What is a ‘Document’ in SAP?

 "In accounting, a 'document' is commonly used to describe a

record of a financial transaction, such as a purchase or payment.
When a financial transaction is posted in an accounting system,
like SAP, a document is often generated to capture and store the
details of the transaction. However, the specific details of how
documents are created and managed can vary depending on the
accounting system in use and the requirements of the company
or organization."
 document is created out of every business transaction in the system.
 Document is the result of a posting in accounting in SAP
 connecting link between various business operations. There are two types
of documents:
Original documents- origin of business transactions such as invoices, receipts,
statement of accounts from bank, etc.
Processing documents- These include ‘accounting documents’ generated from
postings in the system, ‘reference documents, ’sample documents,’ etc.

What is a ‘Document Type’?

Document Type’ is characterized by a 2-character code such as AA, DG, etc.,
‘Document Types,’ which are used in various postings business transcations.
In accounting, a document type is a way of categorizing or classifying
different types of financial transactions. It is used to group similar
transactions together for reporting, analysis, and tracking purposes.

 helps to classify an accounting transaction within the system,

 control the entire transaction
 determine the account types a particular document type can post
 Every document type is assigned a number range.

What is account type?

In accounting, an account type refers to the classification of an account based on
the nature of the transactions that are recorded in it.

‘Account Type’ is denoted by a 1-character code such as A, D, etc., specifying

which accounts a particular document can be posted.
A Assets
D Customer (Debtor)
K Vendor (Creditor)
M Materials
S GL
What is a ‘Document Header’?
The ‘Document Header’ contains information that is valid for the whole
document

Explain the Various ‘Reference Methods.’

SAP recommends ‘Reference Methods’ as a ‘document entry tool’ to facilitate
faster and easier document entry into the system, when you are required to enter
the same data time and again.
The various Reference Methods used in SAP include:
1. Reference Documents
2. Account Assignment Models
3. Sample Documents

What is the ‘Document Change Rule’?

 SAP’s document principle does not allow changing the ‘relevant’ fields
once a documents posted
 any changes can only be achieved through ‘Reversal’ or additional postings.
Fields such as company code, business area, account number, posting key,
amount, currency, etc

SAP allows changing some of the fields in the line items such as payment method,
payment block, house bank, dunning level, dunning block, etc. These can be
changed document by document or by using ‘mass change ‘for a number of
documents in a single step.
What is a ‘Line Item’?
 The ‘Line Items’ contain information relating to account number, amount,
debit/ credit, tax code, amount, etc.
 SAP allows a maximum of 999-line items in a single document.
 the system may also create its own line items called ‘system generated line
items,’ such as tax deductions, etc.

What is a ‘Posting Key’?

A ‘Posting Key’ in SAP is a 2-digit alphanumeric key that controls the entry of
line items.
The posting key determines:
1. What account can be posted to
2. Which side of the account (debit or credit) to be posted to, and
3. What ‘layout’ screen needs to be used for that particular transaction.

Sort key
 It is a 3 digits number.
 Used to populate the assignment number field in the line items of customer
or vendors or general ledgers.

Parking document
 When we do not have authority to post a document, we can park
thedocument.

Holding document
When we do not have complete information or clarity we can hold the
document for the time being.

Simulate
Like a print preview, to check the accounting entry before posting a
document.

‘Automatic Posting’?

such as tax, cash discount, gain/loss from foreign exchange transactions, etc

What is ‘Clearing’?

‘Clearing’ in SAP refers to squaring-off open debit entries with that of open credit
entries.

Explain ‘Reversal of Documents’ in SAP

However, reversal is possible only when
 The origin of the document is in FI (not through SD or MM, etc.)
 The information such as business area, cost centre, etc., is still valid (that
you have not deleted these business objects)
 The original document has no cleared items
 The document relates only to the line items of customer/vendor/GL
How do You Create ‘GL Account Master Data’?

‘GL Account Master Data’ can be created using any one of the following
methods:
1. Manually
2. Creating with reference
3. Through Data Transfer Workbench
4. Copying from existing GL accounts

What is an ‘Account Group’?

In accounting, an account group is a way of categorizing accounts within a
chart of accounts based on certain characteristics or attributes.

Account groups are used to organize accounts in a way that makes them
easier to manage and report on. For example, a company might group its
accounts based on their function, such as assets, liabilities, revenues, or
expenses. Alternatively, accounts might be grouped based on their level
of detail, such as high-level summary accounts or more detailed sub-
accounts.

The specific account groups used by a company will depend on its

accounting needs and the structure of its chart of accounts. Account
groups can be used to facilitate financial reporting, to manage
permissions and access to accounts, and to organize accounts for analysis
and planning purposes.

 a 4- alphanumeric character key.

 Account group is mandatory for creating a master record.
 The same account groups can be used by more than one more Company
Code if they all use the same Chart of Accounts.
 The account group ensures that only the relevant screens and fields are
displayed and ready for input for each of the customer's different partner
functions. For example, the address, communication, and bank data fields are
omitted for the account group for one-time accounts.
SAP comes delivered with a number of ‘account groups’ such as:
SAKO (GL accounts general)
MAT. (Materials Management accounts)
FIN. (Liquid Funds accounts)
Assignment number

A number that identifies a specific bill of exchange (or check). It consists of:
 The payment document number (that is, the number of the
accounting document containing the bill of exchange)
 The number of the line item with the bill of exchange
 The fiscal year
For example, the assignment number 140000000800120X2 refers to a bill
of exchange posted in document 1400000008, line item 001, in the year
20X2.

Describe ‘Number Range Interval.

A ‘Number Range’ refers to a number interval defined in the system so that when
documents are posted, the system assigns a number from this range.
The document numbers can either be:
1. Internally – automatically numbers generated in the system.
2. Externally-user supplies the number every time

What is a ‘Screen Layout’?

 The ‘account group’ determines which ‘Screen Layout’ should be used
while creating a GL account master record. For each of the account groups,
you can define different screen layouts.which essentially determine the
‘Field Status’ of a field

create a new GL account in three different ways:

 . Centrally (FS00)-You will be editing or creating a GL account master

record in both the Chart of Accounts area and Company Code area in one
step. This is also known as ‘one-Step’ GL
 CHART OF ACCOUNTS AREA(FSPO) - you first edit or create the
record here before doing it in the Company Code area
 COMPANY CODE AREA(FSSO) - you edit or create the record here after
it has been done in the Chart of Accounts area

What is Assignment number?

  Assignment number is a unique identifier that is assigned to a document line
item in SAP.
 It is used to distinguish one line item from another within a document.
 The assignment number is typically used to allocate transactions to a
specific cost centre, profit centre, or other business unit within the
organization for reporting and analysis purposes.
 The assignment number is also used to link the line item to other related
documents, such as purchase orders, sales orders, or invoices.

What is the field status variant?

 Field Status Variant is used to define the fields which are used for
input like cost centre, profit centre, plant, etc., which are entry fields,
and hidden fields. Field status Variant is a tool which is provided by
SAP to assign the same set of properties to more than one object.