FI-CO

SAP Systems Application and Products in Data Processing

SAP is one of the ERP products which is developed in 1972 by 5 former IBM engineers

First time SAP was released in 1972 in Germany. SAP Head Quarters are in Germany

Version: 4.6,4.7 ECC 5.0,6.0,EHP7.0

ECC ERP Central component

ERP Enterprise Resource Planning

Enterprise Resource Planning: It integrates all the systems in one system. It facilitates free
flow of data among departments.

Various Types of ERP Packages: SAP, Oracle-Financials, JD Edwards, BAAN, People soft are

various types of ERP packages available in the Market. Among them SAP is Famous in the
world.

Enterprise: Enterprise stands for business organization with huge resource.

Resource An enterprise has following resources

Money (Finance department)

Men (HR department)

Materials (Purchase and stores)

Manufacture (Production Planning)

Marketing (sales & Distribution)

Planning The bellow Planning activities are Performed in organization to improve

Productivity

Effective

Efficiency

The Moto of ERP systems is planning of resources in the organization in an effective

manner of get more Profits.

USER NAME: Cost of the SAP is based on Number of Users Major Benefit of Users is it fixes
the responsibility of the employee. Who has done, what can be identified. So, the responsibility

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will be fixed on employees. User name is not case Sensitive. We can use either Small Letters
or Capital Letters.

PASSWORD: Benefit of Passwords are for restricting the Un-authorized use of Users, Length of
the Password can be Minimum 6 and Maximum 40 characters. It is case sensitive. We can use
Alphabetic, Numeric's, Alphanumeric or Special Characters like “* “or"#" etc.

Note: It is not possible to change the password more than once in a Day
System will not permit us to use the last 5 passwords.
If we lost Password it cannot be restored. Basis Consultant must allot New Password

LANGUAGE: Along with package SAP has given 41 languages. If we do not specify the
language, by default system will use English (EN).

If any user wants to work on different screens at a single time, he can open to a max of 6
windows or Sessions

SESSION: A session is a window or screen where SAP user will do day to day activities One
user can open 6 Sessions at a time.

CREATE NEW SESSION

To create new session path is Menu Bar---->System---->Create Session

MOVE FROM ONE SESSION TO ANOTHER:

Press Alt+Tab to move from One session to another session.

CLOSE SESSION: To close one session, path is Menu Bar---->System---->End Session

TRANSACTION CODE: Transaction Code is a code number given for each activity. SAP has
given some Transaction Codes (TC’s) which are common in SAP thought the world. If customer
/ Purchaser wants to give their own TC's it should start either with "Y" or "Z". Other Alphabets
are not allowed in SAP.

GOING BACK TO SAP EASY ACCESS SCREEN:

Use /N in Command Window. N is not case sensitive.

ACTIVATING TRASACTION CODES IN SAP MENU: Sometimes TC's will not appear in SAP
Easy Access Menu. To activate them path is Menu Bar---->Extras---->Settings---->Display
Technical Names Check Box and Press Enter

Client:Each Server can be configured with single client or multiple clients according to the
business requirement.
Each client will have they own set of tables

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Normally when a Company (ex. NCC) intends to start SAP in its Company, it purchases SAP
software from SAP-India. Price of SAP software is based on the Number of Users. Once
company purchased the software, it recruits / engage another Company (ex-Cap Gemini) for
implementation purpose. Both the purchaser and implementer will recruit some employees for
implementation of SAP. They are called as Core Team Members. Structure of Core Team will
be like below

NCC (Purchaser) for Module CAP GEMINI( Implementer)

1 Accounts Manager FICO 1 FI Consultant

2 Costing Manager FICO 2 CO Consultant
3 Purchase Manager MM 3 MM Consultant
4 Sales Manager SD 4 SD Consultant

Core Team from Purchaser analyze the present situation in the Company and prepare the
Process Document for SAP Implementation

Basis Consultant will install or copy the SAP in Server and Create the Client Numbers
By default, SAP-India is allotting 000 (or) 001 (or) 067 (or) 800 as Development Client
Number of Production Client will be given by Basis Consultant after Discussing with
Purchaser. There will be Minimum of 2 Clients. Some companies are creating 3 clients

1. Development Client ------> for Customization purpose

2. Testing Client ------> for Testing purpose
3. Production Client ------> for Live Data, entering day to day activities

All the Customization will be done at Development Client only.

Server: Server is a physical device used to store organizational data, the server is managed
with the database and all types of data is stored in the table format (Rows & column)

Transport Request: TR are generated for configuration or customization and for development
changes.

Transactional data: The day to day business transactions are called transactional data.

Ex: Posting general entries, customer, vendor and asset posting ext........

No transport request for transactional data the direct real time transactions are posted in
production server by business users.

Master data: Master data is base for posting transactional data and used for reporting.

Ex: GL Accounts
Customer

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 Vendor
Asset Master data
Material Master data
Cost Centre Master data
Profit Centre Master data Ex.....

Using upload methods, the master data and transactional data will be loaded to quality and
production server during implementation and roll out projects

Upload Methods

LSMW (Legacy System Migration Work Bench)

BDC (Batch Data Conversion)

FI Finance Accounting (module) is used to meet or achieve all statutory and internal financial
reporting requirements for generating P&L and Balance sheet reports.

Co Controlling is the module used to control the overhead cost and to generate more profits
within the organization.

ORGANIZATIONAL STRUCTURE

DEFINE COMPANY:

A company is an organizational unit which is used in the legal consolidation module to roll up
financial statements of several company codes.

A Company is also used for group reporting or consolidated reporting.

A Company can be assigned one or more company codes

In Sap the basic information about the company is stored with a key 6digit.

In normal terminology the company is used to join independent branches together as a legal
unit by the consolidation.

PATH: SPRO - SAP reference IMG – Enterprise Structure – Definitions – Financial Accounting
– Define Company OX15

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Click on New Entries

Company II02

Company Name II Solutions

DETAILED INFORMATION:

Street Kukatpally

Po Box 570002

Postal Code 570002

City Hyderabad

Country IN

Language Key EN

Currency INR

Click on Save Button

Click on Create Request
Maintain Short Description: II SOLUTIONS
Enter and Save
DEFINE CREDIT CONTROL AREA:

Credit Control area is an organizational unit which is used to maintain credit limits
against the customer of the organization

One company code must be assigned to only one credit control area, but same credit
control area can be assigned to multiple company codes

PATH: SPRO-SAP reference IMG-Enterprise Structure-Definition-Financial Accounting-Define

Credit Control Area OB45

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Click on New Entries
Credit Control Area: II02
Currency: INR
Enter and Back
Maintain Description for II02: Credit Control Area for II02
Enter and Save
DEFINE COMPANY CODE:

The Company Code is the smallest organizational unit for which a complete self-contained set
of accounts can be drawn up for purposes of external reporting.

Company Code is central organizational unit and all other logistic payroll controlling module
structure are to be assigned to the company codes

As per business requirements we can create one or more company codes

For Consolidation reporting company code must be assigned to the respective companies

If consolidation module is in scope each company code must be assigned to a company.

PATH: SPRO-SAP Reference IMG-Enterprise Structure-Definition-Financial Accounting-Edit

Copy Delete Check Company Code OX02

Click on New Entries

Company Code II02

Company Name II Solutions
City Hyderabad
Country IN
Currency INR
Language EN

Click on SAVE

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ADDITIONAL DATA
Title: Company
Name: II SOLUTIONS
Street/House Number: Gachibowli/256355
Postal Code/City: 500001/Hyderabad
Country: IN
Region: 01
Postal Code: 500001
Po Box: 500001
Click on SAVE Button, Enter and Enter
DEFINE BUSINESS AREA:

Business area is an organizational unit that corresponds to a specific business segment

or area of responsibility in a company. The financial statements are created business
areas for internal reporting purpose only. you can create as many business areas as you
require. The definition of business area is optional. You cannot assign the business
areas to the company Code.

PATH: SPRO-SAP Reference IMG-Enterprise Structure-Definition-Financial Accounting-Define

Business Area OX03
Click on New Entries
Business Area: II02
Description: Hyderabad
Enter and Save
DEFINE FUNCTIONAL AREA:

Functional Areas are used to generate cost of sales reporting using departments like
Sales
Production
Marketing
Administration

It is an organizational unit, in accounting, used to classify the expenses of an organization by

the departments.

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Sap has standard multiple functional areas if they met business requirements, so we can use
existing Functional areas.

0100 - Manufacturing
0110 - Direct Production Cost
0120 - Overhead Production Cost
0300 - Sales and Marketing
0400 - Administration
0600 - Other operating income

PATH: SPRO-SAP Reference IMG-Enterprise Structure-Definition-Financial Accounting-Define

Functional Area FM_FUNCTION
Functional Area: II02ADMIN
Click on Create Functional Area
Functional Area: Admin Department
Enter and SAVE

DEFINE CONSOLIDATED BUSINESS AREA:

Business areas are financial organizational units which are used to generate individual financial
statements at branch level or product level. Business areas are maintain independent by the
company code these areas are not assign to any company codes can be used across all
company codes.

PATH: SPRO-SAP Reference IMG-Enterprise Structure-Definition-Financial Accounting-

Maintain Business Consolidation Area OCC1
Click on New Entries
Consolidation Business Area: II02
Description: Hyderabad
Enter and SAVE

Assign Company Code to Company

PATH: SPRO -- Enterprise Structure-- Assignment -- Financial Accounting -- Assign

Company Code to Company OX16

Click On Position Button

Enter Company Code II02
Enter
Maintain Company II02
Enter and SAVE

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Assign Company code to Credit Control Area OB38

PATH: SPRO -- Enterprise Structure-- Assignment -- Financial Accounting -- Assign

Company Code to Credit Control Area

Click on Position Button

Maintain Company Code II02
Maintain Credit Control Area II02
Enter and SAVE

Assign Business Area to Consolidation Business Area OBB6

PATH: SPRO -- Enterprise Structure-- Assignment -- Financial Accounting -- Assign

business area to consolidation business area

Click on Position Button

Maintain Business Area II02
ENTER
Maintain Consolidation Business Area II02
ENTER AND SAVE

Chart of Account
Chart of Account consist a list of G/L accounts.

The Chart of Accounts (COA) controls the creation of G/L account.

All financial transactions must be posted to G/L accounts.

COA must be assigned to a company code. One Chart of Account can be assigned to many
Company codes.

Based on business organization structure and reporting requirements of country we can use
three types of chart of accounts.

Operational Chart of Account: The regular business transactions are posted to G\L accounts
created with reference to operational Chart of account

Group Chart of Accounts: Consolidation purpose will use group chart of accounts.

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Country Chart of Accounts: As per country legal requirement will use country chart of
accounts.

Path: SPRO -- Financial Acc New -- General Ledger A/C -- Master data -- GL Accounts --
Preparations -- Edit Chart of Accounts List OB13

Click on New Entries

Chart of Accounts II02

Description Chart of Accounts for II02

Language English

Length of GL 8

Enter and SAVE

Assign Company Code to Chart of Account

Path: SPRO -- Financial Acc New -- General Ledger A/C -- Master data -- GL Accounts --
Preparations -- Assign Company Code to Chart of Account OB62

Click on Position Button

Company Code II02

Enter

Maintain Chart of Accounts II02

Enter and Save

Account groups

Account groups determine which fields you can configure in the G/L master record.

The standard SAP require at least two account groups, one for balance sheet accounts and
another for profit and loss accounts.

Account group controls

The no ranges of G/L and Field status of the master records.

Define Account Group

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PATH: Financial Accounting New -- GL Accounting new -- Master Data -- G/L Account --
Preparations -- Define A/c Group OBD4

Click on New Entries

Chart of Accounts Account Group Name From Account To Account

II02 LABL Liabilities 1000000 1099999

II02 ASTS Assets 2000000 2099999

II02 REVE Revenue 3000000 3000500

II02 INC Incomes 3000501 3099999

II02 EXPS Expenses 4000000 4099999

II02 FIXS Fixed Assets 5000000 5099999

Enter and SAVE

Retained Earnings Account

At the end of a fiscal year, the system carries forward the balance of the P&L account to the
retained earnings account.

PATH: Financial Accounting New--GL Accounts--Master Data--Preparations--Define

Retained Earnings A/c OB53

Maintain Chart of Account II02

Enter

P&L Statement Account

X 1000100

ENTER AND SAVE

Fiscal year Variant

Fiscal year can be classified into Two types

1) Calendar fiscal year: Jan to December K4(USA)

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2) Non-calendar fiscal year: April to March V3(India)

July to June V6

October to September V9

Year Shift: Year shift is an indicator which is used with non-calendar fiscal years to convert two
calendar periods into one financial year

+1 Next Calendar year period

-1 Previous Calendar Year periods

Variant: Variant is a key where we can maintain settings relevant to certain configurations. The
variant is maintained at a client level and assign to the company codes

Fiscal Year consist of 12 periods and SAP provides 4 special periods. Fiscal year determines
posting periods are used to assign business transactions. Fiscal year may be year dependent or
year independent.

The Special periods in a fiscal year variant can be used for things like posting audit or tax
adjustments.

Year Dependent

The financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting
periods and the calendar months are equal)

Year Independent
The financial year is different from calendar year Starting from 1st April to 31st March (where
the posting period months are not equal to calendar year months)

Shortened Fiscal Year

A financial year, which has less than 12 periods.

PATH: Financial Accounting New -- Fin. A/c Global Setting new -- Ledgers -- Fiscal Year
and posting periods -- Maintain Fiscal Year Variant OB29

Select Fiscal Year Variant V3

Click on Copy as Button

Change Fiscal Year Variant from V3 to II

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Click on Copy all button

Enter and SAVE

Assign Company Code to Fiscal Year Variant

Path: Financial Accounting new--Fin. A/c Global Setting new--Ledgers --Fiscal Year and
posting periods--Assigning Company Code to Fiscal Year Variant OB37

Click on Position Button

Company Code II02

Enter

Fiscal Year Variant

II

Enter and SAVE

posting periods Variant:

The Posting period variant controls which posting periods, both normal and special, are open for
each company code. It is possible to have a different posting period variant for each company
code in the organization. The posting period is independent of the fiscal year variant.

PATH: Financial Accounting(new) -- Financial Accounting Global Settings (New) --

Ledger--Fiscal Year and Posting Periods -- Posting Periods - - Define Variants for Open
Posting Period OBBO

Click on New Entries

VARIANT DESCRIPTION

II02 Posting Period Variant for II02

ENTER AND SAVE

Assign Posting Period Variant to Company Code

Path: Financial Accounting(new) -- Financial Accounting Global Settings (New) -- Ledger-
Fiscal Year and Posting Periods -- Posting Periods -- Assign Company Code to a Posting
Period Variant OBBP

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Click on Position Button

Company Code II02

Enter

Maintain Variant II02

Enter and SAVE

Open and Close Posting Periods

PATH: Financial Accounting (New) -- Fin A/c Global Settings new -- Ledgers -- Fiscal year
and posting periods -- Posting Periods -- Open and Close Posting
Periods OB52

Click on New Entries

Variant Account Type from Per. 1 Year to Period Year From per.2 Year To
Per Year

II02 + 1 2014 12 2014 13 2014 1

6 2014

II02 A 1 2014 12 2014 13 2014 16

2014

II02 D 1 2014 12 2014 13 2014 16

2014

II02 K 1 2014 12 2014 13 2014 16

2014

II02 M 1 2014 12 2014 13 2014 16

2014

Enter and SAVE

Account Types

A Asset

D Customer

K Vendor

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M Material

S General Ledger

Field Status Variants

We can control the fields at
A Transaction levels
B Group level
C Posting key level.

PATH: Financial Accounting New -- Financial A/c. Global Settings new -- Ledgers -- Fields
--Define Field Status Variants OBC4

Select Standard Field Status Variant 1000

Click on Copy as Button

Change Standard FSV from 1000 to II02

Field Status Name Field Status for II02

Enter

Click on Copy all Button

Enter and SAVE

If there is any business requirement we need to control the transaction level fields. Select FSTV
and Double click on Field Status Group

Select the field and double click on Field status group

Double click on General data

Maintain Fields based on business requirement

EX: Make it required as text field and Save

When We select Suppress --------- Field will not be visible on Screen at the time of Posting

When We select Required --------- Field will appear with √ Mark. Without entering data in
the field, we cannot go to next field.

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When We select Optional --------- Field will appear on Screen, but it is our choice to enter the
data or not

Assign Company Code to Field Status Variants OBC5

PATH: Financial Accounting (New)-Financial Accounting Global Settings (New)-Ledgers-

Fields-Assign Company Code to Field Status Variant
OBC5

Click on Position Button

Company Code II02

Enter

Maintain Field Status Variant II02

Enter and SAVE

Document types
Document type is an identifier of different account transactions like SA for G/L, AA for Asset
Accounting etc. The document types controls things like type of the account that can be posted.
The document types controls number ranges and header fields (Reference Number and Header
Text)

PATH: Financial Accounting New - Financial Accounting Global Settings (New) --

Document --Document Types -- Define Document Types for Entry View OBA7

Note: SAP has given standard document types, based on client requirement we can
use same document type or create new document type

Document Number Range creation

Document number range is defined at the specific interval with in which documents should be
created in sap and document number ranges depends upon company code and valid for the
defined year. We can assign one or more document types to each number range. The number
range becomes effective by the document type specified in document entry and Posting.
We have two types of Number range Intervals
External: We need to maintain number ranges Manually
Internal: System will pick the number range automatically

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PATH: Financial Accounting New--Financial Accounting Global settings new -
Documents-Document number range-Document in Entry View-Define Document Number
Ranges for Entry View FBN1

Company Code II02

Click on Change Interval Button

Click on Insert Interval

No Year from No to Number

01 2014 1000 1999

Enter and SAVE

Note: Up to 20 Number ranges we need to create

Posting keys
Posting keys determine whether a line item entry is a debit or a credit as well as the possible
field status for the transaction

PATH: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Document--Define Posting Keys OB41

NOTE: SAP has standard Posting Keys, based on Client requirement we can use same
Posting Keys or create new Posting Key.

EX-- If we want to control posting key level double click on 06 posting key.
Click on Maintain Field status
Double Click on General data Group
Which field we want to make it as Suppress or required or Optional
Enter and SAVE

Tolerance groups:

Tolerance group for GL Account:

Tolerance group for account specifying the limit for payment or receipt of payment. it is by the
line item wise and creating the discount for the line item.

PATH: Financial Accounting New -- General Ledger accounts -- Business Transactions --

Open Item Clearing -- Clearing Differences -- Define Tolerance Group for GL A/c OBA0

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Click on New Entries
Company Code II02
Tolerance Group Description 'Tolerance Group for II02'
Enter and SAVE

Assign Users to Tolerance Groups

PATH: Financial Accounting New -- General Ledger accounts -- Business Transactions --

Open Item Clearing -- Clearing Differences -- Assign Users to Tolerance Groups OB57

Tolerance group for Employees:

Tolerance group for Employees specifying the limits to the employees for the receiving or
payment amounts.

PATH: Financial Accounting New -- General Ledger Accounting -- Business Transactions

-- Open Item Clearing -- Clearing Differences -- Define Tolerance Group for
Employees OBA4

Click on New Entries

Company Code II02
Amount Per Document 9999999999
Cash Discount per line Item 5%
Enter and SAVE

Define Calculation Procedure

A calculation procedure is defined for each country, each County 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.

PATH: Financial Accounting (New)--Financial Accounting Global Settings (New)--Tax on

Sales/Purchases--Basic Settings--Check Calculation Procedure OBQ3

Click on New Entries

Procedure Description
ZTAXIN Sales Tax- India'

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Select Line Item and Double Click On ''Control Data'
Step Condition Type Description from Account
Key
100 BASB Base Amount
200 MWAS Input Tax 100 VST
300 MWVS Output Tax 100 MWS

Enter and SAVE

Assign Country to Calculation Procedure

PATH: Financial Accounting (New)--Financial Accounting Global Settings (New)--Tax on

Sales/Purchases--Basic Settings--Assign Country to Calculation Procedure OBBG

Click on Position Button

Maintain Country IN
Enter
Country Name Procedure
IN INDIA ZTAXIN

Enter and SAVE

General ledger
The General ledger is a collection of the group of accounts that supports the value items shown
in major financial Statements

The GL account is made up of two segments namely company code segment and chart of
accounts segment. Creation of G/L account can be done in three ways namely,

1. Creation of G/L account centrally-FS00.

2. Creation of G/L account in COA- FSP0

3. Creation of G/L account in CC- FSS0

Creation of G/L account in COA- FSP0

This functionality gives a basic template of the GL account. The account is created with entire
data required from the COA.

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1. Account Group to which it belongs.

2. P&L a/c or Balance sheet a/c.

3. Description and other information.

Creation of G/L account in CC- FSS0:

This functionality is used to assign the Company Code relevant data to the GL account.

1. Currency.

2. Tax relevant settings.

3. Field status group.

4. Tolerance group.

5. Authorizations Etc.

Creation of G/L account centrally-FS00:

The purpose of creating GL account centrally is to create GL account in both the segment
together,

Creation of GL Admin Expense

PATH:SAP Easy Access -- Accounting -- Financial Accounting -- General Ledger -- Master

Records -- G/L Accounts -- Individual Processing -- FS00 - Centrally FS00

Creation of Expense G/L for Salaries Paid

Maintain Fields G/L Account 4000000

Company Code II02

Click On Create Button

Account Group Expenses

Click On Radio Button P&L Statement Account

Short Text Salaries Paid

Long Text Salaries Paid

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Click On 'Control data'

Check Line Item Display

Sort Key 001

Click On Create/bank/interest tab

Maintain Fields Field Status Group G004

Enter and SAVE

Creation of Bank G/L Account FS00

Maintain Fields G/L Account 2000202

Company Code II02

Click On Create Button

Account Group Asset

Click On Radio Button Balance Sheet Account

Shot Text Outgoing Bank

Long Text Outgoing Bank

Click On Control Data

Maintain Fields Check Only Balances in Local Currency

Check Open Item Management

Check Line Item Display

Sort Key 001

Click On Create Bank Interest

Maintain Field Field Status Group G005

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 Check Relevant to Cash Flow

Enter and SAVE

To post the GL Document

PATH: Sap Easy Access -- Accounting -- Financial Accounting -- General Ledger --

Document Entry -- Enter GL Account Document
FB50

Maintain Fields Document Date 03032015

Posting Date 03032015

G/L Account 4000000(Expense Account)

G/L Account 2000202(Outgoing Bank)

Enter

Go To Document and Simulate

Enter and SAVE

Sample Document Template Creation

Create a sample Document Template and store in the system

Every month end, by coping Sample Document Number and modify the date and amount and
post the transaction.So that we will not for get any provisions for that month.
Note: This is used for Month end Provisions and Sample Document template will not update
the ledger.
Ex: Salaries Ac Dr 100000
Rent Ac Dr 25000
To Outstanding Expenses 125000
To Create Sample Document Template
Create General Ledger Masters
Salaries Ac (Cost Ac Group' Expense ')
Rent Ac (Cost Ac Group'Expenses')

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Outstanding Exp Ac (Current Liabilities 'Liabilities Group')
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
f.01

Create Number Ranges for Sample Document FBN1

PATH: Financial Accounting New--Financial Accounting Global settings-Documents--
Document number range--Document in Entry View--Define Document Number Ranges for
Entry View
Maintain Company Code II02
Click On Change Intervals
Click On Insert Intervals
Maintain fields No X2
Year 2014
From Number 70000
To Number 70999
Enter and SAVE

Creation of GL Accounts Group

1) Salaries Paid Expenses P&L Group
2) Rent Paid Expenses P&L Group
3) Outstanding Expenses Liability Balance Sheet

1) Creation of Expense G/L for Salaries Paid

PATH: SAP Easy Access--Accounting--Financial Accounting--General Ledger--Master

Records--G/L Accounts--Individual Processing--FS00-Centrally

G/L Account 4000000

Company Code II02

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 Click On Create Button

Account Group Expenses

Click On Radio Button P&L Statement Account

Short Text&Long Text Salaries Paid

Click On 'Control data'

Check Line Item Display

Sort Key 001

Click On Create/bank/interest tab

Maintain Fields Field Status Group G004

Enter and SAVE

2) Creation of Expense G/L for Rent Paid

PATH:SAP Easy Access--Accounting--Financial Accounting--General Ledger--Master

Records--G/L Accounts--Individual Processing--FS00-Centrally
FS00

Maintain Fields GL Account 4000300(Rent Expenses)

Company Code II02

Click On Create Button

Account Group Expenses

Check Radio Button P&L Statement acct

Short Text & Long Text Rent Account

Click On Control Data Button

Check Line Item Display

Sort Key 001

Click On Create/bank/interest

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 Maintain Fields Field Status Group G004

Enter and SAVE

3) Creation of Outstanding Expenses GL

PATH:SAP Easy Access--Accounting--Financial Accounting--General Ledger--Master

Records--G/L Accounts--Individual Processing--FS00-Centrally FS00

Maintain Fields GL Account 1000500(Liability)

Company Code II02

Click On Create Button

Account Group Liability (Balance Sheet Account)

Short Text and Long Text Outstanding Expenses

Click On Control Data Tab

Maintain Fields Check Only Balance in Local

Crcy

Check Open Item Management

Sort Key 001

Click On Create Bank Interest

Maintain Fields Field Status Group G001

Enter and SAVE

Creation of Sample Document

1)PATH:SAP Easy Access -- Accounting -- Financial Accounting -- General Ledger ---

Document Entry -- Reference Documents -- Sample Document F-01

Maintain Fields Document Date 31.03.2015(Future Date)

Posting Date 31.03.2015(Future Date)
Document Type SA
Company Code II02
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 Currency INR
Posting Key 40(Debit)
GL Account 4000100(Expenses salary)
Enter
Maintain Fields Amount 500000
Business Area II02

Text Salary Provision for March

Postky (Debit) Account 4000300(Rent Account GL)
Enter

Maintain Fields Amount 35000(For Rent)

Business Area II02
Text Rent Provision for March
Pstky 50(Credit)
Account 1000500(Liability for Other Expenses)
Enter
Maintain Fields Amount *
Business Area II20
Text Outstanding Exp
Enter
System Shows the remaining balance amount 5,35,000
Click On Document
Post
Display Sample Document:
PATH:SAP Easy Access--Accounting--Financial Accounting--General Ledger---Document
--Reference Documents -- Sample Documents – Display FBM3

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Maintain Fields Document Number 50003
Company Code II02
Fiscal Year 2014
Enter
We can see the line item wise Debit and Credit
2) Change the document Entries or post the document Go to F-02
PATH: Sap Easy Access -- Accounting -- Financial Accounting -- General Ledger --
Document Entry -- General Posting F-02

Click On Document

Click On Post with Reference

Enter the Document Number and Company Code

Enter
ENTER
If we want to change the Rent provision
Double Click On' Line Item' Rent Account
Remove 35000
Maintain "0"
Enter and Back
We can see the line item" 0" and back
Double Click on Outstanding Exp Line Item
Remove 5, 35,000
Maintain *
Enter
We can see the remaining balance 5, 00,000
Click On Document
Simulate
The posted document number '1006'

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To View the GL document, Go to FBL3N
Maintain Outstanding Exp 1000500
Open at key date 31.03.2015
EXECUTE
We can see the outstanding expense line item.

To post the sample document F-07

Path: Easy Access--Accounting--Financial Accounting--General Ledger--Document
Entry-F-07 Outgoing Payment

Maintain Fields Document Date 31.03.2015

Posting Date 31.03.2015
Type SA
Company Code II02
Text Clearing Outstanding Provisions
Account 2000102
Amount 500000
Business Area II02
Account 1000500(Outstanding Expenses Account)
Enter
Click On Document
Simulate
We can see the Debit 40 Outstanding Exp
Credit 50 Outgoing Bank
SAVE

RECURRING ENTRY DOCUMENT

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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.
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.

To post recurring entry documents, you have to set up a separate number range for the
company codes that we use them. You have to use key X1 for the number range. The system
takes numbers for the recurring entry original document from this number range.

Create Number Ranges for Recurring Document FBN1

PATH: Financial Accounting New--Financial Accounting Global settings-Documents-
Document number range-Document in Entry View-Define Document Number Ranges for
Entry View
Maintain Fields Company Code II02
Click On Change Intervals
Click On Insert Intervals
Maintain fields No X1
Year 2014
From Number 70000
To Number 70999
Enter and SAVE
Creation of Recurring Document FBD1
PATH: Easy Access--Accounting--Financial Accounting--General Ledger-Document
Entry-Reference Documents--FBD1 Recurring Documents
Maintain Fields Company Code II02

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 First Run on 01.02.2015
Last Run on 01.03.2015
Interval in Months 01
Document Type SA
Currency INR
Posting Key 40
Account 4000300(Rent Account)
Enter
Maintain Fields Amount 6000
Business Area II20
Value Date 11.03.2015
Text Rent Account
Posting Key 50
Account 2000102(Outgoing Bank)
Enter

Maintain Fields Amount 6000

Business Area II20
Value Date 11.03.2015
Text Outgoing Bank
Go to Document and Post
Display Recurring Entry Document F.15
PATH: Easy Access--Accounting--Financial Accounting--General Ledger--Periodic
Processing-Recurring Entry--F.15-Lists
Maintain Fields Company Code II02
Document Number 70000
Fiscal Year 2014
Click On Execute
Create posting Documents from Recurring Documents F.14

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PATH: Easy Access -- Accounting -- Financial Accounting -- General Ledger -- Periodic
Processing -- Recurring Entries -- F.14-Execute
Maintain Fields Company Code II02
Document Number 70000
Fiscal Year 2014
Settlement Period 01.02.2015
User Name Sriram
Enter and EXECUTE
Go To Menu Bar System--Service--Batch Input--Sessions
Select SAPF120 Line Item
Click On Process Button
Click On Radio Button Display errors only
Click On Process
Click On Exit Batch Input

Accrual and Deferral

An accrual of an expense refers to the reporting of an expense and the related liability in the
period in which they occur, and that period is prior to the period in which the payment is made.
An example of an accrual for an expense is the electricity that is used in December, but the
payment will not be made until January.

Creation of G/L Salaries Payable

Go To FS00

G/L Account 1000020

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 Company Code II02

Click on Basic Data

Account Group Liability

Check Balance Sheet Account

Short Text Salary Payable

G/L Account Long Text Salary payable

Click On Control Data

Check Only Balance in Local Currency

Check Open Item management

Check Line Item Display

Sort Key 001

Click On Create/Bank/Interest

Field Status Group G001

Enter and SAVE

Creation of Accrual/Deferral Document

Path. Accounting -- Financial Accounting -- General Ledger -- Periodic Processing -- Closing --

Valuate --Enter Accrual/Deferral Document FBS1

Document Date 30.07.2015

Posting Date 30.07.2015

Type SA

Company Code II02

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Reversal Reason 05 (Accrual)

Reversal Date 01.08.2015

Posting Key 40

Account 4000000 Expenses (Salary Paid)

Enter

Amount 15000

Text Salary Payable

Posting Key 50

Account 100020 Liability (Salary payable)

Enter

Amount 15000

Text Salary paid

Enter

Go To Document and Simulate

In this screen we can see the Debit and Credit

40 4000000 salaries Paid 15000

50 1000020 Salary Payable 15000-

Reverse Accrual/Deferral Document F.81

Path: Accounting -- Financial Accounting -- General Ledger -- Periodic Processing --

Closing -- Valuate --F.81 - Reverse Accrual/Deferral Document

Click On Reverse Accrual/Deferral Document

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Company Code II02

Click On Execute

Click On Reverse Documents

In this screen we can see the reversed with document 1050

To View Reversed Document FB03

Document Number 1050

Company Code II02

Enter

In this screen we can see the reversed Line Items

40 1000020 Salary Payable 15000

50 4000000 Salary Paid 15000-

Parking of General Ledger Documents

You can park a document before you post it. This is useful for example, if the data you want to
enter is incomplete, or the parking and posting functions are carried out by different accounting
clerks

To Park the G/L Document FV50

PATH: Accounting--Financial Accounting--General Ledger--Document--Parked

Documents--FV50 - Post/Delete: Single Screen Transaction

Maintain Fields for Expenses G/L

Document Date 06.03.2015

Posting Date 06.03.2015

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 Header Text Building Expenses

G/L Account 4000500(Expenses G/L)

Amount 15000

Text Building Expense

Business Area II02

Maintain Fields for Outgoing Bank G/L

G/L Account 2000102(Outgoing Bank G/L)

Amount 15000

Text Outgoing Bank

Business Area II02

Enter

Click On Document and Park

To Post the Parked Document FBV0

Path: Accounting--Financial Accounting--General Ledger--Document--Parked

Documents--FBV0 - Post/Delete

Maintain Fields Company Code II02

Document Number 1012

Fiscal Year 2014

Enter

Click On Document and Post

Enter

Hold Document
When you are entering data, you may be interrupted, or you may not have all the data you need
for entering a document, for example bank charges or the appropriate cost center.
In this case, you can temporarily save the data you have entered, and then continue with the
document entry at a later time. If you want the system to hold a document, it does not have to
be complete. Account balances are not updated and the document data is not available for
evaluation. A document number is not assigned.
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Go to SE38 and Maintain program RFTMPBLU

Cash Journal
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.
Create G/L Account for Cash Journal
Path: Financial Accounting (New) -- Bank Accounting --- Business Transactions -- Cash Journal
-- Create G/L Account for Cash Journal FS00
G/L Account 2000700
Company Code II02
Click on Basic Data
Account Group Assets
Check Balance Sheet Account
Short Text Petty Cash Account
G/L Account Long Text Petty Cash Account
Click On Control Data
Check Only Balances In Local Currency
Check Line Item Display
Sort Key 001
Click On Create/bank/interest
Field Status Group G001
Check Post Automatically Only
Enter and SAVE
Define Number Range Intervals for Cash Journal Documents
Path: Financial Accounting (New) -- Bank Accounting --- Business Transactions -- Cash Journal
-- Define Number Range Intervals for Cash Journal Documents FBCJC1

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Company Code II02
Click on Change Intervals
Click On Insert Interval
No From Number To Number
01 1000 1999
Enter and SAVE

Set Up Cash Journal

Path: Financial Accounting (New) -- Bank Accounting --- Business Transactions -- Cash Journal
-- Set Up Cash Journal FBCJC0
Click On New Entries
Co Cd CJ No Crcy DT G/L A/c DT VPT DT VPT DTCPT DTCPT Cash Journal Name
II02 0001 INR SA KZ KZ DZ DZ Petty Cash Account

Company Code II02

Cash Journal Number 0001
Currency INR

Document Type for G/L Posting SA

Document Type for Payment to Vendor KZ
Document Type for Payment to Vendor KZ
Document Type for Payment to Customer DZ
Document Type for Payment to Customer DZ
Cash Journal Name Petty Cash Account
Enter and SAVE
Create, Change, Delete Business Transactions
Path: Financial Accounting (New) -- Bank Accounting --- Business Transactions -- Cash Journal
-- Create, Change, Delete Business Transactions FBCJC2
Click On New Entries

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Company Code Business Transaction Type G/L Account CJ Business Trans
Account Mod
II02 R Revenue 3000000 Sales Account Check
II02 E Expenses 4000000 Salary Account Check
Enter and SAVE
Set Up Print Parameters for Cash Journal
Path: Financial Accounting (New) -- Bank Accounting --- Business Transactions -- Cash Journal
-- Set Up Print Parameters for Cash Journal FBCJC3

Click On New Entries

Company Code C J Print Program Report Variant Correspondence
II02 RFCASH00 DEMOEN SAP18
Enter and SAVE
Cash Journal Posting
Path: Accounting -- Financial Accounting -- General Ledger -- Document Entry -- FBCJ - Cash
Journal Posting FBCJ
Click On Change Cash Journal
Company Code II02
Cash Journal 0001
Enter
Click On Cash Receipts

Business Transaction Amount G/L Account Text

Sales Account 18000 3000000 Sales
Select Line Item
Click On Select Posted Items
Click On Print Cash Journal
Enter
In this screen we can see Posted Document Number 1051
Sales Account 18,000
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 Closing Balance 18,000
Back
Click On Cash Payments
Business Transaction Amount G/L Account Text
Salary Account 500 4000000 Salary Expenses
Select Line Item
Click On Select Posted Items
Click On Print Cash Journal
Enter
In this screen we can see Posted Document Number 1052
Salary Expenses 500
Closing Balance 17,500

Interest Calculation

There are three types of Interest Calculation in SAP:

A] Account Balance Interest Calculation [S-Type]

B] Item Interest Calculation [P- Type]

C] Penalty Interest Calculation [Z-Type]

In S-Type, interest is calculated on the entire balance outstanding in an account.

This is generally used in case of G/L accounts

Ex: Term Loan Account

In P-Type, interest is calculated on a few selected individual open items only, and

not on the entire balance in an account. This is generally used in case of overdue

receivables or payables. Hence it is also known as Interest on Arrears

In Z-Type, is calculated on interest arrears (per item) or in the account balance

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interest calculation (interest scale).

The basic parameters (procedure) for calculating interest are defined in an Interest

Calculation Indicator (ICI). These parameters include the following:

1) Frequency of interest calculation (Monthly, Quarterly, Half Yearly, Yearly);

2) Calendar Type to be used;

3) Interest Calculation type (S-Type, P-Type or Z-Type).

Note: Every ICI is identified by a user-defined two-digit a code defined at the client

level.

Note: Every account for which interest is to be calculated must have an ICI

mentioned in its master record

Calendar Types

There are four system-defined Calendar Types:

B Type 30 days in a month

(Bank Calendar) 360 days in a year

J Type 30 days in a month

(Japanese) 365 days in a year

F Type Actual no. of days in a month

(French) 360 days in a year

G Type Actual no. of days in a month

(Gregorian) 365 days in a year

Example

Principal amount for interest calculation : 1000/-

Rate of Interest : 12% p.a.

Period for interest calculation : 1st Jan to 3rd March

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Calendar Type Interest Calculation

‘B’ Type 1000 X 12/100 X 63/360 = 21.00

‘J’ Type 1000 X 12/100 X 63/365 = 20.71

F’ Type 1000 X 12/100 X 62/360 = 20.67

‘G’ Type 1000 X 12/100 X 62/365 = 20.38

Note: In India, we generally follow the ‘G’ Type Calendar.

Define Interest Calculation Types

Path: Financial Accounting (New) -- General Ledger Accounting (New) -- Business

Transactions -- Bank Account Interest Calculation -- Interest Calculation Global Settings -
- Define Interest Calculation Types OB46

Click On New Entries

Interest Indicator Name Interest Calculation Type Name

G1 10%Monthly S Balance Interest Calculation

Enter and SAVE

Prepare Account Balance Interest Calculation

Path: Financial Accounting (New) -- General Ledger Accounting (New) -- Business

Transactions - Bank Account Interest Calculation -- Interest Calculation Global Settings --
Prepare Account --Balance Interest Calculation OBAA

Click On New Entries

Interest Calculation Indicator G1

Interest Calculation Frequency 01

Calendar Type G

Check Balance Plus Interest

Enter and SAVE

Define Interest Reference Rates

Path: :Financial Accounting (New) -- General Ledger Accounting (New) -- Business

Transactions - Bank Account Interest Calculation -- Interest Calculation -- Define

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Reference Interest Rates OBAC

Click On New Entries

Reference Interest Rate G2

Long Text 10% Monthly

Description 10% Monthly

Date From 01.07.2015

Currency INR

Enter and SAVE

Define Time Dependent Terms

Here we specify how the interest rate is to be determined for each ICI

Time Dependent Terms can have one of the following four system-defined options:

Credit Interest: Balance Interest Calculation

(This refers to S-Type Interest Calculation as applied to credit balances)

Debit Interest: Balance Interest Calculation

(This refers to S-Type Interest Calculation as applied to debt balances)

Path: Financial Accounting (New) -- General Ledger Accounting (New) -- Business

Transactions - Bank Account Interest Calculation -- Interest Calculation --Define Time-
Dependent Terms OB81

Click On New Entries

Interest Calculation Indicator G1

Currency Key INR

Effect from 01.07.2015

Sequential Number 1

Term Credit interest Balance Interest Calculation

Reference Interest Rate G2

Enter and SAVE

Click On Next Entry

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Interest Calculation Indicator G1

Currency Key INR

Effect from 01.07.2015

Sequential Number 2

Term Debit interest Balance Interest Calculation

Reference Interest Rate G2

Enter and SAVE

Define Reference Interest Values

Path: :Financial Accounting (New) -- General Ledger Accounting (New) -- Business

Transactions - Bank Account Interest Calculation -- Interest Calculation -- Enter Interest
Values OB83

Click on New Entries

Reference Interest Rate Description Valid From Interest Rate

G2 10%Monthly 01.07.2015 10

Enter and SAVE

Creation of GL Masters

1) Secured Loans Account

2) Interest Account

3) Outgoing Bank

Secured Loan Account FS00

G/L Account 1003000

Company Code II02

Account Group Liability

Check Balance Sheet Account

Short Text ING Term Loan

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Long Text ING Term Loan

Click On Control Data

Check Open Item Management

Check Line Item Display

Sort Key 001

Click On Create Bank Interest

Field Status Group G001

Interest Indicator G1

Enter and SAVE

Creation Of Interest Paid Account FS00

G/L Account 4000902

Company Code II02

Account Group Expenses

Check P&L Account

Short Text Interest Paid

Long Text Interest Paid

Click On Control Data

Check Line Item Display

Sort Key 001

Click On Create Bank Interest

Field Status Group G004

Enter and SAVE

Creation Of Bank Account FS00

G/L Account 2000102

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Company Code II02

Account Group Assets

Check Balance Sheet Account

Short Text ING Outgoing Bank

Long Text ING Outgoing Bank

Click On Control Data

Check Only Balances in Local Currency

Check Open Item Management

Check Line Item Display

Sort Key 001

Click On Create Bank Interest

Field Status Group G005

Check Relevant to Cash Flow

Enter and SAVE

Assignment of Account for Automatic Postings

Path: Financial Accounting New -- General Ledger Accounting -- Business Transactions -

- Bank Account Interest Calculation -- Interest Posting -- Prepare GL Account Balance
Interest Calculation OBV2

Click On Accounts

Chart of Accounts II02

Enter

Account Symbol Currency G/L Account

0002 INR 4000902

2000 INR ++++++++++

Enter and SAVE

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Posting of Term Loan Receipt F-02

Document Date 10.07.2015

Posting Date 10.07.2015

Company Code II02

Posting Key 40

G/L Account 2000101 (Incoming Bank)

Enter

Amount 100000

Value Date 10.07.2015

Text ING Term Loan Receipt

Posting Key 50

G/L Account 1003000 (ING Term Loan Account)

Enter

Amount 100000

Text ING Term Loan Receipt

Enter and SAVE

Term Loan Repayment F-02

Document Date 25.07.2015

Posting Date 25.07.2015

Company Code II02

Posting Key 40

G/L Account 1003000 (ING Term Loan Account)

Enter

Amount 30000

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Value Date 27.07.2015

Text ING Term Loan Repayment

Posting Key 50

G/L Account 2000102 (ING Outgoing Bank)

Enter

Amount 30,000

Value Date 25.07.2015

Text ING Term Loan Receipt

Enter and SAVE

Interest Calculation Run

Path: Accounting -- Financial Accounting -- General Ledger -- Periodic processing -- F.52

- Balances

Chart of Accounts II02

G/L Account 1003000

Company Code II02

Calculation Period 01.07.2015 To 31.07.2015

Date of Last Interest Run 31.07.2015

Execute

15 Days / 365Days = 0.041095 * 10000( 10% Interest of 100,000) = 410.95

7Days/365Days = 0.01917* 7000 (10%Interest of 70,000) =

134.24
Total 545.19

Floating Rate of Interest OB83

Path: :Financial Accounting (New) -- General Ledger Accounting (New) -- Business

Transactions - Bank Account Interest Calculation -- Interest Calculation -- Enter Interest
Values OB83

Click On Position

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Reference interest Rate G2

Effect From 01.07.2015

Enter

Remove 10% and Maintain 15%

Enter and SAVE

Interest Calculation Run

Path: Accounting -- Financial Accounting -- General Ledger -- Periodic processing -- F.52

- Balances
Chart of Accounts II02

G/L Account 10003000

Company Code II02

Calculation period 01.07.2015 To 31.07.2015

Date of last interest Run 31.07.2015

Check Post Interest Settlements

Check Update Master Record

Execute

Go To System -- Service -- Batch Input -- Session

Select RFSZIS00 Line Item

Click on Process

Check Display Errors Only

Click On Process

Click On Exit Batch input

Accounts Payable
The Accounts Payable application component records and administers accounting data for all
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vendors. It is also an integral part of the purchasing system: Deliveries and invoices are managed
according to vendors. The system automatically makes postings in response to the operative
transactions.

Postings made in Accounts Payable are simultaneously recorded in the General Ledger where
different G/L accounts are updated based on the transaction involved(payables and down
payments, for example). The system contains due date forecasts and other standard reports that
you can use to help you monitor open items.

Vendor Master Data

Business transactions are posted to accounts and managed using those accounts You must
create a master record for each account that you require. The master record controls how
business transactions are recorded and processed by the system

Specifications you make in master records are used

As default values when you post items to the account. For example, the terms of payment you
specify in the master record are defaulted for document entry For processing business
transactions For instance, bank details and the payment methods (check or bank transfer, for
example) are required for automatic payments.

For working with master records. You can prevent certain users from accessing an account by
setting up authorization groups

Reconciliation accounts are managed implicitly using Sub Ledger Open Item function

Posting Keys Debit Credit

Vendor 25 31

Vendor SP/GL 29 39

Document Types

KR – Vendor Invoice

KZ – Vendor Payment

KA – Vendor Document (Transfers/Reversals)

KG--Vendor Credit Memo

Vendor Accounts can be grouped into Account Groups. These Account Groups can be defined
on the basis of various parameters depending upon business requirements

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Note: Every Account Group is assigned to a number range. You can assign one number range to
multiple Account Groups. However, you cannot assign multiple number ranges to the same
Account Group

Account Group controls

It controls number range and master data fields

Vendor master has three segments

General Data Segment: It contains the total information of vendor Like address fields ,postal
code, telephone and Vendor Bank Details Ext.......

Company code Segment: It contains total company code details Like reconciliation account,
Payment terms .house bank, interest indicator, dunning Ext.......

Purchasing Organization Segment: It contains MM Information.

Vendor Account Group Creation

Path: SPRO-- Financial Accounting new-- Accounts Receivable and Accounts Payable--
Vendor Accounts--Master Data-- Preparations for creating Vendor Master Records--Define
Account Groups with Screen Layout (Vendors) OBD3

Click On New entries

Maintain Fields Account Group 9000

Name Service Vendor for II02

Double Click On Company code data

Double Click On Account Management

Select reconciliation account as a required entry field

And change cash management group field as a suppress

Enter and SAVE

Creation of Vendor Number Ranges

Number Ranges are two types

1) Internal Number Range

2) External Number Range

Internal Number Range: System will pick the number range automatically

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External Number Range:: We need to enter number range manually

Path: SPRO-- Financial Accounting New -- Accounts Receivable and Accounts Payable--
Vendor Accounts-- Master Data --Preparations for creating Vendor Master Records --
Create Number Ranges for Vendor Accounts XKN1

Click On Change Intervals

Click On Change Intervals
Maintain Fields No 08

From number 8000000

To number 8999999
Enter and SAVE

Assign number ranges to account groups

Path: SPRO-- Financial Accounting New-- Accounts Receivable and Accounts Payable--
Vendor Accounts-- Master Data-- Preparations for creating Vendor Master Records--
Assign number ranges to account groups. OBAS

Click On Position Button

Maintain field Account Group 9000

Assign Number range to group 08

Enter and SAVE

Define Tolerance Group for Vendors/Customers

The tolerances are used for differences in payment and residual items which can occur during
payment settlement. We can specify the tolerances under one or more tolerance groups.
Allocate a Tolerance Group to each Vendor via the master record

For each Tolerance Group we specify

Tolerances up to which differences in payment are posted automatically to expense or revenue

account when clearing open items.

The handling of the terms of payment for residual items, if they are to be posted during clearing

Employee Tolerances also can be specified. Employee Tolerance is used to control the Upper
limits for posting procedures (Posting Authorizations) and Permitted Payment Differences.
While clearing, the lower limit of the 2 will be taken

Path: SPRO-- Financial Accounting New-- Accounts Receivable and Accounts Payable--
Business Transactions-- Outgoing Payments-- Manual Outgoing Payments-- Define

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Tolerances (Vendors and Customers) OBA3

Click On New Entries

Maintain Fields Company Code II02

Currency No need to maintain currency System will

pick currency from company code

Tolerance Group Description Tolerance Group for II02

Enter and SAVE

Creation of GL Accounts

PATH:SAP Easy Access--Accounting--Financial Accounting--General Ledger--Master

Records--G/L Accounts--Individual Processing--FS00-Centrally

FS00

1) Sundry Creditors (Service Vendor)

Maintain Fields GL Account 1000100(Liability)

Company Code II02

Click On Create Button

Maintain Fields Account Group Liabilities (Balance Sheet

Account)

Short Text Service Vendor

G/L Account Long Text Service Vendor

Click on Control data

Maintain Fields Recon Account Type Vendor

Line Item display Check

Sort Key 012

Click On Create Bank Interest Button

Maintain Fields Field Status Group G067

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Enter and SAVE

2) Advance to Sundry Creditors (Service Vendor) FS00

Maintain Fields GL Account 2001000(Liability)

Company Code II02

Click On Create Button

Account Group Assets (Balance Sheet Account)

Short Text Advance to Service Vendor

G/L Account Long Text Advance to Service Vendor

Click on Control data

Maintain Fields Recon Account Type Vendor

Line Item display Check

Sort Key 012

Click On Create Bank Interest Button

Maintain Fields Field Status Group G067

Enter and SAVE

Note: To Post the Vendor Invoice (we need to create Expense GL)

3) Expense GL for Building Maintenance

Maintain Fields GL Account 4001000(Expense)

Company Code II02

Account Group Expenses (P&L Statement

Account)

Short Text Building Maintenance

G/L Account Long Text Building Maintenance

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Click on Control data

Maintain Fields Line Item display Check

Sort Key 001

Click On Create Bank Interest Button

Maintain Fields Field Status Group G004

Enter and SAVE

Link between Sundry Creditors and Advance to Sundry Creditors

Path: SPRO-- Financial Accounting New--Account Receivable and Account Payable--

Business Transactions -- Down payment Made -- Define Alternative reconciliation
accounts for down payments OBYR

Creation of Special G/L Indictor

Click On Create Button

Maintain Fields Special G/L Indicator Q

Name Vendor

Description Maintenance Vendor

Enter

Maintain Fields Commitments Warning Tick

29 Down Payment Made

39 Reverse Down payment

Enter and SAVE and Back

Double Click on Maintenance Vendor

Maintain Chart of Account II02

Enter

Maintain Fields Sundry Creditors Advance to Service Vendor

1001000 2001000

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Enter and SAVE

Define document types & Number rages for Vendor

Vendor Invoice KR

Vendor Payment KZ

PATH: Financial Accounting Global Settings (New)-- Document—Document Types-- Define

Document Types for Entry View OBA7

Click On Position Button

Maintain Document Type KR

Double Click on Vendor Invoice(KR)

Maintain Fields Number Range 19

Click on Number range information

Maintain Fields Company Code II02

Click On Change Intervals

Maintain Fields Click On Insert Interval Button

N0 Year From number To number

19 2014 19000 19999

Enter and SAVE

Define document types & Number ranges for Vendor Payment

PATH: Financial Accounting Global Settings (New)-- Document—Document Types--

Define Document Types for Entry View OBA7

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Click On Position Button

Maintain Document Type KZ

Double Click On Vendor Payment (KZ)

Number range 15

Click on Number range information

Maintain Fields Company code II02

Click On Change Intervals

Click On Insert Interval

No Year From number To number

15 2014 15000 15999

Enter and SAVE

Maintain terms of Payment

Cash Discount is a reduction in the price of Vendor Invoice, allowed in those cases when payment
is made within a stipulated period.

In general business scenario, the cash discount will depend on the payment terms agreed with
the Vendor.. Generally, in the invoice a payment term may be mentioned. For example, if the
payment term mentioned in the invoice is "2/10,'1/20 Net 30", this means that the Vendor is
entitled to a 2% discount if the payment is made within 10 days of the delivery of goods .and 1%
discount if the payment is made within 20 days of the delivery of goods If the payment is being
made beyond 30 days of the delivery of goods then full payment is expected. In any case, the full
payment is expected to be made within 30 days.

PATH: Financial Accounting New--Accounts Receivable and Accounts Payable--Business

Transactions--Incoming Invoices/Credit Memos--Maintain Terms of Payment OBB8

Click On New Entries

Maintain Fields Payment Terms II02

Account type Vendor

Default for baseline data Check Radio Button Posting date

Payment Terms Percentage Number of days

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 1 2% 10

2 1% 20

3 30

Explanations

Within 10days 2% cash discount

Within 20days 1% Cash discount

Within 30days due net

Enter and SAVE

Creation of Cash discount GL FS00

Maintain Fields GL Account 3000501(Incomes Group)

Company code II02

Click On Create Button

Account Group Incomes

Check Radio Button P&L statement account

Short Text Cash Discount

G/L Acct long text Cash Discount

Enter and Click On Control Data

Maintain Fields Check Line Item display

Sort Key 001

Click On Create Bank Interest Button

Maintain Fields Field status group G001

Enter and SAVE

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Assignment of Accounts for Automatic Postings OBXU

PATH: Financial Accounting (New)--Accounts Receivable and Accounts Payable--

Business Transactions-- Outgoing Payments-- Outgoing Payments Global Settings--
Define Accounts for Cash Discount Taken

Maintain Field Chart of Accounts II02

Enter

Click On Save Button

NOTE: In SAP, the standard transaction key SKE is used to determine accounts or posting keys
for line items which are created automatically by the system for Cash Discounts granted.

In this configuration step the G/L account number to which the automatic posting for the cash
discount is to be made is assigned.

Maintain Account 3000501(Incomes)

Enter and Save

Creation of Vendor Master Data

Vendor master records contain important data on your vendors. You can also store data in the
vendor master record that applies to certain specific organizational levels (e.g. company code,
purchasing organization, plant) within your enterprise.

The vendor master record consists of three areas:

General data

Data that applies equally to each company code within your enterprise (address, telephone
number, language in which you communicate with your vendor, etc.).

Company code data

Data kept at company code level (payment transaction data or number of control account, for
example).

Purchasing data

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Data that is of importance with regard to your enterprise’s purchasing activities and which is kept
at purchasing organization level (such as contact person or terms of delivery).

Path: Easy Access-- Accounting-- Financial Accounting -- Account Payable -- Master

Records—Create FK01

Maintain Fields Vendor No need to maintain number range manually

because we maintain internal number range

Company Code II02

Account group 9000

Enter

Maintain Fields Title Company

Name SR Enterprises

Street/House number Ameerpeta/415

Postal code/City 570002/Hyderabad

Country IN

Region 01

Post Box 570002

Postal Code 570002

Enter

Note: Same customer and Same vendor Scenario Will Maintain "Customer Account" in this screen

Enter

In this screen we maintain vendor bank details

If foreign vendor we need to pay foreign currency

Some Important fields in vendor bank details

IBAN It is used for foreign transfers, will maintain IBAN code in IBAN entry field

Routing Code It is used for foreign transfers, will maintain Routing Code in
reference

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 field

Swift Code It is used for local transfers, will maintain swift code in bank details

(Length should be 8 to 11 between)

CODE Tables

IBAN TIBAN

Routing Code BNKA

Swift Code BNKA

Vendor Bank Master Data LFBK

Enter

Vendor details will maintain in this screen (Based on client requirement)

Enter

Maintain Fields Reconciliation account 1001000(Service Vendor)

Sort Key 001

Enter

NOTE: The terms of payment can be maintained in the Vendor master. If the terms of payment
are maintained in the Vendor master, while entering an invoice against the Vendor, the terms of
payment maintained in the Vendor master will default to the invoice. Like the baseline date, the
terms of payment can also be modified while entering the invoice, if required.
The terms of payment can be maintained in the company code segment.

Maintain Fields Payment Terms II02

Check double invoice Check

Enter

This Screen will use while doing dunning

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Enter

Click on Yes

Vendor Down Payment

An Initial amount paid at the time of purchase, in installment buying, time sales, etc

Path: Accounting --Financial Accounting --Account Payable-- Document Entry--Down

Payment --Down Payment F-48

Maintain Fields Document Date 14-04-2015

Posting Date 14-04-2015

Document Type KZ

Company Code II02

Currency Rate INR

Vendor Account 80000000

Special G/L Q

Bank Account 2000102(Outgoing Bank)

Amount 20000

Value Date 14-04-2015

Text Vendor Down Payment

Business Area II20

Enter

Maintain Fields Amount 20000

Business Area II20

Text Vendor Down Payment

Enter

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Go To Document and Simulate

In this screen we can see the 'Debit and Credit Line Items'

Enter and SAVE

Purchase Vendor Invoice Posting

A commercial document that itemizes a transaction between a buyer and a seller. An invoice
will usually include the quantity of purchase, price of goods and/or services, date, parties
involved, unique invoice number, and tax information. If goods or services were purchased on
credit, the invoice will usually specify the terms of the deal, and provide information on the
available methods of payments

PATH: Accounting--Financial Accounting -- Account Payable -- Document Entry -- Invoice

FB60
Maintain Fields Vendor 8000000

Invoice date 14.04.2015

Posting date 14.04.2015

Amount 10000

Text Vendor Invoice

G/L account 4000000

Amount in doc. currency 100000

Business Area II20

Go To Document and Simulate

Save

To view vendor Line Item wise Report

PATH: Accounting-- Financial Accounting --Account Payable-- Account -- Display change

line items FBL1N

Maintain Fields Vendor Account 8000000

Company Code II02

Open items Tick Radio Button

Tick Special G/L transactions

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Click On Execute

We can see the open items in this screen.(Unclear Items)

Transfer Advance from Spl GL to Normal by clearing Special GL Items

Path: Accounting--Financial Accounting -- Account Payable -- Document Entry-- Down

Payment --Clearing F-54
Maintain Fields Document Date 14.04.2015

Posting Date 14.04.2015

Vendor Account 8000000

Invoice 19000(Document Number)

Text Transfer Down Payment

Enter

Select Line Item, Go To Document and Simulate

We can see the balance transfer from spl down payment to normal

Enter and Save

Vendor Outgoing payment with clearing

Path: Accounting -- Financial Accounting -- Account Payable -- Document Entry--

outgoing payment -- Post F-53

Maintain Fields Document Date 14.04.2015

Posting Date 14.04.2015

Clearing Text Final Clearing for Outgoing Payment

Bank Account 2000102(Outgoing Bank)

Amount 1

Value date 14.04.2015

Text Final Clearing for Outgoing Payment

Open Item 8000000

Click On Process Open Item Button

We can see cash discount in the screen which should be maintained in payment terms in

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'OBB8'

Click on Document Overview Button

Double click on outgoing bank account

Remove '1'

Maintain '*' and Enter

We can see the remaining balance in the screen

Go To Document and Simulate

We can see separate line item for cash discount

Enter and Save

Partial Payment

Partial Payment: If you make the payment as a partial line item system will show as a open
item. there we can compare debit and credit and we can see the final Outstanding balance.
Path: Accounting -- Financial Accounting -- Account Payable -- Document Entry--
outgoing payment -- Post F-53

Maintain Fields Document Date 14.04.2015

Posting Date 14.04.2015

Text Partial Payment

Bank Account 2000102(Outgoing Bank)

Amount 30000

Value date 14.04.2015

Text Partial Payment

Open item Account 8000000

Business Area II20

Click On Process Open Item Button

Click On Partial Payment Button

Double Click on Payment Amount Field

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We can see partial amount in payment amount field(30,000)

Go To Document and Simulate

In this screen we can see the Debit and Credit line items for partial amount

Enter and SAVE

To View Vendor Account Transaction

PATH: Accounting-- Financial Accounting --Account Payable-- Account -- Display change

line items
FBL1N

Maintain Fields Vendor Account 8000000

Company Code II02

Open items Check Radio Button

Check Special G/L transactions

Click On Execute

Note: In this screen we can see the vendor open items

Partial Amount 30,000

Invoice 100,000

Remaining Balance 70,000-

Residual Payment

Residual: If you make a payment as a residual it will clear against the invoice and remaining
balance it will generate separate open item
Path: Accounting -- Financial Accounting -- Account Payable -- Document Entry--
outgoing payment -- Post
F-53

Maintain Fields Document Date 14.04.2015

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 Posting Date 14.04.2015

Text Residual Payment

Bank Account 2000102(Outgoing Bank)

Amount 30000

Value date 14.04.2015

Text Residual Payment

Open item Account 8000000

Business Area II20

Click On Process Open Item Button

Click On Residual Items Button

Double Click on Residual Items Field

Go To Document and Simulate

Note: In this screen system will generate separate line item, and it will show the remaining
balance.

Double Click on Line Item 002

Maintain Text Final Payment

Back and SAVE

Clearing of Normal Items (Same Down Payment and Same Invoice)

Path: Accounting => Financial Accounting => Account Payable => Account => Clear
F-44

Maintain Fields Account 8000000

Company Code II02

Special G/L Ind Q

Click On Process Open Items

We can see same invoice and same down payment

Click On Document and Simulate

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SAVE

To Park the Vendor Invoice

PATH: Easy Access--Accounting-- Financial Accounting-- Accounts Payable --Document-

- Parked Documents--FV60 - Change: Single Screen Transaction FV60

Maintain Fields Vendor 8000000

Invoice date 21.04.2015

Posting date 21.04.2015

Amount 100000

Text Vendor Invoice

G/L Account 4000500

Amount 100000

Text Expenses

Business Area II20

Click On Save (Parked Document)

To Post the Parked Vendor Invoice Document

Path:Sap Easy Access--Accounting--Financial Accounting--Accounts Payable--

Document--Parked Documents--FBV0 - Post/Delete
FBV0

Note: If we don't know the document number Click On' Document List'

Maintain Fields Company Code II02

Fiscal Year 2015

Click On Execute

Double Click On Line Item

Click On Post Button

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Same Vendor and Same Customer Scenario
Note: The Vendor Invoice is 100000

The Customer Invoice is 50000

Remaining Balance is 50000(We need to pay to the Vendor)

Go To Fk02 (Vendor Master Data Change)

Maintain Fields Vendor 8000000

General data Check 'Control'

Company Code data Check 'Payment transactions'

Enter

Maintain Customer number 200005

Enter

Clearing With Customer 'Check'

Enter and SAVE

Go To FD02 (Customer Master Data Change)

Maintain Customer 200005

Enter

Click on Control Data

Note: No Need to Maintain Vendor number in customer master data, once will update customer
Account number in vendor master data, automatically system will pick vendor number in customer
master data.

Click On 'Company Code Data'

Click On Payment Transactions

'Check' Clearing with Vendor

Enter and SAVE

Vendor Clearing F-53

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Maintain Fields Document Date 21.04.2015

Posting Date 21.04.2015

Text Clearing Outstanding amount

Account 2000102(Outgoing Bank)

Amount "1"

Value date 21.04.2015

Text Clearing Outstanding amount

Account 8000000

Click On Process Open Items

In this screen we can see the vendor and customer Invoices

Click On Document Overview Button

Double Click On Outgoing Bank line item

Remove 1

Maintain *

Enter

Go To Document and Simulate

In this screen we can see the customer will be credit 50000

Enter and Save

Credit Memo
A credit memo is a contraction of the term "credit memorandum," which is a document issued
by the seller of goods or services to the buyer, reducing the amount that the buyer to the seller
under the terms of an earlier invoice. The credit memo usually includes details of exactly why
the amount stated on the memo has been issued, which can be used later to aggregate
information about credit memos to determine why the seller is issuing them.

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A credit memo may be issued because the buyer returned goods to the seller, or there is a
pricing dispute, or a marketing allowance, or other reasons under which the buyer will not pay
the seller the full amount of the invoice. The seller records the credit memo as a reduction of its
accounts receivable balance, while the buyer records it as a reduction in its accounts payable
balance.

Creation of Number Range for Credit Memo Document Type KG

Document Type Number Range

KG 17

Go To FBN1

Company Code II02

Click On Change Interval

Click On Insert Interval

No Year From Number To Number

17 2015 17000 17999

Enter and SAVE

To Post the Vendor Invoice FB60

Vendor 8000000

Invoice Date 08.07.2015

Document Date 08.07.2015

Amount 100000

Text Vendor Invoice

G/L Account 4000900

Amount 100000

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Text Material Expenses

Enter

Go To Document and Simulate

In this screen we can see the Expenses Debit 100000

Vendor Credit 100000

Enter and SAVE

To Post Vendor Credit Memo FB65

Path: Accounting-- Financial Accounting -- Accounts Payable -- Document Entry -- FB65 -

Credit Memo

Vendor 8000000

Invoice Date 08.07.2015

Document Date 08.07.2015

Amount 20,000

Text Vendor Credit Memo

G/L Account 4000900

Amount 100000

Text Material Expenses

Enter

Go To Document and Simulate

In this screen we can see the material will be credit 20,000-

Vendor will be Debit 20,000

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Enter and SAVE

To View the Vendor Line Item Display FBL1N

Vendor Account 8000000

Company Code II02

Check Open Item

Click on Execute

In this screen we can see the Vendor balance amount after Credit Memo 80,000-

Account Receivable
The Accounts Receivable application component records and administers accounting data of all
customers. It is also an integral part of sales management. All postings in Accounts Receivable
are also recorded directly in the General Ledger. Different G/L accounts are updated depending
on the transaction involved (for example, receivables, down payments). The system contains a
range of tools that you can use to monitor open items, such as account analyses, alarm reports,
due date lists, and a flexible dunning program. The correspondence linked to these tools can be
individually formulated to suit your requirements. This is also the case for payment notices,
balance confirmations, account statements, and interest calculations.
The payment program can automatically carry out direct debiting and down payments. There
are a range of tools available for documenting the transactions that occur in Accounts
Receivable, including balance lists, journals, balance audit trails, and other standard reports.
When drawing up financial statements, the items in foreign currency are revalued, customers
who are also vendors are listed, and the balances on the accounts are sorted by remaining life.
It also provides the data required for effective credit management, (as a result of its close
integration with the Sales and Distribution component), as well as important information for the
optimization of liquidity planning, (through its link to Cash Management).
Customer Document Type
Customer Down Payment DZ
Customer Invoice DR
Customer Final Clearing DZ
Customer Posting Keys

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 Debit Credit
Customer 1 11

Customer Special GL (Down Payment 9 19

Customer Account Group Creation

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) OBD2

Note: Account Group Controls Number ranges and Master data Fields

Click On New Entries

Maintain Fields Account Group 9001

Name Domestic Customer for II02

Double Click On Company Code data

Double Click On Account Management

Make it Required as Reconciliation Account

Make it Suppress as Cash Management group

Enter and SAVE

Create Number Ranges for Customer Accounts

We have two types of Number range Intervals

External: We need to maintain number ranges Manually
Internal: System will pick the number range automatically

Path: Financial Accounting New -- Accounts Receivable and Accounts Payable --

Customer Accounts -- Master Data -- Preparations for creating Customer Master Data --
Create Number Ranges for Customer Accounts XDN1

Click On Change Intervals

Click On Insert Interval

Maintain Fields No From number To number

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 13 13000 13999

Enter and SAVE

Assign Number Ranges to Customer Account Groups

Path: 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 OBAR

Click On Assign Number Ranges to Customer Account Groups

Click On Position Button

Maintain Account group 9001

Enter

Maintain Number range 13

Enter and SAVE

Define Tolerance Group for Vendors/Customers

The tolerances are used for differences in payment and residual items which can occur during
payment settlement. We can specify the tolerances under one or more tolerance groups.
Allocate a Tolerance Group to each Vendor via the master record

For each Tolerance Group we specify

Tolerances up to which differences in payment are posted automatically to expense or revenue

account when clearing open items.

The handling of the terms of payment for residual items, if they are to be posted during clearing

Employee Tolerances also can be specified. Employee Tolerance is used to control the Upper
limits for

Posting procedures (Posting Authorizations) and Permitted Payment Differences.

Path: SPRO-- Financial Accounting New-- Accounts Receivable and Accounts Payable--
Business Transactions-- Outgoing Payments-- Manual Outgoing Payments-- Define
Tolerances (Vendors and Customers) OBA3

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Click On New Entries

Maintain Fields Company Code II02

Currency No need to maintain currency System will pick

currency from company code

Tolerance Group Description Tolerance Group for II02

Enter and SAVE

Creation of GL Accounts

PATH:SAP Easy Access--Accounting--Financial Accounting--General Ledger--Master

Records--G/L Accounts--Individual Processing--FS00-Centrally

FS00

1) Sundry Debtors' (Domestic Customer)

Maintain Fields GL Account 2000030(Assets)

Company Code II02

Click On Create Button

Maintain Fields Account Group Assets (Balance Sheet

Account)

Short Text Domestic Customer

G/L Account Long Text Domestic Customer

Click OnControl data

Maintain Fields Recon Account Type Customer

Line Item display Check

Sort Key 031

Click On Create Bank Interest Button

Maintain Fields Field Status Group G067

Enter and SAVE

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2) Advance from Sundry Debtors' (Adv from Domestic Customer)

PATH:SAP Easy Access--Accounting--Financial Accounting--General Ledger--Master

Records--G/L Accounts--Individual Processing--FS00-Centrally

FS00

Maintain Fields GL Account 1000030(Liability)

Company Code II02

Click On Create Button

Maintain Fields Account Group Liability (Balance Sheet Account)

Short Text & Long Text Advance from Domestic Customer

Click on Control data

Maintain Fields Recon Account Type Customer

Line Item display Check

Sort Key 031

Click On Create Bank Interest Button

Maintain Fields Field Status Group G067

Enter and SAVE

Note: To Post the Customer Invoice (we need to create Sales Account GL (Revenue)

3) Creation of Sales GL

PATH:SAP Easy Access--Accounting--Financial Accounting--General Ledger--Master

Records--G/L Accounts--Individual Processing--FS00-Centrally

FS00

Maintain Fields GL Account 3000000(Revenue)

Company Code II02

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Click On Create Button

Maintain Fields Account Group Revenue(P&L Statement

Account)

Short Text & Long Text Sales Account

Click OnControl data

Maintain Fields Line Item display Check

Sort Key 001

Click On Create Bank Interest Button

Maintain Fields Field Status Group G029

Enter and SAVE

Link between sundry Debtors and Advance from Customer

Path: SPRO-- Financial Accounting New-- Accounts Receivable and Accounts Payable--
Business Transactions-- Down Payments Received-- Define Reconciliation Accounts for
Customer Down Payments OBXR

Creation of Special G/L Indictor

Click On Create Button

Maintain Fields Special G/L Indicator 8

Name Domestic

Description Domestic Customer

Enter
Check Commitments Warning

09 Reverse Down Payment (Debit)

19 Down Payment Receive (Credit)

Enter and Save and Back

Double Click On'8' SGL Indicator

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Maintain Chart of Account II02

Enter

Maintain Fields Sundry Debtors GL Advance from Customer GL

200030 1000030

Enter and SAVE

Define document types & Number rages for Customer Invoice

Customer Invoice DR

PATH: Financial Accounting Global Settings (New)-- Document—Document Types--

Define Document Types for Entry View
OBA7

Click On Position Button

Maintain Document Type DR

Enter

Double Click On Document Type 'DR'

Maintain Number Range 18

Click On Number range information

Maintain Company Code II02

Click On Change Intervals

Click On Insert Interval

Maintain Fields N0 Year From number To

number

18 2015 18000 18999

Enter and SAVE

Define document types & Number rages for Customer Payment

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Customer Payment DZ

PATH: Financial Accounting Global Settings (New)-- Document-- Document Types-- Define
Document Types for Entry View OBA7

Click On Position Button

Maintain Document Type DZ

Enter

Double Click On DZ

Maintain Number Range 14

Click On Number range information

Maintain Company Code II02

Click On Change Intervals

Click On Insert Interval

Maintain Fields N0 Year From number To

number

14 2015 14000 14999

Enter and SAVE

Maintain terms of Payment

Cash Discount is a reduction in the price of Customer Invoice, allowed in those cases when
payment is made within a stipulated period.

In general business scenario, the cash discount will depend on the payment terms agreed with
the Customer.. Generally, in the invoice a payment term may be mentioned. For example, if the
payment term mentioned in the invoice is "2/10,'1/20 Net 30", this means that the Vendor is
entitled to a 2% discount if the payment is made within 10 days of the delivery of goods .and 1%
discount if the payment is made within 20 days of the delivery of goods If the payment is be ing
made beyond 30 days of the delivery of goods then full payment is expected. In any case, the full
payment is expected to be made within 30 days.

PATH: Financial Accounting New--Accounts Receivable and Accounts Payable--Business

Transactions--Incoming Invoices/Credit Memos--Maintain Terms of Payment
OBB8

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Click On New Entries

Maintain Field Payment Terms II02

Account type Customer

Default for baseline data Check Radio Button Posting date

Payment Terms Percentage Number of days

1 2% 10

2 1% 20

3 30

Explanations

Within 10days 2% cash discount

Within 20days 1% Cash discount

Within 30days due net

Enter and SAVE

Creation of Cash discount Expenses GL FS00

Maintain Fields GL Account 4000600(Expenses)

Company code II02

Click On Create Button

Account Group Expenses

Click on Radio Button P&L statement account

Short Text Cash Discount Expenses

G/L Acct long text Cash Discount Expenses

Enter and Click On Control Data

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Maintain Fields Check Line Item display

Sort Key 001

Click On Create Bank Interest Button

Maintain Fields Fields status group G004

Enter and SAVE

Assignment of Accounts for Automatic Postings OBXI

PATH: Financial Accounting (New)--Accounts Receivable and Accounts Payable--

Business Transactions--Incoming Payments--Incoming Payments Global Settings--Define
Accounts for Cash Discount Granted

Maintain Chart of Accounts II02

Enter

NOTE:In SAP, the standard transaction key SKT is used to determine accounts or posting keys
for line items which are created automatically by the system for Cash Discounts granted.

In this configuration step the G/L account number to which the automatic posting for the cash
discount is to be made is assigned.

Maintain Account 4000600(Expenses)

Enter and Save

Creation of Customer Master Data

A complete Customer Account consists of 3 segments

1. General Data at client level

2. Company code segment

3. Sales Area segment

General data: consists Address, Control data, Payment transactions etc. The account number
is assigned to the Customer at the client level. This ensures that the account number for a
customer is the same for all company codes and sales areas

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Company data: consists Accounting information, Payment transactions Correspondence,
Insurance, Withholding tax etc

Important Fields

Search Item: Should be filled with a short version of the customer name according to company
rules/desires. An additional search field also can be filled up

Group Key: Customers who belong to one corporate group can be bundled together by a user-
defined group key. This group key can be used for running reports, transaction processing or
for match codes

Accounting clerk: The accounting clerk’s name has to be stored under an ID and this ID can
be entered in the customer master record of the account he or she is responsible for the
accounting clerk’s name is then printed on correspondence and this ID is used to sort dunning
and payment proposal lists

PATH: Accounting--Financial Accounting--Accounts Receivable--Master Records--FD01 -

Create

Maintain Account Group 9001 Domestic Customer for II02

Enter

Maintain Fields Title Company

Name Domestic Customer

Street/House number Ameerpeta/415

Postal code/City 570002/Hyderabad

Country IN

Region 01

Post Box 570002

Postal Code 570002

Enter

Click On Company Code Data

Maintain Field Recon. Account 200030(Domestic Customer)

Click On Payment Transactions

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NOTE: The terms of payment can be maintained in the Customer master. If the terms of
payment are maintained in the Customer master, while entering an invoice against the
Customer, the terms of payment maintained in the Customer master will default to the invoice.
Like the baseline date, the terms of payment can also be modified while entering the invoice, if
required.
The terms of payment can be maintained in the company code segment.

Maintain Terms of Payment II02

Enter and SAVE

Customer Down Payment

An Initial amount paid at the time of purchase, in installment buying, time sales, etc

Path: Accounting-- Financial Accounting-- Accounts Receivable --Document Entry-- Down

Payment
F-29

Maintain Fields Document Date 28-05-2015

Posting Date 28-05-2015

Document Type DZ

Company Code II02

Currency Rate INR

Customer Account 80000000

Special G/L 8

Bank Account 1000102(Incoming Bank)

Amount 20000

Value Date 28-05-2015

Text Customer Down Payment

Business Area II20

Enter

Maintain Fields Amount 20000

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 Text Customer Down Payment

Go to Document and Simulate

In this screen we can see the debit and credit line items

SAVE

Customer Invoice Posting

A commercial document that itemizes a transaction between a buyer and a seller. An invoice
will usually include the quantity of purchase, price of goods and/or services, date, parties
involved, unique invoice number, and tax information. If goods or services were purchased on
credit, the invoice will usually specify the terms of the deal, and provide information on the
available methods of payments.

PATH: Sap Easy Access--Accounting--Financial Accounting--Accounts Receivable--

Document Entry--FB70 - Invoice FB70

Maintain Fields Customer 1300000

Invoice Date 28.05.2015

Posting Date 28.05.2015

Amount 500000

Text Customer Invoice

G/L Account 3000000(Sales Account)

Amount 500000

Text Sales Account

Enter

Go To Document and Simulate

In this screen we can see the debit and credit line items

SAVE

To View Customer Line Item wise report

Path: Accounting-- Financial Accounting-- Accounts Receivable --Account Display/
Change Line Items FBL5N

Maintain Fields Customer Account 1300000

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 Company Code II02

Open items Tick Radio Button

Tick Special G/L transactions

Click On Execute

We can see the open items in this screen.(Unclear Items)

Transfer Advance from Spl GL to Normal by clearing Special GL Items

Path: Accounting--Financial Accounting--Accounts Receivable-- Document Entry --Down

Payment F-39

Maintain Fields Document Date 02.06.2015

Posting Date 02.06.2015

Company Code II02

Customer Account 1300000

Invoice 18006(Document Number)

Text Transfer down Payment

Enter

Select line item

Document and Simulate

SAVE

Customer Partial Payment

Path: Accounting -- Financial Accounting -- Accounts Receivable -- Document Entry --
Incoming Payment F-28

Maintain Fields Document Date 02.06.2015

Posting Date 02.06.2015

Text Customer Partial Payment

Bank Account 2000101(Incoming Bank)

Amount 50000

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 Value date 02.06.2015

Text Customer Partial Payment

Open item Account 1300000

Business Area II20

Click On Process Open Item Button

Click On Partial Payment Button

Double Click On Customer Invoice (DR) Payment Amount Field.

Go To Document and Simulate

SAVE

Customer Residual Payment

Path: Accounting Financial Accounting Accounts Receivable Document Entry Incoming
Payment F-28

Maintain Fields Document Date 02.06.2015

Posting Date 02.06.2015

Text Customer Residual Payment

Bank Account 2000101(Incoming Bank)

Amount 60000

Value date 02.06.2015

Text Customer Residual Payment

Open item Account 1300000

Business Area II20

Click On Process Open Item Button

Click On Residual Payment Button

Double Click On Customer Invoice (DR) Residual Items Field.

Go To Document and Simulate

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Double Click On Cash Discount Line Item

Maintain Business Area II20

Text Cash Discount from Customer

Back and SAVE

Customer Final Clearing

Path: Accounting --Financial Accounting-- Accounts Receivable -- Document Entry --
Incoming Payment F-28
Maintain Fields Document Date 02.06.2015

Posting Date 02.06.2015

Text Customer Final Clearing

Bank Account 2000101(Incoming Bank)

Amount 1

Value date 02.06.2015

Text Customer Final Clearing

Open item Account 1300000

Business Area II20

Click On Process Open Item Button

Click On Document Overview

Double Click On Incoming Bank Line Item

Remove 1 and Maintain *

Enter

Go To Document and Simulate

SAVE

Down Payment and Invoice same Scenario

Customer down Payment

Maintain Fields

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Document Date 02.06.2015

Posting Date 02.06.2015

Account 1300000

Special G/L 8

Account 2000101

Amount 50000

Value Date 02.06.2015

Text Customer Down Payment

Enter

Maintain Fields

Amount 50000

Text Customer Down Payment

Go To Document and Simulate

Customer Invoice
FB70
Path: Accounting -- Financial Accounting -- Account Receivable-- Document Entry --
FB70 - Invoice

Maintain Fields Customer 1300000

Invoice Date 02.06.2015

Posting Date 02.06.2015

Amount 50000

Text Customer Invoice

G/L Account 3000000(Sales Account)

Amount 50000

Text Sales Account

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Enter

Go To Document and Simulate

SAVE

Clearing Normal Items (Same down payment and same invoice)

Path: Accounting -- Financial Accounting -- Accounts Receivable -- Account -- Clear

F-32
Maintain Fields Account 1300000

Special G/L Ind 8

Click On Process open items

Go To Document and Simulate

In this screen we can see the Clearing of same down payment and same Invoice

SAVE
Debit memo
Debit memo request is a sales document used in complaints processing to request a debit
memo for a customer. If the prices calculated for the customer were too low, for example,
calculated with the wrong scaled prices, you can create a debit memo request. The debit memo
request can be blocked so that it can be checked. When it has been approved, you can remove
the block. It is like a standard order. The system uses the debit memo request to create a debit
memo.

Creation of Number Range for Debit Memo Document Type DG

Document Type Number Range

DG 16

Go To FBN1

Company Code II02

Click On Change Interval

Click On Insert Interval

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No Year From Number To Number

16 2015 16000 16999

Enter and SAVE

To Post Customer Invoice FB70

Customer 1300000

Invoice Date 08.07.2015

Document Date 08.07.2015

Amount 200000

Text Customer Invoice

G/L Account 3000000 (Sales Account)

Amount 200000

Text Sales Account

Enter

Go To Document and Simulate

In this screen we can see the Domestic Customer Debit 200000

Sales Account Credit 200000

Enter and SAVE

To Post Customer Debit Memo FB75

Path: Accounting -- Financial Accounting -- Accounts Receivable -- Document Entry --

FB75 - Credit Memo

Customer 1300000

Invoice Date 08.07.2015

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Document Date 08.07.2015

Amount 40000

Text Customer Debit Memo

G/L Account 3000000 (Sales Account)

Amount 200000

Text Sales Account

Enter

Go To Document and Simulate

In this screen we can see the Customer Credit 40,000-

Sales Account Debit 40,000

Enter and SAVE

To View the Customer Line Item Display FBL5N

Customer Account 13000000

Company Code II02

Check Open Item

Click on Execute

In this screen we can see the Customer balance amount after Debit Memo
40,000-

Dunning
Dunning in SAP is the process to send reminders to business partners from whom payments
are due. SAP allows the messages which are sent to range from simple reminders to strong

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messages indicating legal action. SAP makes use of payment terms to identify the credit period
that is offered to a particular customer and subsequently the line items for which the payments
are due. The Dunning process picks up these items and sends a message to the concerned
business partner reminding about the due payment.
The Dunning program makes use of the Dunning areas to identify the entities for which the
Dunning is to be carried out. It is not necessary to carry out Dunning for a company code.
Dunning can be carried out for a smaller entity within a company code like a sales organization.
The Dunning program also allows the Dunning charges to be imposed to customers who have
delayed the payments. Interest calculation is possible in the Dunning program for the payments
which have been delayed.
CREATE A DUNNING PROCEDURE
The Dunning procedure defines the parameters which are used for selecting the customers
which are dunned and the reminder messages which are to be sent to them. It is used to define
the Dunning frequency or the interval with which the customer accounts are dunned. The
Dunning procedure also defines the number of Dunning levels to be used for a particular
customer.
Different messages are sent to the business partners at different Dunning levels. The tone of
the messages can move from a gentle reminder to one indicating legal action as the Dunning
level increases. Grace period can be provided to customers to provide them with time to make
the payments depending on their past payment record and overall credibility. The Dunning
procedure is defined at the client level and is therefore available to be used in multiple customer
masters.
Define Dunning Areas
Path: Financial Accounting (New)--Accounts Receivable and Accounts Payable--
Business Transactions--Dunning--Basic Settings for Dunning--Define Dunning Areas
OB61
Click On New Entries
Maintain Fields
Company code Area Text
II02 II Dunning Area for II02
Enter and Save

Define Dunning Keys

Path: Financial Accounting (New)--Accounts Receivable and Accounts Payable--
Business Transactions--Dunning--Basic Settings for Dunning--Define Dunning Keys
OB17
Note: No need to create dunning levels we can use standard.

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Define Dunning Procedures
Dunning procedures are company code independent. They determine the dunning
interval, the grace periods for the due date determination, and the number of dunning
levels. You can also set the dunning level at which you want to list all due items from an
account in the dunning notice.
Path: Financial Accounting (New)--Accounts Receivable and Accounts Payable--
Business Transactions--Dunning--Define Dunning Procedures FBMP
Click On New procedure
Maintain Fields
Dunning Procedure II02
Name Dunning Procedure for II02
Dunning Interval in days 10
No of dunning levels 3
Interest Indicator 01(Standard item interest calculation)
Check Standard transaction dunning
Click On Dunning Text
Maintain Company Code II02
Enter
Click On New Company Code
Maintain Company Code II02
Enter
Note: No need to maintain fields
SAVE and SAVE and Back
Click On Dunning Texts
Maintain Company Code II02
Enter
Maintain Fields
Normal Dunning Procedure Form
1 F150_BE_Dunn_02
2 F150_BE_Dunn_02

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 3 F150_BE_Dunn_02
Enter and Back
Click On Dunning Levels
Check Days in arrears/interest 1 2 3
Check Print Parameters 1 2 3
Click On Charges
Maintain Currency INR
Enter
Note: In this screen we maintain Charges Amount or Percentage
Dunning Level Dunning Charges
1 100
2 200
3 300
Enter and Back and SAVE
Maintain Dunning Area and Dunning Procedure in Customer Master Data
Go To FD02
Click On Company code data
Click On Correspondence Tab
Maintain Fields Dunning Procedure II02

Click On Dunning Arrears

Maintain Dunning Area II
Enter and SAVE
Customer Invoice FB70
Maintain Fields Customer 1300000

Invoice Date 01.06.2015

Posting Date 01.06.2015

Amount 200000

Text Customer Invoice

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 G/L Account 3000000(Sales Account)

Amount 200000

Text Sales Account

Enter

Go To Document and Simulate

Save

F150 - Dunning
Path: Accounting -- Financial Accounting -- Account Receivable -- periodic processing --
Dunning F150
Maintain Fields
Run On 11.06.2015(Future date)
Identification II02
Click On Parameter Tab
Dunning date 11.06.2015
Documents posted up to 11.06.2015
Company Code II02
Customer 1300000
Enter and SAVE
Click On Status Button
Click On Schedule
Maintain Output Device LP01
Click On Continue.
Check Start Immediately
Click On Schedule Button
System shows this message Dunning job f150-20150611-II02 -1 was scheduled successfully
Enter
Click On Dunning Printout Button
Maintain Output Device LP01

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Click On Continue
Click On Print Tab
System shows this message Dunning job f150-20150611-II02 -3 was scheduled successfully
Enter
Click On Dunning History
Maintain Company Code II02
Customer 1300000
Click On Execute
Cursor on line item
Click On Display Dunning Notice
Cursor on line Item
Click On Print preview
Maintain Output Device LP01
Click On Continue

Define Interest Calculation Types

Path: Financial Accounting (New) -- Accounts Receivable and Accounts Payable --
Business Transactions -- Interest Calculation -- Interest Calculation Global Settings --
Define Interest Calculation Types
Interest Indicator Name Interest calculation Type
II 10%Monthly P (Item interest Calculation)
Enter and SAVE
Define Interest Rates
Path: Financial Accounting (New) -- Accounts Receivable and Accounts Payable --
Business Transactions -- Dunning -- Dunning Procedure -- Define Interest Rates
Click On New Entries
Interest Indicator Currency Valid From Debit Credit
II INR 01.04.2015 10 10
Enter and SAVE

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 House Banks

Creation of House Bank

A house bank account represents a bank account that the company has opened with a bank. it
is used for the purpose of payment program, house bank id is unique within a company code
and a company code can have multiple house banks
Each house bank in sap system is associated with a country key representing the country where
the bank is located.
House bank can have more than one account id, account id is unique for a specific bank id and
company code. The account id is used for entering specifications for the payment program.
Configuration of bank accounts for payment transactions is an important step. This is to ensure
that for each house bank and payment method (and currency, if required), you specify which
bank account is to be used for payments. Bank subaccounts are used to post incoming and
outgoing payments (accounts for outgoing checks, outgoing bank transfers, and bank
collection).
Path: SPRO--Financial Accounting New--Bank Accounting--Bank Accounts--Define
House Banks FI12
Company Code II02
Click On New Entries
House Bank HDFC
Bank Country IN
Bank Key HDFCII
Click On Create Button
Bank Name HDFC Main Bank
Region 01
Street Madhapur
City Hyderabad
Enter
Double Click On Bank Accounts
Click On New Entries
Account ID HDFC
Description HDFC Current Account

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Bank Account Number 325488892451
Currency INR
G/L 2000100(Main Bank)
Enter and SAVE
Check Lot Creation.
The Check nos. to be printed on the bank document is governed by the ‘Check Management’
facility in SAP. This means for each combination of house bank and bank account ID, a Check
lot needs to be maintained. This will correspond with the Check serial numbers in use. The first
and last number has to be defined in the system and system automatically allots / tracks the
Check number with payment documents and updates the latest Check number issued / used
from the system.
Path: Financial Accounting (New) -- Accounts receivable & Accounts payable -- Business
transactions -- Automatic outgoing payment-- Payment media -- Check management --
Define number ranges for checks FCHI
Paying Company Code II02
House Bank HDFC
Account ID HDFC
Click On Change Button
Click On Create
Lot Number 01
Check Number 1000
To 1999
Lot Number Short Information on the Lot Check No From Check Number to
1 Check Lot for HDFC 1000 1999
Enter and SAVE

Manual Check Creation

Manual Check Creation is used to assign Check number from the system to a manually issued
Check. This will record the Check number for the payment document posted directly for a
handwritten Check.

Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check

Information--Create
FCH5

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Note: For manual check creation will maintain vendor clearing document number

Payment Document No 15019 (Vendor Final Clearing Document Number)

Paying Company Code II02

Fiscal Year 2015

House Bank HDFC

Account ID HDFC

Check Number 1003

Enter
City Hyderabad

Enter and SAVE

Display Check Register

Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check
Information--Display--Check Register- FCHN

Paying Company Code II02

House Bank HDFC

Account ID HDFC

Execute
Check Encashment Date Update
Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check
Information--Change--FCH6 - Additional Info/Cash FCH6

Note: Update the Check Clearing Date in the Bank

Paying Company Code II02

House Bank HDFC

Account ID HDFC

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Check Number 1003

Enter

Check Encashment 22.07.2015

Enter and SAVE

Display Check Register

Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check
Information--Display--Check Register- FCHN

Paying Company Code II02

House Bank HDFC

Account ID HDFC

Execute
Enca./Vaid 22.07.2015

Deletion of Check Encashment Date

Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check
Information--Delete--FCHG - Reset Data FCHG

Note: Deletion of the Check Clearing Date in the Bank

Paying Company Code II02

House Bank HDFC

Account ID HDFC

Check Number 1003

Execute
Click On Yes
Display Check Register
Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check
Information--Display--Check Register- FCHN

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Paying Company Code II02

House Bank HDFC

Account ID HDFC

Execute

Void Unused Checks. – FCH3 (Un Issued Check Cancellation)

Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check

Information--Void--FCH3 - Unused Checks FCH3

To void unused Checks in the system. This can be used to prevent users from selecting the
unused Check lots before payments.
Paying Company Code II02

House Bank HDFC

Account ID HDFC

Check Number From 1004

Void Reason Code 06 (Destroyed/unusable)

Click On Void
Display Check Register
Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check
Information--Display--Check Register- FCHN

Paying Company Code II02

House Bank HDFC

Account ID HDFC

Execute

Creation of Void Reason Code

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Path: SPRO -- Financial Accounting -- Accounts Receivable and Payables -- Business
Transactions -- Outgoing Payments -- Automatic Outgoing Payments -- Payment Media --
Check Management -- Define Void Reason Codes. FCHV
Click On New Entries
Reason Void Reason Code

70 Stop Payment

Enter and SAVE

Process: Cancel Payments (Issued Check Cancellation)

Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check

Information--Void--FCH8 - Cancel Payment FCH8

Paying Company Code II02

House Bank HDFC

Account ID HDFC

Check Number 1003

Void Reason Code 70

Reversal Reason 01

Click On Cancel Payment

Display Check Register

Path: Accounting--Financial Accounting--Accounts Payable--Environment--Check
Information--Display--Check Register- FCHN
Paying Company Code II02

House Bank HDFC

Account ID HDFC

Execute

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To View the Vendor Line Items FBL1N

Vendor Account 8000000

Company Code II02

Execute

INPUT AND OUTPUT TAX

Tax configurations are done in SAP at the country level. This is because of all businesses in the
same country need to follow the same taxation policies and generally accepted accounting
principles while preparing their financial statements. Therefore, tax configurations in SAP are
done for each country. Any company code which is created in that country then automatically
use the tax configuration that is done for that country.
Input and output tax is calculated on revenue or expense items (base amount). The tax amounts
are posted to separate tax accounts and refunded by the tax office (input tax) or paid to the tax
office (output tax). The tax percentage rates vary from country to country and are determined
when you define the tax codes.
The tax amount is determined as a percentage of the base amount, meaning that the tax
amount is included in the invoice amount. The tax amounts are automatically posted to tax
accounts.
Tax Code

The Tax Code is a 2-digit code specifying the percentage of tax to be calculated on the base
amount. While defining the tax code, you will also specify the ‘Tax Type’ to classify a tax code
relating to either ‘Input Tax’ or ‘Output Tax.’ The tax types are country specific and determine
how a tax is calculated and posted.
Tax Rate
The Tax Rate is the percentage of tax to be calculated on a base amount. You will be able to
define tax rates for one or more tax types when you define a single tax code.

Check Calculation Procedure

PATH: Financial Accounting New--Financial Accounting Global Settings (New)--Tax on
Sales/Purchases--Basic Settings--Check Calculation Procedure OBQ3

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Click On New Entries
Maintain Fields Procedure Description
ZTAXIN Tax Procedure- Tax India
Enter
Select Line Item and Double Click On Control Data
Click On New Entries
Maintain Fields Step Condition Type Description From Account Key
100 BASB Base Amount
200 MWAS Input Tax 100 VST
300 MWVS Output Tax 100 MWS
Enter and SAVE

Assign Country to Calculation Procedure

PATH: Financial Accounting New -- Financial Accounting Global Settings (New) -- Tax on
Sales/Purchases -- Basic Settings -- Assign Country to Calculation Procedure OBBG
Click On Position Button
Maintain Country IN
Enter
Country Name Procedure
IN India ZTAXIN
SAVE

Check and Change Settings for Tax Processing

PATH: Financial Accounting New--Financial Accounting Global Settings (New)--Tax on
Sales/Purchases--Basic Settings--Check and Change Settings for Tax Processing
OBCN
Note: No Need to create tax processing keys we can use existing Input and Output Tax
Account Keys
Input Tax VST
Output Tax MWS

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Creation Of GL for Input Tax FS00
Maintain Fields G/L Account 1000900(Input Tax Payable)
Company Code II02

Click On Create Button

Account Group Liabilities

Check Balance Sheet Account
Short and Long Text Input Tax Payable
Click On Control Data

Maintain Fields Tick Only Balances in Local Currency

Tax Category *

Check Posting Without Tax allowed

Check Open Item Management

Check Line Item Display

Sort Key 001

Click On Create Bank Interest

Maintain Field Field Status Group G012(Receivables/Payables Clearing)

Enter and SAVE

Creation of GL for Output Tax

Maintain Fields G/L Account 2000900(Output Tax )

Company Code II02

Click On Create Button

Account Group Assets

Check Balance Sheet Account
Short and Long Text Output Tax
Click On Control Data
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Maintain Fields Tick Only Balances in Local Currency

Tax Category *

Check Posting Without Tax allowed

Check Open Item Management

Check Line Item Display

Sort Key 001

Click On Create Bank Interest

Maintain Field Field Status Group G012(Receivables/Payables Clearing)

Enter and SAVE

Creation of Expense GL for Material (Input Tax) FS00

Maintain Fields G/L Account 4000900

Company Code II02

Click On Create Button

Account Group Expenses

Click On Radio Button P&L Statement Account

Short Text Material Expense

Long Text Material Expense

Click On 'Control data'

Maintain Fields Tax Category *

Check Posting Without Tax allowed

Check Line Item Display

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 Sort Key 001

Click On Create/bank/interest tab

Maintain Fields Field Status Group G004

Enter and SAVE

Creation of Revenue GL for Sales Account (Output Tax) FS00

Maintain Fields GL Account 3000000(Revenue)

Company Code II02

Click On Create Button

Maintain Fields Account Group Revenue(P&L Statement

Account)

Short Text & Long Text Sales Account

Click on Control data

Maintain Fields Tax Category *

Check Posting Without Tax allowed

Check Line Item Display

Sort Key 001

Click On Create Bank Interest Button

Maintain Fields Field Status Group G029

Enter and SAVE

Define Tax Accounts

PATH: Financial Accounting New--Financial Accounting Global Settings (New)--Tax on
Sales/Purchases--Posting--Define Tax Accounts OB40

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In ob40, you can assign Tax GL accounts against respective tax codes. For this you have to tick
tax codes under rule in OB40 for the accounting processing keys.

And while creating tax codes, you have to define whether the code is for input tax or output tax
by selecting V or A. From there the system derives whether the tax code is for input tax or
output tax.
Define Tax Accounts for Input Tax
Click On Define Tax Accounts
Double Click On Input tax VST
Maintain Chart of Accounts II02
Enter
Don't Check Tax Code
SAVE
Account 1000900(Liability)
Enter and SAVE
Define Tax Accounts for Output Tax
Double Click on Output Tax MWS
Don't Check Tax Code
SAVE
Account 2000900(Asset)
SAVE

Define Tax Codes for Sales and Purchases

PATH: Financial Accounting New--Financial Accounting Global Settings (New)--Tax on
Sales/Purchases--Calculation--Define Tax Codes for Sales and Purchases FTXP
Click On Define Tax Codes for Sales and Purchases for INPUT TAX
Maintain Country IN
Enter
Maintain Tax Code V1
Enter
Maintain Fields Tax Type V(Input Tax)
Description Input Tax 10%

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Enter
Maintain Tax Input Tax 10%
Output Tax Cursor on output tax box and Click on
Deactivate Line Button
SAVE
Click On Define Tax Codes for Sales and Purchases for OUTPUT TAX
Maintain Country IN
Enter
Maintain Tax Code V2 Output Tax 15%
Enter
Maintain Fields Tax Type A(Output Tax)
Description Output Tax 15%
Enter
Maintain Tax Output Tax 15%
Cursor on Input tax box and Click On
Deactivate Line Button
SAVE
Vendor Invoice for Input tax deduction FB60
Maintain Fields
Vendor 8000000
Invoice Date 31.05.2015
Posting Date 31.05.2015
Amount ---------------No Need to maintain amount
Check Calculate Tax
Click Drilldown Box Select V1Input Tax 10%
Text Vendor Invoice
G/L Account 4000900
Amount Here we maintain amount 1000
Text Expenses
Business Area II20

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Enter
Note: Once you click on enter, Automatically system will calculate tax and it will update
in header level Balance Box "1100"(System Shows including tax amount)
'Copy ‘Including tax amount in balance box 1,100.00
'Paste' in amount field in header data 1,100.00
Enter
Go To Document and Simulate
Double Click On Input Tax Payable Line Item
Maintain text Input Tax
Back and SAVE
Customer Invoice for Output tax deduction FB70
Maintain Fields
Customer 2000005
Invoice Date 31.05.2015
Posting Date 31.05.2015
Amount --------------- No Need to maintain amount
Check Calculate Tax
Click Drilldown Box Select V2 Output Tax 15%
Text Customer Invoice
G/L Account 3000000(Sales Account)
Amount Here we maintain amount '1000'
Text Sales Account
Enter
Note: Once you click on enter, Automatically system will calculate tax and it will update
in header level Balance Box "1150"(System Shows including tax amount)
'Copy' Including tax amount in balance box 1,150.00
'Paste' in amount field in header data 1,150.00
Enter
Go To Document and Simulate
Double Click On Output Tax Line Item

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Maintain Text Output Tax
Back and SAVE

Foreign Currency
There are Three types of exchange rates defined

Bank Buying Rate G

Bank Selling Rate B

Average Rate M

When posting and clearing documents, the system uses the exchange rate type “M” for foreign
currency translation. This exchange rate type must be contained in the system.

Exchange rate difference can be defined as the amount arising where a foreign currency
amount is translated at different exchange rates.

Here, we can define for each company code, a maximum difference between exchange rates
for postings in foreign currency.

For this, we mention that how much the exchange rate entered manually in the document
header may differ in terms of percentage (%) from the one stored in the system.

If an exchange rate or the local and the foreign currency amount were entered manually during
document entry, then a comparison is made with the exchange rates stored in the system. If any
deviation occurs and it exceeds the percentage rate specified here, then a warning appears.

For each foreign currency, specify the exchange rate in the local currency in the system. You
must specify an exchange rate type.

Use the validity date to specify the date from which the exchange rate should apply. The system
then refers to either the posting date or the translation date and uses the current exchange rate
from the system. You can use either direct or indirect quotation to specify exchange rates.

If you maintain your exchange rates on a daily basis, you should delete the exchange rates that
you no longer require from the system, so that there are not too many entries in the system.

Check Exchange rate types

Path: SPRO -- SAP Net weaver -- General Settings -- Currencies -- Check Exchange rate
types OB07

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B Standard translation at bank selling rate

G Standard translation at bank buying rate

M Standard translation at average rate

Note: No need to create exchange rate types we can use standard exchange rate types

Define Translation Ratios for Currency Translation: OBBS

Once we follow one conversion Factor, floow continuously for all the years, don’t change in
between, it gives wrong results.

Conversion factors are given at Client level but not at Company code level

Click On 'Yes'

Exchange Rate From To Valid from Ratio(from) Ratio(to)

G INR NZD 01.06.2015 1 1

Enter and SAVE

Enter Exchange Rates

This is called Forex table. We can enter Foreign Exchange rates Daily, Weekly, Monthly, for
each type we can enter only one rate in a day.

Exchange rates are required to:

Translate foreign currency amounts when posting or clearing or to check an exchange rate
entered manually

Determine the gain and loss from exchange rate differences

Evaluate open items in foreign currency and the foreign currency balance sheet accounts

The system uses the type M exchange rates for foreign currency translation when posting and
clearing documents in the activity Enter Exchange Rate. An entry must exist in the system for
this exchange rate type. The exchange rates apply to all company codes.

Direct Quotation: It means Foreign Currency to INR

Indirect Quotation: It means INR to Foreign Currency

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Path: SPRO -- SAP Net weaver -- General Settings -- Currencies -- Enter Exchange Rates
OB08

Click On New Entries

Exchange Rate Type Valid From From Direct quotation To

G 01.06.2015 INR 20 NZD(New Zealand Dollar)

B 01.06.2015 INR 21 NZD(New Zealand Dollar)

M 01.06.2015 INR 19 NZD(New Zealand Dollar)

M 01.06.2015 NZD 19 INR(Indian Rupee)

Note: If we are not maintain exchange rate in document type's by default system will pick
average exchange rate type 'M'

Enter and SAVE

Posting of Foreign Currency Transaction F-02

Path: Accounting -- Financial Accounting -- General Ledger -- Document Entry -- General

Posting F-02

Document Date 23.06.2015

Posting Date 23.06.2015

Type SA

Company Code II02

Currency/Rate NZD (Transaction Currency)

Posting Key 40

Account 4000000

Enter

Amount 1000 (Transaction Currency New Zealand Dollar)

Text Salaries Paid

Posting Key 50

Account 2000102

Enter

Amount 1000 (Transaction Currency New Zealand Dollar)

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Amount in LC 19000 (INR System will pick currency from exchange rate table OB08)

Value Date 23.06.2015

Text Salaries Paid

Enter

Go To Document and Simulate

Note: In this screen we can see the amount in Transaction Currency"New Zealand Dollar"

Click On Display Currency

Note: In this screen we can see the amount in Company Code Currency "INR"

SAVE

Creation of GL Accounts

1) FC Term Loan

2) Exchange Gain Account

3) Exchange Loss Account

Secured Loan GL Creation FS00

G/L Account 1000200

Company Code II02

Click On Create Button

Account Group Liability

Check Balance Sheet Account

Short Text FC Term Loan

G/L Account Long Text FC Term Loan

Click On Control Data

Account Currency NZD

Check Open Item management

Check Line Item Display

Sort Key 001

Click On Create/bank/interest

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Field Status Group G001

Enter and SAVE

Exchange Gain G/L Account Creation FS00

G/L Account 3000600

Company Code II02

Account Group Incomes

Check P&L Statement Account

Short Text Exchange Gain

G/L Account Long Text Exchange Gain

Click On Control Data

Check Line item display

Sort Key 001

Click On Create/bank/interest

Field Status Group G001

Enter and SAVE

Exchange Loss Account G/L Creation FS00

G/L Account 4000700

Company Code II02

Account Group Expenses

Short Text Exchange Loss

G/L Account Long Text Exchange Loss

Click On Control Data

Check Line item display

Sort Key 001

Click On Create/bank/interest

Field status group G004

Enter and SAVE

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ADJUSTMENT BAL SHEET CREATION:

G/L Account 1000800

Company Code II02

Check Balance Sheet Account

Sort Text Balance Sheet Adjustment

G/L Account Long Text Balance Sheet Adjustment Account

Click On Control Data

Account Currency INR

Check Only Balance in Local Currency

Check Line Item Display

Sort Key 001

Click On Create Bank Interest

Field Status Group G001

Enter and SAVE

Prepare Automatic Postings for Foreign Currency Valuation

Path: SPRO -- SAP Reference IMG --Financial Accounting (New) -- General Ledger
Accounting (New) -- Periodic Processing -- Valuate -- Foreign Currency Valuation --
Prepare Automatic Postings for Foreign Currency Valuation OBA1

Double Click On Exchange Rate Difference using Exchange Rate Key KDB

Chart Of Accounts II02

Enter

Exchange Rate Difference Key Expense Account E/R Gains Account

INR 4000700 3000600

Enter SAVE

Double Click On Exchange Rate Different Open Item /GL Account KDF

Chart of Accounts II15

G/L Account 1000700

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Exchange Rate Difference Realized

Loss 4000700

Gain 3000600

Valuation

Valuation Loss 1 4000700

Valuation Gain 1 3000600

Balance Sheet Adjustment 1 1000800

Translation

Loss 4000700

Balance Sheet Adjustment Loss 4000700

Gain 3000600

Balance Sheet Adjustment Gain 3000600

Enter and SAVE

Define Valuation Methods

Path: Spro-- Sap Refrence IMG --Financial Accounting (New) -- General Ledger
Accounting (New) -- Periodic Processing -- Valuate -- Define Valuation Methods OB59

Click On New Entries

Valuation method II02

Description FC Valuation Average Rate

Check Radio Button Always evaluate

Document Type SA

Exchange Type for Debit Balance M

Exchange Type for Credit Balance M

Enter and SAVE

Define Valuation Area

Path: Financial Accounting (New) -- General Ledger Accounting (New) -- Periodic

Processing -- Valuate -- Define Valuation Areas

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Click On New Entries

Valuation Area Valuation Method Currency Type

II II02 10 Company Code Currency

Enter and SAVE

Assign Valuation Areas and Accounting Principles

Path: Financial Accounting New -- General Ledger Accounting (New) -- Periodic

Processing -- Valuate -- Assign Valuation Areas and Accounting Principles

Click On New Entries

Valuation Area Accounting Principles

II GAAP

Enter and SAVE

1) Maintain Exchange Rate Difference Key In Secured Loan FS00

G/L Account 1000700

Company Code II02

Click On Change Button

Click On Control Data

Exchange Rate Difference Key INR

Enter and SAVE

2) Maintain Exchange Rate Difference Key In HDFC Incoming Bank FS00

G/L Account 2000101 (Incoming Bank)

Company Code II02

Click On Change Button

Click On Control Data

Exchange Rate Difference Key INR

Enter and SAVE

3) Maintain Exchange Rate Difference Key In HDFC Outgoing Bank FS00

G/L Account 2000102 (Outgoing Bank)

Company Code II02

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Click On Change Button

Click On Control Data

Exchange Rate Difference Key INR

Enter and SAVE

Foreign Currency Term Loan Receipt

Go To F-02

Path: Accounting -- Financial Accounting -- General Ledger -- Document Entry -- General

Posting F-02

Document Date 24.06.2015

Posting Date 24.06.2015

Type SA

Company Code II02

Currency/Rate NZD (Transaction Currency)

Posting Key 40

Account 2000101(Incoming Bank)

Enter

Amount 1000 (Transaction Currency New Zealand Dollar)

Value Date 24.06.2015

Text FC Term Loan Receipt

Posting Key 50

Account 1000200(Secured Loan Account)

Enter

Amount 1000 (Transaction Currency New Zealand Dollar)

Amount in LC 19000 (INR)

Value Date 24.06.2015

Text FC Term Loan Receipt

Enter

Go To Document and Simulate

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Note: In this screen we can see the amount in Transaction Currency "New Zealand
Dollar"

Click On Display Currency

Note: In this screen we can see the amount in Company Code Currency "INR"

SAVE

Update Exchange rate

Path: SPRO -- SAP Net weaver -- General Settings -- Currencies -- Enter Exchange Rates
OB08

Click On New Entries

Exchange Rate Type Valid From From Direct quotation To

M 29.06.2015 NZD 21 INR

Enter and SAVE

Foreign Currency Valuation

Path: Accounting -- Financial Accounting -- General Ledger -- Periodic Processing --

Closing --Valuate -- FAGL_FC_VAL -Foreign Currency Valuation New

Company Code II02

Valuation Key Date 01.07.2015

Valuation Area II Check Valuate G/L Account

Balances

G/L Account 1000200

Click On Execute

Check Create Postings

Click On Open Items

Check Valuate G/L Account Open Itmes

G/L Account 1000200

Click On G/L Balances

Note: In this screen we can see the foreign valuation differences.

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To View Exchange Valuation Differences

Go To Fb03

Document Number 1034

Company Code II02

Fiscal Year 2015

Click On Display Currency

Note: In this screen we can see the 'Exchange Gain' 4000

Realized Gain or Loss: Will Calculate on Profit and Loss Accounts

Un Realized Gain or Loss: Will Calculate on Balance Sheet Items (Open Items)

Prepare Automatic Postings for Foreign Currency Valuation

Path: SPRO -- SAP Reference IMG --Financial Accounting (New) -- General Ledger
Accounting (New) -- Periodic Processing -- Valuate -- Foreign Currency Valuation --
Prepare Automatic Postings for Foreign Currency Valuation OBA1

Double Click On Exchange Rate Different Open Item /GL Account KDF

Note: All Balance Sheet Accounts needs to be updated in OB09(KDF)

Update Service Vendor (Open Items)

Chart of Accounts II02

G/L Account 1001000 (Service Vendor)

Exchange Rate Difference Realized

Loss 4000700

Gain 3000600

Valuation

Valuation Loss 1 4000700

Valuation Gain 1 3000600

Balance Sheet Adjustment 1 1000800

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Translation

Loss 4000700

Balance Sheet Adjustment Loss 4000700

Gain 3000600

Balance Sheet Adjustment Gain 3000600

Enter and SAVE

Creation Of Sundry Debtors (Open Items)

Chart of Accounts II02

G/L Account 2000030(Sundry Debtors Domestic Customer )

Exchange Rate Difference Realized

Loss 4000700

Gain 3000600

Valuation

Valuation Loss 1 4000700

Valuation Gain 1 3000600

Balance Sheet Adjustment 1 1000800

Translation

Loss 4000700

Balance Sheet Adjustment Loss 4000700

Gain 3000600

Balance Sheet Adjustment Gain 3000600

Enter and SAVE

Creation of HDFC Incoming Bank (Open Items)

Chart of Accounts II02

G/L Account 2000101(Incoming Bank)

Exchange Rate Difference Realized

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Loss 4000700

Gain 3000600

Valuation

Valuation Loss 1 4000700

Valuation Gain 1 3000600

Balance Sheet Adjustment 1 1000800

Translation

Loss 4000700

Balance Sheet Adjustment Loss 4000700

Gain 3000600

Balance Sheet Adjustment Gain 3000600

Enter and SAVE

Creation of HDFC Outgoing Bank (Open Items)

Chart of Accounts II02

G/L Account 2000102(Outgoing Bank)

Exchange Rate Difference Realized

Loss 4000700

Gain 3000600

Valuation

Valuation Loss 1 4000700

Valuation Gain 1 3000600

Balance Sheet Adjustment 1 1000800

Translation

Loss 4000700

Balance Sheet Adjustment Loss 4000700

Gain 3000600

Balance Sheet Adjustment Gain 3000600

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Enter and SAVE

Note: We should maintain Exchange Rate Difference Key In Open Items (Valuated Items)

Vendor Invoice Posting with Foreign Currency

Go To FB60

Vendor 8000000

Invoice Date 29.06.2015

Posting Date 29.06.2015

Amount 1000

Currency NZD (New Zealand Dollars)

Text Vendor Invoice

G/L Account 4000000

Amount 1000

Text Salaries Paid

Enter

Go To Document and Simulate

In this screen we can see the Document Currency NZD 1000

SAVE

Vendor Clearing with Foreign Currency (NZD)

Go To F-53

Document Date 01.07.2015

Posting Date 01.07.2015

Company Code II02

Currency NZD (New Zealand Dollars)

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Rate 26 (No Need to Update Foreign Exchange Rate in Ob08 Directly
we can update in currency rate field)

Clearing Text Vendor Final Clearing

Account 2000102 (Outgoing Bank)

Amount 1

Value Date 01.07.2015

Text Vendor Final Clearing

Account 8000000

Enter

Click On Document Overview

Double Click On HDFC Outgoing Bank Line Item

Amount Remove 1 and Maintain * and Enter (1000)

Amount In Local Currency 26000

Note: Some time foreign currency will not update from table ob08 since this is Demo
System. Hence we need to update the currency manually while doing the payment.

Enter

Go To Document and Simulate

Double Click On Exchange Loss Line Item

Maintain Text Exchange Loss

Back

Click On Display Currency

In this Screen we can see the Exchange Loss 4000

SAVE

Customer Invoice Posting with Foreign Currency (NZD)

Go To FB70

Customer 1300000

Invoice Date 29.06.2015

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Posting Date 29.06.2015

Amount 1000

Currency NZD (New Zealand Dollars)

Text Customer Invoice

G/L Account 3000000

Amount 1000

Text Sales Account

Enter

Go To Document and Simulate

In this screen we can see the Document Currency NZD 1000

SAVE

Customer Clearing with Foreign Currency (NZD)

Go To F-28

Document Date 01.07.2015

Posting Date 01.07.2015

Company Code II02

Currency NZD (New Zealand Dollars)

Rate 26 (No Need to Update Foreign Exchange Rate in Ob08 Directly

we can update in this field)

Clearing Text Customer Final Clearing

Account 2000101 (Incoming Bank)

Amount 1

Value Date 01.07.2015

Text Customer Final Clearing

Account 1300000

Enter

Click On Document Overview

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Double Click On HDFC Incoming Bank

Amount Remove 1 and Maintain * and Enter (1000)

Amount In Local Currency 26000

Note: Sometimes foreign currency will not update from table ob08 since this is Demo
System. Hence we need to update the currency manually while doing the payment.

Enter

Go To Document and Simulate

Double Click On Exchange Gain Line Item

Maintain Text Exchange Gain

Back

Click On Display Currency

In this Screen we can see the Exchange Gain 4000-

SAVE

Foreign Currency Valuation FAGL_FC_VAL

Company Code II02

Valuation Key Date 01.07.2015

Valuation Area II

Check Create Postings

Click On Open Items

Check Valuate G/L Account Open Items

Exchange Rate Difference Key INR (It is not related to currency INR, We can use
any Alpha numeric)

Check Valuate Vendor Open Items

Vendor 8000000

Check Valuate Customer Open Items

Customer 13000000

Click On G/L Balances

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Check Valuate G/L Account Balances

Execute

To View Foreign Currency Valuation Document

Go To FB03

Document Number 1048

Company Code II02

Fiscal Year 2015

Enter

Click On Display Currency

Bank Reconciliation Statement

Bank reconciliation statement is reconciliation between the account maintained by your
company and the account maintained by the bank. There can be instances where both the
accounts will not tally.
EX: Suppose you have given a cheque to your vendor and your vendor has not presented it to
bank for payment till date. Because of these transaction there will be a mismatch between the
account maintain at your company and account maintained by bank While giving a cheque to
your vendor you have entered it as a business transaction in your books of account by crediting
your bank account, but bank is not aware such transactions as they have not received the
cheque yet. There can be some other reason for which your company's account and the bank
statement will not tally. Periodically it is the responsibility of the accountant to Prepare a bank
reconciliation statement and produce the same before the management to know if they are any
discrepancies.
In sap you will be receiving two types of bank statements.
1) Manual Statement
2) Electronic statement
If you receive an electronic statement then you just need to upload it to sap for the purpose of
preparation of bank reconciliation statement. if it is manual one then you need to enter
statement manually into sap.
System provides automatically as well as manually, transaction reconciliation facility for all
receipts and payment entries in the bank statement and our bank book.
System provides list of un-reconciled entries, for further decision making and matching.In SAP
system the reconciliation process is known under two methods. Manual and Automatic. Every
Bank account will have 4 General Ledger Accounts. First will be a Main GL for the bank, second
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will be “Incoming clearing” for all receipts, third will be “Outgoing Clearing” for all Payments. and
fourth will be “un reconciled account .After the reconciliation process, payment and receipt
entries in the incoming, outgoing and un reconciled GL will be transferred in to the bank Main
GL. The balances in the main bank account will be equal to the bank statement amount.

Normal Entry Posting Keys BRS Entry Posting Keys

Incoming Bank Dr 40 Main Bank Dr 40
To Customer Cr 11 To Incoming Bank Cr 5 (Clear with
Credit GL)

Vendor A/C Dr 25 Outgoing Bank Dr 4 (Clear with

Debit GL)
To Outgoing Bank Cr 50 To Main Bank Cr 50

Bank Charges Dr 40
To Main Bank Cr 50

Interest Paid Dr 40
To Main Bank Cr 50

Main Bank Dr 40
To Interest Received 50

Manual Bank reconciliation Process – (FF67) (Non-electronic bank statement)

In case of Non-Availability of bank statements in the desired electronic formats, we can create
and upload Bank statement manually.

Every bank statements that are entered will be per bank account number and are identifiable by
a unique number and statement date to be provided by the user.

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In the header data, Bank statement opening balances and closing balances are provided before
creating the bank statement. This is the control check after entering all the lines in the bank
statement.

After providing the bank statement header data, we need to enter or create the bank statement
in the system.

The posting of this statement or after batch input session. This process creates postings in the
main bank account. The accounting entries are passed as mentioned below.

Unmatched entries generated by the system are to be matched manually through (FEBA). Later
on these unmatched entries need to be manually transferred to “Unreconciled Account”.

Electronic Bank reconciliation Process – (FF_5)

For the process of automatic bank reconciliation, electronic bank statement is required in pre
defined format only.

This formats can be either in “multicash format” or “MT940

Uploading the bank statements received from banks in the above mentioned format using
transaction code FF_5.

After the uploading of this statement, the process creates postings in the main bank account.
The accounting entries are passed as mentioned above.

The un-reconciled items will remain as open items in “unreconciled account” which can be
reconciled manually.

Reprocess Un-reconciled items – (FEBAN)

• Through this session we can clear the un-posted (un-reconciled) items from the above
mentioned manual & automatic processes.

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• The session enables us to select any of the bank statements created by us based on
statement date and identification key.

• We can correct the selected items one after another. At the end, post again for all changed
items.

SAP T Code To be used

Manual Bank reconciliation Process – (FF67)
Electronic Bank reconciliation Process – (FF_5)

To View Bank Statement - FF_6

Reprocess Un-reconciled items – (FEBAN)

Create and Assign Business Transactions

Path: Financial Accounting (New) -- Bank Accounting -- Business Transactions --

Payment Transactions -- Manual Bank Statement -- Create and Assign Business
Transactions OT52

Click On New Entries

Transaction Sign Interpretation algorithm Text

Z001 + 15 Incoming Check

Z002 - 15 Outgoing Check

Z003 - Bank Charges

Z004 - Interest Paid

Z005 + Interest Received

Enter and SAVE

Define Posting Keys and Posting Rules for Manual Bank Statement

Path: Financial Accounting (New) -- Bank Accounting -- Business Transactions --

Payment Transactions -- Manual Bank Statement --Define Posting Keys and Posting
Rules for Manual Bank Statement

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Click On Define Posting Keys and Posting Rules for manual Bank Statement

Chart Of Accounts II02

Enter

Click on New Entries

Account Text

ZMain Main Bank

ZIncoming Incoming Bank

ZOutgoing Outgoing Bank

ZBank Charges Bank Charges

ZInterest Paid Interest Paid

ZInterest Rec Interest Received

Enter and SAVE

Assign Accounts to Account Symbol

Double Click On Assign Accounts to Account Symbol

Click on New Entries

Account Symbol Account Modification Currency G/L Account AccountDesc

ZMain + INR ++++++++++ Main Bank

ZIncoming + INR +++++++++1 Incoming Bank

ZOutgoing + INR +++++++++2 Outgoing Bank

ZBank Charges + INR 4000901 Bank Charges

ZInterest Paid + INR 4000902 Interest Paid

ZInterest Rec + INR 3000700 Interest Received

Enter and SAVE

Create Keys for Posting Rules

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NOTE: This field specifies the rules for posting in the general ledger and sub ledger.

Double Click On Create Keys for Posting Rules

Click On New Entries

Z001 Incoming Check

Z002 Outgoing Check

Z003 Bank Charges

Z004 Interest Paid

Z005 Interest Received

Enter and SAVE

Define Posting Rules

Double Click On Define Posting Rules

Debit Credit

Posting Rule Z001 Posting Key Empty

Posting Area 1(Bank Accounting) Account Symbol ZINCOMING

Posting Key 40

Account Symbol ZMIAN

Document Type ZV (Payment Clearing)

Posting Type 5 (Clear Credit G/L Account)

Enter and SAVE

Click On Next Entry In Header Data

Debit Credit

Posting Rule Z002 Posting Key 50

Posting Area 1(Bank Accounting) Account Symbol ZMIAN

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Posting Key Empty

Account Symbol ZOUTGOING

Document Type ZV (Payment Clearing)

Posting Type 4 (Clear Debit G/L Account)

Enter and SAVE

Click On Next Entry In Header Data

Debit Credit

Posting Rule Z003 Posting Key 50

Posting Area 1(Bank Accounting) Account Symbol ZMIAN

Posting Key 40

Account Symbol ZBANK CHARGES

Document Type SA (G/L DOCUMENT)

Posting Type 1 (Post To G/L Account)

Enter and SAVE

Click On Next Entry In Header Data

Debit Credit

Posting Rule Z004 Posting Key 50

Posting Area 1(Bank Accounting) Account Symbol ZMIAN

Posting Key 40

Account Symbol ZINTERESTPAID

Document Type SA (G/L DOCUMENT)

Posting Type 1 (Post To G/L Account)

Enter and SAVE

Click On Next Entry In Header Data

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Debit Credit

Posting Rule Z004 Posting Key 50

Posting Area 1(Bank Accounting) Account Symbol ZINTEREST REC

Posting Key 40

Account Symbol ZMIAN

Document Type SA (G/L DOCUMENT)

Posting Type 1 (Post To G/L Account)

Enter and SAVE

Click On Next Entry In Header Data

Create and Assign Business Transactions

Path: Financial Accounting (New) -- Bank Accounting -- Business Transactions --

Payment Transactions -- Manual Bank Statement -- Create and Assign Business
Transactions

Click On Position

Transaction Z001

Enter

Transaction Sign Posting Rule

Z001 + Z001

Z002 - Z002

Z003 - Z003

Z004 - Z004

Z005 + Z005

Enter and SAVE

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Define Variants for Manual Bank Statement

Path: Financial Accounting (New) -- Bank Accounting -- Business Transactions --

Payment Transactions -- Manual Bank Statement --Define Variants for Manual Bank
Statement OT43

Click On Define Variants for Manual Bank Statement

Click On Create

Variant II02

Name Manual Bank Statement

Enter

Double Click On Bank Reference

Enter

Click On Standard Offset

Enter and SAVE

Click On Activate

Note: Before going to update' Manual Bank Statement' need to have debit and credit line
items in bank accounts (Incoming Bank and Outgoing Bank)

To View Debit and Credit G/L Line Items

Go To FBL3N

G/L Account 2000501(HDFC Incoming Bank) 2000502(HDFC Outgoing Bank)

Click On Execute

To Update Manual Bank Statement

Path: Accounting -- Financial Accounting -- Banks -- Incomings -- Bank Statement -- FF67

- Manual Entry

Bank Key HDFCII

Bank Account 325487912451

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Currency INR

Statement Number 1

Statement Date 26.07.2015

Opening Balance 0

Closing Balance 290000

Posting Date 26.07.2015

Enter and Enter

Transaction Value Date Amount Bank Reference

Z001 Incoming Bank 26.07.2015 250,000.00 10

Z001 Incoming Bank 26.07.2015 150,000.00 11

Z001 Incoming Bank 26.07.2015 160,000.00 13

Z001 Incoming Bank 26.07.2015 200,000.00 14

Z002 Outgoing Bank 26.07.2015 125,000.00- 20

Z002 Outgoing Bank 26.07.2015 100,000.00- 21

Z002 Outgoing Bank 26.07.2015 80,000.00- 22

Z002 Outgoing Bank 26.07.2015 95,000.00- 23

Z002 Outgoing Bank 26.07.2015 70,000.00- 24

Z003 Bank Charges 26.07.2015 800.00-

Z004 Interest Paid 26.07.2015 1200.00-

Z005 Interest Received 26.07.2015 2000.00-

Enter and SAVE and SAVE

Go To System -- Service -- Batch Input -- Sessions

Select HDFC Line Item

Click On Process

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Check Display Errors Only

Maintain Text Bank Charges

Enter

Text Interest Paid

Enter

Text Interest Received

Enter

Click on Exit Batch input Session

Note: Need to check Main Bank updated or not

Go To FBL3N

G/L Account 2000500

Company Code II02

Check Open Items

Click On Execute

Electronic Bank Statement

Electronic Bank reconciliation Process – (FF_5)

For the process of automatic bank reconciliation, electronic bank statement is required in
predefined format only.

This format can be either in “multi cash format” or “MT940

Uploading the bank statements received from banks in the above mentioned format using
transaction code FF_5.

After the uploading of this statement, the process creates postings in the main bank account.
The accounting entries are passed as mentioned above.

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The un-reconciled items will remain as open items in “un reconciled account” which can be
reconciled manually.

Reprocess Un-reconciled items – (FEBAN)

• Through this session we can clear the un-posted (un-reconciled) items from the above
mentioned manual & automatic processes.

• The session enables us to select any of the bank statements created by us based on
statement date and identification key.

• We can correct the selected items one after another. At the end, post again for all changed
items.

Electronic Bank reconciliation Process – (FF_5)

To View Bank Statement - FF_6

Reprocess Un-reconciled items – (FEBAN)

Make Global Settings for Electronic Bank Statement

Path: Financial Accounting New -- Bank Accounting -- Business Transactions -- Payment

Transactions -- Electronic Bank Statement -- Make Global Settings for Electronic Bank
Statement

Click On Make Global Settings for Electronic Bank Statement

Create Transaction Type
Note: No Need to create existing transaction type' MT940' we can use

Assign External Transaction Types to Posting Rules

Select MT940 Line Item
Double Click On Assign External Transaction Types to Posting Rules
Click On New Entries
External Transaction Types +/- Posting Rule Interpretation Algorithm

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FCHA (Incoming Bank) + Z001 0001: Standard Algorithm
FCHB (Outgoing Bank) - Z002 0001: Standard Algorithm
FCHC (Bank Charges) - Z003 000: No Interpretation
FCHD (Interest Paid) - Z004 000: No Interpretation
FCHH (Interest Received) + Z005 000: No Interpretation
Enter and SAVE
Double Click on Assign Bank Accounts to Transaction Type
Click On New Entries
Bank Key Bank Account Transaction Type
HDFCII 2254879124514 MT940
Enter and SAVE
Note: If we want to upload Electronic Bank Statement we need to maintain formats like
MT940,Multicash,orBAI
Note: Above screen shot is the sample MT940.txt format.
Description of MT940
20: Statement Date
25: Bank ID or Account Number
28C: Statement and Sequence Number
60f: Opening Balance
61: Statement Line Field
86: Information to Account Holder
62f: Closing Balance

To upload MT940 FF_5

Path: Accounting -- Financial Accounting -- Banks -- Incomings -- Bank Statement -- FF_5
- Import
Click On FF_5
Check Import Data
Electronic Bank Statement Format Swift MT940 International Format (Field 86 Unstuctred
Statement File MT940 (Import from Desktop)

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Check Post Immediately
Check Execute as Background Job
Check Print Bank Statement
Check Print Posting Log
Check Print Statistics
Check Separate List
Execute
Click On Allow
Enter
Output Device LP01
Enter
Enter

Reprocess Un-reconciled items – (FEBAN)

Path: Accounting -- Financial Accounting -- Banks -- Incomings -- Bank Statement --
FEBA_BANK_STATEMENT - Reprocess
Click on FEBA
Click On Execute
To Update Electronic Bank Statement
Path: Accounting -- Financial Accounting -- Banks -- Incomings -- Bank Statement -- FF_6
Display
Click On FF_6
Company Code II02
House Bank ID HDFC
Bank Account ID HDFC
Statement Number 1
Statement Date 01.07.2015 to 05.08.2015
Execute

Screen variants

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Screen variants allow you to simplify screen editing by: Providing default values on the screen
fields Hiding and changing the ready for input status of fields Hiding and changing the attributes
of table control columns A screen variant contains field values and attribute for exactly one screen.
A screen variant may be assigned to multiple transaction variants. Screen variants are always
cross-client; they may, however, be assigned to a client-specific transaction. They can also be
called at runtime by a program. The different possibilities for calling screen variants guarantee
great flexibility of use.

Substitution
The substitution tools can be used to substitute data immediately upon entry.

Providing the profit center contents using a certain combinations of expense accounts, company
code and business partner. This can be set as a substitution in the system.

Definition and Execution of Substitution.

Substitution- In Substitution, the values entered into the SAP system are validated according to
a prerequisite defined by the user. If the prerequisite is met the system replaces the value
entered with other values.

Substitution in the system is carried in the following manner:

Activation (Active?)Allocation (Organizational Unit?)Definition (What?)Callup point (When?)

Application (Where?)

Path: Financial Accounting New -- Special Purpose Ledger -- Tools -- Maintain

Validation/Substitution/Rules -- Maintain Substitution GGB1
Click On Maintain Substitution
Click On Financial Accounting
Click On Line Item
Click On Substitution
Maintain Substitution AS01 New Substitution for AS01
Enter and SAVE
Click On Step
Check BSEG SGTXT Text
Enter
Check Constant Value
Enter
Step 001 Text Update for AS01
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Select Prerequisite

Double Click On Structure BSEG Accounting Document Segment

Double Click On BSEG-BUKRS Company Code
Click On =
Click On Constant
Maintain Constant AS01
Enter
Select Substitutions
Maintain Constant Value Service Vendor
Enter and SAVE
To Activate Substitutions
Path: Financial Accounting -- Financial Accounting Global Settings -- Tools --
Validation/Substitution -- Substitution in Accounting Documents OBBH
Click On Substitution in Accounting Documents
Click On New Entries
Company Code Callup Point Activation Level
AS01 2(Line Item) 1(Active)
Enter and SAVE

To Post Vendor Invoice

Go to FB60
Vendor 9000000
Invoice Date 05.01.2015
Posting Date 05.01.2015
Amount 100000
Enter
Text Service Vendor (System will pick the text from Substitution rule)

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 Validation
Validation in sap is used in document posting. In sap all input values are valuated either by a
program or with a table. However certain validations not carried on by these standard programs
so you can have to specifically use validation program to create validation rules in sap for your
specific requirements
While entering a transaction in sap system will validate the combination that is entered and if it
matches with the requirement that is defined in validation rule in sap then it will allow you to post
the transaction or else it will shown as error message that the combination is not allowed.
If this type of validation error occurs then either you have to change the combination that you
entered or you need to change the validation rule.
Path: Financial Accounting New -- Special Purpose Ledger -- Tools -- Maintain
Validation/Substitution/Rules -- Maintain Validation GGB0
Click On Maintain Validation
Click On Financial Accounting
Double Click On Line Item
Click On Validation
Validation Name AS01 AS01 Business Area Validation
SAVE
Select AS01
Click On Step
Validation Step 001 Hyderabad Business Area
SAVE
Click On Prerequisite
Double Click On Accounting Document Header
Double Click On Document Type
Click On =
Click On Constant
Maintain Document Type SA
Enter
Click On Check
Double Click on Accounting Document Segment
Double Click on Business Area
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Click On =
Click On Constant
Maintain Business Area AS0H
Enter
Click On Message
Message Number 004
Enter
Message Text Check the Business area
Message Variables
BKPF - BLART 2 BSEG - GSBER
Enter and SAVE
To Activate Validation
Path: Financial Accounting -- Financial Accounting Global Settings -- Tools --
Validation/Substitution -- Validation in Accounting Documents OB28
Click On Define Validations for Posting
Click On New Entries
Company Code Callpoint Description Activation
Level
AS01 2 AS01 Business Area Validation 1
Enter and SAVE

To Post Expense GL Using Business Area AS0H

Go To F-02
Document Date 03.01.2016
Posting Date 03.01.2016
Document Type SA
Company Code AS01
Posting Key 40
Account 4000000
Enter

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Amount 10,000
Business Area AS0B
Note: If you are not entered correct business area which we defined in validation rule. System
throws error message as above

Automatic Payment Program

The Automatic Payment Program has been developed for both national and international
payment transactions with vendors , and handle outgoing payments.
Automatic Payment Program serves the purpose of posting accounts payable ( payment to a
vendor) based on vendor invoices automatically, shortly termed as APP.
APP automatically issues cheques, prints covering letters for mailing along with the cheques&
posts entries in the books of accounts
You have the option of paying Special G/L Transactions (Ex: Advances to Vendors) using APP.
APP can be configured to take into account Terms of Payments for the purpose of obtaining
Cash Discount benefit
A consistently high volume of invoices have to be processed. Accounts Payable Invoices have
to be paid on time to receive possible discounts. The accounting department wishes to perform
this processing of invoices automatically. The Automatic Payment Program is a tool that will
help users manage payables

The Payment Process includes the Following Steps

1. Invoices are Entered

2. Pending Invoices are analyzed for due date
3. Invoices due for payment are prepared for review
4. Payments are approved or modified
5. Invoices are paid.

APP consists of the following phases

CONFIGURATION PHASE
Here, we define the configuration settings for implementing APP. It consists of the
following steps
EXECUTION PHASE
Here, we execute the APP by following the steps listed below
1) Define Payment Run ID and Run Date

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2) Enter Run Parameters
3) Generate a Payment Proposal
4) Edit the Payment Proposal
5) Carry out the Payment Run (posting entries to Books of Accounts
6) Printing of Payment Media (Cheques, etc
The Configuration Phase is performed from SPRO/IMG menu as a one-time activity.
The Execution Phase is performed from the Main Menu as a routine business activity
at periodic intervals
The list of all execution parameters specified by the users for running an APP, are
defined in a Payment Program Run. Every Run is uniquely identified by
Run ID (5-digit user-defined code
Run Date
The Run Date is generally taken as the actual date of execution of the Payment Program Run.
But the user has the option of giving any other Run Date.
The Run Date serves as an identification feature.
The Run Date and Run ID under which a given payment document has been generated, will be
mentioned in the header of the payment document.
You can include more than one co. code in the same APP Run. However, in such acase all the
co. codes included in the APP Run should belong to the same country.
Examples of Payment Methods for which we can use APP are Cheque Payment, Electronic
Transfer, Bills of Exchange, etc
Payment Method/Bank Selection for Payment Program

Path: Financial Accounting (New)-- Accounts Receivable and Accounts Payable--

Business Transactions-- Outgoing Payments-- Automatic Outgoing Payments-- Payment
Method/Bank Selection for Payment Program FBZP

The amounts for minimum incoming payment and minimum outgoing payment could be given
as per the organization standards.
Before APP Run, we must have an open item, for that we have to create a vendor invoice
You will see the open line item with a red colored indicator as shown above. Now go to
Transaction 'F110', give the date of APP Run and any 5 digit alpha-numeric characters as
identification.

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Click On All Company Code
Click On New Entries
Company Code II02
Sending Company Code II02
Check Separate payment per business area
Enter and SAVE
Back
Click On Paying Company Code
Click On New Entries
Paying Company Code II02
Minimum amount for incoming payment 100
Minimum amount for Outgoing payment 100
Check Separate payment for each reference
Click On Forms
SAP Script F110_IN_AVIS
Click On Sender Details
Text ID ST
Enter and SAVE
Back
Click On Payment Methods in Country
Click On New Entries
Country IN
Payment Method F
Description Check
Check Radio Button Outgoing Payments
Check Radio Button Cheque
Check Street, P.O. box or P,o .box postal code
Document type for payment ZV
Clearing document type ZV

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Payment Medium Program RFFOUS_C
Name of print dataset LIST1S
Enter and SAVE
Back
Click On Payment Methods In Company Code
Click On New Entries
Paying Company Code II02
Payment Method F
Minimum Amount 100
Maximum Amount 9999999999
Check Foreign business partner allowed
Check Foreign currency allowed
Check Customer /Vendor Bank abroad allowed
SAP Script F110_PRENUM_CHCK
Enter and SAVE
Back
Click On Bank Determination
Enter
Select Line Item II02
Double Click On Ranking Order
Click On New Entries
PM Currency Ranking Order House Bank
F INR 1 HDFC
F INR 2 ICICI
Enter and Save
Double Click On Bank Accounts
Click On New Entries
House Bank PM Currency Account ID Bank Subaccount
HDFC F INR HDFC 2000102

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ICICI F INR ICICI 2000202
Enter and Save
Double Click On Available Amounts
Click On New Entries
House Bank Account ID Days Currency Available for Outgoing Payment
HDFC HDFC 999 INR 9999999999
ICICI ICICI 999 INR 9999999999
Enter and SAVE
Back
Assign Payment Methods in Vendor Master Data
Go To FK02

Vendor 8000000
Company Code II02
Check Payment Transactions
Enter
Payment Methods F
Enter and SAVE
Creation of Number Ranges for APP Run Document Type ZV
Note: Which we maintain Document Type ZV' in Payment Method in Country
Go To FBN1
Company Code II02
Click On Change Intervals
Click On Insert Intervals
No Year From Number To Number
20 2015 20000 20999
Enter and SAVE
Check Lot Creation.
The Check nos. to be printed on the bank document is governed by the ‘Check Management’
facility in SAP. This means that for each combination of house bank and bank account ID, a

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Check lot needs to be maintained. This will correspond with the Check serial numbers in use.
The first and last number has to be defined in the system and system automatically allots /
tracks the Check number with payment documents and updates the latest Check number issued
/ used from the system.
Financial Accounting (New) -- Accounts receivable & Accounts payable -- Business
transactions -- Automatic outgoing payment-- Payment media -- Check management --
Define number ranges for checks FCHI
Paying Company Code II02
House Bank HDFC
Account ID HDFC
Click On Change Button
Click On Create
Lot Number 01
Check Number 1000
To 1999
Lot Number Short Information on the Lot Check No From Check Number to
1 Check Lot for HDFC 1000 1999
Enter and SAVE
Vendor Invoice Posting
Go To FB60
Vendor 8000000
Invoice Date 03.06.2015
Posting Date 03.06.2015
Amount 200000
Text Customer Invoice
G/L Account 4000000
Amount 200000
Text Salary Paid
Enter
Go To Document and Simulate
Enter and Save

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To View Vendor Line Items
Go To FBL1N
Vendor Account 8000000
Company code II02
Check Open Items
Check Special G/L Transactions
Click On Execute
In this Screen we can see the vendor open item 200000
Down Payment Clearing With Payment Program Run F110
1) Maintain Reconciliation Accounts in Down Payment Request F
Go To OBYR
Double Click On Payment Request F
Chart of Accounts II02
Enter
Reconciliation Account Special G/L
1001000 2001000
Enter and SAVE
Click On Properties
Check Noted Items
Target Special G/L Indicator Q
Enter and SAVE
2) Down Payment Request F- 47
Path: Accounting -- Financial Accounting -- Accounts Payable -- Document Entry -- Down
Payment -- F-47 - Request
Click On F-47
Document Date 03.07.2015
Posting Date 03.07.2015
Account 800000
Target Special G/L Indicator Q

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Enter
Document Date 03.07.2015
Posting Date 03.07.2015
Account 800000
Target Special G/L Indicator Q
Enter
Vendor Account 8000000
Company code II02
Check Open Items
Check Special G/L Transactions
Check Noted Items
Click On Execute
In this screen we can see the vendor down payment request (F) 50,000
vendor invoice 2,50,000

Maintain Down Payment Request In FBZP

Go To FBZP
Click On All Company Code
Company Code II02
Enter
Double Click On Line Item II02
Special G/L Transactions to be paid FQ
Note: F For Vendor Down Payment Request
Q For Special G/L Indicator for Vendor
Enter and SAVE

Automatic Payment Run F110

Path: Accounting -- Financial Accounting -- Accounts Payable -- Periodic Processing --
Payment

Run Date 05.07.2015

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Identification 100
Click On Parameter
Company Code II02
Payment Method Q
Next Payment Date 06.07.2015
Vendor 8000000
Click On Free Selection
Note: In this screen will do Exclude Items
Click On Additional Log
Check Due date check
Check Payment method selection if not successful
Check Line items for the payment documents
Enter and SAVE
Back
Click On Schedule Proposal
Check Start Immediately
Enter
Once Payment Proposal has been created
Go To Edit -- Proposal -- Proposal List
Enter
In this Payment Proposal screen we can see the down payment request and vendor invoice

Document No Amount
Document Number for Down Payment Request 17005
50,000-
Document Number for Vendor Invoice 19017
200,000
Back
Click On Schedule Payment Run
Enter
In this screen we can see the Payment Run has been carried out
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Posting order: 1 Generated, 1 Completed.
If you want to see the Payment List
Go To Edit -- Payment -- Payment List
Enter
In this we can see the Payment Document Number 20002
Click On Printout/data medium
RFFOUS_C II02
Click On Maintain Variants
Check Full Screen
Enter
Program Run Date 05.07.2015
Identification feature 100
Payment Method Q
House Bank HDFC
Account ID HDFC
Check Lot Number 1
Check Print Checks Printer LP01 Check Print Immediately
Check Print Checks Printer LP01 Check Print Immediately
Check Print Checks Printer LP01 Check Print Immediately
Remove Number of Sample Print out
Check Do Not Void Checks
Click On Attributes
Maintain Description II02
SAVE and Back
SAVE
Click On Printout
Remove? Mark and Maintain II02
Enter
Click On Execute

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Click On SAP Script

Asset Accounting
The Asset Accounting component is used for managing and supervising fixed assets . In SAP
Financial Accounting, it serves as a subsidiary ledger to the FI General Ledger, providing
detailed information on transactions involving fixed assets.

Fixed assets management is an accounting process that seeks to track fixed assets for the
purposes of financial accounting.

Organizations face a significant challenge to track the location, quantity, condition, maintenance
and depreciation status of their fixed assets. A popular approach to tracking fixed assets uses
serial numbered asset tags, which are labels often with bar codes for easy and accurate
reading. The owner of the assets can take inventory with a mobile bar code reader and then
produce a report.

The depreciation posting run and its parallel valuation is a main feature within Asset Accounting.

Fixed assets can be divided into: – Tangible fixed assets (machines, buildings)

Intangible fixed assets (licenses, patents)

When the SAP is being implemented, the main task is to map the organization and structures of
the enterprise in the system.

Chart of Depreciation
The chart of depreciation is a list of depreciation areas arranged according to business and
legal requirements. The chart of depreciation enables you to manage all rules for the valuation
of assets in a particular country or economic region SAP provides with predefined chart of
depreciation for certain countries. These are also known as Reference COD’s.

Copy one of these Reference chart of depreciation to a user-defined COD, and make
appropriate modifications based on your business and legal requirements

Note: It is mandatory to assign a chart of depreciation to every co. code that uses Asset
Accounting.

Note: You may assign multiple co. codes to a COD. But you cannot assign one co code to
multiple COD’s.

Note: Every COD may contain several depreciation areas. You may activate only those DA’s
that you require at present and deactivate the rest

It is a country specific component and chart of depreciation Areas like

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Book Depreciation: Will be calculate on Asset Level.

Tax Depreciation: .Will be calculate on Block Level.

Cost Depreciation

Book Depreciation: Is usually post to the Accounts monthly base as u can calculate day wise ,
which will be creating a accounting document with accumulate depreciation

Ordinary Depreciation: Monthly wise depreciation will be ordinary depreciation.

Accumulated Depreciation: Year wise depreciation will be accumulated depreciation

Copy Ref chart of Depreciation

Path: Spro -- Financial Accounting new -- Asset accounting -- organization Structures --
Copy Ref chart of Depreciation / Depreciation Areas EC08

Click On Copy Reference Chart of Depreciation/Depreciation Areas

Double Click On Copy Reference Chart of Depreciation

Click On Copy as Button

From Chart of Depreciation 1IN

To Chart of Depreciation II02

Enter

We don't transport existing Number ranges

Click On No

Enter and SAVE and Back

Double Click On Specify Description of Chat of Depreciation

Maintain Description Chart of Depreciation for II02

Enter and SAVE and Back

Double Click On Copy/Delete Depreciation Areas

Maintain Chat of Depreciation II02

Enter
Select the rest of depreciation areas except the book depreciation and Tax Depreciation

Select delete button

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SAVE

Assign Tax Code 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-- Tax on
Sales and purchases-- Postings-- Assign Tax Code for Non – Taxable Transactions OBCL

Click On Assign Tax Codes for Non Taxable Transactions

Maintain Description Chart of Depreciation for II02

Enter and SAVE and Back

Double Click On Copy/Delete Depreciation Areas

Maintain Chat of Depreciation II02

Enter

Select the rest of depreciation areas except the book depreciation and Tax Depreciation

Select delete button

SAVE

Assign Tax Code 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-- Tax on
Sales and purchases-- Postings-- Assign Tax Code for Non – Taxable Transactions OBCL

Click On Assign Tax Codes for Non Taxable Transactions

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Click On Position button and Maintain Company code II02

Enter

Maintain Fields Input Tax Output Tax

V0 A0
Enter and SAVE

Assign Chart of Depreciation to Company Code

Path: Financial Accounting (New)--Asset Accounting--Organizational Structures--Assign

Chart of Depreciation to Company Code OAOB

Click On Assign Chat of Depreciation to Company Code

Click On Position Button

Maintain Company Code II02

Chart of Dep II02(Chart of depreciation for II02)

Enter and SAVE

Specify account determination

The key of an account determination must be stored in the asset class. In this way, the
account determination links an asset master record to the general ledger accounts to be posted
for an accounting transaction using the asset class You specify the general ledger accounts to
be posted for the individual accounting transactions in later implementation activities. You can
specify various accounts for each depreciation area to be simultaneously posted to GL.

Path: Spro-- Financial Accounting new-- Asset Accounting-- Org. Structure-- Asset
Classes-- Specify Account Determinations
Click On Specify Account Determination

Click On New Entries

Maintain Fields

Account Determination Name for Account Determination

Z111 Buildings

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Z112 Plant and Machinery

Z113 Furniture and Fixtures

Z114 Asset Under Construction

Enter and SAVE

Create screen layouts

Screen layout for maintaining asset master data Using the screen layout rule, you can define
which fields are required, optional and suppressed, which fields are copied, when creating an
asset using another asset master record as a reference You can define screen layout rules for
general master data and for depreciation parameters within depreciation areas.

Note: Screen Layout Rule is nothing but a field status variant we can control the fields Asset
Master Data level and Depreciation Key level

Path: Spro -- Financial Accounting new -- Asset Accounting -- Org. Structure -- Asset
Classes -- Create Screen Layout Rules

Click On Create Screen Layout Rules

Select existing Screen Layout Rule

Click On Copy as Button

Change Screen Layout Rules and Description

Screen Layout Rule Name of Screen Layout Rule

Z111 Buildings

Z112 Plant and Machinery

Z113 Furniture and Fixtures

Z114 Asset Under Construction

Enter and SAVE

Define Number Range Interval AS08

Path: Spro-- Financial Accounting new-- Asset Accounting-- Org. Structure-- Asset
Classes-- Define Number Range Interval

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Click On Define Number Range Interval
Maintain Company Code II02

Click On Change Intervals

Note: Each and every Asset we need to create number ranges

Maintain Intervals

No From Number To Number

01 1000 1999

02 2000 2999

03 3000 3999

04 4000 4999

Enter SAVE

Define Asset Classes

The asset class is the main criterion for classifying assets. Every asset must be assigned to only
one asset class. Examples of asset class are Plant Machinery, Furniture & Fixtures, Computers
etc. The asset class also contains the Gl accounts which are debited when any asset is procured.
It also contains the gl accounts for depreciation calculation, scrapping etc

Whenever you create an asset master you need to mention the asset class for which you are
creating the required asset. In this manner whenever any asset transaction happens the gl
accounts attached to the asset class is automatically picked up and the entry passed. You can
also specify certain control parameters and default values for depreciation calculation and other
master data in each asset class.

Path: Spro-- Financial Accounting new-- Asset Accounting-- Org. Structure-- Asset
Classes--Define Asset Classes OAOA
Click On New Entries

Maintain Fields

Asset Class Z111 Buildings

Short Text Buildings

Account Determination Z111

Screen Layout Rule Z111

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Number Range 01

Check Include Asset

Check No Auc or Summary Management of AUC

Check Manage Historically

Enter and Save

Click On Next Entry Button On Header Data

Maintain Fields

Asset Class Z112 Plant and Machinery

Short Text Plant and Machinery

Account Determination Z112

Screen Layout Rule Z112

Number Range 02

Check Include Asset

Check No Auc or Summary Management of AUC

Check Manage Historically

Enter and Save

Click On Next Entry Button On Header Data

Maintain Fields

Asset Class Z113 Furniture and Fixtures

Short Text Furniture and Fixtures

Account Determination Z113

Screen Layout Rule Z113

Number Range 03

Check Include Asset

Check No Auc or Summary Management of AUC

Check Manage Historically

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Enter and Save

Click On Next Entry Button On Header Data

Maintain Fields

Asset Class Z114 Asset Under Construction

Short Text Asset Under Construction

Account Determination Z114

Screen Layout Rule Z114

Number Range 04

Check Include Asset

Check Line Item Settlement (Auc we need to settle line item wise)

Check Manage Historically

Enter and Save

Set Chart of Depreciation

Path: SPRO -- Financial Accounting New -- Asset Accounting -- Valuation -- Set Chart of
Depreciation OAPL

Click On Set Chart of Depreciation

Enter Chart of Depreciation II02

Enter

Calculation Methods

Financial Accounting (New) -- Asset Accounting -- Depreciation -- Valuation Methods --

Depreciation Key -- Calculation Methods

1)Define Base Methods

Click On Define Base Methods

Note: It will calculate depreciation on Percentage Base, will use standard Base Method in
sap' 0014'

2)Define Declining-Balance Methods

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Note: It will calculate depreciation on formula based

3)Define Multi-Level Methods AFAMS

In this method we can define whether it is straight line method or written down method based on
the base value.

Base Value is '01' is for straight line method

Base Value is '24 'is for written down method

Click On Multi Level Method

Maintain Fields

Multilevel method Z11 Buildings

Validity Start 1From Capitalization Date

Double Click On Levels

Click On New Entries

Maintain Fields

Acq.Year Years Period Base value Percentage

9999 999 12 24 10

Enter and SAVE

Back again Back Click On Next Entry Button On Header Data

Maintain Fields

Multilevel method Z11 Buildings

Validity Start 1From Capitalization Date

Double Click On Levels

Click On New Entries

Maintain Fields

Acq.Year Years Period Base value Percentage

9999 999 12 24 11

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Enter and SAVE

Back again Back Click On Next Entry Button On Header Data

Click On New Entries

Maintain Fields

Acq.Year Years Period Base value Percentage

9999 999 12 24 12

Enter and SAVE

4)Period Control Method

In this method it controls the postings of asset transactions like acquisition and retirement.
According to the posting period control only we can have the addition of the asset

Note: Will use standard period control method '003'

Depreciation key

PATH: Financial Accounting (New)-- Asset Accounting--Depreciation--Valuation Methods-

-Depreciation Key--Maintain Depreciation Key AFAMA

The specifications and parameters that the system requires to calculate depreciation amounts
are entered in Calculation methods. Calculation methods replace the internal calculation key of
the depreciation key. Depreciation keys are defaulted in Asset Master from the asset class.

It contains the rate of depreciation (10%,5%), Method of depreciation (Straight line method or
written down method), Default values from company code (Memo Value and Cut off Value),
Mode of depreciation (Depreciation start from purchase date or start from ordinary depreciation
and it will calculate day wise depreciation also. It contains Valuation of the methods (Base
Method, Declining Balancing Method, Multilevel Method, Period Control Method).

Click On Maintain Depreciation key

Click On New Entries

Maintain Fields

Depreciation Key Z11 Buildings

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Check Depreciation to the day

Double Click OnAssignment of Calculation Methods

Click On New Entries

Maintain Fields

Depreciation Type N Ordinary Depreciation

Phase 1From the Start of Depreciation

Base Method 0014

Period Control Method 003

Multilevel method Z11 Buildings

Class 2 Declining Balance Depreciation

Change Method 0 No automatic changeover

Enter and SAVE

Back and Back

Click On Activate Button

SAVE and Back again Back

Click On Next Entry Button On Header Data

Maintain Fields

Depreciation Key Z12 Plant and Machinery

Check Depreciation to the day

Double Click OnAssignment of Calculation Methods

Click On New Entries
Maintain Fields

Depreciation Type N Ordinary Depreciation

Phase 1From the Start of Depreciation

Base Method 0014

Period Control Method 003

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Multilevel method Z12 Plant and Machinery

Class 2 Declining Balance Depreciation

Change Method 0 No automatic changeover

Enter

Back and Back

Click On Active and SAVE

Back again Back

Click On Next Entry Button On Header Data

Maintain Fields

Depreciation Key Z13 Furniture and Fixtures

Check Depreciation to the day

Double Click OnAssignment of Calculation Methods

Click On New Entries

Maintain Fields

Depreciation Type N Ordinary Depreciation

Phase 1From the Start of Depreciation

Base Method 0014

Period Control Method 003

Multilevel method Z13 Furniture and Fixtures

Class 2 Declining Balance Depreciation

Change Method 0 No automatic changeover

Enter and SAVE

Back and Back

Click On Activate

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Determine Depreciation Areas in the Asset Class

Path: SPRO-- Financial Accounting New -- Asset Accounting -- Valuation -- Determine

Depreciation Areas in the Asset Class OAYZ

Click On Determine Depreciation Areas in the Asset Class

Click On Position Button

Maintain Asset Class Z11

Enter

Select Z11 Building Asset Class

Double Click On Depreciation Area

Maintain Fields

Remove Deactivation Check Box for Book Depreciation

Layout 1000

Enter

Check Tax Bal.sht. Deactivation Box

Depreciation Key Z11 (Building)

Enter and SAVE

Back
Select Z12 Plant and Machinery Asset Class

Double Click On Depreciation Area

Maintain Fields

Remove Deactivation Check Box for Book Depreciation

Layout 1000

Enter

Check Tax Bal.sht. Deactivation Box

Depreciation Key Z12 (Plant and Machinery)

Enter and SAVE

Back
Select Z13 Furniture and Fixtures Asset Class

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Double Click On Depreciation Area

Maintain Fields

Remove Deactivation Check Box for Book Depreciation

Layout 1000

Enter

Check Tax Bal.sht. Deactivation Box

Depreciation Key Z13 (Furniture and Fixtures)

Enter and SAVE

Back
Select Z14 Asset Under Construction Asset Class

Double Click On Depreciation Area

Maintain Fields

Remove Deactivation Check Box for Book Depreciation

Layout 1000

Enter

Check Tax Bal.sht. Deactivation Box

Depreciation Key Z14 (Asset Under Construction)

Enter and SAVE

Screen Layout

Define Screen Layout for Asset Master Data

Path: SPRO-- Financial Accounting New -- Asset Accounting -- Master Data -- Screen
Layout -- Define Screen Layout for Asset Master Data

Click On Define Screen Layout for Asset Master Data

Double Click On Define Screen Layout for Asset Master Data

Click On Position Button

Maintain Screen Layout Z11(Building)

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Enter
Select Z11 Buildings

Double Click On Logical Field Group

Select 3 Time Dependent Data Logical Field Group

Double Click On Field Group Rules

Make it Cost Centre as Optional

SAVE
.
Back and Back

Select Z12 Plant and Machinery

Double Click On Logical Field Group

Select 3 Time Dependent Data Logical Field Group

Double Click On Field Group Rules

Make it Cost Centre as Optional

SAVE
.
Back and Back

Select Z13 Furniture and Fixtures

Double Click On Logical Field Group

Select 3 Time Dependent Data Logical Field Group

Double Click On Field Group Rules

Make it Cost Centre as Optional

SAVE
.
Back and Back

Select Z14 Asset Under Construction

Double Click On Logical Field Group

Select 3 Time Dependent Data Logical Field Group

Double Click On Field Group Rules

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 Make it Cost Centre as Optional

SAVE

Define Screen Layout for Asset Depreciation Areas

Path: SPRO-- Financial Accounting New -- Asset Accounting -- Master Data -- Screen
Layout -- Define Screen Layout for Asset Depreciation Areas AO21

Click On Define Screen Layout for Asset Depreciation Areas

Select Screen Layout Rule 1000

Double Click On Field Group Rules

Make it Depreciation Key as Required

Enter and SAVE

Creation of GL Accounts
GL Company Account Profit Balance Short Only Recon Line Sort Field
Account code Group and Sheet Text and balan ciliati Item Key Statu
No Loss Account Long ce in on Display s
Accou Text Local Accou Grou
nt Curre nt p
ncy

5000000 II02 Fixed X Building X Asset X 001 G007

Assets s

5000001 II02 Fixed X AccDep X Asset X 001 G007

Assets for
Building
s

5000002 II02 Fixed X X Asset X 001 G007

Assets

Plant
and
Machine
ry

5000003 II02 Fixed X AccDep X Asset X 001 G007

Assets P&L

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5000004 II02 Fixed X Furnitur X Asset X 001 G007
Assets e and
Fixtures

5000005 II02 Fixed X AccDep X Asset X 001 G007

Assets F&F

5000006 II02 Fixed X Asset X Asset X 001 G007

Assets Under
Constur
ction

3000400 II02 Revenue X Sale of X 001 G052

Asset
3000600 II02 Incomes X Profit X 001 G001
and
Loss
Sale of
Asset

4000400 II02 Expenses X Scrap of X 001 G004

Asset

4000401 II02 Expenses X Ordinary X 001 G004

Depreci
ation for
Building

4000402 II02 Expenses X Ordinary X 001 G004

Depreci
ation for
Plant
and
Machine
ry

4000403 II02 Expenses X Ordinary X 001 G004

Depreci
ation for
Furnitur
e and
Fixtures

Assign G/L Accounts

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Path: Financial Accounting (New) -- Asset Accounting -- Integration with General Ledger
Accounting -- Assign G/L Accounts AO90
Click on Assign G/L Accounts
Select Chart of Account II02
Double Click On Account Determination
Click On Position Button
Maintain Account Determination Z111 (Building)
Enter
Select Account Determination Z111 Buildings
Double Click On Balance Sheet Accounts
Maintain Fields
Acquisition:Acquis. and production costs 5000000 Buildings
Loss made on asset retirement w/o reven. 4000004 Scrap of Asset
Clearing acct. revenue from asset sale 3000001 Sale of Asset
Gain from asset sale 3000502 P&L Sale of Asset
Loss from asset sale 3000502 P&L Sale of Asset
Enter
Double Click On Depreciation
Maintain Fields
Acc.dep. accountfor ordinary depreciation 5000001 Accumulated depreciation for
Building
Expense account for ordinary depreciation 4000001 Ordinary depreciation for Building
Enter and SAVE
Back and Back
Select Account Determination Z112 Plant and Machinery
Double Click On Balance Sheet Accounts
Maintain Fields
Acquisition:Acquis. and production costs 5000002 Plant and Machinery
Loss made on asset retirement w/o reven. 4000004 Scrap of Asset
Clearing acct. revenue from asset sale 3000001 Sale of Asset

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Gain from asset sale 3000502 P&L Sale of Asset
Loss from asset sale 3000502 P&L Sale of Asset
Enter
Double Click On Depreciation
Maintain Fields
Acc.dep. account for ordinary depreciation 5000003 Accumulated depreciation for P&M
Expense account for ordinary depreciation 4000002 Ordinary depreciation for P&M
Enter and SAVE
Back and Back
Select Account Determination Z113 Furniture and Fixtures
Double Click On Balance Sheet Accounts
Maintain Fields
Acquisition:Acquis. and production costs 5000004 Furniture and Fixtures
Loss made on asset retirement w/o reven. 4000004 Scrap of Asset
Clearing acct. revenue from asset sale 3000001 Sale of Asset
Gain from asset sale 3000502 P&L Sale of Asset
Loss from asset sale 3000502 P&L Sale of Asset
Enter
Double Click On Depreciation
Maintain Fields
Acc.dep. account for ordinary depreciation 5000003 Accumulated depreciation for F&F
Expense account for ordinary depreciation 4000002 Ordinary depreciation for F&F
Enter and SAVE
Back and Back
Select Account Determination Z114 Asset Under Construction
Double Click On Balance Sheet Accounts
Maintain Fields
Acquisition:Acquis. and production costs 5000007 Asset Under Construction
Enter and SAVE

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Asset Master Data Creation
Path: Accounting -- Financial Accounting -- Fixed Assets -- Asset -- Create -- As01
Double Click On AS01
Asset Master Data Creation for Buildings
Maintain Asset Class Z111 (Building)
Company Code II02
Maintain Description Buildings
Click On Depreciation Area
Maintain Fields
Depreciation Key Z11 No need to enter 'DKey' system will pick automatically
Use life 99
Period 11
Enter and SAVE
Asset Master Data Creation for Plant and Machinery
Maintain Asset Class Z112 (Plant and Machinery)
Company Code II02
Maintain Description Plant and Machinery
Click On Depreciation Area
Maintain Fields
Depreciation Key Z12 No need to enter 'DKey' system will pick automatically
Use life 50
Period 11
Enter and SAVE

Asset Master Data Creation for Furniture and Fixtures

Maintain Asset Class Z113 (Furniture and Fixtures)
Company Code II02
Maintain Description Furniture and Fixtures
Click On Depreciation Area

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Maintain Fields
Depreciation Key Z13 No need to enter 'D Key' system will pick automatically
Use life 10
Period 11
Enter and SAVE
Maintain Asset Class Z114 (Asset Under Construction)
Company Code II02
Maintain Description Asset Under Construction
Click On Depreciation Area
Maintain Depreciation Key 0000
Note: There is no depreciation for AUC
Enter and SAVE
Asset purchase posting (Building)
Path: Accounting --Financial Accounting --Fixed Assets --Posting --Acquisition --External
Acquisition --F-90 - With Vendor
Maintain Fields
Document Date 09.06.2015
Posting Date 09.06.2015
Document Type AA
Company Code II02
Posting Key 31
Account 8000000
Enter
Amount 200000
Text Asset Purchase
Posting Key 70
Account 1001
Transaction Type 100(It indicates purchase document)
Enter
Amount *

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Text +
Enter
Go To Document and Simulate
AW01N - Asset Explorer (To View Asset History)
Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Asset -- AW01N -
Asset Explorer
Double Click On Asset Explorer
Maintain Company Code II02
Asset 1001
Enter
In this Screen we can see the information of building asset
Acquisition Value 200000 (Purchase Amount)
Ordinary Depreciation 16,229.51-(Year Depreciation)
Click On Posted Values
In this screen we can see the planned depreciation for 12 periods
Click On Comparisons
In this screen we can see the year wise depreciation.
Click On Parameters

Click On Display depreciation Key

In this screen we can see mainly the Depreciation Key and Percentage and Method

Report to view period wise for all assets

Path : Accounting -- Fixed Assets -- Information System -- Reports on Asset Accounting -
- Asset Balances -- Balance Lists -- Asset Balances -- S_ALR_87011965 - ... by Business
Area
Click On S_ALR_87011965
Maintain company Code II02
Report Date 30.06.2015
Execute

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In this screen we can see the monthly wise depreciation
Asset Sale
Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Retirement --
Retirement w/Revenue -- F-92 - With Customer
Double Click On F-92
Maintain Fields
Document Date 30.06.2015 (Future date)
Posting Date 30.06.2015
Document Type AA
Company Code II02
Posting Key 01
Account 1300000
Enter
Amount 200000
Text Asset Sale
Posting Key 50
Account 3000001
Enter
Amount *
Text +
Check Asst retirement
Enter
Enter
Asset 1001 (Building)
Transaction Type 210 (Complete Retirement)
Asset Value Date 30.06.2015
Check Complete Retirement
Enter
Go To Document and Simulate
01 Domestic Customer 200000

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50 Sale of Asset 200000-
75 Main Asset Building 100000-
70 Accumulated Depreciation 147.54
40 Sale of Asset 200000
50 P&L Sale of Asset 1,147.54-(Profit)
SAVE
Asset purchase posting (Plant and Machinery)
Path: Accounting --Financial Accounting --Fixed Assets --Posting --Acquisition --External
Acquisition --F-90 - With Vendor
Maintain Fields
Document Date 10.06.2015
Posting Date 10.06.2015
Document Type AA
Company Code II02
Posting Key 31
Account 8000000
Enter
Amount 300000
Text Asset Purchase
Posting Key 70
Account 2000
Transaction Type 100(It indicates purchase document)
Enter
Amount *
Text +
Enter
Go To Document and Simulate
SAVE
Asset Sale Partial (Plant and Machinery)

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Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Retirement --
Retirement w/Revenue -- F-92 - With Customer
Maintain Fields
Document Date 30.06.2015 (Future date)
Posting Date 30.06.2015
Document Type AA
Company Code II02
Posting Key 01
Account 1300000
Enter
Amount 200000
Text Asset Sale
Posting Key 50
Account 3000001 (Sale of Asset)
Enter
Amount *
Text +
Check Asst retirement
Enter
Asset 2001 (Plant and machinery)
Transaction Type 260 (It indicates Partial Sale)
Asset Value Date 30.06.2015
Percentage Rate 50%
Enter

Go To Document and Simulate

01 Domestic Customer 2,00,000
50 Sale of Asset 2,00,000-
75 Main Asset Building 1,50,000-
70 Accumulated Depreciation 901.64
40 Sale of Asset 2,00,000
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50 P&L Sale of Asset 50,901.64-(Profit)
SAVE

Transfer within Company Code ABUMN

Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Transfer -- ABUMN
- Transfer within Company Code
Scenario 1With Existing Asset
Double Click On ABUMN-Transfer within Company Code
Maintain Fields
Document Date 30.06.2015
Posting Date 30.06.2015
Asset Value Date 30.06.2015
Text Transfer from P&M to F&F
Check Existing Asset 3000 (Furniture and Fixtures)
Enter
Go to Menu Bar and Simulate
75 5000002 Plant and Machinery 1,50,000.00-(Asset Decrease Credit)
70 5000003 Acc Dep P&M 901.64 (AccDep Debit)
70 5000004 Furniture and Fixtures 1,50,000.00 (Asset Increase Debit)
75 5000005 Acc Dep F&F 901.64 (AccDep Credit)
Save
Scenario 2 (Transfer within Company Code with New Asset) ABUMN

Document Date 30.06.2015

Posting Date 30.06.2015
Asset Value Date 30.06.2015
Text Transfer from F&F to P&M1
Check Radio Button New Asset
Description Plant and Machinery1
Asset Class Z112

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Click On Master Data

Enter and Enter

Click On Depreciation Areas

Maintain Use life 50
Period 11
Back
Go To Menu Bar and Simulate
75 Furniture and Fixtures 300,000.00- (Asset Decrease Credit)
70 Acc Depreciation for F&F 1,967.21
70 Plant and Machenery2 300,000.00 (Asset Increase Debit)
75 Acc Depreciation for P&M 1,967.21-
SAVE
Asset Sale Without Customer
Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Retirement --
Retirement W/Revenue -- ABAON - Asset Sale Without Customer ABAON
Click On ABAON - Asset Sale Without Customer
Scenario1 (Revenue from Net Book Value 01)
Company Code II02
Enter
Document Date 30.06.2015
Posting Date 30.06.2015
Asset Value Date 30.06.2015
Text Asset Sale Without Customer
Check Radio Button Revenue from Net Book Value 01
Click On Simulate
Note: No Profit and No Loss
SAVE
Scenario 2 (Manual Revenue)
Document Date 30.06.2015

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Posting Date 30.06.2015
Asset Value Date 30.06.2015
Text Asset Sale Without Customer
Check Radio Button Manual Revenue 100000
Click On Simulate
Note: 40(Debit) 3000502 (Loss) 198,032.79
SAVE
Asset Retirement by Scrapping
Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Retirement --
ABAVN - Asset Retirement by Scrapping ABAVN
Scenario 1 (Asset Scrap)
Document Date 30.06.2015
Posting Date 30.06.2015
Asset Value Date 30.06.2015
Text Asset Scrap
Click On Simulate
Enter and SAVE
Scenario 2 (Partial Scrap)

Document Date 30.06.2015

Posting Date 30.06.2015
Asset Value Date 30.06.2015
Text Asset Scrap
Click On Partial Retirement

Amount Posted 2,00,000 (Partial )

Check From Current year Acquisition
Click On Simulate
SAVE.
Asset Explorer AW01N
Acquisition Value 400000

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Scrap of Asset 200000
Balance Acquisition Value 200000

Asset Under Construction

An asset that you produce yourself has two stages in its life that are relevant for accounting
from the point of view of your company.

1) Under construction phase 2) Useful life

Generally, an asset has to be shown in different balance sheet items, depending on the phase
that it is in. Therefore, it is necessary to manage the asset as a separate object or asset master
record during the construction phase. The transition between these two phases is called
"capitalization of the asset under construction" in the following.

You can manage the asset under construction in the system in two different ways, depending on
the types of functions that you need. The asset under construction can be either a normal asset
record, or a master record with line item management. As a result, the transfer from the asset
under construction to completed fixed assets can be handled in one of two ways:
Summary transfer from a normal asset master record to the receiver assets
Line item settlement of an asset under construction that has line item management

Distribution Rules
Line item settlement is carried out by using distribution rules. Distribution rules are asset-
specific. Several distribution rules form a distribution rule group. You can assign these groups to
one or more line items of an asset. Distribution rules consist of a distribution key and a receiver.
The distribution key can be equivalence numbers or percentage rates. In this way, you can
distribute any number of combinations of line items to any number of combinations of receivers.

Path: Financial Accounting (New) -- Asset Accounting -- Transactions -- Capitalization of

Assets under Construction -- Define/Assign Settlement Profiles OKO7
Click On Define/Assign Settlement Profiles
Double Click On Define Settlement Profile
Click On Position
Maintain Settlement Profile 'AI'
Enter
Note: No Need to Create New Settlement Rule we can use existing 'Settlement Rule'
Assign Settlement Profile to Company Code
Path: Financial Accounting (New) -- Asset Accounting -- Transactions -- Capitalization of
Assets under Construction -- Define/Assign Settlement Profiles OAAZ

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Click On Define/Assign Settlement Profiles
Double Click On Assign Settlement Profile to Company Code
Click On Position Button
Maintain Company Code II02
Enter
Maintain Settlement Profile AI
Enter and SAVE

Maintain Number Ranges for Documents for Line Item Settlement

Path: Financial Accounting (New) -- Asset Accounting -- Transactions -- Capitalization of
Assets under Construction -- Maintain Number Ranges for Documents for Line Item
Settlmt
Double Click On Change Number Ranges for Settlement Document
Click On Groups
Check Standard Accounting Document
Select Company Code II02
Select Element
Select Element /Group
In this screen we can see the Company Code II02
SAVE
Asset Under Construction Purchase F-90
Path: Accounting --Financial Accounting --Fixed Assets --Posting --Acquisition --External
Acquisition --F-90 - With Vendor
Maintain Fields
Document Date 09.06.2015
Posting Date 09.06.2015
Document Type AA
Company Code II02
Posting Key 31
Account 8000000
Enter
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Amount 200000
Text Asset Purchase
Posting Key 70
Account 4002 (AUC)
Transaction Type 100(It indicates purchase document)
Enter
Amount *
Text +
Enter
Go To Document and Simulate
AUC -Furniture and Fixtures Asset Master Data Creation AS01
Path: Accounting -- Financial Accounting -- Fixed Assets -- Asset -- AS01 - Asset
Asset Class Z113
Company Code II02
Enter
Description AUC - Furniture and Fixtures
Click On Depreciation Areas
Use life 25
Period 11
Enter and SAVE
Asset Settlement
Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Capitalize Asset u.
Const. -- AIAB - Distribute AIAB
Asset 4002 (Main AUC)
Click On Execute
Select Line Item
Click On Enter Distribution Rule
Maintain Fields
Category Settlement Receiver Percentage %
FXA 3003(AUC-F&F) 100

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Enter and Back
SAVE
Click On Execute Settlement
Maintain Fields Company Code II02
Asset 4002(Main AUC)
Document Date 30.06.2015
Asset Value Date 30.06.2015
Posting Date 30.06.2015
Text AUC (From Main Asset to AUC - F&F)
Document Type AA
Remove Tick Test Run
Click On Execute
Creation of Number Range Intervals for Depreciation Run Document Type (AF)
Go To FBN1
Company Code II02

Click On Change Intervals

Click On Insert Interval
No Year From number To number
05 2015 5000 5999
Enter and SAVE

Depreciation Run AFAB

Path: Accounting -- Financial Accounting -- Fixed Assets -- Periodic Processing --
Depreciation Run -- AFAB - Execute
Click On AFAB - Execute
Company Code II02
Fiscal Year 2015
Posting Period 1
Check Planned posting run
Check List assets

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Click On Program and Click On Execute in Background
Output Device LP01
Click On Continue
Click On Continue
Click On Immediate
Click On Check Input
Click On Save Button
Second Period Depreciation Run
Posting Period 2
Click On Program and Click On Execute in Background
Output Device LP01
Click On Continue
Click On Continue
Click On Immediate
Click On Check Input
Click On Save Button
Third Period Depreciation Run
Posting Period 2
Check Test Run
Check Error Analysis
Click On Execute
Click On Yes
Note: In this screen we can see the 'Error Analysis'
Click On 'Error List'
System shows there is no errors in this run
Back
Remove Check Test Run and Error Analysis
Click On Program
Click On Execute in Background

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Output Device LP01
Click On Continue
Click On Continue
Click On Immediate
Click On Check Input
Click On Save Button
Go To Menu Bar
Click on System, Services, Jobs, Job Overview
Click On Execute
Check last line item
Click On Spool
Click On Abap List
Note: In this Screen we can see the planned and post depreciations
Planned Depreciation Posted Depreciation
64,983.60- 8,631.14-
Memo Value
Path: Financial Accounting (New) -- Asset Accounting -- Valuation -- Amount
Specifications (Company Code/Depreciation Area) -- Specify Memo Value OAYI
Note: Is usually on depreciation area level and company code level it shows 1 rupee up
to -----
Double Click On Specify Memo Value for Depreciation Areas
Select Company Code II02
Double Click On Memo Value
01 Book Depreciation 100(Memo Value)
Enter and SAVE
Go To AFAMA
Select Z11 Buildings
Double Click On Z11 Buildings
Maintain Acq only allowed in capitalization year Default value from company code
Double Click On Assignment of Calculation

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Maintain Scrap Value Base value is reduced by the scrap value amount
Enter and SAVE

Asset Master Data Creation

Path: Accounting -- Financial Accounting -- Fixed Assets -- Asset -- Create -- As01
Double Click On AS01
Maintain Asset Class Z111 (Building)
Company Code II02
Maintain Description Buildings

Click On Depreciation Area

Maintain Fields
Depreciation Key Z11 No need to enter 'DKey' system will pick automatically
Use life 99
Period 11
Enter and SAVE
Asset purchase posting (Building)
Path: Accounting --Financial Accounting --Fixed Assets --Posting --Acquisition --External
Acquisition --F-90 - With Vendor
Maintain Fields
Document Date 01.07.2015
Posting Date 01.07.2015
Document Type AA
Company Code II02
Posting Key 31
Account 8000000
Enter
Amount 200000
Text Asset Purchase
Posting Key 70
Account 1003

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Transaction Type 100(It indicates purchase document)
Enter
Amount *
Text +
Enter
Go To Document and Simulate
SAVE
AW01N - Asset Explorer (To View Asset History)
Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Asset -- AW01N -
Asset Explorer
Click On Comparisons
Cut of Value
It is also default value from company code it will calculate on percentage base (Maintain
depreciation key level)
Path: Financial Accounting -- Asset Accounting -- Depreciation -- Valuation Methods --
Further Settings -- Define the Cutoff Value Key ANHAL
Click On Define the Cutoff Value Key
Click On New Entries
Cutoff Value Key II2
Check Scrap Value deduction from base value
Double Click On Levels
Click On New Entries
Valid to To Year of acq Validity in Yrs Months Valid Cutoff
Percentage
9999 9999 999 12 10
SAVE
Back
Maintain Cuttoff Value Name for cutoff value key
II2 Cutoff value for 10%
Enter and SAVE

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Go To AFAMA (Depreciation Key)
Double Click On Z12 Plant and Machinery
Cutoff Value Key II2
Double Click On Assignment of calculation
Scrap Vale Base Value is reduced by the scrap value amount
Enter and SAVE

Asset Master Data Creation for Plant and Machinery

Maintain Asset Class Z112 (Plant and Machinery)
Company Code II02
Maintain Description Plant and Machinery
Click On Depreciation Area
Maintain Fields
Depreciation Key Z12 No need to enter 'DKey' system will pick automatically
Use life 50
Period 11
Enter and SAVE
Asset Purchase F-90
Maintain Fields
Document Date 01.07.2015
Posting Date 01.07.2015
Document Type AA
Company Code II02
Posting Key 31
Account 8000000
Enter
Amount 100000
Text Asset Purchase
Posting Key 70

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Account 2000
Transaction Type 100(It indicates purchase document)
Enter
Amount 100000
Text Asset Purchase
Enter
Go To Document
Simulate and SAVE
AW01N - Asset Explorer (To View Asset History)
Path: Accounting -- Financial Accounting -- Fixed Assets -- Posting -- Asset -- AW01N -
Asset Explorer
Click On Comparisons

LSMW
The LSMW (Legacy System Migration Workbench) is a tool based on SAP software that
supports single or periodic data transfer from non-SAP to SAP systems.

Importing legacy data from PC spreadsheet tables or sequential files

Converting data from its original (legacy system) format to the target (SAP) format

Importing the data using the standard interfaces of SAP (IDoc inbound processing, Batch Input,
Direct Input)

The standard transfer programs: a wide range of master data (e.g. G/L accounts, customer
master, vendor master, material master, bills of material) and transaction data (e.g. financial
documents, sales orders)

1) Using LSMW we can upload any kind of data like Master data and Transaction data

2) Once we upload master data then only we upload transaction data

3) In Asset at a time we can upload asset master data and transaction data using AS91
Transaction code

4) While upload asset master data the GL account balance will not be updated in to the sap

5) Accumulated depreciation and main GL account balance that has to be uploaded individually
using OASV Transaction Code

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6) Vendor Master Data due date wise and invoice wise we can upload into SAP

7) GL data we can upload one time because those are Balance sheet items

Vendor and Customer

Open Items will upload for vendors and customers (transaction data) and we have to check
baseline date to process the outstanding amount for legacy data.

Need to create the document types for uploading the transaction data to identify the legacy
data. Document types should have separately for GL, Vendor, Customer and Asset.

Before upload we should create number ranges for these document types.

GL Balances Upload
There are two types of uploads
Mid of the year
Year and upload

Year end upload

If you are going on live on year end, the upload of p&lbalances(will taken care in the legacy
system) will carry forward to next fiscal year in the legacy system. Hence we will upload only
balance sheet accounts. (Asset and Liabilities..i.e., Share capital, Provisions, Cash, Stock,
Bank..etc).

Note: Will not upload Sundry Creditors and Sundry Debtors' separately those balances will
update while uploading the open items of vendors and customers.

Mid Year Upload

Will upload all the GL balances Including the P&L Items.

Note: P&L Balances we can upload in the single document also we can upload the balance
sheet balances, except Bank, Customers, Vendors, Fixed Assets, Stock.

Fixed Assets Upload

There are two types of uploads
Mid of the year
Year and upload

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Year end upload
If you are going on live on year end we will upload the net book value of the asset and
Accumulated depreciation using AS91. No need to update the ordinary depreciation since P&L
balances will not consider during the year end upload. Hence we will update only the
Accumulated depreciation.

Note: During the Fixed Assets upload GL balances (Asset recon account and Accumulated
Depreciation account) will not update, once upload the Asset balances using AS91 we have to
upload the Asset recon and Accumulated Depreciation account balances separately using
OASV t.code.

Mid of the year

If you are going on live on mid of the year we will upload the net book value and Accumulated
depreciation for previous year also we need to upload the current year Asset acquisition and
ordinary depreciation of current year using the AS91. Based on the transfer date which we have
maintained in the configuration input value fields will enable and capitalization date will play the
major role to enable and disable the fields. Hence we have to take care of the capitalization date
while uploading the Fixed assets.

We need to run the AFAB transaction code to post the current year depreciation accordingly
P&L account will update with ordinary depreciation based on the AO90 setup.

Note: During the Fixed Assets upload GL balances (Asset recon account and Accumulated
Depreciation account) will not update, once upload the Asset balances using AS91 we have to
upload the Asset recon and Accumulated Depreciation account balances separately using
OASV t.code.

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Project II02
Description Project 1
Enter

Description GL Master Data

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Name Upload GL Master Data
Enter

Click On Execute

Click On Execute

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Click On Display - Change

Check Batch Input Recording

Click On Recording Overview

Click On Create Recording

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Recording GLMASTER
Description Upload GL Master
Enter

Transaction Code FS00

Enter

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G/L Account 4000800
Company Code II02
Click On Create Button
Account Group EXPS Expenses
Check P&L Statement acct
Short Text Material Expenses
G/L Account Long Text Material Expenses
Click On Control Data

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Check Only Balances in Local Currency
Tax Category *
Check Posting without tax allowed
Check Line item display
Sort Key 001
Click On Create Bank Interest

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Field Status Group G004
Enter and SAVE
Note: In this GL Master date select all fields and enter, Automatically system will record all field
then whichever fields you want maintain and remove unnecessary field and SAVE

Click On Default All

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Save and Back (In this screen we can see the recording fields)
Back

Click On F4 (system will pick the GL Master)

SAVE and Back

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Click On Execute

Click On Display - Change

Click On Create a Structure

Source Structure ZGL Master

Description Upload GL Master
Enter

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SAVE and Back

Click On Object Overview

Click On Table

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Select TABNAME
Click On CTRL+Y
Select All Fields from TABNAME to XGKON
Open Excel Sheet and Paste (CTRL+V)

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Click On Data and Click On Text to Columns

Check Fixed With

Chick On Next and Next and Finish

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Remove CHAR and Maintain 'C'
Come back to Sap

Maintain Source Fields

Click On Execute

Click On Change and Display

Select Source Fields (ZGLMaster)
Click On Table Maintenance
Go To Excel Sheet

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Delete Table Name and Transaction Code

Change Fields based on SAP Screen

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Copy Fields In Excel Sheet
Go to SAP and Paste
SAVE and Back again SAVE and Back

Maintain Structure Relations

Click On Execute

Click On Change and Display

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Click On Relationship

Once Click On Relationship button you will get this message Enter and Save and Back

Maintain Field Mapping and Conversion Rules

Click on Execute

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Click on Change and Display
Go To Extras and Click on Auto - Field Mapping

Enter and Enter and Enter you will get this message' Auto Field Mapping Complete'
Enter SAVE and Back

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Note: No need to Maintain this field
Go To Excel Sheet

Copy All Field Names

Click On Sheet 2

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Click On Home
Click On Paste
Click On Transpose

Go To First Excel Sheet

Copy Length Fields

Click On Sheet 2

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Click On Home
Click On Paste
Click On Transpose

Go To First Excel Sheet

Copy Field Description Fields

Click On Sheet 2

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Click On Home
Click On Paste
Click On Transpose

G/L Account 4000800

Company Code II02
P&L Statement X
G/L Account Group EXPS
G/L Short Text Maintainece Expenses
Long Text Maintainece Expenses
Account Currency INR
Line Item Display X
Sort Key '001
Field Status Group G004
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Select Length and Field Description
Delete

Note: Remove empty Fields in Excel Sheet

CTRL+ Home
CTRL + END
SAVE

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File Name II02 GL Master Upload
Save as type Excel Work Book
Save
Note: Again check if there is any empty fields
CTRL+ Home
CTRL + END
Click on Save as Button

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Click On Excel Work book

File Name II02 GL Master Upload

Save as Type Text (Tab Delimited)
Select Desktop
SAVE

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Click On Ok

Click On Yes
Close the Excel Sheet
Go To SAP

Check Specify Files

Click On Execute

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Click On Change and Display
Click On Add Entry
Check Tabulator
Check Field Names at start of file
SAVE and Back

Assign Files
Click On Execute

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Click On Change and Display
Select Source Structures and Files
Click on Assign Files
Enter and SAVE
Back

Read Data
Click on Execute

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Click On Execute

Check Remember My Decision

Allow

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Back and Back

Display Read Data

Click on Execute

Enter

Double Click on Line Item

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Back and Back

Convert Data
Click On Execute

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Click on Execute

Back and Back

Display Converted Data

Click on Execute

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Enter

Double Click On Line Item

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Back

Create Batch Input Session

Click On Execute

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Check Keep Batch Input Folders
Click On Execute

Enter

Select Line Item

Click on Process Button

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Check Process/foreground
Click On process

Enter and Enter........

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Click On Exit Batch Input

Financial Statement Version

Financial Statement Version is a Balance Sheet and Profit and Loss Statement. The FSV
should be linked with our chart of account, The accounts can be arranged in accordance with
the legal regulations used to generate your financial statements. Alternatively, you can arrange
the accounts in accordance with your requirements.

The standard system is delivered with predefined financial statement versions. You can copy
these or modify them for your own versions.
You can define several different financial statement versions. This may be necessary if you
want to generate the financial statements using different formats: You can create a financial
statement version for different organizational units, such as the corporate group, a company
code, or a business area. You can create financial statement versions in different languages, for
example, in the language of the country in which the company code is based or in the group
language.
You can create the financial statement version in any currency you like or according to a
specific currency type. This may be necessary if you want to create consolidated financial
statements for a group of company codes with different local currencies, or if you record
transactions in other additional currencies in addition to the company code currency.
You can choose between different types of financial statements, for example, opening financial
statements or closing financial statements. You can vary the level of detail of your financial
statements. For your accounting department, for example, you want to list the individual
accounts with their respective balances. For senior management, you might want to summarize
this information to create one set of financial statements for the whole group.

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Define Financial Statement Versions

Path: Financial Accounting (New) -- General Ledger Accounting (New) -- Periodic Processing --
Document -- Define Financial Statement Versions OB58
Click On Define Financial Statement Versions
Click On New Entries
Financial Statement Version II02
Chart of Accounts II02
Enter and SAVE
Click on Financial Statement Items
Double Click On No text exists in Liability + Equity field
Maintain Item Source of Funds
Enter
Double Click On No text exists in Assets Field
Maintain Item Application of Funds
Enter
Double Click On No text exists in Net result : Profit Field
Maintain Item Net Profit
Enter
Double Click On No text exists in Net result : Loss
Maintain Item Net Loss
Enter
Double Click On No text exists in Profit and Loss Result
Maintain Item Profit and Loss Result
Enter
Double Click On No text exists in Not assigned Field
Maintain Item Not Assign G/L Accounts
Enter
Double Click On No text exists in Financial Statement Notes Field
Maintain item Notes

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Enter
Note: If you want to maintain group order wise,we can do like this.
Select Source of Funds
Click on Select +/- Button
Select Notes Field
Click On Reassign
Select Notes Field
Click On Select +/-
Select Not Assign G/L Accounts
Click On Reassign
Check Same Level and Enter
Note: Like this we need to assign all groups in order wise
Select Source of Funds
Click On Create Items
Maintain Source of Funds Groups
Share Capital
Current liabilities
Loans
Provisions
Reserves and Surplus
Enter
Select Current Liabilities
Click On Assign Accounts
From Account To Account Debit Credit
1000020 1000020 Check Check
1000030 1000030 Check Check
1001000 1001000 Check Check
Enter
Select Loans

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Click On Assign Accounts
From Account To Account Debit Credit
1000200 1000200 Check Check
1000300 1000300 Check Check
1000400 1000400 Check Check
1000700 1000700 Check Check
Enter
Select Provisions
Click On Assign Accounts
From Account To Account Debit Credit
1000500 1000500 Check Check
Enter
Select Reserves and Surplus (Retained Earning Accounts)
Click On Assign Accounts
From Account To Account Debit Credit
1000500 1000500 Check Check
Enter
Select Application of Funds
Click On Create Items
Current Assets
Fixed Assets
Investments
Enter
Select Current Assets
Click On Assign Accounts
From Account To Account Debit Credit
2000030 2000030 Check Check
2000100 2000100 Check Check
2000101 2000101 Check Check

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2000200 2000202 Check Check
2000400 2000402 Check Check
2000500 2000502 Check Check
2000700 2000700 Check Check
2001000 2001000 Check Check
2000900 2000900 Check Check
Enter
Select Fixed Assets
Click on Assign Accounts
From Account To Account Debit Credit
5000000 5000000 Check Check
5000001 5000001 Check Check
5000002 5000002 Check Check
5000003 5000003 Check Check
5000004 5000004 Check Check
5000005 5000005 Check Check
5000007 5000007 Check Check
Enter
Select Net Profit
Click On Create Items
Expenses
Revenues
Incomes
Enter
Select Expenses
Click On Assign Accounts
From Account To Account Debit Credit
4000000 4000000 Check Check
4000001 4000001 Check Check

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4000002 4000002 Check Check
4000003 4000003 Check Check
4000004 4000004 Check Check
4000100 4000100 Check Check
Enter
Select Revenues
Click On Assign Accounts
From Account To Account Debit Credit
3000000 3000000 Check Check
3000001 3000001 Check Check
Enter
Select Incomes
Click On Assign Accounts
From Account To Account Debit Credit
3000501 3000501 Check Check
3000502 3000502 Check Check
3000600 3000600 Check Check
3000700 3000700 Check Check
Enter
Check Not assigned GL
Check Button
Enter
Balance Sheet
Path: Information Systems -- Accounting - Financial Accounting -- General Ledger -- F.01
- Balance Sheet
Chart of Accounts II02
Company Code II02
Check Classical List
Execute
Classic List we can see the balance in GL Account wise

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ALV Grid Control Report
Check ALV grid control
Execute
In this screen we can see the balance in rows and columns
ALV Tree Control Report
Check ALV Tree Control
Profit 1,04,900.00

Data Medium Exchange

DME Stands for Data Medium Exchange
A data medium exchange is data exchange file which is used to send payment information of
enterprise to banks. Basically these files contain financial data which can be in flat file or xml file
format. Different file format can be created for different countries and different banks based on
their own which replaces conventional ABAP programs.

Relevant Acronyms:

PMW – Payment Medium Workbench

DME – Data Medium Exchange
DMEE – Date Medium Exchange Engine

Summary of Key Points:

Transaction to create DME tree: DMEE

Each DME tree must contain a Root level.
A DME tree must be activated before it can be used.
All DME Format trees for payments are driven by SAP standard program SAPFPAYM.
Each field in a DME tree is named an “Element.”
An Element’s subfield is called an “Atoms.” These atoms can be used to add additional
flexibility to a field.
There are 5 main types of attributes which can be assigned to an Element or Atom.
o Constant
o Structure Field

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 o Reference Tree Node
o Aggregation
o Exit Module
Each node of the DME tree can contain IF statements in the form of conditions.

DME Tables Used for Mapping:

FPAYH - Payment medium: Payment data

FPAYHX - Payment Medium: Prepared Data for Payment
FPAYP - Payment medium: Data on paid items
DMEE_PAYD - DMEE: Structure for Note to Payee Data

Maintain DME Program in FBZP

Click On Payment Methods in Country

Double Click On F Payment Method for Transfer

Maintain Payment Medium Format ACB_ZA

Enter and SAVE
Maintain Tree type DMEE (Transaction Code)
Maintain Tree type PAYM (Standard Tree)
Format Tree ACB_ZA
Click On Display
In this screen we can view header fields and transaction fields
Double Click On Record Ident
Click On Source
Here we can see the constant Value which is available in standard sap 02
Double Click On Volume Number
Click On Source
Here we can see the constant Value which is available in standard sap 1001
Double Click On Tape Serial
Click On Source
Here we can see the constant Value which is available in standard sap 98989898
Double Click On Installation Header
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Click On Source
Here we can see the constant Value which is available in standard sap 0021
Note: In this DMEE Screen no need to do any changes we can observe the Fields
Mapping Using DME Engine OBPM1
Double Click On ACB_ZA
Check Mapping Using DME engine
Enter and SAVE

Define Further Variant OBPM4

Double Click On ACB_ZA
Click On Define Further Variant
Maintain Selection Variant S001
Click On Yes
Check Created
Enter
Payment Medium Format ACB_ZA
Enter
Click On Print Parameters
Installation ID 10
User ID 100
Reference Code 900
Account Holder SBI
Holiday Calendar Id 90
Enter
Output Device LP01
Enter
Check Payment Document Validation
Check Output to File System

Open New Screen for Sap Directory

Go To AL11

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Copy this file name D:\usr\sap\ccms\
Come back to OBPM4
Paste File in File Name D:\usr\sap\ccms\
Click On Attribute
Maintain Variant DMEE
SAVE
Click On Back
Maintain Variant S001
SAVE

Withholding tax
Withholding tax is applicable in few countries. Some of the countries which have withholding tax
are United Kingdom, Slovakia, Turkey, Argentina, Brazil, Chile, Colombia, Mexico, India,
Philippines , Thailand and South Korea. SAP has given an excellent solution to map the
withholding tax scenario.
In any business transaction there are two parties involved. One is the customer and another is
the vendor. A customer is authorized to deduct withholding tax for services rendered by the
vendor. When the vendor raises the invoice on the customer, the customer deducts the
withholding tax as per the rates specified by the tax authorities and pays the balance money to
the vendor.
The tax deducted by the vendor is remitted to the tax authorities on specified due dates. The
vendor gives a Withholding tax certificate to the customer for the withholding tax deducted.
The customer can claim this withholding tax (as advance income tax paid) in his annual returns
to Income tax authorities. In some countries (like India) the withholding tax is deducted on
Invoice or payment whichever is earlier. Thus when an advance is paid to the vendor the
customer is required to deduct withholding tax on the advance payment.
When the Vendor submits an Invoice the customer is now required to deduct tax on the Invoice
amount reduced by the advance amount.
To calculate pay and report the withholding tax, the SAP system provides two functions:-
1 Classic Withholding tax
2 Extended Withholding tax

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Extended Withholding tax includes all the functions of classic withholding tax; SAP therefore
recommends the use of extended withholding tax.
This document will cover the Extended withholding tax functionality.

Check Withholding Tax Countries

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --
Withholding Tax -- Extended Withholding Tax -- Basic Settings -- Check Withholding Tax
Countries
Click On Check Withholding Tax Countries
Country IN
Enter
Click On New Entries
Country Key Withholding Tax Country Key Description
IN IN INDIA
Enter and SAVE

Define Withholding Tax Keys

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --
Withholding Tax -- Extended Withholding Tax -- Basic Settings -- Check Withholding Tax
Keys
Click On Define Withholding Tax Keys
Country Key IN
Enter
Click On New Entries
Withholding Tax Key Name
192 Salary
193 Interest On Securities
194A Interest
194C Payment to Contractors
194H Brokerage Commission
194I Rent

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194J Professional & Technical Series
Enter and SAVE

Define Business Places

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --
Withholding Tax -- Extended Withholding Tax -- Basic Settings -- India -- Define Business
Places
Click On Define Business Place
Click New Entries
Company Code Section Code Name
II02 II02 Section Code for II02
Enter
Title Company
Name Sri Enterprises
Street Madhapur
House number 415
Postal Box 570002
Postal Code 570002
Enter
SAVE

Assign Factory Calendars to Business Places

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --
Withholding Tax -- Extended Withholding Tax -- Basic Settings -- India -- Assign Factory
Calendars to Business Places
Click On New Entries
Company Code Business Place Factory Calendar Tax Due Date
Rule
II02 II02 Z1 -Day Before
Note: Once you enter the parameters you will get this message

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Go To SM30
Enter Error Message J_1BBRANCH
Click On Find Maintenance Dialog
Enter
Double Click On J_1BBRANCV
Click On Maintain Tab
Company Code II02
Click On New Entries
Company Code II02
Business Place II02 Business Place for II02
Enter and SAVE
Enter Back
Define Section Code
Company Code II02
Business Place Name
II02 Business Place for II02
Enter and SAVE
Define Withholding Tax Type for Invoice Posting
Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) ---
Withholding Tax -- Extended Withholding Tax -- Calculation -- Withholding Tax Type --
Define Withholding Tax Type for Invoice Posting
Note: : It Indicates used to classify the different types of withholding tax
Click On Define Withholding Tax Type for Invoice Posting
Country Key IN
Enter
Click On New Entries
Withholding Tax Type Z1
Description Withholding Tax Type for II02
Check Gross Amount
Check Round with Tax Amount Up

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Enter
Define Withholding Tax Type for Payment Posting
Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) ---
Withholding Tax -- Extended Withholding Tax -- Calculation -- Withholding Tax Type --
Define Withholding Tax Type for Payment Posting
Click On Define Withholding Tax Type for Payment Posting
Country Key IN
Enter
Click On New Entries
Withholding Tax Type Z2
Description Withholding Tax Type for Payment Posting
Check Gross Amount
Check Round with Tax Amount Up
Check Central Invoice proportionately
Enter
Define Rounding Rule for Withholding Tax Type
Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) ---
Withholding Tax -- Extended Withholding Tax -- Calculation -- Withholding Tax Type --
Define Rounding Rule for Withholding Tax Type
Click On New Entries
Company Code Withholding Tax Type Currency Unit
II02 Z1 INR 100
II02 Z2 INR 100
Enter and SAVE

Define Withholding Tax Codes

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --
Withholding Tax -- Extended Withholding Tax -- Calculation -- Withholding Tax Code --
Define Withholding Tax Codes
Withholding tax code : It determines the various percentage rates for the withholding tax type
Click On Define Withholding Tax Codes
Country Key IN
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Click On New Entries
Withholding Tax Type Z1

Withholding Tax Code Z1

Official Withholding Tax Key 192 (Salaries)

Description 192 10% Tax Code for Invoice Posting

Percentage Subject to tax 100

Withholding Tax Rate 10

Posting Indicator 1

Enter and SAVE

Click On Next Entry

Withholding Tax Type Z2

Withholding Tax Code Z2

Official Withholding Tax Key 192 (Salaries)

Description 192 10% Tax Code for Payment Posting

Percentage Subject to tax 100

Withholding Tax Rate 10

Posting Indicator 1

Enter and SAVE

Posting Key Indicator: If you set the posting indicator "1", the withholding tax amount is
deducted from the vendor line item amount and or bank line item, and a withholding tax line item
automatically created.

Assign Withholding Tax Types to Company Codes

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax -- Company Code -- Assign Withholding
Tax Types to Company Codes

Click On Assign Withholding Tax Types to Company Code

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Click New Entries

Company Code II02

Withholding tax Type Z1

Check Withholding/tax agent

W/tax obligated from 01.06.2015 Obligated to w/tax until

31.03.9999

Enter and SAVE

Click On Next Entry

Company Code II02

Withholding tax Type Z2

Check Withholding/tax agent

W/tax obligated from 01.06.2015 Obligated to w/tax until

31.03.9999

Enter and SAVE

Activate Extended Withholding Tax

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax -- Company Code -- Activate Extended
Withholding Tax

Click On Activate Extended Withholding Tax

Company Code II02

Company Code Company Name Extended W/Tax

II02 II Solution Check

Enter

SAVE

Creation of TDS Payable G/L Account

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Go To FS00

G/L Account 1002000

Company Code II02

Account Group Liability

Check Balance Sheet Account

Short & Long Text 192 Salary TDS Payable

Click On Control Data

Check Only Balances in Local Currency

Check Open Item Management

Check 001

Click On Create/bank/interest

Field Status Group G001

SAVE

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

Click On Define Accounts for Withholding Tax To Be Paid Over

Chart Of Accounts II02

Enter

Check Withholding Tax Code

Check Withholding Tax Type

Enter and SAVE

Withholding Tax Type Withholding Tax Code Account

Z1 Z1 1002000

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 Z2 Z2 1002000

Enter and SAVE

Certificate Numbering for Withholding Tax

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax --Posting -- Certificate Numbering for
Withholding Tax -- Define Numbering Classes

Click On Define Numbering Classes

Click On New Entries

Number Class Text

01 Number Class for Remittance

Enter and Save

Assign Numbering Group to Numbering Class

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax --Posting -- Certificate Numbering for
Withholding Tax -- Assign Numbering Group to Numbering Class

Click On Assign Numbering Group to Numbering Class

Click On New Entries

Company Code II02

Numbering Class 01

Enter

Note: Once you press enter automatically system will pick numbering group

Numbering Group 000019

SAVE

Note: Once you press save button system will pick number range automatically

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Specify Document Type (Accounts Payable)

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax --Posting -- India -- Remittance Challan's --
Document Types -- Specify Document Type (Accounts Payable)

Click On Specify Document Type

Click On New Entries

Company Code Document Type for Remittance Chillan's

II02 KZ

Enter and SAVE

Maintain Number Groups

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax --Posting -- India -- Remittance Chillan's --
Maintain Number Groups

Click On Maintain Number Groups

Click On New Entries

Company Code Section Code Official Withholding Tax Key Number Group

II02 II02 192 19

Enter and SAVE

Assign Number Ranges to Number Groups

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax --Posting -- India -- Remittance Chillan's --
Assign Number Ranges to Number Groups

Click On New Entries

Number Group Number range Interval

19 01

Enter and SAVE

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Maintain Number Ranges

Path: Financial Accounting (New) -- Financial Accounting Global Settings (New) --

Withholding Tax -- Extended Withholding Tax --Posting -- India -- Remittance Chillan's --
Maintain Number Ranges
J1INUMBER

Click On Maintain Number Ranges

Click on Groups

Check Group Without Text

Click On Change Button

Company Code II02

Enter

Year From Number To Number

2015 9000 9999

Enter and SAVE

Maintain Number Groups and SAP script Forms

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

Click On New Entries

Company Code Section Code Withholding Tax Key From Number

Group

II02 II02 192 J_1IEWT_CERT 19

Enter and SAVE

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

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Click On new Entries

Number Group Number Range Intervals

19 01

Enter and SAVE

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

Click On Maintain Number Ranges

Click On Groups

Check Group Without Text

SAVE

Note: In Ecc6 Once we create number range then come back and assign those number
range to Group
Maintain Company Code Settings
PATH: SPRO--Logistic General--Tax on Goods Moment--India--Basic Settings--Maintain
Company Code Settings
Click On Maintain Company Code Setting
Click On New Entries
Company Code II02
Enter and SAVE

Update the Tables In SM30

Path: SAP Easy Access -- System --Services -- Table Maintenance -- Extended Table
Maintenance
Click On Extended Table Maintenance
Table/View J_1IEWT_CERTNO
Click On Maintain

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Click On New Entries
Number Group Number Range Intervals
19 01
Enter and SAVE
Table/View J_1IEWT_CERT_N
Click On Maintain
Note: If exciting was there no need to create
Back
Table/View J_1IEWTNUM
Click On Maintain
Note: If exciting was there no need to create
Back
Table/View J_1IEWTNUMGR
Click On Maintain
Click On New Entries
Company Code II02
Business Place II02
Withholding Tax Key 192
Number Group 19
SAVE and Back
Table/View J_1IEWTNUMGR_1
Click On Maintain
Note: If exciting was there no need to create
Back
Table/View J_1IEWTNUMGR_N
Click On Maintain
Click On New Entries
Company Code Section Code Withholding Key Number Group
II02 II02 192 19

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Enter and SAVE
Back
Table/View J_1IEWT_ACKN

Click On Maintain
Click On New Entries
Company Code Year Section Code Form Type Period
Acknowledgement
II02 2016 II02 26Q First Quarter 123
II02 2016 II02 26Q Second Quarter 1234
II02 2016 II02 26Q Third Quarter 12345
II02 2016 II02 26Q Fourth Quarter 123456
Enter and Save
Back
Table/View J_1IEWT_ACKN_N
Click On Maintain
Click On New Entries
Company Code Year Section Code Form Type Period
Acknowledgement
II02 2016 II02 26Q First Quarter 123
II02 2016 II02 26Q Second Quarter 1234
II02 2016 II02 26Q Third Quarter 12345
II02 2016 II02 26Q Fourth Quarter 123456
Enter and Save
Assign Tax Type and Tax Code in Vendor Master Data FK02
Vendor 8000000
Company Code II02
Check Withholding Tax
Enter
Withholding Type Withholding Tax Code Liable Description
Z1 Z1 Check Withholding Tax Type for Invoice

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Z2 Check Withholding Tax Type for Payment
Note: If you maintain payment Tax Code in Vendor Master Data, TDS will be deduct while doing
the final payment using F-53/F110 which should not deduct the TDS. Hence will not maintain
the payment tax code in vendor master (Those tax code will always be blank)

Liable: If you set this indicator, you tell the system that the vendor is subject to withholding tax
for this

withholding tax type.

To Update CIN Details

Path: Financial Accounting (New) -- Logistics - General -- Tax on Goods Movements --

India -- Master Data -- Assign Users to Material Master Screen Sequence for Excise Duty
OMT3E

Click On Assign users to material master screen sequence for Excise Duty

Double Click On User Screen Reference

Click On New Entries

Name SAPUSER

Enter and SAVE

To Update PAN Details in Vendor Master Data

Go To FK02

Vendor 8000000

Check Address Field in General Data

Enter

Click On CIN Details

.Click On Withholding Tax

PAN Number BLQP57849

Enter and Back

SAVE

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Vendor Down Payment

Go To F-48

Document Date 30.06.2015

Posting Date 30.06.2015

Company Code II02

Account 8000000

Special G/L Indicator Q

Account 2000102

Amount 50000

Value Date 30.06.2015

Text Vendor Down Payment

Enter

Amount *

Text +

Business Area and Section Code II02 II02

Enter

Withholding Tax Type Withholding Tax Code

Z2

Enter

Go To Document and Simulate

Double Click On 192 Salary TDS Payable Line Item

Text TDS Payable

Back and SAVE

To Post the Vendor Invoice

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Go To FB60

Vendor 8000000

Invoice Date 30.06.2015

Posting Date 30.06.2015

Amount 100000

Business place & Section Code II02 II02

Text Vendor Invoice

G/L Account 4000900 (Material Expenses)

Amount 100000

Text Material Expenses

Enter

Go To Document and Simulate

Double Click On 192 Salary TDS Payable Line Item

Text TDS Payable

Back and SAVE

To Reverse Down payment TDS Amount

Go To F-54

Document Date 30.06.2015

Posting Date 30.06.2015

Invoice 19007

Text TDS Reverse

Enter

Select Line Item

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Go To Document and Simulate

Double Click On 192 Salary TDS Payable

Back and SAVE

Note: While doing the down payment TDS will be deducte from the down payment and need to
reverse the amount using the F-54 with reference of invoice.

TDS Remittance Challan Update

PATH: Accounting--Financial Accounting--Accounts Payable--Withholding Tax--India--

Extended Withholding Tax--Remittance of Withholding Tax--J1INCHLN - Create
Remittance Challan

Go To J1INCHLN

Company Code II02

Fiscal Year 2015

Business Place/Section Code II02 II02

Posting Date 30.06.2015

Section 192

Vendor 8000000

Document Date 30.06.2015

Bank Account 2000102

Click On Execute

Amount 1

Value Date 30.06.2015

Text TDS Challan

Enter

Click On Document Overview

Double Click On HDFC Outgoing Bank Line Item

Remove 1
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Maintain *

Enter

Go To Document and Simulate

In this Screen we can see the TDS Payable Amount 10000

SAVE

In this screen we can see the Clearing Document

To Update Bank Challan J1INBANK

PATH: Accounting--Financial Accounting--Accounts Payable--Withholding Tax--India--

Extended Withholding Tax--Remittance of Withholding Tax-- J1INBANK - Enter Bank
Challan

Go To J1INBANK

Company Code II02

Fiscal Year 2015

Challan Clearing Number Click F4 Maintain Number 15013

Internal Challan Number 000000009000

Internal Challan Date 30.06.2015

Bank Challan Number II02

Bank Challan Date 30.06.2015

Bank Key HDFC

Click On Execute

In this screen we can see the updated Bank Challan

TDS Certificate Printing J1INCERT

PATH: Accounting--Financial Accounting--Accounts Payable--Withholding Tax--India--

Extended Withholding Tax-- Certificates-- J1INCERT - Print

Company Code II02

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Fiscal Year 2015

Business and Section Code II02

Section 192

Posting Date 30.06.2015

Bank Challan Number II02

Bank challan Date 30.06.2015

Vendor 8000000

Certificate Date 30.06.2015

Signatory SRIRAM

Father's Name M S N Raju

Designation Lead

Place of Printing Hyderabad

Click On Execute

Output Device LP01

Click On Print Preview

In this form 16Certificate we can see the Deducted TDS Amount 10000

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