OVK5

Database Table: TVKM, TVKMT

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In the above screen double click on “Materials: Account Assignment Groups” so it will display the following screen
Click on in displayed screen as below:

In the above screen enter values and save the activity.

Click on back button till you get following screen:

Transaction Code: OVK8

Database Table: TVKT, TVKTT

In the above screen double click on “Customers: Account Assignment Groups” ” so it will display the following
screen
Click on in displayed screen as below:

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In the above enter relevant values.

Save the activity and back to SPRO screen.

Define And Assign Account Keys

PATH: SPROSales and Distribution Basic Functions Account Assignment/Costing Revenue Account
Determination Define And Assign Account Keys

Transaction Code: OK11

Database Table: T687, T687T

In the above screen double click on “Define Account Key”, so it will display the following screen:
Click on in displayed screen as below:

In the above screen enter values as above.

Save the activity and click on back button till you get the following screen:

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Database Table: T683S

In the above screen double click on “Assign Account Key”, so it will display the following screen:

Click on in displayed screen as below, it will display small box as below:

In the above box enter the required information and pres enter button so your pricing procedure will appears at the
top of screen as below:

In the above screen enter Account Keys to “ActKy” field which we prepare in the first step and save the activity and
back to SPRO screen.

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Assign G/L Accounts

PATH: SPROSales and Distribution Basic Functions Account Assignment/Costing Revenue Account
Determination Assign G/L Accounts

Transaction Code: OK15

Database Table: C001

By above transaction code it will display the following screen:

In the above screen select “1 – Cust.Grp/Material Grp/AcctKey” and click on details button or double click on
that line.
So it will display another screen as below:
Click on :

In the above screen the entries are:

1. Application
2. Condition Type
3. Chart of Accounts
4. Sales Organization
5. Account Assignment Group for Customer
6. Account Assignment Group for Material
7. Account key
8. G/L Account.

In the above screen we assign the relevant G/L account with respect to Account key.

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Save the activity and back to previous screen as below:

So it will display another screen as below:

Click on :

In the above screen maintain parameters like:

1. Application
2. Condition Type
3. Chart of account
4. Sales Organization
5. G/L Account

Save the activity and back to SPRO screen.

Assign Shipping Points

PATH: SPROLogistics ExecutionShippingBasic Shipping FunctionsShipping Point and Goods Receiving

Point DeterminationAssign Shipping Points

Transaction Code: VOL2

Database Table: TVSTZ

By the above transaction code it will display the following screen, so click on :

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Enter the above values and save the screen. Back to SRO screen.

Partner Determination

PATH: SPRO Sales and Distribution Basic Functions Partner Determination Set Up Partner
Determination

Transaction Code: VOPA

Database Table: TKUPA, TPAER, TPAKD, TVPAG, TVPG

By the above transaction the following screen will display:

In the above screen double click on “Set up Partner Determination for Customer Master” so it will display the
following screen click on and provide following information:

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In the above screen provide “Part.Det.Proc” with 4 digit code and save the activity.
Now select your Partner determination and double click on “Partner Functions in Procedure” under Dialog
Structure.
It will display the following screen, on that click on .

In the above you assign partner functions pres enter and save the activity.
Now double click on “Partner Determination Procedure Assignment”

It will display the following screen; on that click on it will display the following small
box:

In this box give your customer account group and click on enter button so it will appear on the top of the screen as
below:

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In the above screen you assign Partner determination to Account group, save the activity.
Now double click on “Account Groups – Function Assignment” under Dialog Structure.
It will display another screen in that click on so it will display the following screen:

In the above screen we assign partner functions to Account Group.

Save the activity and back to SPRO screen.

Creation of Customer Master

PATH: AccountingFinancial AccountingAccounts ReceivableMaster RecordsMaintain CentrallyXD01

– Create

Transaction Code: XD01

The customer master is under 3 mages categories:

1) General Data
a) Address
b) Control Data
c) Payment Transaction
d) Marketing
e) Unloading Points
f) Export Data
g) Contact Person
2) Company Code Data
a) Account Management
b) Payment Transaction
c) Correspondence
d) Insurance
3) Sales Area Data

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a) Sales
b) Shipping
c) Billing Document
d) Partner functions

Click on above transaction it will display the following screen:

1) Click on this Account

Group Overview button.

3) Double click on
this Group code

2) Type your customer

Account group

In the above screen click on Account Group Overview Button so it will display the another screen as I shown above.
In the second screen enter your Account Group and pres enter button.
Your Customer account group will appear on the top of the screen just double click on the that.
The following screen will appear:

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Enter your company code

1) Click on this button

3) Double click on this sales organization

2) Enter your Sales organization

code

1102

In the above screen enter your company code.

Click on “All Sales areas…” button, so it will display another screen as above.
Enter your sales organization in the field and pres enter button. It will display your sales organization at the top of
screen.
Now double click on your sales organization it will display the following screen.

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Now pres enter button or click on continue button.
It display customer master screen as below:

In the above we enter the customer address or communication details under “Address” tab.
Click on “Payment Transactions” tab and values as below:

In the above screen enter customer bank details under “Payment Transactions” tab
Now pres on “Company Code Data” button it will display the following screen:

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In the above screen enter “Recon.Account”, “Sort Key” under “Account Management” tab and click on “Payment
Transactions” tab, values as below:

In the above screen enter “House Bank” under “Payment Transactions” tab, now click on “Sales Area Data” button
it will display as below

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In the above screen provide all required information as I shown above under “Sales” tab and click on “Shipping”
tab, and values as below:

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In the above screen provide all required information as I shown above under “Shipping” tab and click on “Billing
Documents” tab, and values as below:

In the above screen provide all required information as I shown above under “Billing Documents” tab and click on
“Partner Functions” tab, and values as below:

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In the above screen as we maintain Partner determination the partner functions will assigh automatically.
Now save the customer master.
It will issue the following message:

Back to easy access screen.

Maintain Company Codes for Materials Management

PATH: SPRO Logistics GeneralMaterial MasterBasic SettingsMaintain Company Codes for Materials
Management

Transaction code: OMSY

By the above transaction it will display a screen in it click on so it will display the
following box:

In the above box enter your company code and pres enter button.
Your company code will appears on the top of screen as below:

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In the above screen against to your company code enters:

1. Fiscal Year
2. Period (the month which you are working now)
3. Flag the check box “ABp”

Save the activity and back to SPRO screen.

Define Attributes of Material Types

PATH: SPRO Logistics GeneralMaterial MasterBasic Settings Material Types Define Attributes of
Material Types

Transaction code: OMS2

Database table: T134M

By the above transaction it will display a screen in it click on so it will display the
following box:

In the above box enter Material Type “FERT” and pres enter button.
The material Type “FERT” will appears on the top of screen as below:

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In the above screen select “MTyp - FERT” and double click on “Quantity/Value updating” under Dialog structure.

It will display another screen click on so it will display the following box:

In the above box enter “Valuation Area (Your Plant Code)” and pres enter so it will appears at top of screen as
below:

In the above screen against to your “Valuation Area and Material type” flat the 2 check boxes “Qty Updating, Value
updating”.
Save the activity and back to SPRO screen.

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Define Material Groups

PATH: SPRO Logistics GeneralMaterial Master Settings for Key Fields  Define Material Groups

Transaction code: OMSF

Database table: T023, T023T

By the above transaction it will display a screen in it click on so it will display the following Screen:

In the above screen enter material group name and description.

Save the activity and back to SPRO screen.

Plant Parameters

PATH: SPRO Materials Management Inventory Management and Physical Inventory Plant Parameters

Database Table: T159L

By the above transaction it will display a screen in it click on so it will display the following Screen:

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In the above screen enter shown parameters.

Save the activity and back to SPRO screen.

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Group Together Valuation Areas

PATH: SPRO Materials Management Valuation and Account Assignment Account Determination
Account Determination Without Wizard Group Together Valuation Areas

Transaction code: OMWD

It will display an screen click on so it will display the following box:

In the above box enter “Valuation Area (Your Plant Code)” and pres enter so it will appear at top of screen as
below:

In the above screen assign “0001” as Valuation Grouping Code to your Valuation Area (Plant).
Save the activity and back to SPRO screen.

Configure Automatic Postings

PATH: SPRO Materials Management Valuation and Account Assignment Account Determination
Account Determination without Wizard Configure Automatic Postings

Transaction code: OMWB, OBYC

In the following window just click on “Cancel” button.

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It will display the following screen:

In the above screen click on “Account Assignment” so will display the following screen:

In the above screen double click on “AUM – Expense/Revenue from stock Transfer”

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In the box enter your Chart of Account and click enter button it will display the following screen:

In the above screen flag the check boxes of “Debit/Credit, Valuation Modif, Valuation Class” and save the screen
and click on “Accounts” Button. It will display the following screen:

In the above screen enter values as I shown, save the activity and back to following screen as below:

In the above screen double click on “BSV – Change in Stock Account”

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In the box enter your Chart of Account and click enter button it will display the following screen:

In the above screen flag the check boxes of “Debit/Credit, Valuation Modif, Valuation Class” and save the screen
and click on “Accounts” Button. It will display the following screen:

In the above screen enter values as I shown, save the activity and back to following screen as below:

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In the above screen double click on “BSX – Inventory Posting”

In the box enter your Chart of Account and click enter button it will display the following screen:

In the above screen flag the check boxes of “Debit/Credit, Valuation Modif, Valuation Class” and save the screen
and click on “Accounts” Button. It will display the following screen:

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In the above screen enter values as I shown, save the activity and back to following screen as below:

In the above screen double click on “GBB – Offsetting Entry for Inventory Posting”

In the box enter your Chart of Account and click enter button it will display the following screen:

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In the above screen flag the check boxes of “General Modification, Valuation Modif, Valuation Class” and save the
screen and click on “Accounts” Button. It will display the following screen:

In the above screen enter values as I shown, save the activity and back to following screen as below:

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In the above screen double click on “PRD – Cost (Price) Differences”

In the box enter your Chart of Account and click enter button it will display the following screen:

In the above screen don’t flag any of the check boxes just Save the screen and click on “Accounts” Button. It will
display the following screen:

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Creation of Finished good Material

PATH: Logistics Materials Management Material Master Material Create (General) MM01 –
Immediately.

Transaction Code: MM01

With the above transaction it will display the following screen:

In the above screen select “Industry Sector, Material type”

Now click on Select View(S), so it will display the following screen:

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In the above screen select the views as I shown click on “Default Values” and click on enter button or continue key
it will display the following screen:

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In the above screen enter the values as I shown click on “Default Values” and click on enter button or continue key
it will display the following screen:

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In the above screen under “Basic Data 1” tab enter required values and click on enter button so it will display next
tab as below:

In the above screen under “Sales: sales org.1” tab maintain other values and click on “Conditions” button so it will
display the following screen:

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In the above screen maintain conditions like “1- Liable for tax, 2 – Exemption from Tax”, click on Main Data button
so will display main screen now click enter button so it will display the following screen:

In the above screen under “Sales: General/Plant” tab enter required values and click on enter button so it will display
next tab as below:

In the above screen under “MRP 1” tab enter required values and click on enter button so it will display next tab as
below:

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In the above screen under “Forecasting” tab enter required values and click on enter button so it will display next tab
as below:

In the above screen under “Work scheduling” tab enter required values and click on enter button so it will display
next tab as below:

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In the above screen under “Accounting 1” tab enter required values and click on enter button so it will display next
tab as below:

In the above screen under “Costing 1” tab enter required values and click on save button to save the Material it will
give you following message with material number:

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In the above message we can find material number that will be used in further process.
Back to easy access screen.

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Maintain Condition Records

PATH: LogisticsSales and DistributionMaster DataConditionsSelect Using Condition TypeVK11 –

Create

Transaction Code: VK11

By the above transaction it will display the following screen:

In the a above screen enter condition type “PR00 - price” and pres enter button.

It will display the following screen:

In the above window select radio button “Material with Release Status” and pres enter button so it will display the
following screen:

Enter the above parameters and save the screen.

Click on back button once so it will display the following screen:

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In the above screen enter condition type “K004 – Material Discount”

Pres enter button so it will display the following screen:

Enter the above parameters and save the screen.

Click on back button once so it will display the following screen:

In the above screen enter condition type “1005 –1105 Excise Duty Payable”
Pres enter button so it will display the following screen:

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In the above window select radio button “Country/Plant Reqion/Region/TaxcI1cust/TaxcI.Mat” and click enter
button so it will display the following screen:

Enter the above parameters and save the screen.

Click on back button once so it will display the following screen:

In the above screen enter condition type “1006 – Cess Payable”

Pres enter button so it will display the following screen:

In the above window select radio button “Country/Plant Reqion/Region/TaxcI1cust/TaxcI.Mat” and click enter
button so it will display the following screen:

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Enter the above parameters and save the screen.

Click on back button once so it will display the following screen:

In the above screen enter condition type “1007 – VAT Payable”

Pres enter button so it will display the following screen:

In the above window select radio button “Country/Plant Reqion/Region/TaxcI1cust/TaxcI.Mat” and click enter
button so it will display the following screen:

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Enter the above parameters and save the screen.

Click on back button once so it will display the following screen:

In the above screen enter condition type “1008 – CST Payable”

Pres enter button so it will display the following screen:

In the above window select radio button “Country/Plant Reqion/Region/TaxcI1cust/TaxcI.Mat” and click enter
button so it will display the following screen:

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Enter the above parameters and back to Easy access screen.

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Creation of Sales Order

PATH: Logistics Sales and Distribution Sales Order VA01 - Create

Transaction Code: VA01

In the above screen enter those parameters and click enter button it will display the following screen:

Select this line and double

click on the same

In the above screen enter customer number to “Sold-to-Party” mateirla number to “Material” field and quantity to
“Order Quantity” field pres enter button.
Now select the line and double click on the same line it will display the following screen:

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In the above screen you can view the price, discount, taxes details of the order.
Now save the order so it will display the following message:

In the above message it shoes order number as “12088” make a note of that.
Back easy access screen.

Goods Receipt posting (Entry of Stock Balances)

PATH: Logistics Materials Management Inventory Management Goods Movement Goods Receipt
MB1C – Other.

Transaction Code: MB1C

In the above screen enter “Movement type, Plant, Storage Location” and pres enter button so it will take you to
another screen as below:

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In the above screen enter material number and quantity of goods.

Pres enter button and save the activity.
So the finished good will update.
Back to easy access screen.

Outbound Delivery

PATH: LogisticsSales and DistributionShipping and TransportationOutbound DeliveryCreateSingle

DocumentVL01N - With Reference to Sales Order

Transaction Code: VL01N

In the above screen enter:

Shipping point
Selection date (NOTE: this date should be at least one week future date)
Order (The Order number which deliver when you raised sales order in above step)
After enter the above parameters pres enter button, so it will display the followings screen:

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In the above screen just click on Picking tab, the below screen will display:

In the above screen under “Picking” tab enter Picked Qty(Picking quantity)
Now click on “Post Goods Issue”

When you click on “Post Goods Issue” it will automatically post and issue above screen.
Back to easy access screen.

Billing Document

PATH: LogisticsSales and DistributionBillingBilling DocumentVF01 – Create

Transaction Code: VF01

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In the above screen give date, document no which you got from above step (goods issue)
Click on execute button or pres enter button so it will display the following screen:

Just save the above document

It will post to respective GL’s

Customer Report

PATH: AccountingFinancial AccountingAccounts ReceivableAccountFBL5N - Display/Change Line

Items

Transaction Code: FBL5N / FS10N

By above transaction it will display the following screen:

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In the above screen select the parameters and executive the activity it will display the following screen:

In above screen you can view the open items with Document Type “RV” which are posted with SD integration.

To clear those open items use Transaction Code F-28

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