SAP FINANCIALS

What is ERP?
ERP stands for Enterprise Resource Planning. ERP is a way to integrate the
data and processes of an organization into one single system.

What is SAP ERP?

The ERP software application from SAP helps to improve operational
efficiency and productivity of business processes of the enterprise.
SAP ERP is a world-class, fully integrated application that fulfills the core
business needs of midsize companies and large organizations across all
industries and market sectors. It helps enterprises like yours perform
financials, human capital management, procurement and logistics, product
development and manufacturing, and sales and service, supported by
functionality for analytics, corporate services, and end-user service delivery.

What is SAP ?
SAP stands for Systems Applications and Products in Data Processing. SAP
application provides the capability to manage financial, asset, and cost
accounting, production operations and materials, personnel, plants, and
archived documents.

This unit deal with the navigation of SAP and helps you through the SAP
interface.

SAP NAVIGATION COMPONENTS

An SAP screen can contain the following simple screen elements:

Command field: You can start applications directly by entering their

Transaction Code in the command field (this is hidden as default). You can
find the transaction code for an application either in the overview menu
on the SAP Easy Access screen, in the status bar (see below).
Menu bar: The menu bar is the top line of any primary window in the
SAP system. The menus shown here depend on which application you are
in. These menus may also contain cascading menus.
Standard toolbar: The pushbuttons in the standard toolbar are shown on
every SAP screen. If they are not available in an application, push buttons
that you cannot use on that screen are deactivated. If you place the cursor
over a pushbutton for a short time, the system displays a flag with the name
or function of the pushbutton. If appropriate, the corresponding function
key setting is also displayed.
2

Title bar: The title bar names the function that you are currently in.
Application toolbar: This shows the pushbuttons available in the
application that you are currently in.

Checkboxes: Checkboxes allow you to select several options from a group

of fields.
Radio buttons: You can only select one option.
Tab: This allows you to organize several screen areas to improve the clarity.
Status bar: The status bar displays information on the current system status
such as warnings and errors. You can also change the display variant to
show, for example, the transaction code of the transaction you are
currently in.
Other elements include, for example, input fields and pushbuttons.

SAP CLIENT:
The client is the highest level in the SAP System hierarchy. Clients are a
commercially, organizationally, and technically self-contained unit within an
SAP System and definition of the same is obligatory. Clients have their own
master records and set of tables. Specifications that are made or the data that
is entered at this level are valid for all company codes and for all other
organizational structures.
SAP Software contains only tables and charts (Approx. 28,000).
Client 000
This client is the SAP reference client. It is constantly extended and must
not be changed by customers. It can be used as a back-up copy.

Client 001
Client 001 is a copy of client 000, with the exception that customers can
make changes here (Customizing).
Client 066
Client 066 is reserved for SAP access to customer systems to provide remote
diagnosis services such as Early-Watch and Going LiveTests.
Client 000 contains the following default settings:
Organization-specific data
Client 000 contains an example for each organizational unit. The key is
uniform, 01, 001, 0001, and so on.
Organization-independent data
Client 000 contains extensive default settings so that you can actually Start
operating with a lot of these settings. In the Implementation Guide (IMG),
an attribute indicates which settings have to be made.
Log On Clients:
You log on with a three digit client key. The client must contain a user
master record. Ex: Client 800/600/500.

CONFIGURATION MANUAL
In SAP, Two menus; 1. SAP Menu 2. SAP IMG Menu
SAP Menu: This will be used by SAP Customer for SAP End user operation
(Production Client). We can bifurcate SAP Software sub-module-wise.
/NFSMN = General Ledger
/NFKMN = Accounts payable
/NFDMN = Accounts Receivable
/NASMN = Asset Accounting
SAP IMG Menu: This menu will be used by Consultants for customization.
IMG means Implementation Guide.
6

BASIC SETTINGS FOR THE FORMATION OF THE COMPANY

1) DEFINE COMPANY : /NOX15

(Transaction Code can be entered in Command Field with prefix of /N for all
Transaction Codes. Here prefix /N will close the current session and go to
next session. In case of /O the existing session (screen) will be minimized
and can go to next session. We can open maximum 6 sessions in /O mode.)
The Organizational Structure is defined within the Corporate Structure
segment
of the IMG. Organizational Units can be created directly or by
copying and, if necessary, modifying existing Organizational Structures.
Establishing the Organizational Structure in the system tends to be the
responsibility of the FI/CO team on implementations. It must be created
before other modules begin their work because they are dependent on the
Company Code definition.
In SAP, defining Company is optional. But defining Company Code is
compulsory. Here Company means, in SAP Language we call it as Internal
Trading Partner. After defining Company Codes (branches of the Company),
we assign all Company Codes to Main Company for Consolidation purpose.
Path: SPRO (IMG)> Enterprise Structure>Definition>Financial
Accounting> Define Company
Select New Entries
Company
HALDL (Alphanumeric Character limits:
6)
Company Name
Hindusthan Aeronautics Limited
(Fill up all other details if available)
City
New Delhi
Country
IN
Language
EN
Currency
INR

SAV
E
2) DEFINE COMPANY CODE :-/NOX02

A Company Code is an independent accounting entity in R/3, for

example, a
company within a corporate group. It is designated by a four-digit
alphanumeric key.
Balance sheets and profit & loss statements required by law are created at
the company code level.

Company Code is important in SAP FICO Configuration. For example

BHEL is Company Code for Bharath Heavy Electricals Ltd., In every step of
configuration SAP asks for Company Code. Normally Company codes will
be defined numerically. (2210, 5510, 2000, 3000 and the like) Here we have
referred 1234 as Company code for HAL International Ltd.,
Path:
SPRO>
Enterprise
Structure>
Definition>Financial
Accounting>Define Copy, Delete, Company Code. Double Click on
Edit Company Code Data
Steps :-

Select New Entries

Company Code
Description
City
Country
Currency
Language

1234
HAL International ltd.
Bangalore
IN
INR
EN
Save

In big screen, enter company name and address

Enter Country
IN ( it is an mandatory entry )
Enter

2)

Edit Copy Delete Check Company Code (TC: /NEC01)

Same path as above.

We go to this option only in the following cases. 1) To copy foreign
company Ledgers. (Pre-defined in SAP). 2) To copy one Company Code to
another company code (We have done configuration of Bangalore Co. Code
and same configurations want to copy to Hyderabad company code.) 3) To
delete Company Code.
Select 2nd icon (After selecting, wait until clock reading is completed. SAP
contains more than 28,000 Tables and Charts.)
From Company Code (Press F4) 0001/1000 (This is std source, you have
to copy from this code only)
To Company Code
1234
Enter
Message: - Continue organization object?
Select
yes
Message: - Copy G/L A/c ?
Select Yes, (in case you want to copy foreign (or Existing
Company Code) ledgers.)
Message: - Allocate local Currency to Target Company code?
Select
yes
Type INR (or as per Country specification)
Ignore message Enter Enter
10

Message: Copy No. Ranges?

Select Yes, Enter, Enter
3) Assign Company Codes to Company /NOX16

Select Position
Type Company Code(s)
Assign Company (bheldl) to all Company Code(s). And SAVE.

Business Area

Business Area will be defined to get segment wise reports of Company

activities. These Business Areas and Profit Centre Accounting are meant
only for company internal reporting purposes. End-user has to define
Business Area for each transaction, while making entries. Business Area is
optional for any Company, may be Product-wise (Soap, Detergents etc.,) or
Region-wise (Bangalore, Hyderabad, etc.,). Business Area is independent.

11

Once defined can be used by any number of company codes. Business area
and Profit Centre Accounting both are meant for internal reporting purpose.
3)
Define Business Area T C:/NOX03
Path :SPRO > Enterprise Structure > Definition >Financial A/cing >
Define Business Area
Select New Entries
Business Area
Description
1100
North Bus Area
1120
South Bus Area
TURB
Turbine Bus Area
SOAP
Soap Bus Area
SAVE

Fiscal Year Variant

12

Fiscal Year Variant: V3 is system defined Accounting year stands for Apr
to March + 4 Special Periods.(suits Indian type industries). 4 Special Periods
is meant for making entries like posting audit, any adjustment entries,
Closure entries, and the like. After March (12th period), system will not
allow to make entries for the month of March as system gets locked. But
end-user has to make entries related to March by mentioning in period field
13/14/15/ or 16. All these entries will go to March Period only. K4 Stands
for Jan to Dec Accounting Year with 4 Special Periods, where foreign
countries refer K4.
(If you want to create your own Accounting Year and assign to Company
Code, TC: /NOB29. Select New Entries and define any 2 characters, select
year-dependent, in no. of posting periods mention 12 and Spl. Posting
periods as 4 and Save. Now select your Variant (2 Characters), and click on
periods, left side. Now fill up month, no. of days, period and year
shiftment (here you have to define -1 for periods after December which
indicates data belongs to December) and Save. To assign Fiscal Year
Variant to Company Code TC:/NOB37.)
4)

Assign Fiscal Year Variant to company code

T C: /NOB37

Path :SPRO >Financial A/cing> Financial A/cing Global

Settings>Ledgers>Fiscal year & posting period>assign company code to
fiscal year Variant
.
Select
Position
Company Code
1234
Enter
V3
Save

13

Chart Of Accounts:

5)
Edit Chart of Accounts T C:/NOB13
Path :SPRO > Financial A/cing > G/L A/cing > G/L A/c Master A/c
Preparations > Edit Chart A/c List
(Chart of Accounts: means list of ledgers created.)
Select
Chart of Accounts
Description
Maintain language
Length of G/L A/c no.

New Entries
1234
Chart of A/c for 1234
English
6
(6 stands for No. of digits assigned for
ledger Accounts. Maximum 10 digits can be defined in SAP.)
Controlling Integration

Manual creation of cost element

Save

14

6)
Assign Chart of A/c to company code T C :/NOB62
Path: - same as above
Select
Position

Type company code

1234
Enter

Type company code (1234) in chart/a/c column

Save

YOU CAN ASSIGN SAME CHART OF ACCOUNTS TO

DIFFERENT COMPANY CODES, BUT THE
TARGET
COMPANY CODES SHOULD HAVE THE SAME
ACCOUNTING YEAR.

15

Define Account Group

7)
Define Account Group
Path: - same as above
T C: /NOBD4
Select
Chart
of A/c
1234
1234
1234
1234
1234
1234
1234
1234
1234
1234
1234
1234

New Entries
A/c
Group
SCPL
RSPL
SCLN
UNSL
CLPR
FAST
CAST
ACDN
SALE
OTHR
INCR
RMCN

Name
Share Capital A/c
Reserves & Surplus
Secured Loans
Unsecured Loans
Liabilities & Provision
Fixed Assets
Assets Loans & Advance
Accumulated Depreciation
Sales
Other Income
Incr/Decr in Stock
Raw material consumption

16

From A/c
No
100000
100100
100300
100400
100500
200000
200100
200200
300000
300100
300200
400000

To A/c No
100099
100199
100399
100499
100599
200099
200199
200299
300099
300199
300299
400099

1234
1234
1234
1234
1234

PRSN
MERG
ADMN
INTR
DEPR

Personnel staff cost

Manufacturing Expenses
Administrative Expenses
Interest
Depreciation

400100
400200
400300
400400
400500

400199
400299
400399
400499
400599
Save

While assigning From & To numbers for Account group, starting number
1=Liabilities, 2=Assets, 3=Income and 4=Expenses category. This Account
Group represents P&L Account & Balance Sheet.
TO COPY ACCOUNTS GROUP: /NOBD4
1. Identify the Chart of Accounts which you want to copy. Say, for
example 1234
2. Select Position
3. Type in Chart of Accounts 1234, Ignore Accounts Group
4. 1234 Accounts Group will be displayed in proper manner.
5. Select all Accounts Group one by one by clicking (by Mouse) which
you want to copy on 1st column (the square box before Chart of
Accounts column).
6. Now, press F6
7. Now it is copied to screen. Replace the existing Chart of Accounts
(1234) by your Company Code, very carefully. (Dont hit Enter Key
while replacing your Company Code.)
8. After all replacing, now hit Enter key.
9. Now Save the Data.

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RETAINED EARNINGS ACCOUNT:

Profit & Loss Account

Dr.

Cr.

To

By
Expenses Ledgers
Total
8,00,000

Balancing Amount
(Net Profit)

Income Ledgers
Total

2,00,000

This Net Profit should be transferred to Balance

Sheet Ledger: Retained Earnings A/c.
This transfer function will done by Key X

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10,00,000

Balance Sheet
Liabilities
Retained Earnings A/c

Assets
2,00,000

8)
Define Retained Earnings A/c
Path: Same path as above
Chart of A/c
Company Code 1234
P&L A/c
A/c No.
X
100100

T C: /NOB53

Save, (message: Account 100100 is not created, this means simply we are
assigning Retained Earnings Ledger Number and we have not created any
Ledger. Once we start creating General Ledger, first create this Retained
Earnings Account as it is SAP Processing Ledger.) Now, Ignore the message
and enter
Here we have defined Account No. 100100, because this Retained Earnings
A/c ledger comes under Reserves and Surplus Account Group, hence we
have defined first Ledger Number in Accounts Group.
Here, X is SAP delivered key. It activates carry forwards of Profit to
Balance Sheet and it also activates to create P&L Ledgers.

19

9)
Define Posting Period Variant (Here we are going to activate
Accounting Periods for postings ) T C:/NOBBO
Path: SPRO>Financial A/cing>Financial A/cing Global
Setting>Ledger>fiscal year & Posting Period>Posting
period>Define variant for Open Posting
Period
Select
New Entries
Variant
Name
1234
Variant for 1234
Save
Open & Close Posting Periods

10. Open & Close Posting Periods

Path: Same as above
T C :/NOB52
Select
New Entries
Variant A From To Per Year Per Year Per Year Per Year
1234
+
1
2011 12 2012 13 2012 16 2012
Save
Maintaining Posting Periods

20

For technical reasons, for each posting period variant you need an
entry .+. that is valid for all account types. The columns for the
account number interval must be empty.
The period intervals defined for the .+. entry specify the periods that
can be posted to in a variant. When you enter the posting date in the
document header, the system uses the entry for the account type .+. to
check whether the period determined can be posted to. If all account
types are to be open at the same time, the minimum entry .+. is
sufficient.
(Practically this posting periods will be open by each month-wise.
In the period 1 column define Current Month and Current Year and
period 2 define Current Month and Current Year with + mark in
Account Type. Now End user can make entries only in that Current
Month and not permitted to post in the previous/next month. And for
special posting periods there will be no such restrictions.) Open
Posting Period for Current Month only:
Assign posting period variant to company code

21

Different Company Codes can be assigned with same posting period variant
provided, all Company Codes uses the same Accounting year.

11) Assign posting period variant to company code

Path: Same as above
T C: /NOBBP
Select

Position
Company code

1234
Enter

Type

Company code

1234
Save

Document Type:

11a) Define Document Type: (TC:/NOBA7) These Document Types are

system defined. If required, we can define our own Document Type. In
Accounts language, we call types of Vouchers. For ex: Purchase

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Voucher, Sales voucher, Debit Memo Voucher, Credit Memo Voucher

and the like. Once we receive the Vouchers, we mark manually the
Voucher numbers and then we make entries in computer. In SAP
Language we call Vouchers as Document Type. And these Document
Types should be assigned with No. Ranges (Without this No. Range, the
system will not allow you to make any entries.) Purpose of No. range is,
the system will do automatic numbering for all the entries. But while
defining number ranges for each document type, we have to define
respective document type number while defining number ranges in
number column. These Document Types we are going to treat in A/cs
Payables, A/cs Receivables and Asset Accounting.

2)
Define Tolerance Group for G/L A/c T C :/NOBA0
Path: SPRO>Financial A/cing>G/L A/cing>Business Transaction>
Open Item Clearing>Clearing Differences>Define Tolerance
Group for G/L A/c
(Purpose of this G L Tolerance is, if there is any payment
difference (under-payment or over-payment) in ledgers, this
configuration will account automatically the difference
amount.)

Co.Code
1234

Select
Group

New Entries
Description Debit
Tolerance
100
group for
1234

Credit
100

% Dr
1

% Cr
1

Save

Define Tolerance Group for Employees:

23

12a). Define Tolerance Group for Employees. TC:/NOBA4

(This configuration depicts permitted postings for Endusers)
Select New Entries
Enter Company Code
Ignore Tol Group
In per document column enter 9999999999
In item document column enter 99999999
In percentage column enter 5%
Now Save data.
This configuration enables end-users to make entries.(Employees means
here SAP-End Users. Through this option we can control End-Users
postings per Document. For example, if we define 1,00,000 in amount per
document field, End user will not be able to post amount more than 1,00,000
per voucher.)
We can assign as per category-Accounting Clerks, Accounts Manager
(Transaction Code:/NOB57), the tolerances by defining tolerance
group. For example: Tolerance group ABC1 and configure the
following tolerances:
(We do this controlling of SAP End user postings at the time of GoLive.)
Accounting clerks:
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500,000 units of local currency per document

100,000 units of local currency per open item
5% cash discount

We can define tolerance group ABC2 and assign following tolerances:

Accounting manager:
1,000,000 units of local currency per document
500,000 units of local currency per open item
10% cash discount

Field Status Variant::

25

Field Status Variant: Here we are going to copy Voucher fields from SAP
source for end-user operation purpose (to make Voucher entries), this is
more concerned with Document type where all voucher formats will be
copied to our Company code. Here we can make fields as Suppress (fields
will not be displayed), Required (mandatory fields) or Optional, as per
company policy/reporting option.
13)

Maintain Field Status Variant

T C: /NOBC4

Select 0001 (Select means you have to click before 0001 column) and then
Press F6
Delete 0001, and type 1234 (Company Code) Enter
Click on Copy All Enter & Save
Select
Position
Type 1234 (Company Code )
Select
1234 (Company Code )
Double click on Field Status Group (left side)
Double click on General Text (G001)
Double click on General Data (Blue Line)

26

Select Required Entry Radio Button for Text

Select next group icon (to the left top)
Select Required Entry for Business Area
Save
Do the same procedure for G005 also.
14) Assign Field Status Variant for Company Code T C:/NOBC5
Select
Position
Type 1234 (Company Code )
In Field Status Variant column Type 1234 (Company Code )
Save.
15) Defining No. Ranges for Document Types:
TC:/NFBN1/NOBA7
01 (system defined) and Document Type SA, both are same, stands for G L
Entries.
X1 stands for Recurring Entries (means End-user use this option to make
entries which will occur every month, like Rent payments, loan Payments,
where the End users store ready-made journal entries in SAP, and while
making entries, just they will change Date and post it.)
X2 stands for Sample Document entries. (This option will be used by Enduser for storing Provisional Entries).
Go to document type (/NOBA7), type Doc. Type SA, Enter. Select SA, click
on 2nd icon (Details icon). Remember No. Range (system define), now click
on No. range information.
Enter Co. Code: 1234 (if you know particular document type no. start from
here by using T-Code:/NFBN1)
Select 2nd Interval (Change Interval button)
Select Interval Button (Insert Interval button)
In No. column type 01 (G L Entries))
Year: 2011
From No. (keep cursor in this column and press F4. You will find Intervals
starting with No.1, just hit Enter key.) Now move the cursor to To No.
column. Delete 99999999 and type 1000 or any increasing No. In the next
column, dont type anything (in 0 column). This 0 column gives the status of

27

entries. (i.e. number of entries made.) Just move the cursor from box. Now
hit Enter key and Save. Ignore messages and hit Enter.
(Same way you can define for X1 and X2 also. 01(SA) is compulsory for
any company, whereas X1 & X2 is optional.)

28

GENERAL LEDGERS CREATION: /NFS00

General Ledger contains two segments:

1. Chart of Account Segment
2. Company Code Segment.

29

30

To create General ledgers, type Transaction Code /NFS00 in Command

Field. You have to enter first G L Account No. to create and type Company
Code and then Select to the right 3rd icon (create).
Then you have to select icon in Accounts group field by clicking on it.
Select right Accounts Group for each Ledger. For example to create Cash
Account Ledger, Select Current Assets group. And then in Short Text
(mandatory) type Ledger Name: Cash Account. The long text can be used if
Ledger name is too long. Then click on Control Data Tag, Select Local
Currency Check Boxes for all Clearing Accounts, (When you are selecting
Open Item Management Check Box, select this local currency check box
also.). Define sort key as the case may be and select Line Item display
Check Box for all types of ledgers. Click on Create/Bank/interest Tag, Enter
in Field Status Group Field G001/G005/G067 as the case may be, depending
on nature of ledgers. Now, Save. (While configuring Ledgers, carefully read
Page No. 29).

15)

Creation of General Ledger A/cs

T C:/NFS00

G/L A/c
Ledger Name
No
100100 Retained Earnings A/c
100000 Equity Share Capital
200100 Cash A/c

Sort
Key
001
001
001

Fld,Sts,
Group
G001
G001
G005

400100
400300
100500
100300

Salaries A/c
Rent A/c
O/S Exp
IDBI loan A/c

001
001
001
001

G001
G001
G001
G005

400400
100505
100506
100507

Interest A/c
TDS Tax Payable A/c
Service Charges Tax Payable
Edn Cess Payable A/c

001
001
001
001

G001
G001
G001
G001

31

Select Check
Box

Relevant
cash flow

Op.Item Mgt
Relevant to
Cash Flow
Op.Item Mgt
Op.Item Mgt
Op.Item Mgt

G/L
A/c No

Ledger Name

Sort
Key

100501 Sundry Creditors A/c

200120 Inv. Raw Material A/c
200101 ICICI Bank A/c

012
001
001

200150 Adv to Vendors A/c

300101 Cash Discount
Received A/c
200111 Sundry Debtors A/c
300000 Sales A/c
100502 Adv From Customer
A/c
100503 Sales Tax Payable A/c
200125 Purchase Tax Paid A/c
200010 Land A/c
200011 Building A/c
200012 Plant & Machinery
A/c
200013 Furniture & Fixtures
A/c
200014 Vehicle A/c
200015 Capital Work in
Progress A/c
200211 Acc Depn Building
200212 Acc Depn Plant & M
200213 Acc Depn Furniture
200214 Acc Depn Vehicle
300100 Asset Sale
300110 Clearing A/c-Rev
300111 Profit on Asset Sale
400310 Loss on Asset Sale
400311 Loss Due to Scrapping
400500 Depreciation A/c
200160 Sundry Debtors Bill of
Exchange A/c
100400 ICICI Bill Discount

012
001

Field Reconciliation
Status
A/c Type
Group
G067 Vendor
G006
G005
Relevant
cash flow
G067 Vendor
G001

031
001
031

G067
G029
G067

001
001
018
018
018

G001
G001
G007
G067
G067

Asset
Asset

018

G067

Asset

018
018

G067
G007

Asset

018
018
018
018
018
018
018
018
018
018
031

G067
G067
G067
G067
G052
G052
G052
G001
G001
G001
G067

Asset
Asset
Asset
Asset

001

G001

32

Customer
Customer
OIM

Customer
Op it mgt

GENERAL LEDGERS CONFIGURATION:

1. Balances in Local Currency: Select this checkbox for all Balance Sheet
Ledgers except Sundry Creditors, Sundry Debtors and related ledgers
(where foreign exchange is involved). This selection is optional for other
Ledgers. If you are selecting Open Item Management Checkbox, select this
Balances in Local Currency checkbox also.

2. Tax Category Checkbox: Define * (star) here to activate VAT for Sales and
Purchases Ledgers. This should be done after configuring VAT.

3. Reconciliation Account Type: Select this checkbox only in case of

Reconciliation Accounts. i.e., for Sundry Creditors Ledgers select Vendors,
for Sundry Debtors Ledgers select Customers and for Assets Ledgers select
Assets. Select in Field Status Group G067 for all Reconciliation Accounts.

4. Open Item Management Checkbox: Select this Checkbox only for Ledgers
to be cleared. For example, ledgers like Payables, Outstanding Expenses,
GR/IR Accounts and Clearing Accounts. Ledgers to be cleared in a short
while- like Auditors Fees Payable, Bonus Payable, Rent Payable and the like
select this Open Item Management Check Box.
GR/IR Account (under MM Module): Goods Receipt and Invoice Receipt
Account. Once we receive materials, we check with Invoice whether
materials supplied as per Invoice, i.e., quantity, quality, etc., at this stage, we
make part payment to Vendor. Any shortage or low quality in materials
supplied, we hold the payment. Once it is cleared from Vendor, we make
balance payment.
GR/IR Account is the best example for Open Item Management.
5. Line Item Display Check box: Select this Checkbox for all types of Ledgers,
as it gives Date-wise Ledger printout, which is must for Reconciliation/Datewise Verification of Accounting entries.
6. Sort Key: System defined. Select 001 for all general types of Ledgers. 012 for
Sundry Creditors Ledgers, 031 for Sundry Debtors Ledgers and 018 for
Assets type ledgers. This Sort Key is the basis for Ledger processing.
7. Field Status Group: Types of ledgers:
- for Cash/Bank type Ledgers select G005 and Relevant to Cash Flow
check
box
- Reconciliation Accounts: Select G067 (or G012) for Sundry Creditors,
Sundry Debtors And Assets Ledgers.
- Any other types Ledgers select G001.

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- For Assets having no depreciation G007

- For Sales/Revenue type of Ledgers select G029.
8. Interest Indicator Checkbox: Define Interest ID here after configuring
Interest Calculation.

To display already created Ledgers:

In FS00 option, select in tool bar Settings-Hierarchy Display. Then in Popup box select Display Accounts Radio Button and hit enter 2 times. Now, in
Command Field, type /NFS00 and Enter. Now you will find Accounts
Group in left hand side. To display Ledgers created, click on A/cs Group
icons. To close this option, select Settings-Hierarchy Display, in pop-up box
select Do not Display Accounts Radio Button and hit Enter 2 times. Now in
Command Field type /NFS00 and Enter. You will come to normal screen.
G L Entries:
(Post Key 40 stands for Debit, Post key 50 stands for Credit, system defined)
Now Journal entry: Rent A/c Dr 5000
To Cash A/c
5000
(Being Rent paid for the month of..)
TC:/NF-02
Enter Doc Date (current Date/Voucher Date), Posting Date (on which date
you are making entry)(Press F4 first and then press F2 to get current Date.)
Postkey 40 Account (Press F4, Enter and select which Account you want to
Debit (Rent A/c), Enter
In Amount 5000
Business Area: (click on icon in the same field, and select. But the same Bus
Area should be selected in the Credit entry also.)
Text: (narration) Rent Paid for the month of ..
Postkey 50 Account (same procedure and select A/c to be credited (Cash
A/c)
Enter
In amount * (This Star copies amount from Debit entry)
Bus Area : (same as in Debit entry)
Text: + (This + copies text from Debit entry)
Enter. In top (Tool Bar) Select Document-Simulate

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Journal entry will be displayed.

To post, Save.
Document is posted.

To view Ledger: TC:/NFS10N

Enter G L A/c No. (For which you have made entry)
Co. Code 1234
Fiscal Year 2011
Bus Area :( which you have selected while making entries)
In Top left you will find one clock-type icon, click on this (Execute) icon.
Ledger will be displayed.

BLOCKING G L MASTER:
(Purpose of this blocking is no End-user should make entry to these Ledgers
which they are not authorized to make entry.)
In TC:/NFS00 option, first type in G L A/c No. field, which Ledger(s) you
want to block and select in Top-G L Account-Block
You will be displayed with blocking option.
Select all Check Boxes and Save.
Try to make entry to these Ledger(s) through TC:/NF-02.
To remove Blocking, same procedure deselect all the Check Boxes and
Save.

EXERCISE:
TO COPY COMPANY CODE TO COMPANY CODE
This configuration is to copy General Ledgers and No. Ranges from one
company code to another. By doing this configuration, one can save time in
creating General Ledgers and No. Ranges, for new company code. But both
the company codes should have same accounting year.
Here Source Company Code means from which company code you want to
copy. (In the source company code, you should have done G L Creations and
No. Ranges.)
35

Procedure:
1. Create New Company Code
2. Go to /NEC01
Select 2nd Icon.
From Co. Code : (Select Source Co. Code to Copy)
To Co. Code: (New Co. Code)
Enter.
3. Message: Copy GL Accounts? Select Yes
4. Message: Copy No. Ranges? Select Yes
5. Create Chart of Accounts /NOB13 for New Company Code
6. Assign Source Co. Code Ch of Accounts to New Co. Code /NOB62
7. Assign Field Status Variant of Source Co. Code to New Co. Code
(/NOBC5)
Now in New Company code, view Ledgers : Go to /NFS00
View No. Ranges copied: Go to /NFBN1

Customization of Foreign Company Code:

1. Create Co. Code for Australia-based company. Ex: 2000
2. /NEC01. Select 2nd Icon (copy organization object).
3. From: 1000 To: 2000
4. copy G L ? Select Yes
5. Change local Currency? Yes Define AUD
6. Ignore messages, hit Enter.
7. Transport No. Ranges? Yes. Enter
8. Assign Accounting Year K4 for Co. Code 2000
9. /NOB62. Assign in both the columns INT and GKR to Co. Code 2000
10. Assign Posting period Variant 1000 to Co. Code 2000
11. /NOBC5, Assign 1000 to Co. Code 2000
12. /NFS00. Check General Ledgers.

Client-level configuration: Configuration done at client-level, can be

assigned to any company code(s), if it is matching the requirement.
Example: Chart of Accounts, Fiscal Year Variant, Field Status Variant,
Interest ID, Tax Types, Account group for Vendors/Customers, etc.,
Company code level configuration: Configuration done at company code
level cannot be assigned to any company code. Example: General Ledgers,
Vendor/Customer Name, etc., But can be copied to other company code(s).
36

FOREIGN CURRENCY POSTING

This foreign currency posting is not a configuration work, but the system
will not accept any foreign currency conversion entries until you define
foreign currency rates.
G = stands for Standard Translation at Bank Buying Rate
B = stands for

Bank Selling Rate

M = stands for

Average Rate
P = stands for

Cost A/c planning

(Whole activation and defining foreign currency rate depends on Date)
Define Translation Ratio for Currency Translation:
TC:/NOBBS
Select Y for the message.
Select New Entries
ExRate
From
To
Valid
Ratio
Ratio To
Type
From
From
G
USD
INR
01.04.2011 1
1
B
USD
INR
01.04.2011 1
1
Save. (Here, Ratio 1 activates the system for calculation)
Here we are activating USD. If Company having any business transaction
with Japan activate Yen, for Australia, activate here AUD and the like. Then
only we can define rates in Exchange rates.
Enter Exchange Rates:
(This will be done by the End-users on everyday/defined days.)
TC:/NOB08
Select New Entries
ExRate
G
B

Valid
From
01.05.2011
01.05.2011

Indirect
Quotation
(Blank)
(Blank)

From
USD
USD
37

Direct
Quotation
45
48

To
INR
INR

M
01.05.2011 (Blank)
USD
47
Save.
(Normally Companies prefer M Type Exchange Rate.)

INR

To enter translation Ratio:

TC:/NOBA7
Select Position
Enter Doc Type: SA
Select SA
Select in top Details Button
Under Default Values- Ex Rate type:M
Save.
Now pass an entry (F-02) with changing currency from INR to USD (below
Company Code) and view ledger also.

38

INTEREST CALCULATION
1)

There are two types of interest calculation

Balance Interest Calculation: S type used for G/L A/cs (If the Co. has
taken loan from Bank, to calculate Interest amount to pay .)
2) Item Interest Calculation: P type used for Vendors/Customer (If
payment is overdue from Customers or due from Vendors here we define
Interest.)
(Interest indicator may be defined by any 2 characters. For each Rate of
Interest, you have to define different Interest IDs and separate Loan
Ledgers)
General Ledger A/c Balance Interest Calculation
1)
Define Interest Calculation type
T C: /NOB46
Select
New Entries
Interest Indicator No. or Name
SI
Name
12% P A
Interest Calculation type: S
Save

2)
Prepare A/c Balance Interest Calculation
Select
New Entries
Interest Indicator
SI
Interest Calculation Frequency
01
Calendar type
G
Select
Balance plus Interest check box

T C:/NOBAA

Save
3)
Define Reference Interest Rate
T C: /NOBAC
Select
New Entries
Reference Interest Rate
SI12%
Short or Long text
12% Monthly
Date From
01/04/2011
Currency
INR
Save

39

4)
Define Time Dependent Terms
Select
New Entries

T C: /NOB81

Interest Indicator
SI
Currency
INR
Effective From
01.04.2011
Sequential Number
1
Text Select Credit Interest Balance Interest Calculation method
Reference Interest Rate
SI12%
Select Next Screen Button
Interest Indicator
SI
Currency
INR
Effective From
01.04.2011
Sequential Number
2
Text Select Debit Interest Balance Interest Calculation method
Reference Interest Rate
SI12%
Save
5)
Define Interest Rate Values
Select
New Entries
Reference Interest Rate
Effective From
Interest Rate

T C: /NOB83
SI12%
01.04.2011
12

Save
6)
Creation of G/L A/cs: 1)G L A/c No. 100300(Under A/cs Group:
Secured Loan) IDBI Loan A/c (After defining FSG:G005, Define Interest
Indicator SI. 2) G L A/c No. 400400 Interest Paid A/c (under A/cs
Group: Interest) 3) G L A/c No. 200101 UTI Bank Curr A/c (under
Current Assets)
If you have already created above ledgers, just assign Interest Indicator to
Loan Ledger.)
7) Prepare G/L A/c Balance Interest Calculation T C: /NOBV2
Select Symbol button
Select Account button
Chart of Account
1234
Enter
0002
INR
400400
2000
INR
200101
Save. (These 0002 (Interest paid) and 2000 (G L Account paid) are system
defined.)
40

(To know the results of Interest calculation, we have to make 2 entries: 1.

Loan received from Bank and 2. Repayment of loan. But you have to make
these entries in the previous month, (If you are in Sept. month make these
two entries on 1st of Aug loan recvd and loan repaid on 30th of Aug.
Reason is, you have to calculate Interest for one month. Your Entry, Loan
received and loan repayment should have at least 30 days gap.)

8) a) Make a journal entry for receiving loan

T C:/NF-02

Posting Key 40 Stands for Debit and Posting Key 50 Stands for Credit.
Document Date 01.08.2011
( one month previous date )
Posting Date
01.08.2011
Document Type SA Company Code 1234
Posting Key 40
200101
Enter
Amount
100000
Business Area
(Select from system)
Text being loan received from IDBI bank
Posting Key 50
Loan A/c no.100300
Enter
Amount
*
Business Area
(Select from system)
Value Date: 01.08.2011
Text
+
Enter
Document-Simulate- Save
b) Make a journal entry for repayment of loan installment
Document Date 31.08.2011
Posting Date
31.08.2011
Document Type SA Company Code 1234
Posting Key 40
IDBI loan A/c 100300
Amount
12500
Business Area
Select from system
st
Text being 1 installment paid to loan a/c
Posting Key 50
200101
Amount
*
41

Enter

Enter

Business Area
(Select from system)
Value Date: 31.08.2011
Text

Enter
Document-Simulate- Save
(Note: Business Area should be the same)
9) To Run Interest Calculation
T C: /NF.52
Chart of Accounts
1234
G/L A/c No
100300 (Loan A/c)
Company Code
1234
Calculation Period From
01.08.2011 To 31.08.2011
Currency INR
Select
Standard Interest Calculation
Select
Additional Balance
Select Post Interest Settlement
Select Update Master
(Session Name: This is a temporary name just to run the interest cycle and
once interest is posted this session name will disappear. Hence you can
define any numeric or alphabetic as session name.)
Session Name
{Variant} 1456
Save
Variant
1456
Description
Interest for the month
Save
Execute (Click on left top clock type Icon). (Now SAP will display chart
relating to entries made and interest amount to post)
In Toolbar select System-Service-Batch Input-Session (Click on Session)
Select
Variant (Session name) 1456
Select
Process
Select
Radio Button Display Errors Only
Select
Process (If you have made Business Area as mandatory,
system will display voucher entry or else select Exit Batch Input Session.)
Enter Text
Being Interest Posting
Posting Key
50
Loan A/c 200101
Enter
Enter
Business Area
Enter
Enter Text
Being Interest Posting for the month
Posting Key
40
Interest A/c 400400
Enter
Enter
Business Area
Enter
Amount
*
Text
+
Enter

42

Enter
Save
Select

Business Area

Enter &

Exit Batch Input Session

To verify your entries go to

T C: FS10N
G/L A/c No.
400400 (Check 200101, 100300 also)
Company Code
1234
Fiscal Year
2011
Business Area
{ Business Area should be the same }
Execute(click on Clock type Icon on top left) you can see the report on your
screen.
For repeated practice of Interest Calculation, in the same Co. Code create
same 3 General Ledgers, i.e., Bank Loan A/c, Bank Current Account and
Interest Paid A/c with different G L numbers. Ex; You have already
practiced with 100300 Bank Loan A/c, 200101 Bank Current A/c and
400400 Interest paid A/c. Now create GLs 100301, 200102 & 400401.

43