SAP FI NOTES

PUNNAM VENKAT
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SAP FI - INDEX

Sl. No Topic Page No.s

1. SAP Introduction 1.1 – 1.5
2. Enterprise Structure 2.1 – 2.13
3. Global Parameters 3.1 – 3.15
4. New GL_Profit Center 4.1 – 4.10
5. New GL_Document Splitting 5.1 – 5.8
6. New GL_Parallel Accounting 6.1 – 6.7
7. GL Document type and Number Range 7.1 – 7.4
8. GL Master Configuration 8.1 – 8.11
9. GL Document Postings 9.1 – 9.9
10. Document Reversals 10.1 – 10.7
11. Park Document 11.1 – 11.6
12. Hold Document 12.1 – 12.2
13. Sample Document 13.1 – 13.3
14. Recurring Document 14.1 – 14.5
15. Foreign Currency Valuation 15.1 – 15.15
16. Accounts Payable 16.1 – 16.26
17. Accounts Receivable 17.1 – 17.25
18. Terms of Payment 18.1 – 18.31
19. Vendor & Customer Balance Carry Forward 19.1 – 19.8
20. Special GL Indicators Vendors and Customers 20.1 – 20.30
21. Year Activity Number Ranges 21.1 – 21.12
22. Cross Company Code Transactions 22.1 – 22.12
23. Vendor as Customer Vice Versa 23.1 – 23.18
24. Goods and Service Tax 24.1 – 24.68
25. Tax Deduction at Source 25.1 – 25.41
26. House Bank 26.1 – 26.28
27. Automated Payment Program 27.1 – 27.62
28. Bank Reconciliation Statement 28.1 – 28.25
29. Asset Accounting 29.1 – 29.111
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SAP- INTRODUCTION
(IF LOCKED, SM12)

• Stands for Systems application and Products for data processing.

• It is an ERP Software developed by the 5 Ex-employees of IBM in 1972.
1. Wellenreuther
2. Hopp
3. Hector
4. Plattner
5. Tschira
• ERP contains all the information available at one place (Different departmental information)
• We have more than 37 modules. EX: fi-financial accounting, CO- Controlling (mgmt.
accounting) etc..,
• SAP R/3 is the former name of ERP
• Current successor software to SAP R/3 is SAP S4 HANA.

SAP R/3:
SAP R/3 architecture consist of 3 layers

User enters the data. Processing the data. Stores the data.

Presentation Layer Application Layer Database layer.

• Provides graphical • Process data using • Stores and provides data

screen to the user. application logic. to the user.
• User enters data on • Communicates with
this screen. the both layers.
• Shows processed • Acts as a bridge
data to the user. between both layers.

• Final objective of FI Consultant is preparing financial statements.

• Final objective of CO Consultant is preparing Cost sheet for the products.

1.1 | P a g e Satish Makam SAP- Introduction

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Projects of SAP

4 types of projects

Implementation Supporting

Rollout Enhancement

1: Implementation Project:
• Implementing SAP for non-usage companies.
• Moving data from Non SAP to SAP.
• As per SAP, Non SAP systems are called Legacy Systems.
• Duration is min 1 to max 2 years
2: Supporting Project:
• After implementation, if end uses struck then consultant supports.
• Duration is min 2 yrs. to Max 20yrs.
3: Rollout Project:

• Rolling out the SAP software to different countries, setting up TAX, currency, rules etc.
• Duration is min 4 months to max 6 months.
4: Enhancement Project:
• Enhancement project is nothing but updating the version (ex. S4 HANA)
• Duration when required.

1.2 | P a g e Satish Makam SAP- Introduction

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Points to be noted:
1. End user will use SAP easy access screen for production. Consultant will use SPRO screen (or)
Display IMG screen.
2. End user will post the entries. Consultant will do the configuration.
3. Every transaction will have 1 path and 1 T-code.

DATA in SAP

3 Types of data

Configuration data Master Data Transactional data

Whatever we do on SPRO/ Accounting entries

Creation of Departments
Display IMG Screen (client, posting data
(GL, AR, AP etc..,)
plant etc..,) (Documentary posting).

All the data will be saves in

DATABASE LAYER

1.3 | P a g e Satish Makam SAP- Introduction

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Types of Servers in SAP

3 servers

Development server

TRIfbadTR

Quality Server

If goodTR

Production Server

1.4 | P a g e Satish Makam SAP- Introduction

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1: Development server:
• Used by consultant.
• Consultant will do the configuration.
• After configuration, they will move the data from development server to quality server by
TR(Transport Request).
2: Quality Server:
• Used by Consultant.
• We do the Testing on data which we received from development server.
• If testing is good then sent to Production server.
• If testing is bad then sent to Development server.
3: Production Server:
• Used by the End-user.
• End-user will Post the real time entries in this server
• Report Generation will happen here.

TR Creation:
• It is kind of container/Collection of changes that are made in the development system.
• It also records the information regarding the type of change, the purpose of transport
request category and the target system.
• It also known as change requests.
• As per customized SAP we have 2 types of TR’s
1. Customized TR-Used by Functional consultant.
2. Workbench TR-Used by the Technical Consultant.
• T-Code for TR is SE10.
• Path of creation is
SAP easy access screen Enter SE10 in command box Click on create select Customized TR.

1.5 | P a g e Satish Makam SAP- Introduction

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ENTERPRISE BUSINESS STRUCTURE

In order to implement SAP, first we need to understand the organizational Structure of the
Clients.

Business Terms (Non –SAP)

EM GROUP OF COMPANY

EM CEMENT LTD EM STEEL LTD

EM OPP CEMENT SEGMENTEM PPP CEMENT SEGMENT EM STEEL SEGMENT EM STEEL ROD SEGMENT

FinanceFinanceFinanceFinance

HR HRHRHR

Sales SalesSalesSales

Purchase PurchasePurchasePurchase

Etc.., Etc.., Etc.., Etc..,

HYD BAN MUM CHE HYD BAN MUM CHE

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Business Terms (SAP)

COMPANY (AGOC)

COMPANY CODE( AC01) COMPANY CODE(AS01)

SEGMENT SEGMENTSEGMENTSEGMENT

FUNCTIONAL AREA FUNCTIONAL AREA

Business Area (Branches) Business Area

1. Creation of TR Request SE10

SAP Menu--> Customizing--> IMG--> SE10 - Transport Organizer (Extended View)

2.2 | P a g e Satish Makam Enterprise Structure

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UNDER DEFINATION:

2. Define company IMGOC OX15

SPRO--IMG path: Enterprise Structure –> Definition –> Financial Accounting –> Define Company

3. Creation of Company Code: IM10-IM Steels Private Limited OX02

SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define, Copy, Delete, Check
Company Code

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4. Creation of Company Code: IM20-IM Cement Limited

5. Creation of Business Area OX03

SPRO–>Enterprise Structure –> Definition –> Financial Accounting –> Define Business Area

2.4 | P a g e Satish Makam Enterprise Structure

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6. Creation of Functional Areas FM_FUNCTION

SPRO–> Enterprise Structure –> Definition –> Financial Accounting –> Define Functional Area
(Path is not working)

2.5 | P a g e Satish Makam Enterprise Structure

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2.6 | P a g e Satish Makam Enterprise Structure

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2.7 | P a g e Satish Makam Enterprise Structure

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7. Maintain Consolidation Business Area OCC1

SPRO–> Enterprise Structure –> Definition –> Financial Accounting –>Maintain Consolidation Business
Area

2.8 | P a g e Satish Makam Enterprise Structure

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8. Maintain FM Area OF01

SPRO–> Enterprise Structure –> Definition –> Financial Accounting –>Maintain FM Area

9. Define Segment
SPRO –> Enterprise Structure –> Definition –> Financial Accounting –> Maintain FM Area

2.9 | P a g e Satish Makam Enterprise Structure

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10. Define Credit Control Area OB45

SPRO –> Enterprise Structure –> Definition –> Financial Accounting –>Define Credit Control Area

Points to be noted:
1. When we have to create the company code then we need to use
Definition in Enterprise structure.
2. When we have to Map the company code then we need to use
Assignment in Enterprise structure.

2.10 | P a g e Satish Makam Enterprise Structure

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UNDER ASSIGNMENT:

11. Assignment of Company Code to Company OX16

SPRO –> Enterprise Structure –> Assignment –> Financial Accounting –> Assign Company Code
toCompany

• Enter company code in the box that appears.

• After enter the Company code, a page appears with our company code on the top. Now
enter the company(which we created in the definition ) . If you don’t remember then click
on search and go for your company
• Enter save under our TR

2.11 | P a g e Satish Makam Enterprise Structure

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12. Assignment of Company Code to Credit Control Area OB38

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

13. Assign Business Area to Consolidated Business Area OBB6

SPRO ->Enterprise Structure -> Assignment -> Financial Accounting -> Assign Business area to
consolidation business area

2.12 | P a g e Satish Makam Enterprise Structure

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14. Assign Company Code to Financial Management Area OF18

SPRO ->Enterprise Structure -> Assignment -> Financial Accounting ->Assign Company Code to Financial
Management Area

2.13 | P a g e Satish Makam Enterprise Structure

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GLBAL PARAMETERS
1. CHART OF ACCOUNTS
2. FISCAL YEAR VARIENT
3. HOSTING PERIOD VARIANT
4. FIELD STATUS VARIENT
5. TOLERANCE
6. EXCHANGE RATES
7. CURRENCY SETTINGS
8. COMPANY CODE GLOBAL PARAMETERS
9. DOCUMENT TYPE
10. NUMBER RANGES

1: CHART OF ACCOUNTS (LIST OF GL'S)

There are 3 types of General ledger accounts/Chart of accounts.

Chart of accounts

Operational Country specific Group Chart of a/c’s

GL’S used for day to GL’S used for only used for high level
Financial transactions. specific country EX: GST reporting

3.1 | P a g e Satish Makam Global Parameters

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1. Define Chart of Accounts = IMOC IM Operational Chart of Accounts OB13

SPRO -> Financial Accounting (New) --> General Ledger Accounting (New) --> Master Data --> G/L
Accounts --> Preparations--> Edit Chart of Accounts List

2. Assign Company Code to Chart of Accounts:IM10=IMOC, IM20=IMOC OB62

SPRO -> Financial Accounting (New) --> General Ledger Accounting (New) --> Master Data --> G/L
Accounts --> Preparations--> Assign Company Code to Chart of Accounts

• A/C’S group is classifying the GL accounts.

• While creating the accounts group we will setup one number range. This number range update
when we create GL.
• It means every GL account update one number from accounts group number range.
• Accounts group comes under chart of accounts.

Configuration flow of chart of accounts:

posting
COMPANY Chart of Accounts GL Mater
a/c'g Reposting.
CODE a/c's group data
entries

3.2 | P a g e Satish Makam Global Parameters

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3. Define Account Group OBD4

SPRO -> Financial Accounting (New) --> General Ledger Accounting (New) --> Master Data --> G/L
Accounts --> Preparations--> Define Account Group

COA Accounts Group Names from a/c to a/c

IMOC SHCA Share Capital 100000 109999
IMOC R&S Reserves & Surplus 110000 119999
IMOC SELS Secured Loans 120000 129999
IMOC UNLS Unsecured Loans 130000 139999
IMOC SUCR Sundry Creditors 140000 149999
IMOC TAPA Tax Payables 150000 159999
IMOC CULI Current Liabilities 160000 169999
IMOC FIAS Fixed Assets 200000 209999
IMOC INES Inventories 210000 219999
IMOC CABA Cash & Bank 220000 229999
IMOC SUDE Sundry Debtors 230000 239999
IMOC TARE TAX Receivables 240000 249999
IMOC CUAS Current Assets 250000 259999
IMOC MRNS Misc. Expenses Written off 260000 269999
IMOC SARE Sales Revenues 300000 309999
IMOC SADE Sale Deductions 310000 319999
IMOC OTIN Other Incomes 320000 329999
IMOC INDE Increase / Decrease in Stocks 330000 339999
IMOC RAMA Raw Material Consumption 400000 409999
IMOC PLEX Personal Expenses 410000 419999
IMOC DIEX Direct Expenses 420000 429999
IMOC SADI Sales & Distribution Exp 430000 439999
IMOC INEX Indirect Exp 440000 449999

3.3 | P a g e Satish Makam Global Parameters

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Retained earning a/c:

• It is one of the GL a/c that helps to move the yearend Net profit/ net loss from P&L
a/c to B/s automatically.
• For this purpose we need to do 2 step activities.
I. Create GL a/c as Retained earning a/c
II. Assign the retained earning a/c.
• This a/c comes under Reserves and surplus.

4. Define Retained Earnings Account OB53

SPRO -> Financial Accounting (New) --> General Ledger Accounting (New) --> Master Data --> G/L
Accounts --> Preparations--> Define Retained Earnings Account

5. Maintain Fiscal Year Variant I4=IM Apr-March,4 SP OB29

SPRO-> Financial Accounting (New)--> Financial Accounting Global Settings (New)-> Ledgers-> Fiscal
Year and Posting Periods --> Maintain Fiscal Year Variant
In SAP we have 2 types of fiscal years

I. Dependent year-it means it will not automatically change after completion of fiscal year.
II. Independent year- it means it will automatically change once completion of fiscal year

3.4 | P a g e Satish Makam Global Parameters

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Copy V3 to I4(any name) and save Click on periods

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6. Assign Company Code to a Fiscal Year Variant IM10=I4 OB37

SPRO-> Financial Accounting (New)-> Financial Accounting Global Settings (New)--> Ledgers-> Fiscal
Year and Posting Periods-> Assign Company Code to a Fiscal

Open and Close posting period:

• This controls end user posting entry period.

• It control with month end-user want to post and which not to post.

• For this configuration we require 3 steps:

3.6 | P a g e Satish Makam Global Parameters

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7. Define Posting Period Variant IMPV - IM Posting Period Variant OBBO

SPRO-> Financial Accounting (New)--> Financial Accounting Global Settings (New)-> Ledgers-> Fiscal
Year and Posting Periods-> Posting Periods-> Define Variants for Open Posting Period

8. Assign Variants to Company Code OBBP

SPRO-> Financial Accounting (New)-> Financial Accounting Global Settings (New)-> Ledgers --> Fiscal
Year and Posting Periods-> Posting Periods-> Assign Variants to Company Code

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9. Open and Close Posting Periods OB52

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Fiscal Year and Posting Periods -> Posting Periods -> Open and Close Posting Periods

Short Names:
I. A-ASSETS
II. D-Customer
III. M-material
IV. K-vendors.
V. S- G/L a/c’s
VI. V-Contact Account

10. Define Field Status Variants IMFV Field Status for IM OBC4
SPRO-> Financial Accounting (New)--> Financial Accounting Global Settings (New)-> Ledgers-> Fields
--> Define Field Status Variants

It helps to control the fields during a/c’g entry posting. In every field there are 4 options: (0001
standard one)
I. Required- mandatorily posted here.
II. Optional- optionally posted here
III. Display-we can only see but we can’t post.
IV. Suppress-it will not appear at all while posting.

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3.9 | P a g e Satish Makam Global Parameters

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11. Assign Company Code to Field Status Variants IM10=IMFV, IM20=IMFV OBC5
SPRO -- > Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Fields --> Assign Company Code to Field Status Variants

3.10 | P a g e Satish Makam Global Parameters

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12. Define Tolerance Groups for G/L Accounts : GL Tolerance for IM10 OBA0
SPRO --> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions -->
Open Item Clearing --> Clearing Differences --> Define Tolerance Groups for G/L Accounts
We can define the tolerance group as a set of assigned authorization of users using the
SAP ERP software. The tolerance group helps in specifying the group of accounting clerks
to determine the amounts granted to post.

In case if the amount is less than the limit, SYSTEM WILL ALLOW TO POST.

As per standard SAP, we have 4 types of Tolerances,

I. G/L Tolerance
II. EmployeeTolerance
III. Customer Tolerance
IV. Vendor Tolerance

In SAP Terminology, we called outstanding values as Open item value.

3.11 | P a g e Satish Makam Global Parameters

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13. Define Tolerance Groups for Employees OBA4

SPRO --> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions
--> Open Item Clearing --> Clearing Differences --> Define Tolerance Groups for Employees

14. Assign User to Tolerance Groups OB57

SPRO --> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions -
-> Open Item Clearing --> Clearing Differences --> Assign Users to Tolerance Group

3.12 | P a g e Satish Makam Global Parameters

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CURRENCY SETTINGS:
We have 3 types of currencies in SAP

1:Local currency/company code currencySCC4- Currency in which financial reports need to be

prepared for local authority, e.g. Indian company code will have local currency INR.

Maintained at company code level. Maintained on the screen where company code is defined.

2: Transaction currency/ document currency-Currency in which business transaction takes place e.g.
Indian company code doing export to European customer. Document will be posted in euro
currency. Document currency is entered at the time of document posting.

3:Group currency (Document Entry Posting)-Currency in which group consolidation is going to

happen, normally it’s the currency of the country where main company is located.

Maintained at client level

15. Check Exchange Rate Types (M - Average; P Planning ; B-selling rate) OB07
SPRO--> SAP Net Weaver --> General settings --> Currencies --> Check Exchange Rate Types
(click on position and enter M)

Rate Between Any Two Currencies (ex: 1USD=? INR)

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16. Define Translation Ratios for Currency Translation OBBS

SPRO -> SAP Net Weaver -> General Settings -> Currencies -> Define Translation Ratios for Currency
Translation

17. Enter Exchange Rates OB08 IN REAL-TIME,ABAPER WILL UPDATE

SPRO--> SAP Net Weaver --> General settings --> Currencies --> Enter Exchange Rates

3.14 | P a g e Satish Makam Global Parameters

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18. Define Maximum Exchange Rate Differences per Company Code OB64
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Global
Parameters for Company Code--> Currencies --> Maximum Exchange Rate Difference --> Define
Maximum Exchange Rate Difference per Company Code
In this activity, you define, per company code, a maximum difference between exchange rates for postings in
foreign currency. To do this, you specify how much the exchange rate entered manually in the document
header may differ in terms of per cent from the one stored in the system.

19. Company Code Global Parameters OBY6

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Global
Parameters for Company Code --> Enter Global Parameter-Position

3.15 | P a g e Satish Makam Global Parameters

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NEW GL CONCEPTS:
1. Documents splitting.
2. Parallel accounting.
3. Profit centre and segment reporting.
4. FICO reconciliation.

• New GLS concepts are introduced from ECC6.0 Version onwards. Before
ECC6.0 version there are no New GLs concepts.
• New GLs concepts introduced for reporting purpose

Profit Centre:

• A profit centre accounting is a division within the entity that is treated separate
from the corporation.

• The purpose of creating a profit centre is to calculate its profit and losses separately.
By doing this, the corporation can easily determine the revenue and costs of the
specific section of the business and add to management.

• Used for internally reporting purpose.

• Profit centre can be defined at product level, region level, functional etc.,

If we want to create profit centre first we need to create Controlling area and then
assigned company code to CA and activate CA.CA (Controlling area) is highest hierarchy
of CO.

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Controlling Area
1. Maintain Controlling Area IMCA= IM Controlling Area OKKP
SPRO --> Controlling --> General Controlling --> Organization --> Maintain Controlling Area

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Click on New Entries

Basic Settings

If we click on Cross-company code cost accounting in COCD- co area then we can assign n no. of company
codes
CCtr Std. Hierarchy –IMCA_COST, SCCtr.std

4.3 | P a g e Satish Makam New GL_Profit Center

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Assignment of company code(s)---> New Entries

Note: before Activate components/control indicators, save upto 2nd step...

then, go for 3rd step...

Activate components/control indicators --> New Entries

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Configuration:
Controlling area creation

Hierarchy

Profit centre groups

Profit centre

Company code

Once if we post document on specific profit centre system cannot allow deleting profit centre.

2. Activate Controlling Area (Set Controlling Area) =IMCA OKKS

SAP Menu->Accounting->Financial Accounting->General Ledger->Master Records->Profit Centre-
>Set Controlling Area (EASY ACCESS SCREEN)

4.5 | P a g e Satish Makam New GL_Profit Center

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3. Define Profit Centre Standard Hierarchy in Controlling Area IMCA_PRFT

SPRO --> Financial Accounting (New) --> General Ledger Accounting (New) --> Master Data --> Profit
Centre --> Define Profit Centre Standard Hierarchy in Controlling Area

• Here we create ANY NAME which acts as a bridge b/w our controlling area and profit
centre.
• In this activity, you specify for each controlling area the name of the relevant standard
hierarchy for organizing the profit centre master data.

4.6 | P a g e Satish Makam New GL_Profit Center

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4. Define Standard Hierarchy (Profit Center Group) KCH4

SPRO --> Financial Accounting (New) --> General Ledger Accounting (New) --> Master Data --> Profit
Centre --> Define Standard Hierarchy

• Here we are creating profit centre group. It’s classifying the profit centre. While creating profit
centre we have to the profit centre as a group wise

• The standard hierarchy is a tree structure for organizing all the profit centres belonging to a controlling
area. In the standard hierarchy, there are two types of node as structure elements:
• Profit centres can be assigned directly to an end node.

• Summarization nodes do not themselves contain profit centres. Instead, they summarize other nodes
(end nodes or summarization nodes).

The system divides the nodes into these types automatically. If you have already assigned profit centres to
a node, you can no longer attach any sub nodes to it. Similarly, profit centres cannot be assigned to a
node that already contains sub nodes.

4.7 | P a g e Satish Makam New GL_Profit Center

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5. Create Profit Center IM100, IM200, IM300, IM400 KE51

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> Profit Centre
--> Individual Processing -- > Create

Individual Processing

1:KE51-Create Profit Centre

2:KE52- Change Profit Centre.

3:KE53-Display Profit Centre.

4:KE54-Delete Profit Centre.

5:6KEA-Display Changes

IM100 =IM Steel Rod Profit Center

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IM200 =IM Steel Sheet Profit Center

M300 = IM OPC Profit Center

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IM400 = IM PPC Profit Center

6. Define Standard Hierarchy (Profit Center Group) after Profit Center Creation -view KCH4

4.10 | P a g e Satish Makam New GL_Profit Center

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DOCUMENT SPLITTING

• Document means account entry posting. Every document is classified into 1: Header data and 2:
Line item idea.
• Document Splitting in SAP is the new functionality introduced in SAP ECC 6.0 New GL to create
segment financial statements. However, now it is mandatory in SAP S/4HANA technology. It is
usedallocate one expense line item into two segments in New General Ledger.to allocate one
expense line item into two segments in New General Ledger
• In simple terms it means splitting the accounting entry for reporting purpose.
• We have 58 Std document types.

Before New G/L Concept:

A/c’g entry posting
a/c'g entry posting Amount
Commission paid A/c ……………….Dr 10000
To Cash a/c 10000

After New G/L Concept:

Business Profit
a/c'g entry posting Amount area centre Segment
Commission paid A/c ……………….Dr 10000 Hyd CM100 PPP
To Cash a/c 10000 Hyd CM101 PPP

We have 3 Types of Document splitting

1: Active Splitting.
2: Passive Splitting.
3: Zero- Balance Splitting.
1: Active Splitting-
• Based on requirements of client and Std Configuration, accounting entries can be split
business area wise, Profit centre wise, segment wise manually.
Ex:
Business Profit
a/c'g entry posting Amount area centre Segment
Commission paid A/c ……………….Dr 10000 Hyd CM100 PPP
To Cash a/c 10000 Hyd CM101 PPP

2: Passive Splitting-
• It means, at the time of PAYMENT a/c’g entry posting all the parameters (business area,
profit centre, segment) update automatically

3: Zero- Balance Splitting-

• Whenever Debit parameters are not equal to credit parameters then Zero- Balance clearing
account will be involved.

5.1 | P a g e Satish Makam New GL_Document Splitting

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Ex: If there is not balance in Hyd branch for the payment of commission paid, then it the payment
will be paid by adjusting from Mumbai branch by creating Zero BALANCE clearing a/c.

Business Profit
a/c'g entry posting Amount area centre Segment
Commission paid A/c ……………….Dr 10000 Hyd IM100 PPP
To Cash a/c 10000 Mum IM101 PPP

Commission paid A/c ……………….Dr 10000 Hyd IM100 PPP

To zero balance clearing a/c 10000 Hyd IM101 PPP

Zero balance clearing

a/c…………..Dr 10000 Mum IM100 PPP
To Cash a/c 10000 Mum IM101 PPP

1. Classify G/L Accounts for Document for Splitting

SPRO--> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions-->
Document Splitting --> Classify G/L Accounts for Document Splitting

• Segregation of different types of accounts into groups

5.2 | P a g e Satish Makam New GL_Document Splitting

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2. Classify Document Type for Document Splitting

Nothing to do.... just check all the document types are available or not
SPRO--> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions-->
Document Splitting --> Classify Document Types for Document Splitting

• If we have SA document entries then that means we have G/L accounting entries
• If we have KR Document entries then that means we have Vendor Invoice postings
• If we have DR document entries then that means we have Customer invoice
• Every business transaction that is entered is analysed during the document splitting process. In this
process, the system determines which splitting rule is applied to the document.
• In order that the system can determine the splitting rule, you must assign a business transaction
variant to each document type.

5.3 | P a g e Satish Makam New GL_Document Splitting

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3. Creation of "Zero Balance Clearing Account" GL NO 160000 FS00

5.4 | P a g e Satish Makam New GL_Document Splitting

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+91 7032372034

5.5 | P a g e Satish Makam New GL_Document Splitting

Punnam Venkat
+91 7032372034

4. Define Zero-Balance Clearing Account

SPRO--> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions-->
Document Splitting --> Define Zero-Balance Clearing Account

• When debit balance is not equal to Credit Balance then Zero balance will come to exit.
• Zero balance clearing account comes under Current Liability.

5.6 | P a g e Satish Makam New GL_Document Splitting

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5. Define Document Splitting characteristics for General Ledger Accounting

SPRO--> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions-->
Document Splitting --> Define Document Splitting Characteristics for General Ledger Accounting

• New General Ledger (or new G/L) in the SAP ERP system offers a powerful feature known as
document splitting
• With document splitting, accounting line items are split according to specific characteristics For
example, Profit Centre, Segment

If the Standard three characteristics r not available the we need to add by clicking on new entries. However it
will be already available.

6. Define Document Splitting Characteristics for Controlling: Std one

SPRO--> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions--> Document
Splitting --> Define Document Splitting Characteristics for Controlling

5.7 | P a g e Satish Makam New GL_Document Splitting

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7. Activate Document splitting

SPRO--> Financial Accounting (New) --> General Ledger Accounting (New) --> Business Transactions-->
Document Splitting --> Activate Document Splitting

• Activate Document Splitting: Here you must have selected Document splitting
• Deactivation per company code: check your company code is not selected.
• If both of above are true then your document splitting is active.
• Document splitting method is nowhere assigned to company code it is client based.
• You will not be able to see at document display if your document splitting is working or not.
• It is standard one 0000000012 8 Zeros
• Here we have a deactivate option for document splitting

Every Document entry Posting we have 3 types of ledgers, 3 types of currencies and 2 types of views.

Ledgers:
I. Local GAAP(IAS-Indian accounting stds)
II. IFRS(international financial reporting standards
III. US- GAAP.

Currencies:
I. Group currency-Head office currency(reporting purpose)
II. Local currency-company code currency
III. Document Currency-At the time of a/c’g entry posting whatever currency we specify.

Views:
I. Entry view.
II. G/L View

5.8 | P a g e Satish Makam New GL_Document Splitting

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PARALLEL ACCOUNTING:

• Parallel accounting means defining the leading and Non leading ledgers
• Leading ledger0Lis standard for local GAAP (IAS).
• Based on 0Lwe need to create Non leading ledgers for IFRS and US GAAP.

• Leading Ledger – In the Leading Ledger, all the postings are taken as primarily and default. It is based on
accounting principles that is used for the consolidation of financial statements. Leader Ledger in SAP
system is defined as 0L and company codes are assigned to this ledger by default.

• Non Leading Ledger – This Non-leading ledger is used for the purpose of reporting like International
Financial Reporting Standards (IFRS) and taxation. It is parallel to the leading ledger and based on the local
accounting principles. You can activate non-leading ledger for the individual company codes that you plan
to use.

1. Define Ledgers for General Ledger Accounting

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Ledger --> Define Ledgers for General Ledger Accounting

6.1 | P a g e Satish Makam New GL_Parallel Accounting

Punnam Venkat
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2. Define Currencies of Leading Ledger

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Ledger --> Define Currencies of Leading Ledger

• Leading ledgers are the primary ledgers that are used to post the transactions of organization as
primarily. In SAP system, for leading ledgers you can maintain additionally up to two currencies.
Leading ledgers will obtain the settings of currency base on the company code. Transaction code to
define currencies of leading ledger – OB22

6.2 | P a g e Satish Makam New GL_Parallel Accounting

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3. Define and Activate Non-Leading Ledgers

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Ledger --> Define and Activate Non-Leading Ledgers

NOTE: AFTER typing variant (APP) we should press enter and select NO.

6.3 | P a g e Satish Makam New GL_Parallel Accounting

Punnam Venkat
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6.4 | P a g e Satish Makam New GL_Parallel Accounting

Punnam Venkat
+91 7032372034

4. Assign Scenarios and Customer Fields to Ledgers (COPY FROM 0L)

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Ledger --> Assign Scenarios and Customer Fields to Ledgers .

• In this transaction you are able to assign scenarios and customer fields to ledgers which we should
already have.

OL IS THE STD ONE. Select OL, we need to copy all the scenarios in OL to our ledger.

For copying all we need to press ctrl+Y and copy (ctrl+c)

Then go back and select our ledger (A1) click on scenarios

Click on new entries

Then paste (ctrl+v)and press enter.

6.5 | P a g e Satish Makam New GL_Parallel Accounting

Punnam Venkat
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5. Activate Cost of Sales Accounting

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Ledger --> Activate Cost of Sales Accounting

• Before we move to defining Functional Areas, we should first Activate Cost of Sales
Accounting. Activation is based on the highest organizational structure in FI – Company
Code. When we activate it, we will be able to assign functional areas to different objects like
– GL Account, Cost Centers, Cost Elements, Internal Orders, Fixed Assets, etc. With the help
of it you are able to create income statements based on the defined functional areas.

Define Ledger Group

• A ledger group is a combination of ledgers for the purpose of applying the functions and processes of
general ledger accounting to the group as a whole

6.6 | P a g e Satish Makam New GL_Parallel Accounting

Punnam Venkat
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6. Define Accounting Principles

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Parallel Accounting --> Define Accounting Principles

• Accounting principles are rules for legal accounting and financial statements and govern how
companies record and report their financial data. Accounting standards are collections of accounting
principles, for example, the International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB). In addition, there are local accounting standards, for
example, the United States Generally Accepted Accounting Principles (US GAAP) or German
Commercial Code (Handelsgesetzbuch, HGB).

7. Assign Accounting Principle to Ledger Groups

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers -->
Parallel Accounting --> Assign Accounting Principle to Ledger Groups

6.7 | P a g e Satish Makam New GL_Parallel Accounting

Punnam Venkat
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GL Document type and Number Range

• Document types in SAP are defined to distinguish different business transactions. For example,
transactions like customer payment and vendor credit memos are distinguished with two different
document types in SAP to identify it in future.

• Document types in SAP are defined at the client level. Standard SAP already contains some default
document types for your use.

Document Types in SAP Description for Document Types in SAP

AA Asset posting
AB Accounting doc(reversal a/c’g)
AE Accounting doc
AF Dep. postings
AN Net asset posting
C1 Closing GR/IR accts
CI Customer invoice
CP Customer payment
DA Customer
DB Cust.recurring entry
DE Customer invoice
DG Customer credit memo
DR Customer invoice
DZ Customer payment
EU Conversion diff.Euro
EX External number
GF Subsequent adjustment
JE G/L account posting
KA Vendor
KG Vendor credit memo
KN Net vendors
KP Account maintenance
KR Vendor invoice
KZ Vendor payment
ML ML settlement
NB Vendor
PR Price change
RA Sub.cred.memostlmt
RE Gross inv. receipt
RF Invoice
RK Gross inv. receipt
RN Net invoice receipt
RV Billing doc.transfer
SA G/L account

7.1 | P a g e Satish Makam GL Document type and Number Range

Punnam Venkat
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SB G/L account posting

SK Receipt f. cash pmnt
SU Subsequent debit doc.
VI Vendor invoice
VP Vendor payment
WA Goods issue
WE Goods receipt
WI Inventory
WL Goods issue/delivery
WN Net goods receipt
X1 Recurring entry doc.
X2 Sample
ZA Asset post. Period
ZC Client Funds
ZF Dep. postings
ZP Payment posting
ZV Payment clearing

1. Define Document Types for Entry View OBA7

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --> Document
Types-->Define Document Types for Entry View

ALL R STD NO NEED TO CREATE AGAIN.

7.2 | P a g e Satish Makam GL Document type and Number Range

Punnam Venkat
+91 7032372034

2. Define Document Types for Entry View in a Ledger

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --> Define
Document Types for Entry View in a Ledger

3. Define Document Types for General Ledger View

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --> Define
Document Types for General Ledger View

7.3 | P a g e Satish Makam GL Document type and Number Range

Punnam Venkat
+91 7032372034

4. Define Document Number Ranges for Entry View FBN1

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --> Document
Number Ranges --> Documents in Entry View --> Define Document Number Ranges for Entry View

5. Define Document Number Ranges for General Ledger View

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --> Document
Number Ranges --> Documents in General Ledger View --> Define Document Number Ranges for General Ledger
View

7.4 | P a g e Satish Makam GL Document type and Number Range

Punnam Venkat
+91 7032372034

G/L MASTER CREATION

GL Invoice posting-FB50 Indirect expense

Commission paid a/c Dr…………. 100000

To Commission payable 100000

GL Outgoing payment F-07 current liabilities

Commission payable a/c Dr………… 100000

To cash a/c 100000

GL Invoice posting-FB50 Current assets

Commission receivable a/c Dr……..250000

To commission received 250000

GL incoming Payment-F-06 Income

Cash a/c Dr………………………………250000

To commission receivable a/c 250000

Short key: it is screen layout of assignment field. It means whatever inputs we take in short key that
information update automatically at the time of a/c’g posting on the assignment fields.

Open item management:At the time of payable and receivable GL creation because the outstanding amount
will become zero at the time of payment and receive.

Cash related and bank related GL’s WE SELECT RELEVENT CAST FLOW (IN CREATE/BANK/INTREST) it controls
cash related activities (reports)

8.1 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

1. Creation of "Commission Paid A/c" GL 440000 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

8.2 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

2. Creation of "Commission Payable A/c" GL 160001 FS00

8.3 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

8.4 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

3. Creation of "Cash A/c" GL 220000 FS00

8.5 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

4. Creation of "Commission Receivable A/c" 250000 FS00

8.6 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

8.7 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

5. Creation of "Commission Received A/c" GL 320000 FS00

8.8 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

6. How to see GL Tree: FS00

Go to Setting-->Hierarchy display-->select : display accounts in navigation tree--> Ok.
back to ease access screen-->FS00--> we can see account tree

7. How to Close GL tree: FS00

FS00- Go to Setting-->Hierarchy display-->select : don't display navigation tree--> Ok.
back to ease access screen-->FS00--> we can't see account tree

8.9 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

8. Change GL Master 320000 FS00

9. Display Changes 320000 FS04

8.10 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

10. Block GL Master 320000 FS00

11. Unblock GL Master 320000 FS00

8.11 | P a g e Satish Makam GL Master Configuration

Punnam Venkat
+91 7032372034

SAP Document Entry Postings

GL Invoice posting-FB50

Commission paid a/c Dr…………. 100000

To Commission payable 100000

GL Outgoing payment F-07

Commission payable a/c Dr………… 100000

To cash a/c 100000

GL Invoice posting-FB50

Commission receivable a/c Dr……..100000

To commission received 100000

GL incoming Payment-F-06

Cash a/c Dr………………………………25000

To commission receivable a/c 25000

Cash a/c Dr………………………………75000

To commission receivable a/c 75000

1. Vendor Invoice Posting for Commission Expenses Rs. 100000: FB50

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Enter G/L
Account Document

Posting key means classifying the line item debit and credit. Debit-40, Credit-50.

We need to enter the GL (enter business area and Profit centre) and press enter and click on stimulate then Post.

For the view, click on document which is left top corner and then select display.

(below snip is for reference)

9.1 | P a g e Satish Makam GL Document Postings

Punnam Venkat
+91 7032372034

Display Currency: Group Currency

General Ledger View

9.2 | P a g e Satish Makam GL Document Postings

Punnam Venkat
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2. Post Outgoing Payment: Full Rs. 100000 F-07

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Outgoing
Payments

We need to enter details as above and we need to click on Process open item

Simulate and Save

9.3 | P a g e Satish Makam GL Document Postings

Punnam Venkat
+91 7032372034

3. Changing the Layout

4. Checking of Non Leading Ledgers

5. Display GL Line Items FBL3N

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Account --> Display/Change
Line Items

9.4 | P a g e Satish Makam GL Document Postings

Punnam Venkat
+91 7032372034

6. Display Document FB03

SAP Menu --> Accounting --> Financial Accounting --> General Ledger -->Document --> Display

7. Invoice Posting for Commission Receivable FB50

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Enter G/L
Account Document

8. Partial Payment Received for Commission Receivable F-06

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Outgoing
Payments

Standard payment-When we do full and final payment then selectstd payments

Partial Payment-When we do partial then select std payments

9.5 | P a g e Satish Makam GL Document Postings

Punnam Venkat
+91 7032372034

9. Final Partial Payment Received for Commission Receivable F-06

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Outgoing
Payments

10. Commission Expenses to Cash (Without Payable Ledger) FB50

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Enter G/L
Account Document

11. Cash for Commission Received A/c (Without Receivable Ledger) FB50
SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Enter G/L
Account Document

9.6 | P a g e Satish Makam GL Document Postings

Punnam Venkat
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12. GL Posting Double Screen - F-02 Commission Expenses to Cash (Without Payable Ledger)

13. Posing General Document with Foreign Currency FB50 (can also be used F-02)
13a. View In Document Currency (SGD)

13b. View In Local Currency (INR)

13c. View In Group Currency (USD)

9.7 | P a g e Satish Makam GL Document Postings

Punnam Venkat
+91 7032372034

14. Checking of FB03 for OL Leading Updation

SAP Menu --> Accounting --> Financial Accounting --> General Ledger -->Document --> Display

15. Checking of FB03 for I5 Non-Leading Updation

SAP Menu --> Accounting --> Financial Accounting --> General Ledger -->Document --> Display

16. Checking of FB03 for I6 Non-Leading Updation

SAP Menu --> Accounting --> Financial Accounting --> General Ledger -->Document --> Display

9.8 | P a g e Satish Makam GL Document Postings

Punnam Venkat
+91 7032372034

17. Posting of Document only in I5 Non Leading Ledger FB50L

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Enter G/L
Account Document for Ledger Group

9.9 | P a g e Satish Makam GL Document Postings

Punnam Venkat
+91 7032372034

REVERSAL POSTING
Information we update in leading ledger will reflect on financial statements

Information we update in Non- leading ledger will NOT reflect on financial statements. It is for reporting
purpose

Individual Reversal:

Under individual document reversal, we can reverse one document at a time. Suppose the user has posted a
document wrongly, now they want to reverse the same and post a new document again.

Example: For the entry

Comm. Paid a/c…………………...DR 8000 /-

To comm. Payable a/c 8000/-

User have entered 80,000/- instead of 8,000

Comm. Paid a/c…………………...DR 80,000/-

To comm. Payable a/c 80,000/-

In Sap, we cannot edit or delete so we need to reverse the accounting entry. Then entry will be as follow

Comm. Payable a/c………………...DR 80,000/-

To comm. Paid a/c 80,000/- Value as become zero.

Then we can enter correct entry.

Change document FB02- system allows changing only text related fields.

Now let us post the A/c’g entry in FB50.

Comm. Paid a/c…………………...DR 80,000/-

To comm. Payable a/c 80,000/-

10.1 | P a g e Satish Makam Document Reversals

Punnam Venkat
+91 7032372034

1. Define Reasons for Reversal

SPR0--> FIN.ACCT (NEW) --> GEN Ledger acct (New) --> Business Transactions --> Adjustment Posting/
Reversal --> Define Reasons for Reversal

2. Document Posting with Wrong Amount FB50

3. Individual Reversal FB08

SAP Menu-->Accounting--> Financial Accounting--> General Ledger-->Document-->Reverse--> Individual
Reversal.

10.2 | P a g e Satish Makam Document Reversals

Punnam Venkat
+91 7032372034

4. Document Posting with Wrong Amount FB50 (to be reversed in Mass Reversal)

5. Document Posting with Wrong Amount FB50 (to be reversed in Mass Reversal)

6. Mass Reversal: F.80

SAP Menu-->Accounting--> Financial Accounting--> General Ledger-->Document-->Reverse--> Mass
Reversal.

Ex:Lets post below entries (fb50)

Comm. Paid a/c…………………...DR 10,000/- 1000000007-document number

To comm. Payable a/c 10,000/-

Comm. Receivable a/c.………...DR 20,000/- 1000000008-document number

To comm. Received a/c 20,000/-

Let us assume posting date is wrong for the above two entries.

10.3 | P a g e Satish Makam Document Reversals

Punnam Venkat
+91 7032372034

10.4 | P a g e Satish Makam Document Reversals

Punnam Venkat
+91 7032372034

7. Document Posting with Wrong Amount FB50 (for Reversal of Reversal)

Ex: let’s post below accounting entry. FB50

1000000011-DOCUMENT NO.

Comm. Paid a/c…………………...DR 12,000/-

To comm. Payable a/c 12,000/-

And we thought the above entry is wrong and we have reversed the above accounting entry by going to FB08.

Now the reversal accounting entry is

1000000012-DOCUMENT NO.

Comm. Payable a/c………………...DR 12,000/-

To comm. Paid a/c 12,000/-

As we realised we have unnecessarily reversed, THEN WE NEED TO DO REVERSE OF REVERSAL. So the entry will be

Comm. Paid a/c…………………...DR 12,000/-

To comm. Payable a/c 12,000/-

8. Individual Reversal (above posted document) FB08

10.5 | P a g e Satish Makam Document Reversals

Punnam Venkat
+91 7032372034

9. Reversal of Reversal (above posted document) FBR2

10.6 | P a g e Satish Makam Document Reversals

Punnam Venkat
+91 7032372034

10. Reversal of Cleared Item (1000000003) FBRA

It is nothing but Payment accounting entry reversal.

10.7 | P a g e Satish Makam Document Reversals

Punnam Venkat
+91 7032372034

Parked Document
A parked document in SAP is a document saved but not yet posted to general ledger accounts. Parked
documents can be edited. SAP puts a limit on the fields that can be edited in a parked document. SAP
document parking allows dual control of the document hence dual principle can be applied.

Ex: -end user has limit to post accounting entry up to 50000/- Beyond it he/she needs manager approval. And
Manager is not available, so we will park below entries.

Commission paid a/c …dr 60000

To Cash a/c 60000

Cash a/c dr……………..75000.

To Comm. Received 75000

And let us assume 1st entry as approved by manager and 2nd had rejected.
Then we can move 1st entry from park to normal entry. And 2nd we can delete

1. Parking Document Posting in Single Screen FV50

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document --> Parked Document-- >
Post/Delete: Single Screen Transaction OR

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry--> Edit or Park G/L
Document

Both Single screen and double screen configuration is same. Let’s post 1 st entry in single screen and 2snd in Double
scrren

11.1 | P a g e Satish Makam Park Document

Punnam Venkat
+91 7032372034

2. Parking Document Posting in Double Screen F-65

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry--> General Document
Parking

11.2 | P a g e Satish Makam Park Document

Punnam Venkat
+91 7032372034

3. Display Parked Document List FBV3

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document --> Parked Document-- >
Display

4. Change Parked Document FBV2 or FV50

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document --> Parked Document-- >
Change

11.3 | P a g e Satish Makam Park Document

Punnam Venkat
+91 7032372034

5. Display Changes FBV5

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document --> Parked Document-- >
Display Changes

6. Convert Parked Document into Normal Document FV50

Menu--Document --select Parked document

11.4 | P a g e Satish Makam Park Document

Punnam Venkat
+91 7032372034

7. Delete Parked Document FBV0

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document --> Parked Document-- >
Post/Delete

11.5 | P a g e Satish Makam Park Document

Punnam Venkat
+91 7032372034

11.6 | P a g e Satish Makam Park Document

Punnam Venkat
+91 7032372034

Hold Document
Sometimes a user is called for an urgent m
eeting in the midst of posting a document. He or she can use the document holding functionality. This allows
the user to save what has been entered temporarily for further processing later.
1. Create Hold Document FB11

2. Create Hold Document FB11

12.1 | P a g e Satish Makam Hold Document

Punnam Venkat
+91 7032372034

3. Display Hold Document FB11

4. Delete Hold Document List FB11

5. Convert Hold Document into Normal Document FB11

12.2 | P a g e Satish Makam Hold Document

Punnam Venkat
+91 7032372034

Sample Document
You use sample documents as templates when manually entering a document. Sample documents
are used to propose values for the data fields in manually-entered documents.
The use of sample documents is beneficial if you need to enter many documents that are similar to
each other.

1. Maintain Number Ranges for Sample Document (X2) FBN1

SPRO -> Financial Accounting (New) --> financial accounting general settings (New) --> Documents -->
Document number ranges --> Document in entry view--> Define document number ranges for entry view

2. Post Sample Document F-01

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Document Entry-->Reference
Documents-->Sample Document

13.1 | P a g e Satish Makam Sample Document

Punnam Venkat
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3. Display Sample Document FBM3

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Document-->Reference Documents
--> Sample Document -->Display

4. Change Sample Document FBM2

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Document-->Reference Documents
--> Sample Document -->Change

5.Display Changes FBM4

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Document-->Reference Documents
--> Sample Document -->Display Changes

13.2 | P a g e Satish Makam Sample Document

Punnam Venkat
+91 7032372034

6. Convert Sample Document to Normal Document FBR2

7. Delete Sample Document F.57

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Document-->Reference Documents

--> Sample Document -->Delete

13.3 | P a g e Satish Makam Sample Document

Punnam Venkat
+91 7032372034

Recurring Document
• The recurring entry original document contains all repetitive data necessary for posting the monthly
accounting documents.
• The recurring entry program is started regularly (e.g. monthly). Based on the run schedule a batch
input file is created, containing all recurring documents to be generated. Running the batch input
session the system posts the expenses and open items.

• Cross-company code transactions cannot be posted with the recurring entry program.

1. Define Document Number Ranges for Entry View FBN1

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --> Document
Number Ranges --> Documents in Entry View --> Define Document Number Ranges for Entry View

2. Enter Recurring Entry FBD1

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Document Entry-->Reference
Documents-->Reference Document

14.1 | P a g e Satish Makam Recurring Document

Punnam Venkat
+91 7032372034

3. Display Recurring Entry FBD3

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Document-->Reference Documents
--> Recurring Document -->Display

4. Create Recurring Document in Books F.14

SAP Menu-->Accounting-->Financial Accounting-->General Ledger-->Periodic Processing-->Reference
Documents --> Recurring Entries -

14.2 | P a g e Satish Makam Recurring Document

Punnam Venkat
+91 7032372034

5. Processing of Sessions :
System-->Services--> Batch Input-->Sessions

Select Session Created- Process

14.3 | P a g e Satish Makam Recurring Document

Punnam Venkat
+91 7032372034

Checking of Log - for Processed Session

Status of Recurring Entry Data FBD3

14.4 | P a g e Satish Makam Recurring Document

Punnam Venkat
+91 7032372034

14.5 | P a g e Satish Makam Recurring Document

Punnam Venkat
+91 7032372034

FOREIGN CURRENCY VALUATION

Foreign currency valuation is the process of calculating the value of foreign currency transactions in a
company's financial records using the exchange rate of the transaction date. The main use of foreign
currency valuation is to ensure that the financial statements of a company accurately reflect the value of
foreign currency transactions, taking into account the fluctuations in exchange rates.

Foreign currency valuation is particularly important for companies that conduct business in multiple
currencies, as it allows them to accurately value their assets, liabilities, and equity in different
currencies. This is important for financial reporting, as it provides stakeholders with a clear and accurate
picture of the company's financial performance.

1. Check exchange rate type: OB07

SPRO--> SAP NetWeaver --> General settings --> Currencies --> Check Exchange Rate Types

"Check Exchange Rate Type" function is used to verify and determine the exchange rate type that will be
used in financial transactions involving foreign currencies. The exchange rate type defines the rate that
will be used to convert a foreign currency to a local currency or vice versa.

2. Define Translation Ratio for Translation OBBS

SPRO--> SAP Net weaver --> General Setting --> Currencies --> Define Translation Ratio For Currency
Translation

Translation Ratio for Translation feature is used to specify the exchange rate that is used to convert
foreign currencies into the company's local currency. This feature is typically used in multinational
organizations that conduct business in multiple countries and need to convert financial data from
various currencies into a common currency for financial reporting and analysis purposes.

15.1 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

3. Enter Exchange Rate: OB08

SPRO--> SAP Net weaver --> General Setting --> Currencies --> Enter Exchange Rate

exchange rates refer to the conversion rates between two currencies. Exchange rates are used to
convert the value of one currency into another currency for various financial transactions and reporting
purposes.

4. Create "Foreign Currency Secured Loan A/c" FS00

SAP Menu--> Accounting--> Financial Accounting--> General Ledger--> Master Records--> GL Accounts -->
Individual Processing--> Centrally

A Foreign Currency Loan Account is a type of loan account where a borrower obtains a loan
denominated in a foreign currency, which must be repaid in that foreign currency.

15.2 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

15.3 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

5. Create "FC Realised Gain A/c" FS00

SAP Menu--> Accounting--> Financial Accounting--> General Ledger--> Master Records--> GL Accounts -->
Individual Processing--> Centrally

Foreign Currency Realized Gain Account is a ledger account used in accounting to record the gain made
due to the exchange rate differences between the time when a foreign currency transaction is initiated
and the time when the transaction is completed or settled.

15.4 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

6. Create "FC Realised Loss A/c" FS00

SAP Menu--> Accounting--> Financial Accounting--> General Ledger--> Master Records--> GL Accounts -->
Individual Processing--> Centrally

Foreign Currency Realized Loss Account is a financial account that is used to record the loss incurred by
a company due to fluctuations in exchange rates when foreign currency transactions are settled.

15.5 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

15.6 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

7. Create "FC Clearing A/c " FS00

SAP Menu--> Accounting--> Financial Accounting--> General Ledger--> Master Records--> GL Accounts -->
Individual Processing--> Centrally

15.7 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

8. Prepare Automatic Posting for Foreign Currency Valuation OBA1

SPRO -->Fin acct ( New )--> General Ledger Account --> Periodic Processing --> Valuate --> Foreign
Currency Valuation --> Prepare Automatic Posting for Currency Valuation

Exch. Rate Diff. using Exch. Rate Key KDB ( Without OpenItem GL)

15.8 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

Exchange Rate Dif.: Open Items/GL Acct KDF (With OpenItem GL)

9. Define Valuation Method OB59

SPRO --> Finance Accounting ( New ) --> General Ledger Accounting (New) --> Periodic Processing -->
Valuate --> Define Valuation Methods
Valuation Method in Foreign Currency Valuation is a method used to determine how foreign currency
transactions are valued in a company's financial statements.

Foreign currency valuation is the process of revaluing foreign currency assets and liabilities in the
company's financial statements to reflect changes in exchange rates. The valuation method is used to
determine how these assets and liabilities are valued during the valuation process.

15.9 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

10. Define Valuation Area

SPRO --> Finance Accounting (New ) --> General Ledger Accounting (New) --> Periodic Processing -->
Valuate --> Define Valuation Area

15.10 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

11. Assign Valuation Area and Accounting Principles

SPRO --> Finance Accounting ( New ) --> General Ledger Accounting (New) --> Periodic Processing -->
Valuate -->Assign Valuation Area and Accounting Principles

Valuation areas are defined for periodic processing in general ledger accounting. Valuation areas can be
assigned to accounting principles in relation to periodic processing once the valuation area defined.

12. Assign Exchange Rate Difference Key in GL Account FS00

15.11 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

13. Posting for Loan taken USD1000 FB50

Document Currency

Local Currency

14. Repayment of Loan: USD1000 on 15-01-2023 @Rs. 85 F-07

15.12 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

Part Payment Scenario

Particulars Date USD Rate Total INR Received/Payment

Loan Taken 01.01.2023 5000 80 400000
Loan Payment 15.01.2023 2500 85 212500
Loan Payment 25.01.2023 2500 60 150000
Realised Gain 37500

15. Enter Exchange Rate: OB08

16. Posting for Loan taken USD5000 on 01-01-2023 @ 80 FB50

15.13 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

17. Part Repayment of Loan: USD2500 on 15-01-2023 @Rs. 85 F-07

18. Final Part Repayment of Loan: USD2500 on 25-01-2023 @Rs. 60 F-07

15.14 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

19. Run Foreign Currency Valuation on month end 31-01-2023 FAGL_FC_VAL

15.15 | P a g e Satish Makam FC Valuation

Punnam Venkat
+91 7032372034

ACCOUNT PAYABLE

Accounts Payable (AP) is helps to record and manageaccounting data of all vendors. In SAP, sundry creditors are called
accounts payables

➢ SAP Accounts payable accounting is also called as sub-ledger accounting, as the business transactions are
carried out individually in the vendor accounts.
➢ All the transactions that are processed in accounts payable are recorded directly in the general ledger
account.
➢ The real time updating will be done through the settings made in general ledger master while
creation of account.
➢ The settings are done by choosing vendors for reconciliation account for account type.
➢ Every postings that is done in accounts payable generates a respective posting to assigned general
ledger account and ensures that the sub ledgers are always reconciled with the general ledger.

Accounts Payable sub-components are -

* Master data.
* Invoice Processing.
* Account Analysis & Reconciliation.
* Reporting

16.1 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

For Accounts Payable technicians, the following T-codes are

F-43 Enter Vendor Invoice in Double Screen

FB60 Post Vendor Invoice in Single Screen
F-41 Enter Vendor Credit Memo
FB08 Reverse Document
FB65 Vendor Credit Memo
FBL1N Display Vendor Line Items
F.98 Accounts Payable Reports
F110 Check Run – Multiple checks
FCHN Display Check Register
F-53 Vendor Payment

16.2 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

1. Define Accounts Groups with Screen Layout(Vendor) OBD3

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

A vendor account group is a classifying feature of vendor master records in SAP ERP. It determines the
following:
➢ Interval from which a unique number is assigned to a vendor
➢ Whether the number is assigned by the user (external number assignment) or by the system
(internal number assignment)

Creation of "IMDV - IM Domestic Vendors Group"

16.3 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

Creation of "IMFV - IM Foreign Vendors Group" Copy from IMDV

Creation of "IMIV - IM Inventory Vendors Group" Copy from IMDV

16.4 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

Creation of " IMSV - IM Service Vendor Group "

Creation of " IMOV - IM One Time Vendor Group "

16.5 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

2. Create Number Ranges for Vendor Accounts XKN1

****THIS IS CLIENT LEVEL****

(we can use existing numbers or can create)

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Vendor Accounts
--> Master Data --> Preparations for Creating Vendor Master Data --> Create Number Ranges for Vendor
Accounts

• A number interval from which the account number for the vendor accounts is to be selected.
• The type of number assignments (Internal/ External).

3. Assign Number Ranges to Vendor Groups OBAS

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

Assign one number ranges to one or more vendor account groups in SAP as per organization
requirements. Based on the number range assignment, the unique number is assigned to a vendor
account

16.6 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

4. Define Tolerance (Vendors) OBA3

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Outgoing Payments --> Manual Outgoing Payments --> Define Tolerances (Vendors)

Tolerance group enables the users to process transaction with the payment difference of gain or loss
that defined as per tolerance group for customers and vendors in SAP.
On new entries customer and vendor tolerances screen, update the following details.
1. Company Code: – Update the company code for which you would like to define tolerance
groups.
2. Tolerance group: – It is not required to update the tolerance group key, just update the
description text of tolerance group.
3. Permitted payment difference: – Update the payment differences of gain & loss with amount
and percentage i.e 10 percentage and 1.

Creation of Vendor Tolerance for Company Code IM10

16.7 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

Creation of Vendor Tolerance for Company Code IM20

5. Define Document Types for Entry View OBA7

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Types --> Define Document Types for Entry View (Already Existed.... No need to create)

The document type is a key that is used to classify accounting documents and distinguish between
business transactions to be posted. The document type is entered in the document header and applies
to the whole document.
The document type has the following purposes:
• Differentiating between business transactions. Since the document type is shown for every line
item, you can always tell what type of business transaction is involved. You can also use the
document type for evaluation purposes.
• Controlling the posting to account types (vendor, customer, or G/L accounts). The document
type determines which account types that particular document can be posted to.
• Assigning document numbers. A number range is assigned to every document type. The original
documents from one number range should be stored together.

KZ Vendor payment
KG Vendor credit memo
KN Vendor net invoice and credit memo
KR Vendor invoice
SA General G/L accounts

Applying the vendor net procedure. This means that any discount and the net amount are calculated
(and posted) when the vendor invoice is posted.

16.8 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

6. Define Document Types for Entry View in a Ledger

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Define Document Types for Entry View in a Ledger

Define separate document types for documents in the entry view for those ledgers that are used as the
representative ledger in a ledger group.

16.9 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

7. Define Document Types for General Ledger View

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Define Document Types for General Ledger View

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

16.10 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

8. Define Document Number Ranges for Entry View FBN1

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in Entry View--> Define Document Number Ranges for Entry
View

KA 13 2022 1300000000 1309999999

KZ 15 2022 1500000000 1509999999
KG 19 2022 1900000000 1909999999
KR 19 2022 1900000000 1909999999

9. Define Document Number Ranges for General Ledger View

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View --> Define Document Number Ranges
for General Ledger View

10. Create Vendor Reconciliation GL Account FS00

SAP Menu--> Accounting--> Financial Accounting--> General Ledger--> Master Records--> GL Accounts -->
Individual Processing--> Centrally

A reconciliation account in every vendor master record. Settings made in a reconciliation account also
affect the vendor accounts:
➢ Use the reconciliation account to configure the screens for posting items to vendor accounts.
Using the reconciliation account could, for example, hide the fields for exchange rate hedges if
these types of transaction are not made. For more information, see the documentation on
Document Posting.
➢ Use the reconciliation account to specify which currencies can use in posting to the
corresponding vendor accounts

16.11 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

Domestic Vendor A/c 140000

16.12 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

Foreign Vendor A/c 140001 copy from 140000

16.13 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

Inventory Vendor A/c 140002 copy from 140000

Service Vendor A/c 140003 copy from 140000

16.14 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

One time Vendor A/c 140004 copy from 140000

One time Vendor

➢ We use One-time Vendor's Master Record to avoid large number of unnecessary master data
➢ Every time we enter a business transaction, the systems stores the specific Master Data information
separately in the document

11. Create Contractor Fee A/c GL 440001 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

Functions for Maintaining Vendor Master Data

For Creation Customer data and Accounting entry postings are 2 types

1. Master Data
2. Transactional Data
➢ In the SAP System, all business transactions are posted to and managed in accounts. Master record
must be created for each account that require. The master record contains data that controls how
business transactions are recorded and processed by the system.
➢ It includes all the information about a Vendor that requires the information to do business with him.
Both accounting (FI-AP) and P2P (MM) departments in the organization use Vendor master records.

16.15 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

➢ The Vendor master data stored centrally enables the data accessed by the organization. Storing data
centrally avoids need of entering the information twice and inconsistencies in it.

The following functions are available for processing vendor master records:
▪ Create
▪ Change
▪ Display
▪ Block/unblock
Mark for deletion/remove mark

16.16 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

16.17 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

12. Create Vendor Master: Anand & Co FK01

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Master Records --> Create

16.18 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

13. Create Vendor Master: Chethan Pvt Ltd FK01

16.19 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

16.20 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

14. Change Vendor FK02

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Master Records --> Change

15. Display Changes FK04

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Master Records --> Display
Changes

16. Block Vendor FK05

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Master Records -->
Block/Unblock

16.21 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

17. Unblock Vendor FK05

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Master Records -->
Block/Unblock

Account Payable Postings

1. Post Vendor Invoice in Single Screen FB60
2. Vendor invoice posting in Double Screen F-43
3. Vendor Credit memo posting in Single Screen FB65
4. Vendor Credit memo posting in Double Screen F-41
5. Vendor outgoing Payment F-53

16.22 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

18. Post Vendor Invoice in Single Screen FB60

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry -->Invoice

19. Vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry --> Outgoing
Payment--> Post

16.23 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

20. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Account --> Display/Change
Line Items

21. Vendor Credit Memo FB65

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry -->Credit
Memo

16.24 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

22. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Account --> Display/Change
Line Items

23. Vendor Invoice Posting in Double Screen F-43

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry --> Invoice-
General

16.25 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

24. Vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry --> Outgoing
Payment--> Post

16.26 | P a g e Satish Makam Accounts Payable Configuration

Punnam Venkat
+91 7032372034

ACCOUNTS RECEIVABLE
➢ Account Receivable deals with Customer Activities and controls all customer accounting data.
➢ The AR process starts when a company sells a good or service and includes payment terms, discounts
or credit guidelines in an invoice to the customer. When payments arrive, receipts need to be
returned and the payment needs to be recorded.
➢ All postings in Accounts Receivable are recorded directly in the General Ledger.
➢ Different G/L accounts are updated based on the transaction like receivables (Customer Invoice),
Customer Payment, down payments, bills of exchange, Customer Approval etc., involved.
➢ Account Receivable is similar configuration of Account Payablein SAP

For Accounts Receivable technicians, the following T-codes are

FB70 Post Customer Invoice in Single Screen

F-28 Customer invoice posting in Double Screen
FB75 Customer Credit memo posting in Single Screen
F-41 Customer Credit memo posting in Double Screen
F-53 Customer outgoing Payment
FD01 Create Customer Master Data

What are the steps involved Account Receivable in SAP

1. Define Account Group with Screen Layout(Customer) OBD2
2. Create Number Ranges for Customer Accounts XDN1
3. Assign Number Ranges to Customer Account Groups OBAR
4. Define Tolerance (Customer) OBA3
5. Define Document types for Entry View OBA7
6. Define Document types for Entry View In a Ledger
7. Define Document types for General Ledger View In a Ledger
8. Define Document Number Ranges for Entry View In a Ledger
9. Define Document Number Ranges for General Ledger View In a Ledger
10. Create Customer Reconciliation GL Account FS00
11. Create Customer Master data FD01

17.1 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

1. Define Accounts Groups with Screen Layout(Customer) OBD2

SPRO--> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> CustomerAccounts
--> Master Data --> Preparations for Creating Customer Master Data --> Define AccountGroups with
Screen Layout (Customers)

A Customer account group is a classifying feature of customer master records in SAP ERP. It determines
the following:
➢ Interval from which a unique number is assigned to a vendor
➢ Whether the number is assigned by the user (external number assignment) or by the system
(internal number assignment)

Creation of Customer Group: IMDC - IM Domestic Customers

17.2 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

Creation of Customer Group: IMFC - IM Foreign Customers

17.3 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

Creation of Customer Group: IMIC - IM Inventory Customers

17.4 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

Creation of Customer Group: IMSC - IM Service Customers

17.5 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

Creation of Customer Group: IMOC - IM Onetime Customers

17.6 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

2. Create Number Ranges for Customer Accounts XDN1

SPRO--> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> CustomerAccounts
--> Master Data --> Preparations for Creating Customer Master Data -->Create Number Ranges for
Customer Accounts

• A number interval from which the account number for the Customer accounts is to be selected.
• The type of number assignments (Internal/ External).

3. Assign Number Ranges to Customer Groups OBAE

SPRO--> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> CustomerAccounts
--> Master Data --> Preparations for Creating Customer Master Data --> Assign Number Ranges to
Customer Account Groups

➢ Assign one number ranges to one or more Customer account groups in SAP as per organization
requirements. Based on the number range assignment, the unique number is assigned to a
Customer account

➢ Here Assign Number Ranges to customer Account groups (Domestic, Foreign, onetime, Service,
Inventory customer)

17.7 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

4. Define Tolerance (Customer) OBA3 (STEP CONFIGURED IN ACCOUNTS PAYABLE)

Tolerance group enables the users to process transaction with the payment difference of gain or loss
that defined as per tolerance group for customers and vendors in SAP.

On new entries customer and vendor tolerances screen, update the following details.
1. Company Code: – Update the company code for which you would like to define tolerance
groups.
2. Tolerance group: – It is not required to update the tolerance group key, just update the
description text of tolerance group.
3. Permitted payment difference: – Update the payment differences of gain & loss with amount
and percentage i.e 10 percentage and 1.

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Incoming Payments --> Manual Incoming Payments --> Define Tolerances (Customers)

5. Define Document Types for Entry View OBA7 Already available

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Types -->Define Document Types for Entry View (Already Existed.... No need to create)

The document type is a key that is used to classify accounting documents and distinguish between
business transactions to be posted. The document type is entered in the document header and applies
to the whole document.

The document type has the following purposes:

▪ Differentiating between business transactions. Since the document type is shown for every line
item, you can always tell what type of business transaction is involved. You can also use the
document type for evaluation purposes.

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

▪ Assigning document numbers. A number range is assigned to every document type. The original
documents from one number range should be stored together.

17.8 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

DA 12 Customer Document
DG 16 Customer Credit Memo
DR 18 Customer Invoice
DZ 14 Customer Payment

6. Define Document Types for Entry View in a Ledger

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Define Document Types for Entry View in a Ledger

Define separate document types for documents in the entry view for those ledgers that are used as the
representative ledger in a ledger group.

17.9 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

7. Define Document Types for General Ledger View in a Ledger

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --
>Define Document Types for General Ledger View

Here For Account standard types (IAS, US-GAAP ,IFRS ) maintained customer Document types

➢ For the leading ledger, the document in the entry view corresponds to the document
in the general ledger view. Consequently, need to define separate document types
for documents in the general ledger view.

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

17.10 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

8. Define Document Number Ranges for Entry View FBN1

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --
>Document Number Ranges --> Documents in Entry View--> Define Document Number Ranges for Entry
View

9. Define Document Number Ranges for General Ledger View

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View --> Define Document Number Ranges
for General Ledger View

17.11 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

10. Create Customer Reconciliation GL Account FS00

SAP Menu--> Accounting--> Financial Accounting--> General Ledger--> Master Records--> GL Accounts -->
Individual Processing--> Centrally

A reconciliation account in every Customer master record. Settings made in a reconciliation account also
affect the customer accounts:

➢ Use the reconciliation account to configure the screens for posting items to vendor accounts.
Using the reconciliation account could, for example, hide the fields for exchange rate hedges if
these types of transaction are not made. For more information, see the documentation
on Document Posting.

➢ Use the reconciliation account to specify which currencies can use in posting to the
corresponding Customer accounts

Creation of "Domestic Customer A/c"

17.12 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

Creation of "Foreign CustomerA/c" Copy form 230000

17.13 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

Creation of "Inventory Customer A/c" Copy form 230000

Creation of "Service Customer A/c" Copy form 230000

17.14 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

Creation of "One time Customer A/c" Copy form 230000

One time Customer
➢ We use One-time Customer's Master Record to avoid large number of unnecessary master data
➢ Every time we enter a business transaction, the systems stores the specific Master Data
information separately in the document

17.15 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

11. Create Customer Master - Pavan & Co FD01

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Create

17.16 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

17.17 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

12. Create Customer Master - Narayana Pvt Ltd FD01

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Create

17.18 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

17.19 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

13. Change Customer FD02

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Change

14. Display Changes FD04

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Display
Change

17.20 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

15. Block Customer FD05

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records--
>Block/Unblock

A customer account can be blocked in Accounts Receivable so that postings are no longer made to that
account. The customer account should be blocked before customer master record marking for deletion

Account Receivable Postings

1. Post Customer Invoice in Single Screen FB70

2. Customer invoice posting in Double Screen F-22
3. Customer Credit memo posting in Single Screen FB75
4. Customer Credit memo posting in Double Screen F-27
5. Customer outgoing Payment F-28

17.21 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

16. Checking of Blocked Customer for Posting of Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

17. Un-Block Customer FD05

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records--
>Block/Unblock

18. Post Customer Invoice in Single Screen FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

17.22 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

19. Customer Payment F-28

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry -->
Incoming Payments

17.23 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

20. Customer Line Item Report : FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/Change
Line Items

21. Customer Credit Memo FB75

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry -->Credit
Memo

17.24 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

22. Customer Line Item Report : FBL5N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Receivable-->Account --> Display/Change
Line Items

17.25 | P a g e Satish Makam Accounts Receivable Configuration

Punnam Venkat
+91 7032372034

TERMS OF PAYMENT – FIXED DAYS

➢ It is used to calculate the due date for the payment of an invoice.

➢ Payment terms are applicable to both vendors and customers.

➢ Terms of payment is a 4 Digit alphanumeric key.

➢ System will generate the reports based on the payment due date for vendors and
customers.

➢ We need to assign the terms of payment key in vendor and customer master data. So, for
those vendors or customers the specified payments are applicable.

➢ Baseline date: The date from which the payment due date is calculated. Usually, it is the
invoice date.

➢ Fixed date payment terms are used when the due date for the payment is a fixed date.

E.G: If we define payment terms as 10 days as in below configuration for vendors the due
date for payment is calculated 10 days from the invoice date.

Scenario
Payment Term Payment Term

Payment 25.01.2023 100000 Payment 04.02.2023 150000

Neha Pvt Ltd Keerthy& Co.

Vendor 10 Days IM10 20 Days Customer

Invoice 15.01.2023 100000 Invoice 15.01.2023 15000

18.1 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

1. Edit Field Status Group for Payment Method OBC4

(Due Date & Payment Terms - Optional)
SPRO -- > Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Ledgers
--> Fields --> Define Field Status Variants

18.2 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

2. Maintain Terms of Payment OBB8

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Incoming Invoices/Credit Memos --> Maintain Terms of Payment

IM10 IM Payment Term for 10 Days

18.3 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

IM20 IM Payment Term for 20 Days

3. Create Vendor Master (with IM10 Payment Term) FK01

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Master Records -->
Create

18.4 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

18.5 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

4. Create Customer Master (with IM20 Payment Term) FD01

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records--
>Create

18.6 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

5. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry --
>Invoice

18.7 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

6. Vendor Line Item FBL1N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Account -->
Display/Change Line Items

7. Post Customer Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --
> Invoice

8. Customer Line Item FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Account-->
Display/ Change Line Items

18.8 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

TERMS OF PAYMENT - INSTALLMENT METHOD

If you want the invoice amount to be broken down into several partial amounts with different
due dates we use the installment method.

With this method we will enter the data only once and the system carries out the breakdown
automatically using the payment terms.

Scenario

Invoice 15.01.2023 Rs 200000/- Invoice 15.01.2023 Rs 100000/-

Raju Pvt Ltd IM10 Satish & Co

Payment Payment

1st 10 Days 30% 60000 1st 15 Days 50% 50000

2nd 15 Days 30% 60000 2nd 30 Days 50% 50000
3rd 25 Days 40% 80000

TCodes:
Particulars Vendor Customer
Maintain Terms of Payment OBB8 OBB8
Assign Terms of Payment OBB9 OBB9
Crate Vendor Master FK01 FD01
Vendor Invoice Posting FB60 FB70
Vendor Report FBL1N FBL5N

18.9 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

1. Maintain Terms of Payment OBB8

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Incoming Invoices/Credit Memos --> Maintain Terms of Payment
Main Terms of Payment : IVIP IM Vendor Installment Payment Terms

Sub - Terms of Payment : IM15 IM 15 Days Payment Terms

18.10 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

Sub - Terms of Payment : IM25 IM 25 Days Payment Terms

2. Define Terms of Payment for Installment Payments OBB9

(Assignment of main payment term to sub payment term)
SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Incoming Invoices/Credit Memos --> Define Terms of Payment for Installment Payments

Here we specify the percentage for the breakdown of the total amount and indicate which
payment terms are valid for the resulting partial amount for each of the percentage rates.

For below scenario we are specifying that

1st installment – we are paying 30% of the invoice amount within 10 days of invoice date.
2nd installment – we are making another 30 % payment within 15 days of the invoice date.
3 rd installment - 40% payment of amount within 25 days of invoice date.

so the total invoice amount is paid in 3 installments

18.11 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

3. Create Vendor Master (with Installment Payment term IVIP) FK01

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Master Records -->Create

18.12 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

4. Posting of Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry -->Invoice

5. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

18.13 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

Customer Scenario

6. Maintain Terms of Payment OBB8

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Outgoing Invoices/Credit Memos --> Maintain Terms of Payment
Main Terms of Payment : ICIP IM Customer Installment Payment Terms

Sub - Terms of Payment : IM30 IM 30 Days Payment Terms

18.14 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

7. Define Terms of Payment for Installment Payments OBB9

(Assignment of main payment term to sub payment term)
SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Outgoing Invoices/Credit Memos --> Define Terms of Payment for Installment Payments

8. Create Customer Master (with Installment Payment term ICIP) FD01

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Create

18.15 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

9. Posting Customer Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

18.16 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

TERMS OF PAYMENT - DISCOUNT METHOD

Cash discounts are reductions to payments when made within a specified time period.
we need to configure:
● Cash discount periods
● Cash discount percentage rates

Scenario
Invoice 20.01.2023 Rs 100000/-

AA Pvt Ltd IM10 BB & Co

Payment Payment

AA Pvt Ltd BB & Co

Days Discont Disc Amt Net Amt Days Discont Disc Amt Net Amt

5 Days 10% 10000 90000 10 Days 8% 8000 92000

15 Days 5% 5000 95000 20 Days 4% 4000 96000

30 Days 0% 0 100000 30 Days 0% 0 100000

TCodes :
Maintain terms of payment 0BB8
Create G/L accounts FS00
Define accounts for cash discount taken (discount received) OBXU
Define accounts for cash discount granted (discount allowed) OBXI

Note:Based on the payment term configurations discounts(received/allowed) will be

reflected automatically ,for this purpose we need to create the discount GLs and map them
in OBXU and OBXI T codes.

18.17 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

1. Maintain Terms of Payment OBB8

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Incoming Invoices/Credit Memos --> Maintain Terms of Payment

Terms of Payment : IVDM IM Vendor Discount Payment Terms

Terms of Payment : ICDM IM Customer Discount Payment Terms

18.18 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

2. Create GL "Discount Allowed A/c" 440100 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

18.19 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

3. Create GL "Discount Received A/c" 320100 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

18.20 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

4. Define Accounts for Cash Discount Taken (for Discount Received) OBXU

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Outgoing Payment--> Outgoing Payments Global Settings-->Define Accounts for Cash
Discount Taken

18.21 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

5. Define Accounts for Cash Discount Granted (for Discount Allowed) OBXI
SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Incoming Payment--> Incoming Payments Global Settings--> Define Accounts for Cash
Discount Granted

18.22 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

6. Create vendor Master (with Discount Payment Term IVDM) FK01

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Master Records -->Create

18.23 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

7. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting ->Accounts Payable-->Document Entry -->Invoice

18.24 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

8. Vendor Line item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

9. Vendor Payment F-53

SAP Menu --> Accounting -> Financial Accounting --> Accounts Payable--> Document Entry -->Outgoing
Payment--> Post

18.25 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

10. Create Customer Master (with Discount Payment Term ICDM) FD01
SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Create

18.26 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

11. Posting of Customer Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

18.27 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

12. Customer Line Item Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/Change
Line Items

18.28 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

13. Exchange Rate Difference Determination OB09

SPRO –> Financial Accounting (New) –> General Ledger Accounting (New) –> Business Transactions –>
Open Item Clearing –> Define accounts for exchange differences.
(This Is Step Is Done After Exchange Rate Difference Determination Error)

18.29 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

14. Customer Payment F-28

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry -->
Incoming Payments

Document Currency/ Local Currency View

Group Currency View

18.30 | P a g e Satish Makam Terms of Payment

 Punnam Venkat
+91 7032372034

Why Exchange Rate Difference is required to assign for "Domestic Customer Reconciliation Account"
and Why not for "Domestic Vendor Reconciliation Account"

Vendor Scenario:
Invoice Posting FB60
Particulars INR USD
(Local Currency) (Group Currency)
Contractor Fee A/c Dr 1,00,000 1,666.67
To Vendor A/c 1,00,000- 1,666.67-

Vendor Payment F-53

Vendor A/c Dr 1,00,000 1,666.67
To Cash A/c 90,000- 1,500.00-
To Discount Received A/c 10,000- 166.67-

As above In this Vendor Scenario, in USD, Vendor Debit (1666.67) is equal to the sum of Cash Payment
(1500) and Discount Received (166.67) ... There is no difference. So, There is no Realised Loss or Gain.

Customer Scenario:
Invoice Posting FB70
Particulars INR USD
(Local Currency) (Group Currency)
Customer A/c Dr 2,00,000 3,333.33
To Commission Received A/c 2,00,000- 3,333.33-

Customer Payment F-28

Cash A/c Dr 1,84,000 3,066.67
Discount Allowed A/c Dr 16,000 266.67
To Customer A/c 2,00,000- 3,333.33-
To Realised Gain A/c 0 0.01-

In the above Debit Total 3333.34

Customer Credit 3333.33
The difference is 0.01 which to be treated as Realised Gain

Note: My View is that, in OB09, It is better to add "Discount Allowed A/c (440100)" / or "Round Off
Account" for Loss or Gain. In fact, Difference 0.01 is neither Loss nor Gain.

18.31 | P a g e Satish Makam Terms of Payment

Punnam Venkat
+91 7032372034

VENDOR AND CUSTOMER BALANCE CARRY FORWARD

Vendor and customer balance carry forward is an important year-end activity in accounting that
involves carrying forward the outstanding balances between a vendor and a customer from one
accounting period to the next. This is done to ensure that the financial records of a business are
accurate and up to date, and to help manage outstanding debts and cash flow.

1. Creation of GL A/c : Retained Earnings A/c 110000 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

Retained Earnings A/C: Retained earnings are the amount of profit a company has left over after paying
all its direct costs, indirect costs, income taxes and its dividends to shareholders. This represents the
portion of the company’s equity that can be used, for instance, to invest in new equipment, R&D, and
marketing.

When accumulated year after year, retained earnings are known as “accumulated profits.

19.1 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

19.2 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

2. Define Retained Earning A/C OB53

Already done in Global parameters

SPRO -> Financial Accounting (New) --> General Ledger Accounting (New) --> Master Data --> G/L
Accounts --> Preparations--> Define Retained Earnings Account

3. Display Customer Balance FD10N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display
Balances

It is one of the important feature for companies, with this they can track outstanding receivables from
customers, by this they can manage cash flow, improves in collections, better decisions more
importantly it will create financial reports.

19.3 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

4. Display Vendor Balance FK10N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display

By displaying vendor balances will come to know how much outstanding payables for vendors. It is one
of the important tool for managing accounts payable and maintaining the financial stability of the
company.

19.4 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

5. Carry forward Receivable /Payable F.07

SAP Menu --> Accounting --> Financial Accounting -->Accounts Receivable-->Periodic Processing -->
Closing --> Carry Forward --> Balance Carryforward

In the accounting carry forward of balances plays important role for generating financial statements. In
this we will transfer/carry forward open items of the previous financial year to new financial year. It
ensure that the company’s financial records are up-to-date and accurate.

It helps to simplify the process of reconciliation and financial reporting.

19.5 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

Note: I have directly executed, instead of background... still results are ok.

19.6 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

19.7 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

19.8 | P a g e Satish Makam Vendor & Customer Balance Carry Forward

Punnam Venkat
+91 7032372034

SPECIAL GL INDICATORS FOR VENDORS AND CUSTOMERS

Special GL indicators are used to handle specific business transactions that are outside of the normal
accounting procedures. It requires different posting procedures.By using these indicators, the system
can ensure that whether we are posting document entries correctly or not.
This helps to ensure accurate financial reporting and compliance with accounting regulations.

1. Create of GL "Adv Request – Ven" 140100 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/LAccounts
--> Individual Processing --> Centrally
Request payment in advance from a vendor for goods or services that will be provided at a later date.
This advance payment can help to ensure that the vendor has sufficient resources to complete the
project or provide the goods or services.
The advance payment is then posted as a credit to the vendor account and a debit to the special GL
account

20.1 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

20.2 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

2. Create of GL "Adv Payment – Ven" 140200 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

20.3 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

3. Define Reconciliation Account for Down Payment OBYR

SPRO ->Financial Accounting (New) -> Accounts Receivable and Accounts Payable -> Business
Transactions ->Down Payment Made -> Define Alternative Reconciliation Account for Down Payments

Reconciliation account is a general ledger account that is used to record transactions from sub-ledgers.
The purpose of a reconciliation account is to provide a summary of the transactions and those will be
reconciled with the corresponding general ledger account. It is one of the important configuration for
showing financials.

Assignment of Adv Request-Ven

Assignment of Adv Payment-Ven

20.4 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

4. Create Vendor Master FK01

SAP Menu --> Financial Accounting -->Accounts Payable -->Master Records -->Create

20.5 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

5. Post Down Payment Request F-47

SAP Menu --> Financial Accounting -->Accounts Payable --> Document Entry -->Down Payment -->
Request
It is to record a request for payment that is made by a vendor or supplier to a customer before the goods
or services are delivered. It is essentially a request for an advance payment or partial payment for an
order or contract

20.6 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

20.7 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

6. Post Vendor Down Payment F-48

SAP Menu --> Financial Accounting -->Accounts Payable --> Document Entry -->Down Payment --> Down
Payment

20.8 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

7. Post Vendor Invoice FB60

SAP Menu --> Financial Accounting -->Accounts Payable --> Document Entry -->Invoice

20.9 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

8. Display Vendor Line Item Report FBL1N

SAP Menu --> Financial Accounting -->Accounts Payable --> Account -->Display/Change Line Items

20.10 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

9. Clear Vendor Down Payment F-54

(Transfer Special GL to Normal GL)
SAP Menu --> Financial Accounting -->Accounts Payable --> Document Entry -->Down Payment -->
Clearing

20.11 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

10. Display Vendor Line Item Report FBL1N

SAP Menu --> Financial Accounting -->Accounts Payable --> Account -->Display/Change Line Items

11. Exchange rate difference determination for GL 140100 OB09

SPRO –>Financial Accounting (New) –> General Ledger Accounting (New) –> Business Transactions –>
Open Item Clearing –> Define accounts for exchange differences.

Exchange rate differences can arise when a company deals with transactions in foreign currencies. In sap
we used to determine the difference between the transactional currency and the company code currency
at the time of the transaction.
It can generate accurate financial reporting, compliance with financial reporting standards, reduction of
accounting errors, and efficient management of exchange rates.

(This step is done after I Got Error In F-53 Vendor Payment in step 12)

20.12 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

12. Post Vendor Balance Payment F-53

SAP Menu --> Financial Accounting -->Accounts Payable --> Document Entry -->Outgoing Payment

20.13 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

13. Clearing of Vendor Line Item (Open items of Anand and co.. earlier classes) F-44

20.14 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

SPECIAL G/L TRANSACTION FOR CUSTOMER

14. Creation of GL Advance Request (Customer) 230100 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

Used to handle specific business transactions that are outside of the normal accounting procedures.
These transactions require different posting procedures, and the special GL indicators are used to
ensure that they are handled correctly. Useful tool for managing customer payments and ensuring that
your business operates efficiently and effectively.

20.15 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

15. Creation of GL Advance Payment (Customer) 230200 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

20.16 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

16. Define Reconciliation Accounts for Customer Down Payments OBXR

SPRO->Financial Accounting (New) -> Accounts Receivable and Accounts Payable -> Business
Transactions -> Down Payment Received -> Define Reconciliation Accounts for Customer Down Payments

Assignment of Adv Request - Customer

20.17 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

Assignment of Adv Request – Customer

It allows a company to request and receive advance payments or down payments from the customer
before the delivery of goods or services. This helps to improve the cash flow of the company and
reduces the risk of non-payment or late payment.

20.18 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

17. Create Customer Master FD01

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Create

20.19 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

18. Customer Down Payment Request F-37

SAP Menu --> Financial Accounting -->AccountsReceivable --> Document Entry --> Down Payment -->
Request

20.20 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

20.21 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

19. Customer Down Payment F-29

SAP Menu --> Financial Accounting -->AccountsReceivable --> Document Entry --> Down Payment --
>Down Payment

20.22 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

20. Customer Invoice Posting FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

20.23 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

21. Customer Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/
Change Line Items

22. Transfer Special GL to Normal GL F-39

SAP Menu -->Accounting -->Financial Accounting -->AccountsReceivable --> Document Entry --> Down
Payment -->Down Payment

Special G/L items to Normal G/L items is a process that allows a company to manage their accounting
transactions more efficiently. Normal G/L accounts are used to track transactions such as sales,
purchases, expenses, revenue, etc., and are posted to a company's regular accounts.
By doing this activity the companies can better manage their accounting processes, streamline their
financial reporting, and ensure accurate record-keeping.

20.24 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

20.25 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

23. Customer Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/
Change Line Items

24. Customer Payment F-28

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry -->
Incoming Payments

20.26 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

20.27 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

25. Customer Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/
Change Line Items

26. Customer Clearing F-32

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Clear
(No open items for above customer, so we will try pawan and co.)

20.28 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

20.29 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

27. Customer Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/
Change Line Items

20.30 | P a g e Satish Makam Special GL Indicators Vendors and Customers

Punnam Venkat
+91 7032372034

YEAR END ACTIVITY - NUMBER RANGES

DOCUMENT NUMBER RANGES FOR ENTRY VIEW

HOW DOCUMENT NO RANGES WILL USEFUL:

It is used to assign unique numbers to different types of documents for various business processes.
Document Number Ranges for Entry View in SAP are used for document types that are used for posting
accounting transactions. It can be assigned to the relevant accounting document type, which is then
used to post financial transactions in the General Ledger.
The use of document number ranges helps to ensure that each document is uniquely identified and can
be tracked throughout the entire accounting process

1. Display - Document Number Ranges for Entry View - for IM10 FBN1
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in Entry View --> Define Document Number Ranges for
Entry View

21.1 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

2. Display - Document Number Ranges for Entry View - for IM20 FBN1
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in Entry View --> Define Document Number Ranges for Entry View

Here we will copy the document number ranges which created in one company code we will
assign same figures to another company code in the same group companies.

3. Copy to Company Code OBH1

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in Entry View --> Copy to Company Code

21.2 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

4. Display - Document Number Ranges for Entry View - for IM20 FBN1
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in Entry View --> Define Document Number anges for Entry View

21.3 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

Here we are going to copy the values/financial data of previous fiscal year to new fiscal year.
Basically it is an year-end activity. This data can be used for financial reporting, analysis and for other
financial processes.

5. Copy to Fiscal Year OBH2

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in Entry View --> Copy to Company Code

21.4 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

6. Display - Document Number Ranges for Entry View - for IM10 FBN1
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --> Document
Number Ranges --> Documents in Entry View --> Define Document Number Ranges for Entry View

21.5 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

7. Display - Document Number Ranges for Entry View - for IM20 FBN1
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in Entry View --> Define Document Number Ranges for Entry View

21.6 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

21.7 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

DOCUMENT NUMBER RANGES FOR GENERAL LEDGER VIEW

Document Number Ranges are used to assign unique numbers to different types of documents for
various business processes. Document Number Ranges for General Ledger View in SAP are used for
document types that are used for posting financial transactions in the General Ledger.

1. Display - Document Number Ranges for General Ledger View - for IM10
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View --> Define Document Number Ranges
for General Ledger View

2. Display - Document Number Ranges for General Ledger View - for IM20
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View --> Define Document Number Ranges
for General Ledger View

Same as entry view in the above we have description

21.8 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

3. Copy to Company Code

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View -->Copy to Company Code

21.9 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

4. Display - Document Number Ranges for General Ledger View - for IM20
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View --> Define Document Number Ranges
for General Ledger View

5. Copy to Fiscal Year

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View -->Copy to Fiscal Year

21.10 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

6. Display - Document Number Ranges for General Ledger View - for IM10
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View --> Define Document Number Ranges
for General Ledger View

21.11 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

Diff b/w Entry view and GL view

Entry view:
The entry view shows each individual transaction as it was recorded in the accounting system. This view
displays a detailed record of each transaction, including the date, account name, description, and
amount. It is helpful for reviewing specific transactions and checking for accuracy.

GL view:
The general ledger view provides a summary of all the transactions that have been recorded in the
accounting system. This view displays a list of all accounts and their current balances, including assets,
liabilities, equity, revenues, and expenses. It is useful for understanding the overall financial health of
the business, as well as for analyzing trends and making decisions based on financial data.
While the entry view provides a detailed record of individual transactions, the general ledger view
provides a summary of all transactions and their impact on the financial statements. Both views are
essential for managing a business's finances effectively.

21.12 | P a g e Satish Makam Year Activity-Number Ranges

Punnam Venkat
+91 7032372034

CROSS COMPANY CODE TRANSACTIONS

Cross company code means A company code is paying or receiving behalf of other company
code
Ex: take two company codes A & B. Company code 'B' purchase computer from vendor. Now, A
company code pays money to vendor behalf of B.

1. Create GL “Inter Company Payable – IM20 A/c” in IM10 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

Intercompany Payable means any account payable, loan, note, balance, advance, payable,
obligation in respect of a derivative or other amount owed to the Parent or any Affiliate of the
Parent

22.1 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

22.2 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

2. Create GL “Inter Company Receivable– IM10 A/c” in IM20 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

Inter- Company Receivables means any amounts receivable from other company in the Group.

22.3 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

3. Create GL “Cash A/c” in IM20 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

22.4 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

22.5 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

4. Create GL “Inter Company Receivable – IM20 A/c” in IM10 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

22.6 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

5. Create GL “Inter Company Payable – IM10 A/c” in IM20 FS00

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Master Records --> G/L
Accounts --> Individual Processing --> Centrally

22.7 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

22.8 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

6. Define Intercompany Clearing Accounts OBYA

(Prepare Cross Company Code Transaction -Assign GL)
SPRO-> Financial Accounting (New) -> Financial Accounting Global Settings (New) -> Ledgers -> Real-
Time Integration of Controlling with Financial accounting -> Define Account Determination for Real-Time
Integration -> Define Intercompany Clearing Accounts

The intercompany clearing account is used to offset the transfer of expenses from the
originating subsidiary (employee’s subsidiary) to the related subsidiary (customer’s subsidiary).
This system-generated account enables the balancing of debits and credits in each subsidiary.

22.9 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

Post Vendor Invoice: FB50

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Enter G/L
Account Document

A vendor invoice is a document listing the amounts owed to a supplier by the recipient. When a
customer orders goods and services on credit, the supplier prepares an invoice and issues it to
the customer.

7. Display Cross Company Code Transaction FBU3

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document -->Cross-Company
Code Transaction --> Display

22.10 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

8. Post Invoice : FB50

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document Entry --> Enter G/L
Account Document

22.11 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

9. Display Cross Company Code Transaction FBU3

SAP Menu --> Accounting --> Financial Accounting --> General Ledger --> Document -->Cross-Company
Code Transaction --> Display

22.12 | P a g e Satish Makam Cross Company Code Transactions

Punnam Venkat
+91 7032372034

VENDOR AS CUSTOMER - VICE VERSA

In SAP, the scenario of Vendor as customer and Customer as vendor refers to a situation where a
business relationship exists between two parties where one party acts as a vendor to the other,
supplying goods or services, while also acting as a customer, purchasing goods or services from the
other party.

For example, let's say that Company A supplies goods or services to Company B, but at the same time,
Company A also purchases goods or services from Company B. In this case, Company B would act as a
customer when purchasing from Company A, but as a vendor when selling to Company A. This creates a
situation where the same two parties are both vendors and customers to each other.

Create Customer Master FD01

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Create

23.1 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

23.2 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

1. Create Vendor Master FK01

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Master Records -->Create

23.3 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

23.4 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

2. Change Customer Master FD02

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records-->Change

23.5 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

3. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry -->Invoice

23.6 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

4. Post Customer Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

5. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

23.7 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

6. Customer Line Item Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/Change
Line Items

23.8 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

7. Vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry -->Outgoing
Payment--> Post

23.9 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

8. Vendor Clearing F-44

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable --> Account--> Clear

9. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

23.10 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

10. Customer Line Item Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/Change
Line Items

23.11 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

Another Scenario:

Purchase Invoice 200000 FB60

Sales Invoice 255000 FB70
Have to received 55000 F-28

1. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry -->Invoice

2. Post Customer Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

23.12 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

3. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

23.13 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

4. Customer Line Item Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/Change
Line Items

23.14 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

5. Customer Payment F-28

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry -->
Incoming Payments

23.15 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

6. Customer Clearing F-32

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Account --> Clear

23.16 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

7. Customer Line Item Report FBL5N

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account--> Display/Change
Line Items

23.17 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

8. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

23.18 | P a g e Satish Makam Vendor as Customer Vice Versa

Punnam Venkat
+91 7032372034

GST (GOODS AND SERVICES TAX)

GST (Goods and Services Tax) is an indirect tax that was introduced in India on July 1, 2017, to replace
multiple taxes levied by the central and state governments. It is a comprehensive, destination-based tax
on the supply of goods and services across India, intended to simplify and streamline the tax system.

Under the GST system, various indirect taxes, such as Central Excise Duty, Service Tax, Value Added Tax
(VAT), Entry Tax, Luxury Tax, and Entertainment Tax, have been replaced by a single tax, which is levied
on the final consumption of goods or services. GST is a consumption-based tax, which means it is
collected from the end consumer and paid by businesses at each stage of the supply chain, with credit
for taxes paid at the previous stages.

GST has simplified tax compliance and reduced the tax burden on businesses, while also creating a more
transparent and efficient tax system. The GST Council, which is composed of representatives from the
central and state governments, is responsible for administering and setting the tax rates for GST.

24.1 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.2 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.3 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

CREDITor Input Tax Creditor ‘ITC’ means the Goods and Services Tax (GST) paid by a taxable person on
any purchase of goods and/or services that are used or will be used for business.

ITC value can be reduced from the GST payable on the sales by the taxable person only after fulfilling
some conditions.

Nature of Purchase Before GST After GST

Goods Purchase within State Excise + VAT CGST + SGST
Goods Purchase inter State Excise + CST IGST
Import Purchase BCD, CVD, AED, CESS, ECESS IGST
Inward branch transfer Excise/ No Excise No Tax
(Intra State)
Inward branch transfer Excise/ No Excise IGST
(Inter State)
Job work expense No tax, only VAT in case CGST + SGST
of Painting contract
Service expense Service Tax CSGT + SGST/ IGST

GST Rates

GST CGST SGST IGST UGST

RATE % 2.5 2.5 5 *
BANDS* 6 6 12 *
9 9 18 *
14 14 28 *

24.4 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Purchases Sales
Base Value 100000 Base Value 120000
Input IGST @12% 12000 Output IGST @12% 14400
Total Amount 112000 Total Amount 134400

Output IGST @12% 14400

Input IGST @12% 12000
Pay to Govt 2400

24.5 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

GST CONFIGURATION STEPS AT GLANCE

1. Create Access Sequence OBQ2 / OBYZ

Not created access sequence: used default MWST

2. Condition Type OBQ1 / OBYZ

FOR INPUT FOR OUTPUT
IMCG : IM Input CGST IMOC : IM Output CGST
IMSG : IM Input SGST IMOS : IM Output SGST
IMIG : IM Input IGST IMOI : IM Output IGST

3. Account Keys (Process Keys) OBCN

(To Specify Input GST or Output GST)

FOR INPUT FOR OUTPUT

Pro Description Pro Description
IIC IM Input CGST IOC IM Output CGST
III IM Input IGST IOI IM Output IGST
IIS IM Input SGST IOS IM Output SGST

4. Define Procedures OBQ3 / OBYZ

IMINTX : IM Indian Tax

Control Data

Step CType Description Fro To Acckey

10 BASB Base Amount Enter
or BASI
20 IMCG IM Input CGST 10 10 IIC Enter
30 IMSG IM Input SGST 10 10 IIS Enter
40 IMIG IM Input IGST 10 10 III Enter
50 IMOC IM Output CGST 10 10 IOC Enter
60 IMOS IM Output SGST 10 10 IOS Enter
70 IMOI IM Output IGST 10 10 IOI Enter

5. Assign Country to Calculation Procedure OBBG

Country Name Procedure

IN India IMINTX

6. Define Tax Code for Sales and Purchases FTXP

Tax code :I5 IM Input CGST +SGST (Tax Type V)

24.6 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Tax code :I6 IM Input IGST (Tax Type V)

Tax code :I7 IM Output CGST +SGST (Tax Type A)
Tax code :I8 IM Output IGST (Tax Type A)

7. Create G/L Accounts FS00

240000 Input CGST A/c :Tax Receivable Balance Sheet

240010 Input SGSTA/c :Tax Receivable Balance Sheet
240020 Input IGSTA/c :Tax Receivable Balance Sheet
150000 Output CGST A/c :Tax Payable Balance Sheet
150001 Output SGST A/c :Tax Payable Balance Sheet
150002 Output IGSTA/c :Tax Payable Balance Sheet

8. Define Tax Accounts (Assign Account key &GL) OB40

Pro Description GL Assignment

IIC IM Input CGST 240000 Input CGST A/c

III IM Input IGST 240020 Input IGSTA/c
IIS IM Input SGST 240010 Input SGSTA/c
IOC IM Output CGST 150000 Output CGST A/c
IOI IM Output IGST 150001 Output SGST A/c
IOS IM Output SGST 150002 Output IGSTA/c

9. Maintain Tax Code for excise duties using condition techniques SM30

Table Code: J_1ICONDTAX

10. Tax Category activation in Expense GL FS00

Expense GL
Tax Category *
Tick posting without tax allowed

24.7 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

GST INPUT TAX CONFIGURATION AND POSTINGS

1. Create Access Sequence OBQ2 / OBYZ
SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Access Sequence
An access sequence is a set of rules that determines which condition record to use for pricing or
output determination in a particular business transaction.

An access sequence is created and assigned to a condition type. It specifies the sequence of tables
and fields to be checked in order to find the correct condition record. When a certain condition, such
as a price or a tax rate, needs to be determined for a particular business transaction, the system
follows the access sequence to find the relevant condition record.

Not created access sequence: used default MWST

2. Define Condition Types OBYZ

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Condition Types

A condition type is used to calculate the tax amount based on the tax code and tax rate. In the case of
GST, the condition type is used to calculate the GST amount based on the tax code and tax rate defined
for a particular tax jurisdiction.tax jurisdiction

Condition Type: IMCG : IM Input CGST

24.8 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.9 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Condition Type: IMSG : IM Input SGST

Condition Type: IMIG : IM Input IGST

24.10 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

3. Check and Change Settings for Tax Processing (Account Keys) OBCN
SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check and Change Settings for Tax Processing

The account key is used to determine the GL account to which a tax amount should be posted in a GST
transaction. The account key is assigned to a condition type and specifies the GL account to be used for
posting the tax amount.

For example, in a GST transaction, when a tax amount is calculated using a condition type, the account
key specifies the GL account to which the tax amount should be posted. This GL account can be an input
tax account or an output tax account depending on whether the tax amount is being paid or collected.

24.11 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.12 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

4. Define Procedures OBYZ

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Procedures

A tax procedure is used to manage the calculation and posting of taxes in a business transaction. A tax
procedure is a sequence of steps that are executed in a predefined order to determine the tax amount
and the relevant tax codes for a transaction. In the case of GST, a tax procedure is used to calculate and
post the Goods and Services Tax (GST) amount.

24.13 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.14 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

5. Assign Country to Calculation Procedure OBBG

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Assign Country to Calculation Procedure

Assigning a country to a tax calculation procedure is an important step in setting up Goods and Services
Tax (GST) in your system. This step is necessary because GST rates and rules can vary by country, and
therefore different tax calculation procedures may need to be used for different countries.

6. Define Tax Code for Sales and Purchases FTXP

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Calculation →Define Tax Code for Sales and Purchases

Tax codes are used to represent the tax rates and tax jurisdictions for different types of transactions.
When setting up Goods and Services Tax (GST) in SAP, you will need to define tax codes for both sales
and purchases.

For sales transactions, you will typically need to define tax codes for output tax. Output tax is the tax
that your company collects on behalf of the government when selling goods or services.
For purchase transactions, you will typically need to define tax codes for input tax. Input tax is the tax
that your company pays on purchases of goods or services, and which can be used to offset your
company's output tax liability.

24.15 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.16 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

7. Create GL “Input CGST A/c” FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

Input CGST A/c refers to the account where a registered taxpayer can record and claim the input tax
credit (ITC) of the Central Goods and Services Tax (CGST) paid on the purchase of goods or services used
for business purposes within the same state.

24.17 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.18 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

8. Create GL “Input SGST A/c” FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

Input SGST A/c refers to the account where a registered taxpayer can record and claim the input tax
credit (ITC) of the State Goods and Services Tax (SGST) paid on the purchase of goods or services used
for business purposes within the same state.

24.19 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.20 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

9. Create GL “Input IGST A/c” FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally
Input SGST A/c refers to the account where a registered taxpayer can record and claim the input tax
credit (ITC) of the State Goods and Services Tax (SGST) paid on the purchase of goods or services used
for business purposes within the same state.

24.21 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

10. Define Tax Accounts (Assign Tax Processing Account key & GL) OB40
SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Posting → Define Tax Accounts
Assigning Account Keys with GL will generate auto posting of GST Input Credit

Assignment of "Input CGST A/c" to "IIC" Account Key

24.22 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.23 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.24 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Assignment of "Input SGST A/c" to "IIS" Account Key

24.25 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.26 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.27 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Assignment of "Input IGST A/c" to "III" Account Key

24.28 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.29 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

11. Maintain Tax Code for excise duties using condition techniques SM30

This is used for Table data purpose. In this step, we Assign tax codes to the company code.

24.30 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.31 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

12. Activating Tax Category for Expenses GL FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

Assigning tax categories to expense accounts ensures that the appropriate tax codes are applied to
expenses, resulting in accurate tax calculations. This helps to avoid errors and potential penalties for
incorrect tax reporting.

24.32 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

13. Post Vendor invoice with tax (Input IGST A/C) FB60
SAP Menu → Accounting → Financial Accounting →Accounts Payable→Document Entry →Invoice

24.33 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

14. Post Vendor invoice with tax (Input CGST A/C &Input SGST A/C) FB60
SAP Menu → Accounting → Financial Accounting →Accounts Payable→Document Entry →Invoice

24.34 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

15. Post Vendor invoice with tax CGST+SGST (multi screen) F-43
SAP Menu → Accounting → Financial Accounting →Accounts Payable→Document Entry → Invoice-
General

24.35 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.36 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

16. Enabling Inclusive of Tax Option FB60

SAP Menu → Accounting → Financial Accounting →Accounts Payable→Document Entry →Invoice

What does ‘Inclusive GST’ mean?

There are two important ways in which the price of a good or service is denoted under a tax regime:

Price inclusive of taxes: It implies that the price of a good or service includes tax. The tax is not
separately charged from the customer. Thus, Inclusive GST means that GST is included in the price of the
product.

Price exclusive of taxes: This means that the price of good or service does not include tax. Tax is
separately charged over and above the price of the product. The term ‘plus taxes’ is used in many cases.

Eg 1: Inclusive of GST Eg 2: Exclusive of GST

Price = Rs. 1180 Price = Rs. 1180
GST = 18% GST = 18%
GST = Price * (GST Rate / 100+GST Rate) GST = Price * GST Rate
= Rs. 1180 * (18/118) = Rs. 1180 * 18%
= Rs. 180 = Rs. 212.4
Basic Price = Price * (100 / 100+GST Rate) Basic Price + GST = Price charged to customer
= Rs. 1180 * (100/118) Rs. 1180 + Rs. 212.4 = Rs. 1392.4
= Rs. 1000
Basic Price + GST = Price charged to customer
Rs. 1000 + Rs. 180 = Rs. 1180

24.37 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.38 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.39 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

17. Post Vendor invoice including tax (CGST+SGST) FS60

(Contractor fee Rs. 500000 including tax)
SAP Menu → Accounting → Financial Accounting →Accounts Payable→Document Entry →Invoice

24.40 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

18. Post Vendor invoice without tax FS60

(Contractor fee Rs. 300000 without tax)
SAP Menu → Accounting → Financial Accounting →Accounts Payable→Document Entry →Invoice

24.41 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

GST OUTPUT TAX CONFIGURATION AND POSTINGS

1. Define Condition Types OBYZ
SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Condition Types

Condition Type: IMOC:IM Output CGST

24.42 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Condition Type: IMOS :IM Output SGST

24.43 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Condition Type: IMOI :IM Output IGST

24.44 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

2. Check and Change Settings for Tax Processing OBCN (Account Keys)
SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check and Change Settings for Tax Processing

24.45 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.46 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

3. Define Procedures OBYZ

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Check Calculation Procedure → Define Procedures

24.47 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.48 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

4. Assign Country to Calculation Procedure OBBG

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Basic Settings → Assign Country to Calculation Procedure

5. Define Tax Code for Sales and Purchases FTXP

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Calculation →Define Tax Code for Sales and Purchases

24.49 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.50 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.51 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

6. Create G/L Accounts FS00

Create GL “IM Output CGST A/c” FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally
Output CGST A/C : Output CGST A/C is a ledger account that is used to record the amount of Central
Goods and Services Tax (CGST) that a business has charged or collected from its customers on the sale of
goods and services within the same state.

24.52 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Create GL “IM Output SGST A/c” FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally
Output SGST A/C: Output SGST A/C is a ledger account that is used to record the amount of Central
Goods and Services Tax (SGST) that a business has charged or collected from its customers on the sale of
goods and services within the same state.

24.53 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Create GL “IM Output IGST A/c” FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

Output IGST A/c: Output IGST A/c is a ledger account used to record the amount of Integrated Goods
and Services Tax (IGST) that a business has collected on the interstate supply of goods and services.

24.54 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

7. Define Tax Accounts (Assign Account key & GL) OB40

SPRO→ Financial Accounting (New) → Financial Accounting Global Settings (New) → Tax on
Sales/Purchases → Posting → Define Tax Accounts

Assignment of "IM Output CGST A/c" to "IOC" Account Key

24.55 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.56 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.57 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Assignment of "IM Output SGST A/c" to "IOS" Account Key

24.58 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Assignment of "IM Output IGST A/c" to "IOI" Account Key

24.59 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

8. Maintain Tax Code for excise duties using condition techniques SM30

24.60 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

9. Tax Category activation in Income GL FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

24.61 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

10. Post Customer Invoice Output CGST+SGST FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

24.62 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

11. Post Customer Invoice Output IGST FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

24.63 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

12. Post Customer Invoice Inclusive of GST FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --> Invoice

24.64 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

13. Tax Report S_ALR_87012357

Accounting → Financial Accounting → General Ledger → Reporting → Tax Reports → General →
Advance Return for Tax on Sales/Purchases → Advance Return for Tax on Sales/Purchases.
GST Report / GSR return/ Tax Report: GST Report / GSR return/ Tax Report is a document that contains
details of a taxpayer's sales, purchases, tax collected, and paid during a specific period. The GST return
needs to be filed by the taxpayer with the government tax authorities on a regular basis as per the
prescribed time frame.

In India, under the Goods and Services Tax (GST) system, there are various types of returns that
taxpayers need to file based on their business type and turnover. Some of the commonly filed GST
returns are GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual return).

LIST EXPORT. LOCAL FILE, EXCEL, DESTKIP,

FILE NAME.XLS

24.65 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

HTML EXPORT

24.66 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

EXCEL EXPORT

24.67 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

24.68 | P a g e Satish Makam Goods and Service Tax

Punnam Venkat
+91 7032372034

Tax Deducted at Source (TDS) is an income tax subjected to every person making specified type of payments.
These payments range widely, including professional fee, salary, commission, interests, rents, and so on. The
deductor /buyer (person making the payment) is required to deduct Income tax at the rates in force. The
person who receives the payment after the deduction of tax is called the deductee. The deductor is required
to give the TDS deducted certificate issued by the government to the deductee as a fulfilment of tax liability,
and must annually file TDS return in the relevant format within the Indian income department.

TDS RULE FOR SERVICES– INCOME TAX SEC 194C, 194I, 194J ETC.

NEW TDS RULE FOR PURCHASE OF GOODS – INCOME TAX SEC 194Q

25.1 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.2 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.3 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

TDS: It is another way of collecting the income tax

PAN: Permanent Account Number

TAN: Tax Deduction Account Number
GSTIN: Goods and Service Tax Identification Number
TDS is applicable for all the service activities. (Recently Purchases also covered)
Ex: Rent, Commission, Service, Contracts… etc.

Based on the Income tax act, different sections comes under different services.

Sec 194C Contracts

Sec 194I Rent
Sec 194H Commission
Sec 194J Professional Charges

Sec - 194I
For IM10

Payment 27000

IM10 Ramu
Rent – INV 30000

Pay TDS 3000 PM

Per Year 36000

For Ramu:
Suppose 200000 Income Tax
36000 Less TDS paid by IM10
164000 Net Income Tax

TDS may calculate at the time of invoice posting, or at the time of payment posting, or advance payment
also. (Whichever is earlier)

TDS is country specific tax. In the SAP terminology, we call it as a withholding tax.

25.4 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

1. Check Withholding Tax Country

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Basic Settings --> Check withholding Tax Country
Withholding tax country refers to a country that imposes a withholding tax on payments made to
residents / non-residents. Different countries have different rates and rules for withholding tax, and
some countries may have a withholding tax treaty with another country to reduce or eliminate
withholding tax on certain types of income.

2. Withholding Tax key

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Basic Settings --> Define Withholding Tax Keys

Withholding Tax key refers to A system object that you use to classify withholding tax items
according to which section of the Income Tax Act they belong to. This information is required in TDS
returns

25.5 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

3. Define Business Places

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Basic Settings --> India --> Define Business Places

(Address of Jurisdiction Tax office)

In SAP, business places can be defined in the Withholding Tax (TDS) module to identify the
geographical locations where withholding taxes are applicable. The business places are typically
defined based on the jurisdictional requirements of tax authorities.

25.6 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

4. Maintain Table J_1BBRANCV SM30

Maintain Table for J_1BBRANCV: It is a report in the SAP system that is used to reconcile the
withholding tax (TDS) amounts between the vendor accounts and the tax authorities. This report is
specifically designed for businesses operating in India and is a part of the Indian tax reporting
functionality in SAP

25.7 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.8 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

5. Assign Factory Calendars to Business Place

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Basic Settings --> India --> Assign Factory Calendars to Business Place

The factory calendar defines the working days and working hours for a factory, and assigning it to a
business place helps in calculating TDS accurately based on the number of working days and working
hours in a month

25.9 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

6. Define withholding Tax type for Invoice Posting

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Calculation --> withholding Tax type--> Define withholding Tax type for
Invoice Posting
The withholding tax type determines how the tax is calculated, posted, and exempted for various
vendors or materials. By defining a withholding tax type for invoice posting, the system will
automatically calculate and post the withholding tax during invoice posting.

25.10 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

7. Define withholding Tax Type for Payment Posting

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Calculation --> withholding Tax type--> Define withholding Tax type for
Payment Posting

Defining withholding tax type for payment posting in SAP is similar to defining it for invoice posting.
The main difference is that defining withholding tax types for payment posting helps in calculating
and posting the withholding tax at the time of payment rather than during invoice posting. This
means that the withholding tax is deducted and posted when a payment is made to a vendor, rather
than at the time of invoice creation.

25.11 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

8. Define Withholding Tax Codes

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Calculation --> Withholding Tax Code -->Define Withholding Tax codes
Withholding Tax Codes in TDS are defined to specify the rate of tax to be deducted from payments
made to vendors or contractors. These codes are associated with specific tax types and calculation
types, and they define the tax amount to be withheld based on the payment made to the vendor or
contractor. The withholding tax amount is then remitted to the relevant tax authorities on behalf of
the vendor or contractor.
Tax Cdoe: II: IM tax code for INV POSTING

25.12 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.13 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

Tax Cdoe: IP: IM tax code for INV PAYMENT

25.14 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

9. Check Recipient Type

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Basic Settings --> Check Recipient type
In TDS, recipient type refers to the classification of the recipient of a payment as either an individual
or a company. The recipient type is determined based on the vendor or contractor's tax registration
status and is used to determine the applicable tax rate and tax codes for withholding tax.

In India, for example, the recipient type is categorized as either a resident or non-resident. Resident
vendors or contractors are subject to a lower tax rate than non-residents. The recipient type is used
to determine the tax rate to be applied for the transaction, as well as the withholding tax code that
should be used for calculating the tax amount.

25.15 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

10. Maintain Tax Due Date

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Basic Settings --> India --> Maintain Tax Due Date

Maintaining Tax Due Dates in TDS is important as it ensures that the organization meets its tax
payment obligations in a timely manner. The Tax Due Date specifies the date by which the tax
amount deducted at source must be remitted to the relevant tax authority. Failure to remit the tax
amount on or before the due date may result in penalties or fines.

25.16 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

11. Assign Withholding Tax type to Company code

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Company code --> Assign Withholding Tax Type to Company code

Assigning a withholding tax type to a company code is important for ensuring that the correct tax
codes and tax rates are used when withholding tax is deducted from payments made to vendors or
contractors.

25.17 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.18 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

12. Activate Extended Withholding Tax

SPRO--> Finance Accounting (New) --> Financial Accounting Global Settings --> Withholding Tax -->
Extended withholding Tax --> Company code --> Activate Extended Withholding Tax

In SAP, activating extended withholding tax provides additional functionality for managing
withholding tax requirements. Extended withholding tax enables organizations to perform more
complex withholding tax calculations and reporting, as well as better management of vendor master
data and tax codes.

13. Maintain Company Code Settings (done by MM Consultant)

SPRO--> Logistic General --> Tax on Goods Movements --> India --> Basic Settings --> Maintain Company
Code Settings

25.19 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

14. Create GL "194I TDS A/c" FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

25.20 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.21 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

15. Define Accounts for Withholding Tax to be Paid Over OBWW

SPRO -> 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

Note: During the accounting entry posting, TDS Tax GL will reflect automatically.
For that purpose, we need to create TDS GL comes under Tax payable and we need to map TDS GL in
OBWW

In SAP, Define Accounts for Withholding Tax to be Paid Over is a configuration activity that allows
organizations to specify the G/L (General Ledger) accounts that will be used to track and manage
withholding tax amounts deducted from vendor or customer payments.

25.22 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

16. Create Rent GL A/c FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

25.23 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.24 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

17. Activate Taxes Optional for field status OBC4

SPRO-> Financial Accounting (New)--> Financial Accounting Global Settings (New)-> Ledgers-> Fields -->
Define Field Status Variants

Before Accounting entry posting, we want activate, field status “TDS Fields”

25.25 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

18. Create Vendor "Punnam IT" FK01

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Master Records -->Create

25.26 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.27 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.28 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

Scenario

Rent to Punnam IT 100000 TDS 10%

Invoice:
Rent A/c Dr 100000
To TDS 10000
To Punnam IT 90000

Vendor Payment
Punnam IT A/c Dr 90000
To Cash 90000

19. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry -->Invoice

25.29 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

20. Vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document Entry--> Outgoing
Payment--> Post

25.30 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

21. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

25.31 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

Scenario: TDS at the time of Payment

Punnam IT A/c Dr 100000
To TDS 90000
To Cash 10000
22. Post Vendor Invoice FB60
SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry -->Invoice

25.32 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

23. Vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry --> Outgoing
Payment--> Post

25.33 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.34 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

24. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

Scenario: Rent with GST and TDS

Rent 100000
IGST 12000
Less TDS 10000
Total 102000

Accounting Entry

Rent A/c Dr 100000

InputIGST Dr 12000
To TDS Payable 10000
To Punnam IT 102000

25.35 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25. Posting Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry -->Invoice

25.36 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.37 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

26. Vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Document Entry --> Outgoing
Payment--> Post

25.38 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

Scenario: Advance Payment GST+TDS

Advance Amount 40000

Less TDS 4000
Payment 36000

Account Entry
Punnam IT A/c Dr 40000
To TDS 4000
To Cash 36000

27. Advance Payment F-48

SAP Menu --> Financial Accounting --> Accounts Payable --> Document Entry --> Down Payment -->
Down Payment

25.39 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.40 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

25.41 | P a g e Satish Makam TDS

Punnam Venkat
+91 7032372034

HOUSE BANK
House banks are the banks used to deal all transactions for the company. In other words, it is
an operating bank where all transactions are made by the company. Each house bank in a
company code is represented in the SAP R/3 System by a bank ID.
G/L AccountAccount GroupShort Text
220030 Cash & Bank HDFC Main Bank A/C
220031 Cash & Bank HDFC Outgoing Bank A/C
220032 Cash & Bank HDFC Incoming Bank A/C

1. Creation of GL "HDFC Main Bank A/c" 220030 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

26.1 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.2 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

2. Creation of GL "HDFC Outgoing Bank A/c" 220031 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

26.3 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

3. Creation of GL "HDFC Incoming Bank A/c" 220032 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

26.4 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.5 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

4. Define House Banks FI12 / FBZP

Financial Accounting (New) → Bank Accounting → Bank Accounts → Define House Banks

26.6 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.7 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.8 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.9 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

5. Assign House Bank details to GL FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

Assign House Bank details to GL Select this option →Create/Bank/Interest

G/L AccountHouse BankAccount ID

220030 IHHB IHAI

220031 IHHB IHAI

220032 IHHB IHAI

26.10 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.11 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

6. Define Check Lots: FCHI

SPRO → Financial Accounting → Account Receivables & Account Payables → Business Transactions →
Outgoing Payments → Automatic Outgoing Payments → Payment Media → Check Management →
Define Number Ranges for Checks

Normally, checks supplied by a bank usually divided into lots (batches). In the SAP System, a
check number range represents a batch (lot) of numbered checks. In the Financial Accounting
Configuration, check lots (number ranges) must be defined that correspond to the actual check
lots

26.12 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.13 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

7. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

26.14 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

8. Vendor Payment F-53

SAP Menu → Accounting → Financial Accounting → Accounts Payable → Document Entry →
Outgoing Payment → Post

26.15 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

26.16 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

9. Manual Check Update FCH5

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Create --> Manual Checks

10. Update Check Encashment Date FCH6

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Change--> Additional Info/Cash

Check encashment is actually when the check was added or deducted from your bank balance.
Encashment date is very useful for bank reconciliation since it updates your bank balance. Once
you input/upload the encashment date, you're check clearing account will also be updated.
Thereby giving you an idea of you're bank running balance.

26.17 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

11. Display Check Register FCHN

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Display--> Check Register
A check register, also called a cash disbursements journal, is the journal used to record all of the
checks, cash payments, and outlays of cash during an accounting period

26.18 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

12. Display Check Report based on Check Number FCH1

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Display--> For Check

26.19 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

13. Display Check Report based on Document Number FCH2

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Display--> For Payment Document

26.20 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

14. Void Not used Checks FCH3

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Void--> Unused Checks

15. Display Check Register FCHN

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Display--> Check Register

26.21 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

16. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

26.22 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

17. Vendor Payment F-53

SAP Menu → Accounting → Financial Accounting → Accounts Payable → Document Entry →
Outgoing Payment → Post

26.23 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

18. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->Account --> Display/Change
Line Items

26.24 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

19. Manual Check Update FCH5

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Create --> Manual Checks

26.25 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

20. Display Check Register FCHN

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Display--> Check Register

21. Void the issued Check FCH9

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Void--> Issued Checks

26.26 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

22. Manual Check Update FCH5

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Create --> Manual Checks

23. Display Check Register FCHN

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Display--> Check Register

26.27 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

24. Update Check Encashment Date FCH6

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Environment --> Check
Information--> Change--> Additional Info/Cash

26.28 | P a g e Satish Makam House Bank

Punnam Venkat
+91 7032372034

AUTOMATED PAYMENT PROGRAM

➢ using of APP we will make multiple vendor payments at a time

➢ Even APP supports customers payment also
➢ By using F-53 individual vendor Payment
➢ using F110 individual and multiple vendor payment at a time. even it supports
customer payment also

APP Configuration FBZP Consultant

APP Run F110 End-user

Steps in FBZP:
1. All Company Codes
2. Paying Company Codes
3. Payment methods in country
4. Payment Methods in Company code
5. Bank Determination
6. House Bank

1. Set Up All Company Codes for Payment Transactions FBZP

SPRO→Financial Accounting (New) →Accounts Receivable and Accounts Payable →
Business Transactions →Outgoing Payments →Automatic Outgoing Payments→
Payment Method/Bank Selection for Payment Program→ Set Up All Company Codes
for Payment Transactions

27.1 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.2 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

2. Set Up Paying Company Codes for Payment Transactions FBZP

SPRO→Financial Accounting (New) →Accounts Receivable and Accounts Payable →
Business Transactions →Outgoing Payments →Automatic Outgoing Payments→
Payment Method/Bank Selection for Payment Program→ Set Up Paying Company
Codes for Payment Transactions

27.3 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.4 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

3. Set Up Payment Methods per Country for Payment Transactions FBZP

SPRO→Financial Accounting (New) →Accounts Receivable and Accounts Payable →
Business Transactions →Outgoing Payments →Automatic Outgoing Payments→
Payment Method/Bank Selection for Payment Program→ Set Up Payment Methods per
Country for Payment Transactions

27.5 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

APP configuration FBZP. Inrealtime 99% companies will use APP for vendor clearing payment

27.6 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.7 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

4. Set Up Payment Methods per Company Code for Payment Transactions FBZP
SPRO→Financial Accounting (New) →Accounts Receivable and Accounts Payable →
Business Transactions →Outgoing Payments →Automatic Outgoing Payments→
Payment Method/Bank Selection for Payment Program→ Set Up Payment Methods per
Company Code for Payment Transactions

27.8 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.9 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.10 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

5. Set Up Bank Determination for Payment Transactions FBZP

SPRO→Financial Accounting (New) →Accounts Receivable and Accounts Payable →
Business Transactions →Outgoing Payments →Automatic Outgoing Payments→
Payment Method/Bank Selection for Payment Program→ Set Up Bank Determination
for Payment Transactions

27.11 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.12 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.13 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

END USER ACTIVITY FOR APP

1. Create Vendor Master FK01
SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Master
Records -->Create

27.14 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.15 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.16 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

2. Create Vendor Master FK01

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Master
Records -->Create

27.17 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.18 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.19 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

3. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Document
Entry -->Invoice

27.20 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

4. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Document
Entry -->Invoice

27.21 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

5. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Account -->
Display/Change Line Items

27.22 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.23 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

6. Post Vendor Payment using APP Run F110

SAP Menu → Accounting → Financial Accounting →Accounts Payable → Periodic
Processing → Payments

27.24 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.25 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.26 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

7. Vendor Line Item Report 4000000025 FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Account -->
Display/Change Line Items

8. Vendor Line Item Report 4000000026 FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Account -->
Display/Change Line Items

27.27 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

9. Check Printing Parameter

27.28 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.29 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

9. Checking of Job:
System--> Services-->Jobs-->Job Overview

27.30 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.31 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

10. Printing of Cheque SP01

SAP Menu → Tools → CCMS → Print → Output Controller

27.32 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.33 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.34 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.35 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.36 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

11. Stopping Sample Prints In Printing Variant

27.37 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

Scenario: Hold one Invoices out of 2 invoices which are due for payment in F110
1. Post Vendor Invoice FB60
SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Document
Entry -->Invoice

27.38 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

2. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Document
Entry -->Invoice

27.39 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

3. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Account -->
Display/Change Line Items

4. Run APP F110

SAP Menu → Accounting → Financial Accounting →Accounts Payable → Periodic
Processing → Payments

27.40 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.41 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.42 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.43 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.44 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

5. Checking of Job:
System--> Services-->Jobs-->Job Overview
Execute

27.45 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

6. Printing of Cheque SP01

SAP Menu → Tools → CCMS → Print → Output Controller

27.46 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.47 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.48 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.49 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

Scenario: Automatic Cheque Printing Process: FBZ5

1. Post Vendor Invoice for Rs. 250000 FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Document
Entry -->Invoice

27.50 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

2. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Account -->
Display/Change Line Items

3. Vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document
Entry -->Outgoing Payment--> Post

27.51 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.52 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

4. Vendor Line Item Report FBL1N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Account -->
Display/Change Line Items

5. Automatic Cheque update and Printing Job FBZ5

SAP Menu → Accounting → Financial Accounting → Accounts Payable → Document
→ More Functions → Print Payment Forms

27.53 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.54 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.55 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

12. Printing of Cheque SP01

SAP Menu → Tools → CCMS → Print → Output Controller

27.56 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.57 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

Scenario: Post payment Document with Cheque Print

F-58 (substitute for F-53 & FBZ5)
1. Post Vendor Invoice for Rs. 300000 FB60
SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Document
Entry -->Invoice

27.58 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

2. Post payment Document with Cheque Print F-58

SAP Menu → Accounting → Financial Accounting → Accounts Payable → Document
Entry → Outgoing Payment → Post + Print Forms

27.59 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.60 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

13. Printing of Cheque SP01

SAP Menu → Tools → CCMS → Print → Output Controller

27.61 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

27.62 | P a g e Satish Makam Automated Payment Program

Punnam Venkat
+91 7032372034

BANK RECONCILIATION STATEMENT

1. Define Posting Keys and Posting Rules for Manual Bank Statement:

SPRO → Financial Accounting (New)→ Bank Accounting → Business Transactions →

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

28.1 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

Create Account Symbols:

28.2 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

Assign Accounts to Account Symbol:

If you we have multiple accounts, patch up technique to the G/L acct as given below

Act Symbol Acct Mod. Currency G/L acct Acct Symb.

Desc.
IMH1 +++++++++0
IMH2 +++++++++1
IMH3 +++++++++2

Create Keys for Posting Rules:

28.3 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

Define Posting Rules:

28.4 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

2. Create And Assign Business Transaction:

SPRO → Financial Accounting (New)→ Bank Accounting → Business Transactions →
Payment Transactions → Manual Bank Statement → Create and Assign Business
Transaction

Flow of Configuration:

GL’S

Accounting Symbols Post Key for Posting Rules

Define Posting Rule Business Transaction

BRS Posting

Reports

28.5 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

3. Define Variant for Manual Bank Statement

SPRO → Financial Accounting (New)→ Bank Accounting → Business Transactions →
Payment Transactions → Manual Bank Statement → Define Variant for Manual Bank
Statement

28.6 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

28.7 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

28.8 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

BRS END USER ACTIVITY

1. Create Vendor Master FK01

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable-->
Master Records -->Create

28.9 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

28.10 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

28.11 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

2. Create Customer Master FD01

SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable --
>Master Records-->Create

28.12 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

28.13 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

3. Post Vendor Invoice FB60

SAP Menu --> Accounting --> Financial Accounting -->Accounts Payable--> Document
Entry -->Invoice

28.14 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

4. Post Customer Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->
Document Entry --> Invoice

28.15 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

5. Post vendor Payment F-53

SAP Menu --> Accounting --> Financial Accounting --> Accounts Payable--> Document
Entry -->Outgoing Payment--> Post

28.16 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

6. Post Customer Payment F-28

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->
Document Entry --> Incoming Payments

28.17 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

7. Manual BRS FF67

SAP Menu --> Accounting --> Financial Accounting --> Banks --> Incomings --> Bank Statement
--> Manual Entry

28.18 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

28.19 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

Overview

28.20 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

8. Processing of Batch Input Sessions:

Menu→ Services →Batch Input→ Sessions

28.21 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

28.22 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

9. Main Bank A/c Line Item Report after Manual BRS FBL3N

28.23 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

10. Outgoing Bank A/c Line Item Report after Manual BRS FBL3N

28.24 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

11. Incoming Bank A/c Line Item Report after Manual BRS FBL3N

28.25 | P a g e Satish Makam Manual Bank Reconciliation Statement

Punnam Venkat
+91 7032372034

ASSET ACCOUNTING

CHART OF DEPRECIATION

1. Copy Reference Chart of Depreciation/Depreciation Area

1.1. Copy Reference Chart of Depreciation
1.2. Specify Description of Chart of Depreciation
1.3. Copy/Delete Depreciation Area

2. Assign Chart of Depreciation to Company Code

Error 1: Assign Tax Codes for Non-Taxable Transactions
Error 2: Specify the Use of Parallel Currencies

ASSET CLASS
1. Specify Account Determination
2. Define Number Range Interval AS08
3. Create Screen Layout Rules
4. Define Screen Layout for Asset Master Data OA77
5. Define Asset Class OAOA

GENERAL LEDGERS FOR ASSET ACCOUNTING

1. Create GLs FS00

Sl. GL Number GL Name Accounts Group Recon Line item display

1 200000 Building A/c Fixed Asset Asset Line item display
2 200001 P&M A/c Fixed Asset Asset Line item display
3 200002 AUC A/c Fixed Asset Asset Line item display
4 160040 Accud Dep on Building A/c Current Liability Asset Line item display
5 160051 Accud Dep PM A/c Current Liability Asset Line item display
6 320010 Sale of Asset A/c Income ---- Line item display
7 320020 Profit on Asset Sale A/c Income ---- Line item display
8 440011 Loss on Asset Sale A/c Expenses ---- Line item display
9 440020 Loss on Asset Scrap A/c Expenses ---- Line item display
10 440030 Depreciation A/c Expenses ---- Line item display

2. Assign G/L Accounts for Automatic Posting AO90

29.1 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

DOCUMENT TYPES AND NUMBER RANGES

1. Define Document Types for Entry View OBA7

2. Define Document Types for Entry view in a Ledger
3. Define Document Types for General Ledger View
4. Define Document Number Ranges for Entry View FBN1
5. Define Document Number Ranges for General Ledger View

DEPRECIAION METHODS AND DEPRECIATION KEYS

1. Specify Intervals and Posting Rules OAYR

2. Specify Rounding of Net Book Valueand / or Depreciation OAYO
3. Define Multi-Level Methods AFAMS
4. Maintain Period Control Methods AFAMP
5. Maintain Depreciation Key AFAMA
6. Define screen Layout for Asset Depreciation Areas AO21
7. Determine Depreciation Areas in the Asset Class OAYZ

ASSET MASTER CREATIONS, POSTINGS, REPORTS

1. Create Assets AS01

2. Display Assets AS03
3. Purchase of Asset with Vendor F-90
4. Asset Explorer AW01N
5. Asset History Sheet AR02
6. Asset Values (Asset Balances) AR01
7. Depreciation Run (Execute as Background Job) AFAB
8. Checking of Background Job SM37
9. Print Report in PDF SA38
10. To see Depreciation Documents FB03

29.2 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

ASSET RETIREMENT AND TRANSFER

1. Making Field Status Variant Settings Optional OBC4

2. Posting of Sale of Asset (Plant_01, With Customer, Loss on Sale of Asset) F-92
3. Asset Explorer AW01N
4. Posting of Sale of Asset (Plant_02, With Customer, Gain on Sale of Asset) F-92
5. Asset Retirement W/O Customer (Plant_03, Loss on Sale of Asset) ABAON
6. Asset Retirement by Scrapping (Plant_04, Loss on Asset Scrap) ABAVN
7. Asset Partial Retirement by Scrap (50% of Plant_05, Loss on Asset Scrap) ABAVN
8. Transfer Within Company Code (Plant_06 to Plant_07) ABUMN

29.3 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

CHART OF DEPRECIATION
1. Copy Reference Chart of Depreciation/Depreciation Area
SPRO→Financial Accounting (New) →Asset Accounting → Organisation Structures→Copy Reference
Chart of Depreciation/ Depreciation Area

1.1 Copy Reference Chart of Depreciation

29.4 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.5 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.6 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

1.2 Specify Description of Chart of Depreciation

29.7 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

1.3 Copy/Delete Depreciation Area

29.8 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.9 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

2. Assign Chart of Depreciation to Company Code

SPRO→Financial Accounting (New) →Asset Accounting → Organisation Structures→Assign Chart of
Depreciation to Company Code

29.10 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

Solution:
Step 1: Assign Tax Codes for Non-Taxable Transactions
Financial Accounting (New) →Financial Accounting Global Settings (New) →Tax on Sales/Purchases
→Posting→Assign Tax Codes for Non-Taxable Transactions

Step 2: Specify the Use of Parallel Currencies

Financial Accounting (New) →Asset Accounting →Valuation→Currencies→Specify the use of Parallel
Currencies.

Now Try assigning the Chart of Depreciation to Company Code

29.11 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

ASSET CLASS
1. Specify Account Determination
SPRO→Financial Accounting (New)→Asset Accounting→Organisation structure → Asset Classes→
Specify Account Determination

29.12 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

2. Define Number Range Interval AS08

SPRO→Financial Accounting (New)→Asset Accounting→Organisation structure → Asset
Classes→Define Number Range Intervals

29.13 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

3. Create Screen Layout Rules

SPRO→Financial Accounting (New)→Asset Accounting→Organisation structure → Asset
Classes→Create Screen Layout Rules

29.14 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.15 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

4. Define Screen Layout for Asset Master Data OA77

SPRO→Financial Accounting (New)→Asset Accounting→Master Data → Screen Layout→Define Screen
Layout for Asset Master Data

29.16 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.17 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.18 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.19 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

5. Define Asset Class OAOA

SPRO→Financial Accounting (New)→Asset Accounting→Organisation structure → Asset
Classes→Define Asset Class

29.20 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.21 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

GENERAL LEDGERS FOR ASSET ACCOUNTING

1. Create GL : Building A/c 200000 FS00
SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.22 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

2. Create GL :P&M A/c 200001 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.23 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.24 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

3. Create GL :AUC A/c 200002 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.25 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

4. Create GL :Accud Dep on Building 200002 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.26 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.27 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

5. Create GL :Accud Dep on P&M A/c 160051 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.28 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

6. Create GL :Sale of Asset A/c 320010 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.29 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.30 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

7. Create GL :Profit on Asset Sale A/c 320020 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.31 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

8. Create GL :Losson Asset Sale A/c 440011 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.32 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.33 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

9. Create GL :Loss on Asset scrap A/c 440020 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.34 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

10. Create GL :Depreciation A/c 440030 FS00

SAP Menu → Accounting → Financial Accounting → General Ledger → Master Records → G/L Accounts
→ Individual Processing → Centrally

29.35 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.36 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

11. Assign G/L Accounts for Automatic Posting AO90

Financial Accounting (New) →Asset Accounting → Integration with General Ledger Accounting → Assign
G/L Accounts

Assignment of GLs to IMBUAD:IM Building Accounting Determination

29.37 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.38 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

Assignment of GLs to IMAUAD :IM AUC Accounting Determination

29.39 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.40 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

Assignment of GLs to IMPMAD :IM P&M Accounting Determination

29.41 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.42 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.43 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

12. Flow of Asset Accounting in SAP

Chart of Depreciation Company Code

GL Chart of Accounts

Accounting Screen Number

Determination Layout Range

Depreciation Methods Asset Class

Depreciation Key Asset Master

Document Entries

Reports

Accounting Determination, Screen Layout, Number Range: these things control asset class.
Assets are created under Asset Classes

29.44 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

DOCUMENT TYPES AND NUMBER RAGNES

1. Define Document Types for Entry View OBA7
SPRO→Financial Accounting (New) →Financial Accounting Global Settings (New) → Document
→Document Types →Define Document Types for Entry View
Already default available. Nothing to do

2. Define Document Types for Entry view in a Ledger

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

For Ledger - I5

29.45 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

For Ledger - I6

29.46 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

3. Define Document Types for General Ledger View

SPRO→Financial Accounting (New) →Financial Accounting Global Settings (New) → Document
→Document Types → Define Document Types for General Ledger View

For Ledger - I5

29.47 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

For Ledger - I6

4. Define Document Number Ranges for Entry View FBN1

SPRO→Financial Accounting (New) →Financial Accounting Global Settings (New) → Document
→Document Number Ranges→Documents in Entry View →Define Document Number Ranges for Entry
View

29.48 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

5. Define Document Number Ranges for General Ledger View

SPRO→Financial Accounting (New) →Financial Accounting Global Settings (New) → Document
→Document Number Ranges→Documents in Entry View →Define Document Number Ranges for
General Ledger View

29.49 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

DEPRECIATION METHODS AND DEPRECIATION KEYS

1. Specify Intervals and Posting Rules OAYR
SPRO→Financial Account (New) → Asset Accounting →Integration with General Accounting → Post
Depreciation to General Ledger Accounting →Specify Intervals and Posting Rules

29.50 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.51 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

2. Specify Rounding of Net Book Valueand / or Depreciation OAYO

Financial Account (New) → Asset Accounting → Valuation → Amount Specification → Specify rounding
of net book value and / or Depreciation

29.52 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.53 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

3. Define Multi-Level Methods AFAMS

SPRO→ Financial Accounting (New)→ Asset Accounting→ Depreciation → Valuation Methods→

Depreciation Key→ Calculation Methods→ Define Multi-Level Methods

29.54 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.55 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.56 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

4. Maintain Period Control Methods AFAMP

SPRO→ Financial Accounting (New)→ Asset Accounting→ Depreciation → Valuation method→
Depreciation key→ Calculation method→Maintain Period Control Methods

29.57 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

5. Maintain Depreciation Key AFAMA

SPRO→ Financial Accounting (New)→ Asset Accounting→ Depreciation → Valuation method→
Depreciation key→ Maintain Depreciation Key

Creation of ISDK IM Straight Line Depreciation Key

29.58 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

Creation of IMDK IM Written Down Depreciation Key

29.59 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.60 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.61 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

6. Define screen Layout for Asset Depreciation Areas AO21

SPRO→ Financial Accounting (New)→ Asset Accounting→ Master Data→ Screen Layout →Define screen
Layout for Asset Depreciation Areas

Nothing to do

29.62 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

7. Determine Depreciation Areas in the Asset Class OAYZ

SPRO→ Financial Accounting (New)→ Asset Accounting→Valuation → Determine Depreciation Areas in
the Asset Class

29.63 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.64 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

ASSET MASTER
1. Create Asset : Plant_01 AS01
SAP Menu →Accounting →Financial Accounting →Fixed Assets →Asset →Create→Asset

29.65 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

2. Create Asset : Plant_02 AS01

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Asset →Create→Asset

29.66 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.67 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

3. Create Multiple Assets at a time : Plant_03, Plant_04,Plant_05,Plant_06 AS01

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Asset →Create→Asset

29.68 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.69 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.70 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

4. Display Asset AS03

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Asset →Display→Asset

29.71 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

5. Purchase of Asset with Vendor (Plant_01) F-90

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Posting→Acquisition→External
Acquisition →With Vendor

29.72 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.73 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

6. Purchase of Asset with Vendor (Plant_02) F-90

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Posting→Acquisition→External
Acquisition →With Vendor

29.74 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.75 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.76 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

7. Purchase of Asset with Vendor (Plant_03) F-90

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Posting→Acquisition→External
Acquisition →With Vendor

8. Purchase of Asset with Vendor (Plant_04) F-90

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Posting→Acquisition→External
Acquisition →With Vendor

29.77 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

9. Purchase of Asset with Vendor (Plant_05) F-90

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Posting→Acquisition→External
Acquisition →With Vendor

10. Purchase of Asset with Vendor (Plant_06) F-90

SAP Menu →Accounting →Financial Accounting →Fixed Assets →Posting→Acquisition→External
Acquisition →With Vendor

29.78 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

11. Asset Explorer AW01N

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Asset →Asset Explorer

29.79 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

12. Asset History Sheet AR02

SAP Menu → Information Systems→ Accounting→ Financial Accounting →Fixed Assets → Asset History
Sheet

29.80 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

13. Asset Values (Asset Balances) AR01

SAP Menu → Information Systems→ Accounting→ Financial Accounting →Fixed Assets → Asset History
Sheet

29.81 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

14. Depreciation Run (Execute as Background Job) AFAB

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Periodic Processing → Depreciation
Run → Execute

29.82 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.83 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.84 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.85 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

15. Checking of Background Job SM37

System→ Service- Job-Job Overview

29.86 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

16. Print Report in PDF SA38

29.87 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.88 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.89 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

17. To see Depreciation Documents FB03

SAP Menu →Accounting →Financial Accounting → General Ledger → Document → Display

29.90 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

18. Asset Explorer to check Posted Values AW01N

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Asset →Asset Explorer

29.91 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

ASSET RETIREMENT AND TRANSFER

1. Making Field Status Variant Settings Optional OBC4
SPRO→Financial Accounting (New)→ Financial Accounting Global Settings (New)→Ledgers→ Fields →
Define Field Status Variants

29.92 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.93 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

2. Posting of Sale of Asset (Plant_01, With Customer, Loss on Sale of Asset) F-92
SAP Menu →Accounting →Financial Accounting →Fixed Assets → Posting→ Retirement →Retirement
W/Revenue→ With Customer

Scenario
Transaction Accounting Entry
Asset Retirement with Customer for Loss Customer 90000
Purchase Value 100000 Acct Dep 425
Acc Dep 425 Loss on Asset Sale 9575
Net Book Value 99575 To Asset 100000

Asset Sale 90000

Loss on Asset Sale 9575

29.94 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.95 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.96 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

3. Asset Explorer AW01N

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Asset →Asset Explorer

29.97 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

4. Posting of Sale of Asset (Plant_02, With Customer, Gain on Sale of Asset) F-92
SAP Menu →Accounting →Financial Accounting →Fixed Assets → Posting→ Retirement →Retirement
W/Revenue→ With Customer

Scenario
Transaction Accounting Entry
Asset Retirement with Customer for gain Customer 119595
Purchase Value 120000 Acct Dep 510
Acc Dep 510 To Asset 120000
Net Book Value 119490 To Profit on Asset Sale 105

Asset Sale 119595

Gain on Asset Sale 105

29.98 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.99 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.100 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

5. Asset Explorer AW01N

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Asset →Asset Explorer

29.101 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

6. Asset Retirement Without Customer (Plant_03, Loss on Sale of Asset) ABAON

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Posting→ Retirement →Retirement
W/Revenue→Asset Sale Without Customer

Scenario
Transaction Accounting Entry
Asset retirement without Customer Acct Dep 595
Purchase Value 140000 Asset on Sale 110000
Acc Dep 595 Loss on Asset Sale 29405
Net Book Value 139405 To Asset 140000

Asset Sale 110000

Loss on Asset Sale 29405

29.102 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.103 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

7. Asset Retirement by Scrapping (Plant_04, Loss on Asset Scrap) ABAVN

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Posting→ Retirement → Asset
Retirement by Scrapping

Scenario
Transaction Accounting Entry
Purchase Value 160000 Acct Dep 579
Acc Dep 679 Loss on Asset Scrap 29405
Net Book Value 159321 To Asset 159321

Loss on Asset Scrap 159321

29.104 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.105 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

8. Asset Partial Retirement by Scrapping (50% of Plant_05, Loss on Asset Scrap) ABAVN
SAP Menu →Accounting →Financial Accounting →Fixed Assets → Posting→ Retirement → Asset
Retirement by Scrapping

Scenario
Transaction Accounting Entry
Acct Dep 382
Purchase Value 180000 Loss on Asset Scrap 89618
Acc Dep 764 To Asset 90000
Net Book Value 179236
Scrapping 50%

Loss on Asset Scrap 89618

29.106 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.107 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

9. Asset Explorer AW01N

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Asset →Asset Explorer

10. Transfer Within Company Code (Plant_06 to Plant_07) ABUMN

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Posting→ Transfer→Transfer within
Company Code

29.108 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.109 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

29.110 | P a g e Satish Makam Asset Accounting

Punnam Venkat
+91 7032372034

11. Asset Explorer (for Plant_06) AW01N

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Asset →Asset Explorer

12. Asset Explorer (for Plant_07) AW01N

SAP Menu →Accounting →Financial Accounting →Fixed Assets → Asset →Asset Explorer

29.111 | P a g e Satish Makam Asset Accounting