FICO

SAP FICO – Configuration

and
end user guide

Document Prepared By
Rajesh Sethi
 Contents
1. Enterprise resource planning (ERP) ....................................................................................................... 5
A) Why ERP is required .......................................................................................................................... 5
2. SAP....................................................................................................................................................... 10
A) SAP History ...................................................................................................................................... 11
3. SAP Implementation Methodology (tools) .......................................................................................... 12
A) ASAP Methodology.......................................................................................................................... 12
B) SAP Solution Manager ..................................................................................................................... 13
4. SAP System Landscape ........................................................................................................................ 14
5. Change Transport System ................................................................................................................... 15
6. Types of SAP Projects .......................................................................................................................... 15
A) SAP Implementation Project ........................................................................................................... 15
B) SAP Support Project ........................................................................................................................ 16
C) SAP Roll-Out Project ........................................................................................................................ 16
D) SAP Up gradation Project ................................................................................................................ 16
7. Enterprise Structure ............................................................................................................................ 16
8. SAP FI Configuration Steps .................................................................................................................. 20
A) Enterprise Structure ............................................................................................................................ 20
I. Define Company .......................................................................................................................... 20
II. Define Company Code ................................................................................................................. 21
III. Assign Company Code to Company ......................................................................................... 22
IV. Define Business Area: .............................................................................................................. 22
V. Define Functional Area: ............................................................................................................... 23
VI. Define Credit Control Area: ..................................................................................................... 23
VII. Assign Company Code to Credit Control Area:........................................................................ 24
B) Financial Accounting Global Settings .................................................................................................. 24
I. Define Fiscal Year: ....................................................................................................................... 25
II. Assign Company Code to Fiscal Year: .......................................................................................... 26
III. Define Posting Period Variant ................................................................................................. 27
IV. Assign Posting Period Variant to Company Code .................................................................... 28
V. Define Field Status Variant .......................................................................................................... 29
VI. Assign Field Status Variant to Company Code ......................................................................... 30

VII. Define Posting Keys ................................................................................................................. 30

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 VIII. Define Document Types .......................................................................................................... 31
IX. Define Number Ranges for Document .................................................................................... 32
X. Define User Tolerance Groups .................................................................................................... 33
C) General Ledger Accounting ................................................................................................................. 34
I. Define Chart Of Account.............................................................................................................. 34
II. Assign Company Code to COA ..................................................................................................... 35
III. Define Account Groups ........................................................................................................... 36
IV. Define Retain Earning Account................................................................................................ 36
V. Creation of GL Master: ................................................................................................................ 37
VI. Define Tolerance Group for GL Account.................................................................................. 37
D) Accounts Payable ................................................................................................................................ 39
I. Creation of Vendor Account Group ............................................................................................. 39
II. Create Number Range for Vendor Group .................................................................................... 40
III. Assign Number Range to Vendor Group ................................................................................. 41
IV. Define Tolerance Group for Vendor ........................................................................................ 42
V. Creation of Vendor Master:......................................................................................................... 43
VI. Document Type & Number Range ........................................................................................... 43
VII. Vendor Payment Terms ........................................................................................................... 43
E) Accounts Receivable ............................................................................................................................ 45
I. Creation of Customer Account Group ......................................................................................... 46
II. Create Number Range for Customer Account ............................................................................. 47
III. Assign Number Range to Customer Account Groups .............................................................. 48
IV. Define Tolerance Group for Customer: ................................................................................... 48
V. Creation of Customer Master:..................................................................................................... 50
VI. Document Types & Number Range ......................................................................................... 50
F) Asset Accounting ................................................................................................................................. 51
I. Copy Reference Chart of Depreciation Area: .............................................................................. 51
II. Assign COD to Company Code ..................................................................................................... 52
III. Specify Account Determination ............................................................................................... 53
IV. Create Screen Layout Rule....................................................................................................... 54
V. Define Number Range Interval .................................................................................................... 54

VI. Define Asset Classes ................................................................................................................ 56

VII. Determine Depreciation Area in the Asset Class ..................................................................... 58
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 VIII. Assignment of GLs ................................................................................................................... 59
IX. Specify Intervals of Posting Rules ............................................................................................ 61
X. Define Screen Layout for Asset Master Data............................................................................... 62
XI. Define Screen Layout for Asset Depreciation Areas ................................................................ 64
XII. Define Depreciation Methods ................................................................................................. 66
XIII. Maintain Depreciation Keys .................................................................................................... 69
XIV. Depreciation Run ..................................................................................................................... 71
XV. Create Asset Master: ............................................................................................................... 71
G) Bank Accounting ................................................................................................................................. 72
I. Create Bank Key........................................................................................................................... 72
II. Define House Bank ...................................................................................................................... 73

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 1. Enterprise resource planning (ERP)
Enterprise resource planning (ERP) is business process management
software that allows an organization to use a system of integrated applications
to manage the business and automate many back office functions related to
technology, services and human resources.
ERP software typically integrates all facets of an operation — including
product planning, development, manufacturing, sales and marketing — in a
single database, application and user interface.
ERP software is considered to be a type of enterprise application, that is
software designed to be used by larger businesses and often requires dedicated
teams to customize and analyze the data and to handle upgrades and
deployment. In contrast, Small business ERP applications are lightweight
business management software solutions, often customized for a specific
business industry or vertical.

A) Why ERP is required

To understand this, let’s take an example. Suppose a client approaches
sales team asking for a particular product. The sales team contacts to
inventory department to check the availability of the product. To their surprise,
sales team found out that the product is out of stock. So next time this don‘t
happen, they have to introduce a SAP ERP tool.
Before we actually see in detail, what ERP is and how ERP can help in
your business process, we will understand how different departments are
involved in the whole business process, right from the ordering of the raw
material – to manufacturing goods – to delivering final goods to the customer.

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Here is the whole process that is followed by any business unit.
1. Client contacts the sales team to check the availability of the product
2. Sales team approaches the Inventory department to check for the availability
of the product
3. In case the product is out of stock, the sales team approaches the
Production Planning Department to manufacture the product
4. The production planning team checks with inventory department for
availability of raw material
5. If raw material is not available with inventory, the Production Planning team
buys the raw material from the Vendors
6. Then Production Planning forwards the raw materials to the Shop Floor
Execution for actual production
7. Once ready, the Shop Floor Team forwards the goods to the Sales Team
8. Sales Team who in turn deliver it to the client
9. The sales team updates the finance with revenue generated by the sale of the
product. Production planning team updates the finance with payments to be
made to different vendors for raw materials.
10. All departments approach the HR for any Human Resource related issue.

That is a typical business process for any manufacturing company. Some key
inferences one could derive from the scenario would be.
• It has many departments or business units
• These departments or business units continuously communicate and
exchange data with each other
• The success of any organization lies in effective communication, and data
exchange, within these departments, as well as associated third party
such as vendors, outsourcers, and customers.

Based on the manner in which communication and data exchanged is

managed. Enterprise systems can be broadly classified as

1) Decentralized System
2) Centralized System which are also called as ERP.

1) Decentralized System
Let's look at Decentralized system first, in a company with Decentralized
System of Data Management; there are two major problems –
➢ Data is maintained locally at the individual departments
➢ Departments do not have access to information or data of other
departments

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To identify problems arising due to decentralized Enterprise management
system lets look at the same business process again. The customer approaches
the sales team for a product, but this time around he needs the product, on an
urgent basis.

Since it is a decentralized process, the Sales Team do not have any real-time
information access to the products availability. So they approach the Inventory
department to check the availability of the product. This process takes time
and customer chooses another vendor leading to loss of revenue and customer
dissatisfaction.

Now, suppose the product is out of stock and the Sales Team approaches the
Production Planning team to manufacture the product for future use.
Production Planning Team checks the availability of the raw materials required.

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In a decentralized system, raw material information is separately stored by
Production Planning as well as Inventory Department. Thus, data maintenance
cost (in this case Raw Material) goes up.

The raw material information is available in two different departments

Inventory as well as Production Planning. When sales team check a particular
raw material required to manufacture the product, it shows the raw material is
available as per the inventory, but as per the database of the production
planning team, the raw material is out of stock. So, they go ahead and buy the
raw material. Thus, material as well inventory cost goes up.

Once the raw material is available, the shop floor department suddenly realizes
they are short of workers they approach the HR, who in turn hire temporary
employees at higher than market rates. Thus LABOR Cost Increases. The
production planning department fails to update the finance department on the
materials they have purchased. The finance department defaults the payment
deadline set by the vendor causing the company loss of its reputation and even
inviting a possible legal action.

These are just a few of many problems with decentralized systems.

Some Major problems with the decentralized system are –

▪ Numerous disparate information system generates individually over time
which are difficult to maintain
▪ Integrating the data is time and money consuming

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 ▪ Inconsistencies and duplication of data
▪ Lack of timely information leads to customer dissatisfaction, loss of
revenue and reputation
▪ High Inventory, material, and human resource cost.
These are some major drawbacks for which we need a solution. Well the
Solution lies in Centralized Systems i.e. ERP.

2) Centralized System
In a company, with Centralized System of Information and Data Management
➢ Data is maintained at a central location and is shared with various
Departments
➢ Departments have access to information or data of other Departments
Let‘s look at the same business process again to understand how a Centralized
Enterprise System helps to overcome problems posed by a Decentralized
Enterprise System.

In this Case, all departments update a Central Information System.

✓ When Customer approaches the sales team to buy a product on an
urgent basis. The Sales Team has real-time information access to the
products in inventory which is updated by the Inventory Department in
the Centralized System
✓ Sales Team responds to customer request on time leading to Increased
Revenue and Customer Delight.
✓ In case, manufacturing is required the Sales Team update the
Centralized Database, so that all the department remain informed about
the product status.

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 ✓ Production Planning Department is auto updated by the Centralized
Database for requirements. Production Planning Team checks the
availability of the raw materials required via Central Database, which is
updated by the Inventory Department.
✓ Thus, Data Duplication is avoided, and accurate data is made available.
The Shop Floor Team updates their Man Power Status regularly in the
Central Database, which can be accessed by the HR department.
✓ In case of shortage of workforce, HR team starts recruitment process
with considerable lead time to hire a suitable candidate at market price.
Thus labor cost goes down.
✓ While vendors can directly submit their invoices to the Central
Enterprise System, which can be accessed by the finance department.
Thus, payments are made on time, and possible legal actions are
avoided
✓ SAP software is a type of Centralized System. SAP System is most
popularly used ERP software.

Key benefits of the centralized system are:

❖ It Eliminates the duplication, discontinuity and redundancy in data

❖ Provides information across departments in real time.
❖ SAP System is Provides control over various business processes
❖ Increases productivity, better inventory management, promotes quality,
reduced material cost, effective human resources management, reduced
overheads boosts profits
❖ Better customer interaction and increased throughput. It also improves
customer service
❖ Hence, a centralized enterprise management system is required.
❖ SAP Software is a centralized enterprise management system also known
as Enterprise Resource Planning.

2. SAP
SAP stands for Systems Applications and Products in Data Processing.
SAP by definition is also named of the ERP (Enterprise Resource Planning)
software as well the name of the company. SAP Software was founded in 1972
by Wellenreuther, Hopp, Hector, Plattner and Tschira. SAP system consists of a
number of fully integrated modules, which covers virtually every aspect of the
business management.

SAP is fourth largest company in the world. The SAP R/3 system is a business
software package designed to integrate all areas of business. It provides end to
end solutions for financial, manufacturing, logistics, distribution etc. All

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business process are executed in one SAP system and sharing common
information with everyone.

A) SAP History
SAP Founded in and around 1972 by five IBM engineers Hopp,
Wellenreuther, Hector, Tschira and Plattner.

SAP R/1: The first version of SAP software was launched in and around 1972
known as the ―R/1 system. “R” stands for real-time data processing. It is one
tier architecture in which three layers Presentation, Application and Database
are installed in one system/server

(One – Presentation + Application + Database)

SAP R/2:In 1979 second version of SAP R/2 was released. with IBM‘s database
and a dialogue oriented business application. SAP R/2 to handle different
languages and currencies. R/2 is 2 tier architecture in which three layers
Presentation, Application and Database are installed in two separate server.

(Server one – Presentation, Server two – Application + Database)

SAP R/3: SAP upgraded R/2 to R/3 in 1992, SAP R/3 is the client/server
version of the software and it is 3 tier architecture in which three layers
Presentation, Application and data base are installed in three server/system.

(Server one – Presentation, Server Two – Application, server Three – Database)

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SAP Functional Modules
FICO – Finance & Control
PP – Production Planning
MM – Material Management
SD – Sales & Distribution
HR – Human Resources

SAP Technical Modules

ABAP – Advanced business applications programming
XI – Exchange Infrastructure
Net viewer
Basis
BIW – Business Information Warehousing

3. SAP Implementation Methodology (tools)

To implement SAP or any software, project team should always pass
through a software development life cycle (SDLC) to get the better view of the
project.SAP projects are long and intense. They require lots of effort and many
resources from developers and managers. It can be really tricky if SAP projects
are not planned in a proper form. SAP itself gives a proper methodology to
design the project so it will give reliable results.

In SAP, there are two types of development life cycle being followed:

A) ASAP Methodology
ASAP stands for Accelerated SAP. SAP is one of the best ERP systems,
and ASAP Methodology is the way SAP implementation happens.

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The ASAP methodology provides the proper framework for an implementation
roadmap. SAP Implementation consists of several phases that include every
stage of software development lifestyle (SDLC) for SAP implementation. ASAP
Methodology divides a project according to these vital phases. Each phase is
considered a milestone. The project management team can concentrate on the
current phase and start preparing for the next phase. This also provides a
better roadmap and work distribution. The ASAP methodology provides a
framework for SAP projects for implementation and enhancement as well for
the customization needed for production support.

Here are the six phases of ASAP Methodology:

1. Project Preparation
2. Business Blueprint
3. Realization
4. Final Preparation
5. Go Live
6. Post-Production Support

B) SAP Solution Manager

SAP Solution Manager(SolMan) is a module of SAP that provides
functionalities like integrated content, methodologies, tools etc. to implement,
operate, monitor and support an enterprise’s SAP solution. SAP solution
manager manages the SAP and Non-SAP solutions in the IT landscapes of an
organization. It supports the underlying IT infrastructure and business
processes. It is a powerful tool for SAP Basis administrators.
SAP solution manager provides you the tool, content, and gateway to create,
manage, operate and monitor your solutions over time.

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 4. SAP System Landscape
SAP system landscape is defined as an arrangement of SAP servers.
Ideally, in a Sap environment, a three-system landscape exists. A system
landscape consists of Development Server (Dev), Production Server (PROD),
and Quality Assurance server (QAS).

The following figure represents SAP three tier system landscape where work
flows from Development (Dev.)> Quality(QAS)> Production(PROD) and not in
backward direction.

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 5. Change Transport System
Change Transport System is used to move, manage, control, copy
development objects and customizing settings in an orderly fashion across SAP
systems in a landscape through pre-defined transport routes (RFC
Connections). The transport process basically consists of exporting of objects
out of the source SAP system and importing them into the target SAP
system/s. TMS Stands for Transport Management System

CTS is an instrument for:

• Administering & controlling new development requests.

• Managing transports
• Recording of where and by whom changes are made
• Configuring systems landscape

6. Types of SAP Projects

A) SAP Implementation Project. :
Company wants to implement SAP Modules (Ex:HR/MM/SD/FI/CO etc.) for
the first time. In implementation projects consultant from various modules do
configuration based on company’s requirement. Role of consultants are
configuration, integration of several modules, Data migration from Legacy
system to SAP system, prepare interfaces/RFC’s to interact with sap/3rd party
systems,testing, document preparation, end user training etc. Methodology
suggests by SAP for implementation is ASAP.

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 B) SAP Support Project
After implementation of SAP modules customer/business need assistance of
consultants in their day to day business operations using SAP software. The
end user raises their concerns,issues,errors etc. through a ticket handling
tool. A ticket handing tool is must for a support project, it helps to track the
status of tickets. Basically there are no phases in it. Roles of a
consultant accept /acknowledge the tickets, analysis the issue, document
it,solve, provide solutions to client, Get confirmation from the user & close the
ticket.
Change request and service request is the main roles in support projects.

C) SAP Roll-Out Project.

Company has upgraded/implemented SAP HR & wants to rollout country
specific changes in different countries.

D) SAP Up gradation Project

Customers are moving from the older versions to new versions. It is called as
SAP Migration Projects.
Example: Company migrating from older versions like 4.5,4.6b, 4.6c to ECC
5.0 / ECC6.0. SAP EHP3 to SAP EHP 5.

7. Enterprise Structure
Every organization has some framework or some structure is defined
according to which the whole business runs. Enterprise structure is the
structure that represents an enterprise in SAP ERP system. It
is subdivided into various organizational units which for legal reason or
business related reason are grouped together.

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Company
Company is an Organizational unit in accounting which represents a
business organization for which individual financial statements can be drawn
according to the relevant commercial law. A company can consist of one or
more company codes. A Company in SAP is denoted by five-character
alphanumeric code.

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

Chart of Accounts (COA)

The Chart of Accounts (COA) is a variant which contains list of all G/L
accounts used by one or several company codes.
For each G/L account, the chart of accounts contains the account number,
account name, and the information that controls how an account functions
and how a G/L account is created in a company code.

Chart of Accounts is defined at company code.

Three Types of Chart of Accounts:
1. Operating chart of Accounts
2. Country Specific chart of Accounts
3. Group Chart of Accounts

Business Area
Business Area is an organizational unit within financial accounting, which
represents a separate area of operations, or responsibilities within an
organization. It provides an alternative view of the Enterprise, and can
span/cross multiple Company Codes and will provide a level of detail below
Company Code. Internal balance sheets and income statements can be
created at the business area level.

Chart of Depreciation
The chart of depreciation enables you to manage all rules for the valuation of
assets in a particular country. You must assign a chart of depreciation to
each company code that is defined in Asset Accounting. SAP provides
country-specific charts of depreciation with predefined depreciation areas.

Credit Control Area

In SAP, Credit Control is used to specify and control the customer credit
limits. A credit control area can include one or more company codes. It is not
possible to divide a company code into several credit control areas. The credit

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control area is used for credit management in AR and SD components.

Funds Management Area

The funds management area is an organizational unit within accounting
which structures the business organization from the perspective of Cash
Budget Management and Funds Management.

Controlling Area
Controlling area is an organizational unit from the accounting component,
used for cost accounting purposes. Controlling area is used for planning,
allocation and monitoring the costs.
A controlling area may include single or multiple company codes that may
use different currencies but these company codes must use the same
operative chart of accounts.

Profit Center
Profit center is an organizational unit in accounting that reflects a
management-oriented structure of the organization for the purpose of
internal control. Profit Center Accounting evaluates the profit or loss of
individual, independent areas within an organization. These areas are
responsible for their costs and revenues.

Cost Center
Cost Centers are the organizational units within a controlling area that
represents a location where costs occur. Organizational divisions can be done
on the basis of functional, settlement-related, activity- related,
region/section/department related, to monitor actual and plan figure
standpoints where cost is captured.

Document Type
Document Type is used to distinguish between different business
transactions and to classify the accounting documents. It is also used to
determine the number range for documents and account types such as asset,
material, vendor, customer etc. for posting.
While entering a document you can enter a document type in the header
section.

If you are using any specific transaction code, then document type will be
defaulted. You can change the document type in the transaction while
posting, but the number range for the same will change accordingly.

Document type is defined at Client Level and so valid for all the company
codes, defined under the same client.

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Some of the most commonly used Document types are KR, KZ,
DR, DZ, AA, AF, SA etc. The codification logic for the Document
type is as mentioned below:

K for Vendor
D for Customer
S for General Ledger

Document Type Description

AA Asset Posting
AB Accounting Document
AF Depreciation Postings
CV Cash Voucher
DG Customer Credit Memo
DR Customer Invoice
DZ Customer Payment
KG Vendor Credit Memo
KN Net Vendors
KP Account Maintenance
KR Vendor Invoice
KZ Vendor Payment
RV Billing Document Transfer
SA G/L Account Document
WE Goods Receipt

Posting Key
Posting key is defined at client level. The key has below controlling functions
- Account Type for posting the Line item
- Line item as a debit or credit
- Field Status for the additional data reflected

Each line item has exactly one posting key to inform the system which
accounts are to be posted and whether it‘s a debit entry or a credit entry.

Posting Keys are as mentioned below:

01 to 19 is used for customer
21 to 39 is used for vendor
40 & 50 is used for GL posting
70 &75 is used for Asset posting

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 8. SAP FI Configuration Steps
To configure any module in SAP, there are 2 ways to do it.

First way is from SAP Menu Path (IMG Activity) and second way is from Transaction Code. In this course,
we will look into SAP FI step by step configuration:

Note: Form SAP Menu Path “Tools - > Customizing -> IMG -> SPRO - Execute Project -> SAP Reference
IMG” is common for all the configuration transaction.

A) Enterprise Structure
Enterprise structure is the key building block to the entire organization, below are the steps of
configuration:

I. Define Company
II. Define Company Code
III. Assign Company Code to Company
IV. Define Business Area
V. Define Functional Area
VI. Define Credit Control Area
VII. Assign Company Code to Credit Control Area

I. Define Company:
SAP Path : IMG ->Enterprise Structure ->Definition ->Financial Accounting ->Define
company
T-Code: OX15

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 II. Define Company Code:
SAP Path : IMG ->Enterprise Structure ->Definition ->Financial Accounting ->Edit, Copy,
Delete, Check Company Code
T-Code: OX02

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 III. Assign Company Code to Company:
SAP Path : IMG ->Enterprise Structure ->Assignment ->Financial Accounting ->Assign
company code to company
T-Code: OX16

IV. Define Business Area:

SAP Path : IMG ->Enterprise Structure ->Definition ->Financial Accounting ->Define
Business Area
T-Code: OX03

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 V. Define Functional Area:
SAP Path : IMG ->Enterprise Structure ->Definition ->Financial Accounting ->Define
Functional Area
T-Code: OKBD

VI. Define Credit Control Area:

SAP Path : IMG ->Enterprise Structure ->Definition ->Financial Accounting ->Define Credit
Control Area
T-Code: OB45

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 VII. Assign Company Code to Credit Control Area:
SAP Path : IMG ->Enterprise Structure ->Assignment ->Financial Accounting ->Assign
company code to credit control area
T-Code: OB38

B) Financial Accounting Global Settings

Financial accounting global settings are mandatory sets to define every time for new configuration,
below are the steps:

I. Define Fiscal Year

II. Assign Company Code to Fiscal Year
III. Define Posting Period Variant
IV. Assign Posting Period Variant to Company Code
V. Define Field Status Variant
VI. Assign Field Status Variant to Company Code

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VII. Define Posting Keys
VIII. Define Document Types
IX. Define Number Ranges for Document
X. Define User Tolerance Group

I. Define Fiscal Year:

SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Ledgers ->Fiscal Year and Posting Periods ->Maintain Fiscal Year Variant
(Maintain Shortened Fisc. Year)
T-Code: OB29

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 II. Assign Company Code to Fiscal Year:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Ledgers ->Fiscal Year and Posting Periods ->Assign Company Code to a Fiscal
Year Variant
T-Code: OB37

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 III. Define Posting Period Variant:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Ledgers ->Fiscal Year and Posting Periods ->Posting Periods ->Define Variants
for Open Posting Periods
T-Code: OBBO

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 IV. Assign Posting Period Variant to Company Code:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Ledgers ->Fiscal Year and Posting Periods ->Posting Periods ->Assign Variants
to Company Code
T-Code: OBBP

27
 V. Define Field Status Variant:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Ledgers ->Fields ->Define Field Status Variants
T-Code: OBBP

28
 VI. Assign Field Status Variant to Company Code:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Ledgers ->Fields ->Define Field Status Variants
T-Code: OBBP

VII. Define Posting Keys:

SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Document ->Define Posting Keys
T-Code: OB41

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 VIII. Define Document Types:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Document ->Document Types ->Define Document Types for Entry View
T-Code: OBA7

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 IX. Define Number Ranges for Document:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Document ->Document Number Ranges ->Documents in Entry View ->Define
Document Number Ranges for Entry View
T-Code:

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 X. Define User Tolerance Groups:
SAP Path : IMG ->Financial Accounting (New) ->Financial Accounting Global Settings (New)
->Document ->Tolerance Groups ->Define Tolerance Groups for Employees
T-Code: OBA4

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C) General Ledger Accounting
General Ledger Accounting is the complete record of all business transactions, below are the steps to
configure it:

I. Define Chart Of Account

II. Assign Company Code to COA
III. Define Account Groups
IV. Define Retain Earning Account
V. Creation of GL Master
VI. Define Tolerance Group for GL Account

I. Define Chart Of Account:

SAP Path : IMG ->Financial Accounting (New) ->General Ledger Accounting (New) ->Master
Data ->G/L Accounts ->Preparations ->Edit Chart of Accounts List
T-Code: OB13

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 II. Assign Company Code to COA:
SAP Path : IMG ->Financial Accounting (New) ->General Ledger Accounting (New) ->Master
Data ->G/L Accounts ->Preparations ->Assign Company Code to Chart of
Accounts
T-Code: OB62

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 III. Define Account Groups:
SAP Path : IMG ->Financial Accounting (New) ->General Ledger Accounting (New) ->Master
Data ->G/L Accounts ->Preparations ->Define Account Group
T-Code: OBD4

IV. Define Retain Earning Account:

SAP Path : IMG ->Financial Accounting (New) ->General Ledger Accounting (New) ->Master
Data ->G/L Accounts ->Preparations ->Define Retained Earnings Account
T-Code: OB53

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 V. Creation of GL Master:
It will be covered in master data creation training or in user manual.

VI. Define Tolerance Group for GL Account:

SAP Path : IMG ->Financial Accounting (New) ->General Ledger Accounting (New) -
>Business Transactions ->Open Item Clearing ->Clearing Differences ->Define
Tolerance Groups for G/L Accounts
T-Code: OBA0

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. @, Prep<lre Cm,s-Comp<lny Code TranS<lctions SIMG- CFMENUORFBOBYA
T
Open Item Cle<lring

I Open Item Processing

. (El, Define Posting Keys for Cle<lring
SIMG- CFMENUORFBOBXH
... (D,(El, Define Accounts for Exchange Rate Differences SIMG-
SIMG-
CFORFBOB09OP

. (El, Define Cle<r!ing Rules

Assign Cle<lring Rules to Account Types

SIMG-
CFORFBOBIA
CFORFBOBIB
. (El, Prep<lre Automatic Clearing
Clearing Differences
SIMG- CFMENUORFBOB74

. @, Define Tolerance Groups for G/L Acoounts

T

FIGLCL_T_ OBAO- OB
...@, Define Tolerance Groups for Bmplo,yees FIAPARCL_ T_ OBA4- OB
As.sign IJJsers to Toler<lnce Groups SIMG_:OFMENUORFBOB57

New Entries: Details of Added Entries I

I

Comp:any Code } 999 9Jli'.

Ir' -
Jm I
l it Industries

Tolerance group I9999 llsumit Industries GL Tolerance I

......

Tolerances for Groups of G/L Accounts in Loc:al Curre

Debit posting I 100.,ool INR Percentage i10.oi%

Credit posl:ing I 100.,ool INR Percentage 110.01%

New Entries m

coed IToi.group IN:ame

Sumit Industries GL Toler:ancel

38
Q ................................................................................................................................................................................................................................+
D) Accounts Payable
Accounts Payable manages accounting data for all vendors, below are the steps of configuration:

I. Creation of Vendor Account Group

II. Create Number Range for Vendor Account
III. Assign Number Range to Vendor Account Groups
IV. Define Tolerance Group for Vendor
V. Creation Of Vendor Master
VI. Document Types & Number Range
VII. Vendor Payment Terms

I. Creation of Vendor Account Group:

SAP Path : IMG ->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)
T-Code: OBD3

39
II. Create Number Range for Vendor Group:
SAP Path : IMG ->Financial Accounting (New) ->Accounts Receivable and Accounts Payable
->Vendor Accounts ->Master Data ->Preparations for Creating Vendor Master
Data ->Create Number Ranges for Vendor Accounts
T-Code: XKN1

40
III. Assign Number Range to Vendor Group:
SAP Path : IMG ->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
T-Code: OBAS

41
IV. Define Tolerance Group for Vendor:
SAP Path : IMG ->Financial Accounting (New) ->Accounts Receivable and Accounts Payable
->Business Transactions ->Outgoing Payments ->Manual Outgoing Payments -
>Define Tolerances (Vendors)
T-Code: OBA3

42
V. Creation of Vendor Master:
It will be covered in master data creation training or in user manual.

VI. Document Type & Number Range:

It is shown in “Financial Accounting Global Settings” (Point B).

VII. Vendor Payment Terms:

SAP Path : IMG ->Financial Accounting (New) ->Accounts Receivable and Accounts Payable
->Business Transactions ->Incoming Invoices/Credit Memos ->Maintain Terms of
Payment
T-Code: OBB8

43
 ► SAP Portfolio and Project Management:
... Financial Accounting (New)
► Financial Accounting Global Settings'>[New}
► General Ledger Accounting (New}

...
- ►
►
Accounts Receivable and Accounts PaY<Jble
Customer Accounts
Vendor Accounts
... Business Transactions
.... Incoming Invoices/Credit: Memos
► Make and Oheck Document: Settings
► Make and Oheck Settings for Document Parking
'ti
@, M:aint:ain Terms of P:ayment: S.IMG- CFMENUORFBOBBB

New Entries tQ:i Im

Expl,mal:ions

fuitthin 14 d:ays 3 % c;:ish dlscount:

@:aseline d:ate on 3 O of t:he mont:h

44
E) Accounts Receivable
Accounts Payable manages accounting data for all customers, below are the steps of configuration:

I. Creation of Customer Account Group

II. Create Number Range for Customer Account
III. Assign Number Range to Customer Account Groups
IV. Define Tolerance Group for Customer
V. Creation Of Customer Master
VI. Document Types & Number Range

45
I. Creation of Customer Account Group:
SAP Path : IMG ->Financial Accounting (New) ->Accounts Receivable and Accounts Payable
->Customer Accounts ->Master Data ->Preparations for Creating Customer
Master Data ->Define Account Groups with Screen Layout (Customers)
T-Code: OBD2

46
II. Create Number Range for Customer Account:
SAP Path : IMG ->Financial Accounting (New) ->Accounts Receivable and Accounts Payable
->Customer Accounts ->Master Data ->Preparations for Creating Customer
Master Data ->Create Number Ranges for Customer Accounts
T-Code: XDN1

47
III. Assign Number Range to Customer Account Groups:

SAP Path : IMG ->Financial Accounting (New) ->Accounts Receivable and Accounts Payable
->Customer Accounts ->Master Data ->Preparations for Creating Customer
Master Data ->Assign Number Ranges to Customer Account Groups
T-Code: OBAR

IV. Define Tolerance Group for Customer:

SAP Path : IMG ->Financial Accounting (New) ->Accounts Receivable and Accounts Payable
->Business Transactions ->Incoming Payments ->Manual Incoming Payments -
>Define Tolerances (Customers)
T-Code: OBA3

48
49
V. Creation of Customer Master:
It will be covered in master data creation training or in user manual.

VI. Document Types & Number Range:

It is shown in “Financial Accounting Global Settings” (Point B).

50
F) Asset Accounting
Asset Accounting is an important module in SAP and it manages assets of an organization by master
records.

I. Copy Reference Chart of Depreciation Area

II. Assign COD to Company Code
III. Specify Account Determination
IV. Create Screen Layout Rule
V. Define Number Range Interval
VI. Define Asset Classes
VII. Determine Depreciation Area in the Asset Class
VIII. Assignment of GLs
IX. Specify Intervals of Posting Rules
X. Define Screen Layout for Asset Master Data
XI. Define Screen Layout for Asset Depreciation Areas
XII. Define Depreciation Methods
XIII. Maintain Depreciation Keys
XIV. Depreciation Run
XV. Create Asset Master

I. Copy Reference Chart of Depreciation Area:

SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Organizational
Structures ->Copy Reference Chart of Depreciation/Depreciation Areas
T-Code: EC08

51
 II. Assign COD to Company Code:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Organizational
Structures ->Copy Reference Chart of Depreciation/Depreciation Areas
T-Code: OAOB

52
 III. Specify Account Determination:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Organizational
Structures ->Asset Classes ->Specify Account Determination
T-Code: -

53
 IV. Create Screen Layout Rule:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Organizational
Structures ->Asset Classes ->Create Screen Layout Rules
T-Code: -

V. Define Number Range Interval:

SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Organizational
Structures ->Asset Classes ->Define Number Range Interval
T-Code: AS08

54
 Lt

SAP Portfolio•,md Project Management

... Financial Accounting (New}
Financial Accounting Global Settings [New)
General Ledger Accounting (New)
► Accounts Receivable :and Accounts Payable
► Contract Accounts Receivable and Payable
► Rank Accounting
► Revenue Accounting
• Consolidation Preparation (New)
..,. Asset Accounting
► Asset Accounting (Lean Implementation)
.. Organizational Structures
• ©- Check Country-SpeciAc Settings ORFA_LA6NDER
• ©, Copy Reference Chart of Depreciation/Depreciation Areas SIMG_CFMENUORFAOAPl
• ©, Assign Chart of Depreciation to Company Code SIMG_CFMENUORFAOABl
• $ Specify Number Assignment Across Comp,my Codes ORFA_BKRS_NUMMERN
.. Asset Clilsses
• $ Generate Asset Olilsses from G/L Accounts (1 to 1) ORFA_S_KLASSBN
• $ Specify Account Determination SIMG_CRMENl!JORFAORG2.
• ©- Oreate Screen Layout Rules 0 RFA_BILDAUFBAU
• ©, Define Number Range Interval SIMG_CFM6NLIIORFAAS08
• ©, Define Asset Clilsses SIMG CFMENl!JORFAAMOl

I
Change documents

code

Intervals Status

I
--- - -
N..IFrom No,. ITo Number INRStatus
pl I00000l000000
--
000001099999 0 D
>-- _J --
02 000002000000 000002099999 0 D
I I I f

55
 VI. Define Asset Classes:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Organizational
Structures ->Asset Classes ->Define Asset Classes
T-Code: OAOA

56
 Change View "'Asset dasses"': Details
New Entries

Short Text

Account: determ. BUILDING

Ser.layout rule 990 1I Screen Layout for Building
Unit D
Number assignment
Number range §
0

Inventorydata
□Include asset
Status of AuC
@No Aue or summary management of Aue
0 Line item settlement
0 Investment Me:asure

stratus

Hotory status

Real estate indicator for asset class

IOther :asset without real estate management
Technical information

57
 VII. Determine Depreciation Area in the Asset Class:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Valuation ->Determine
Depreciation Areas in the Asset Class
T-Code: OAYZ

58
 VIII. Assignment of GLs:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Integration with
General Ledger Accounting ->Assign G/L Accounts
T-Code: AO90

59
@ Iilble View fdit .Goto S.eiection l,.l_tillties S'{stem l:ieP

Chart of dep.

• 'C".ilBalirno,SheetAc A((ount determ. fz9,199oi_J BUILDrNG

• DDepredation Depree area Ji] Bookdeprecii!tion
• DSpedalReserves
Acquisition accounta!.5ignment
Bal.!>h.acctAPC 20000 C, UILDING

Acqui5rt:ion: down payments t::==1

Cont@a(rnunt: A(quisition value c==J
Down-payments ck:arn11account r =i
Acqui5rt:ionfromaffiatedrnmpany c==J
Revenue frm post-Gilpit!kz:

RetireITTlntaccountas nment
Loss made on asset retrement w/o reven. Assetsale-Loss
Clearin11acct.revenuefroma5Setsaie Asset Sale
Gainfromas,etsal€ A'>'iet5al€-Gain
Loss from asset sale Asset Sale- Loss
Clear.revenuesaletoaffll.coIT1,any r------ =i

J
Revaluation account;issio;)nment
Revaluation acquis. and production costs c==J
Offsetting account: RevaUation APC c==J

0oneentrychosen t> Y01 (1) 800 - myecc OVR

Ch.,nge View nOepreciation n_-Details

'1P New Entries IIt:'.l Iii, 5a

DialoQStructure Omtofdep. Sumit Industries COD
- D Chart of Accounts Oiartof Accts SumitlndustriesCOA
- DAccountDetermrlati
• D BilbnceSheet Ai Account determ. BUILDING
• \:jJDepredation Deprec.areil Book depreciation
CJ Special Reserves

DEP-BUILDING
i==i
i==i

i==i
i==i
Expense a(count for spec.dep.below zero i==i
Revenue from write-up on spe(ialdeprec. i==i

Unplanned depredation accountassii;/nm€nt

A(rnmulated dep. a(count unpl. deprec. DEP FUND-BUILDING
Expense a(count for unplanned deprec DEP-BUILDING
P&Lact.unpl.dep.below o DEP-BUILDING
Revenue from write-upon unplnd.deprec i==i
Accountassio;lnmentfortransferofreserves
Val. adj. acct. fort@nsfer ofree;er,,es DEP FUND-BUILDING
Contraaccountfortransferrilgreserves i==i
Revenuefromw--uptransferofreser,,es i==i
Accountass nmentfor revaluation on depreciation
Reval. acrurrutated ord. depredation i==i
Offsetting accnt: Reval. ordinarydeprc r:::==J
12)oneentrydiosen 'f/ C, Y01 (1} 800 ..- myecc OVR

60
 IX. Specify Intervals of Posting Rules:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Integration with
General Ledger Accounting ->Post Depreciation to General Ledger Accounting -
>Specify Intervals and Posting Rules
T-Code: OAYR

61
 X. Define Screen Layout for Asset Master Data:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Master Data ->Screen
Layout ->Define Screen Layout for Asset Master Data
T-Code: -

62
 Lt

]
Logical field groups
Screel'l Lay:out for.Buildino1
D Field group rules
9902 Sereen Layout for Furnit:ure
9903 Screen Layout for Plant
-
9904 echicles
-
9905
-
9906 COMPUTERS/W
-
Land
- ----■ '
-

Structure

Field group Fl.lies ....

Post:ing information
Time-dependent d<llt3
AlloCc1tions
Leiosing
, 6
7
,
8
Origin
Inv. account a,ssignment:

63
Q ................................................................................................................................................................................................................................+
 XI. Define Screen Layout for Asset Depreciation Areas:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Master Data ->Screen
Layout ->Define Screen Layout for Asset Depreciation Areas
T-Code: AO21

64
65
 XII. Define Depreciation Methods:
SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Depreciation -
>Valuation Methods ->Depreciation Key ->Calculation Methods
T-Code: -
1. Base Method

66
 -
Fin,mcial Accounting [New}

Ordinary Depreciation
Special Depreciartion

. ORFA_REOHENMETHODE
@,, Define Declining-Balilnce Methools ORFA_RM- DEGRESSIV
Iii

- '

r
Change View "Base Method": Details
7 Ne-w entries LC] 0 t:cJ £] [}
-
Base method lordinarv: oercentaae from useful life]

Type of depreciation IOrd.depreciation

Dep. method IPercentage from the uselful life
Reduce use.life at FY end 0

Treatment of end of depreciation

Dep. after plnd.life end
Dep.below NB-Value zero,
Curb

2. Define Declining-Balance Methods

67
 Lt

I Change View "Dec/Jning-Balance Method": Ove,view

6t, New entries LC] t:Q !;fl. D;+U.sage method

Chart of dep. Sumit:Indu.strie.sCOD

b:al. Description of the method IDec.factor IM:ax.perc. IMin.Pere.

r=- >- 7
poi _J
>--.-

§
>-
002 2..oox 120.0000% I 0.0000% 2.00 20.0000
003 2.S:0x /25.0000% / 0.0000% 2.50 25.0000

>--
004 G.oox /30.0000% I 0.0000% 3.00 30.0000
101 Income T:ax Depreciation India - 5% block 5.0000
>--

-
>--
102
103
Income Ta,x Depreciation India - 10% block
Income Ta,x Depreciation India - 15% block
10.0000
15.0000
10.0000
15.0000
104 Income Taix Depreciation India - 20% block 20.0000 20.0000
>--

-
>--
105
106
Income Tax Depreciation India - 25% block
Income Ta,x Depreciation India - 40% block
25.0000
40.0000
25.0000
40.0000
107 Income Taix Depreciation India - 50% block 50.0000 50.0000
>--
108 60.0000
- Income Tax Depreciation India - 60% block 60.0000

- 109 Income Ta,x Depreciation India - 100% block 100.0000

3. Maintain Period Control Methods

LL]Copy method

Ch;irt of dep. Jg Sumit Industries COD

Period Control
Prd.c.meth Description

04/06/02/02 04 06 02 02
01/06/02/02 01 06 02 02
06/06/02/02 06 06 02 02
06/06/08/08 06 06 oa oe
INl Period control method for IT d... IT IT L
= pLl 01/01/01/01 01 01 01 01 01 01 01 01

t
68
 4. Define Multi-Level Methods

XIII. Maintain Depreciation Keys:

SAP Path : IMG ->Financial Accounting (New) ->Asset Accounting ->Depreciation -
>Valuation Methods ->Depreciation Key ->Maintain Depreciation Key
T-Code: AFAMA

69
 t
Display ING
I
□ Existing BC Sets 6;j' BC Sets for Activib <S;j'Acti\'ated BC Sets for Acti,ritj GJRelease Notes Change Log
-
Structure
--
... Fin,mcial Accounting (New)
Additional information J
► Fin:ancial Accounting Glob:al Settings (New}
. Gaur:av New Menu
Gener:al Ledger Accounting (New),
► ' [ta Accounts Receiv:able and Accounts PaYable BOOK SIMG_ORFB

' [ta
►
Contr:act Accounts Receiv:able ,md P;iy;ible
Rank Accounting
BOOK SIMG_FICA

'
►
Revenue Accounting
Consolid:ation Prepar:ation (New}
y
[ta As.set Accounting BOOK SIMG_ORFA
Asset Accounting (Le;in Implement:ation}
'
► roa Organiz:ation:cl Structures
BOOK SIMG_ORFA---'S
CHAP SIMG_CFMENUORFAORG0
Integr:ation wili:h Gener:al Ledger Accounting
'
► roa Valuation
CHAP ORFA_HAUPTBUCH
CHAP SIMG_CMMENUORFAB
- Depreciation CHAP ORFA_AFA
-
' roa
roa
Ordinary Depreciation CHAP ORFA_NORM

' roa Unplanned

Special Depreciation
Depreciation
CHAP SIMG_CFMENUORFABEWS0

...' roa Valu:ction Methods

CHAP SIMG_CFMENUORFABEWA
CHAP ORFA AFA RECHNEN
... roa Depreciation Key CHAP ORFA AFA SCHLUESSEL

' l6a calculation Methods

Def.lull: V;ilues
CHAP ORFA_RECHENMETHODEN
CHAP ORFA_WERTEVORSCHLAG
.' roa@ Maintain Depreciation Key SIMG ORFA RM 2!UORDNUNG

11

7 i;t If,.
Dialog Structure l Chart of dep. Sumit Industries COD·

D Assignment of calcuI
DepKylName for whole depreciation
= USE.F
Istatus
Remaining Useful Life! Active
-
.•
VD20 Property value ded.bal. 2. x wili:h mt-off value Active
Property value ded.bal.2.5 x with cut-off value Active
Property value ded.bal. 3 x wili:h mt-off \'illue Active
Property value LVA Germany Active
Property value str.-line with cut-off value Active

70
 XIV. Depreciation Run:
SAP Path : SAP Easy Access Menu -> Accounting -> Financial Accounting -> Fixed Assets ->
Periodic Processing -> Depreciation Run -> AFAB-EXECUTE
T-Code: AFAB

It will be covered in master data creation training or in user manual.

XV. Create Asset Master:

SAP Path : SAP Easy Access Menu -> Accounting -> Financial Accounting -> Fixed Assets ->
Asset -> Create -> AS01-ASSET
T-Code: AS01

It will be covered in master data creation training or in user manual.

71
G) Bank Accounting
Bank Account is an important module in SAP fi, which is used to handle accounting transactions that you
process with your bank.

I. Create Bank Key

II. Define House Bank

I. Create Bank Key:

SAP Path :
T-Code: FI01

72
 II. Define House Bank:
SAP Path : IMG ->Financial Accounting (New) ->Bank Accounting ->Bank Accounts ->Define
House Banks
T-Code: FI12

73
74
75
76