Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola

Oduyemi

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Process Enterprise Structure

Description/Task

Transaction code

Effect in FICO Enter company, company name, address. 2

1) Define a Company (T. Code 0X02) Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi

2) Define, Copy Delete Company Code

(T. Code – EC01)

Company is the smallest organizational unit for which individual financial statement can be drawn according to the relevant commercial law. Company code is the smallest organizational unit for which complete, selfcontained set of accounts can be drawn up for external reporting purposes When you copy from an existing company code the it copies the following :Definition Global parameters Customizing tables (approximately 315) General ledger accounts (if desired otherwise you can create on your own) Account determination Fiscal year variant determines the posting periods to be used by client, it should be configured to meet the client’s fiscal year. SAP allows a max of 16 Posting periods each fiscal year. 12 of which are regular, the remaining 4 are special posting periods which are used for things such as posting audits or tax adjustments to a closed fiscal year. Having 4 special period gives a lot of flexibility, you may want to use one special period for each quarterly and year – end audit and tax adjustment. Year Independent: If each fiscal year of a Fiscal Year Variant uses the same number of periods, and the

3) Create Fiscal Year Variant

(T. Code – OB29)

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi

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Process

General ledger Configuration Description/Task Transaction code 1. Copy Chart of (T. Code –OBY7) Accounts

Effect in FICO Generally, each
SAP-delivered Chart of Account has a corresponding financial statement version already created. Make sure you select the financial statement version that goes with your COA. Financial statement version is used by SAP to form a s company’s standard balance and P/L statements. One or more Chart of Accounts can be created per Client, but a Company Code can be assigned to only one Chart of Accounts. A Chart of Accounts may have many Company Codes assigned to it. Give COA name, description, length of GL account number

2. Create Chart Accounts

of (T. Code – OB13)

3. Assign Company Code (T. Code – OB62) to Chart of Accounts – (T. 4. Create an Account (T. Code – OBD4) Group –

Examples are Asset Liabilities

SAP gives the possibility of utilizing multiple retained earning accounts (Each G/L account would be assigned to one retained earning account) It is used in relation to an income account. Define Retained T. It is important that field status of accounts mesh with 5. Field Status Variant and (T.OBC4) Field Status Group . Unlike other number intervals. G/L Account interval number ranges can overlap.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Profit (Revenue) Loss (Expenses). The field status for account groups controls the field that can be configured in the company code setup of G/L accounts. This controls additional account assignments. Code OB53) Earnings Account 6. 4 Account group contain a number interval specified by a lower and upper limit that controls the numbering for the G/L account Account group determines which fields you can configure on the G/L master record. At a minimum it is necessary to have at least two account groups. Code .

Field status groups are assigned on the the respective G/L master records.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 5 field status group of the posting keys or movement types. suppressed or optional etc. No postings can be made until this is done. Field status determines the status of every document entry field for G/L account. The field status groups are collected under one field status variant. For ex: will text be required. differentiation is made mainly by different posting keys. Since the sub-ledgers (AR. Thus it determines the screen layout of the G/L accounts. It is always advisable to keep as many field as possible optional. Therefore there are a . There are a series of such rules which are grouped under field status group for each category of G/L account. and make only the important fields required or suppressed. This field status variant is assigned to the company code. AP) do not have a field status group.

Therefore only two posting keysi. Code – OBA7) This determines whether a line item entry is debit or credit as well as the possible field status for the transaction. Code – OB41) 9. 7. Code . 40 & 50 are needed for G/L posting. On the other hand in G/L accounts diffrerentiation is made by field status groups. Assign field status (T.e. PstKy 40(Debit)/50(Credit) are the most commonly used in financial entry postings. . Different document types are used for different transactions throughout the system. Define Types Document (T. Modifying the SAPdelivered posting key is not recommended. The document type tells you instantly what sort of a business transaction is in question. Define Posting Keys (T. It also controls number range assigned to it and required document header.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 6 lot of posting keys for sub-ledgers. The document type determines which accounts that particular document can be posted to.OBC5) group to company code 8.

Amount Per Document eg.000. Define Currencies Parallel (T.10.. Code – FS00) Local currencies (Optional) 14. Code – OBA4) Groups for Employees Maximum Document amount the employee is authorized to post Maximum amount the employee can enter as line item in a customer or vendor account. Define Tolerance (T. Maximum Exchange Rate Difference 12. Define Additional (T.1---999 7 10.000.000 Cash Discount per line item 5% Permitted Payment Differences 11.000 Amount per open item account item 1. Code-OB22) Examples of currency types: global currency hard currency index currency Target users of parallel currencies: Companies having reporting .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi EG SA………. Check Company Code (Code – OBY6) Global Parameters 13.

Code – FS00) Ledger Account Master Record Centrally 18. To See the List of GL Accounts / Chart of Accounts 29. Display G/L Account Line items 20. Code-FS10) (T. Enable Business Area Balance Sheet 17. Code – FB03) (T. To change a General Ledger Document 24. Creating General (T. Code – FB02) (FB09) (T. Display Central G/L Account Changes 26.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi requirements. G/L posting Single (T. Edit G/L Centrally (T. Code -FS00) GL Clearing Differences 16. Blocking a GL Account 22. Assigning accounts for (T. Display G/L Account Balance 27.50 Cr (Revenue or asset) 30. To change Line Item in a Document 25. Code. General Ledger Document Posting (T. View a General Ledger Document 23. 40 Dr(expense or liabilities) account) . Code – F-02) SA.FS04) (T. Code-FBL4) (T. Code-FBL3) (T. 8 highly inflated country’s companies multinational companies 15. Code – FS00) (T. Display G/L Balance Carry Forward 28. Code-F. Change G/L Account Line Items 21. Code –FB50) .16) Transaction Code (S_ALR_87012328) (T. Code-FS05) 19.

No balance checks are made. such as the Posting Key and Account Number. They do not update financial statements Only certain fields.Held Documents Parked Documents Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi screen Transaction 31. Code –GD13) Display 32. Code –F-65) 9 Parking a document allows a document to be reviewed and approved by an individual other than the user before it is posted. Code –FB11) 33. Holding a Document – (T. When a Parked Document is saved. no financial accounting entries are posted. while others can both park and post documents. the line item can be . are required entry fields. Information on Parked Documents is available immediately and can be used for reporting purposes before it is actually posted. however. Parking Documents (T. G/L Total records (T. They are validated when the document is parked Authorizations can be configured to allow certain users to park documents only.

the posted document will retain the parked documents number. If a Parked Document is not able to be posted. however. Sample Document – (T. Since these numbers are assigned in the same way as the standard document posting function. the list can be used to facilitate correction. 34. the system issues a list that details each Parked Document’s disposition with details should the system not be able to post a document. A batch input session can be created from the list to subsequently post the Parked Documents.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 10 viewed in Account Display. can no longer be used for other documents Parked Documents can be posted either individually or via a list. Code – FBV2) Documents 35. When posting several Parked Documents via a list. Deleting Parked (T. a message containing the Document Number is displayed. Code – F-01) Transaction Code Parked Documents can be deleted. The document number. A Sample Document is a . When a Parked Document is saved. Changing Park (T. Code – FBV0) Documents (FBVO) Sample Documents 36.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 11 model document that can be copied into a new posting. When you create a sample document. Line Items cannot be added into the sample document itself. It is accessed by its Document Number in the Document Entry Screen by utilizing the Post with reference function. When posting a document. Once a Sample Document has been created and saved. however. only one Sample Document can be used at a time. Sample documents have a separate number range. it is like a template that is stored in the system. only the amounts can be changed. the system stores the document but does not update any transaction figures. line items can be added to a FI document that is referencing a sample document. Characteristics of a sample document: . a new Sample Document must be created that contains all of the desired Line Items. To accommodate new line items.

Deleting Sample (T. Code –FBM2) Document 38. (40 Dr Exp). Display the Sample (T. (50 Cr Rev) The posting date is determined by either the run date or the .57) Document 40. Changing the Sample (T. Recurring Entries (T.50 Cr Exp acc Recurring Entries 37.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Only the amounts can be changed 12 Line Items can not be added to the Sample Doc itself Only one can be used in an actual posting document Does not have to be a balanced entry Uses a special Document Type (X2) 40 Dr cash acc. Code –FBD1) Recurring Documents are business transactions that are repeated regularly. Code –FBM3) Document 39. such as rent or insurance expenses. Code – F. The following data never changes in Recurring Documents: Posting Keys Accounts Line Item Amounts Doc typ SG or KR.

When creating a recurring document. It is a basis for creating accounting document. Creation of different run schedule Recurring Document (T. Define Number Ranges for Recurring Documents 42.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 13 run schedule. It is not accounting document and therefore does not affect the account balance. Code –FBN1) (T. Code – OBC1) To schedule a Recurring Document. The system defined number range for recurring documents X1 41. The document does not update the transaction figures. The system uses the recurring entry original document as a reference. the valid time period must be defined. Cross company code transactions can not be posted with the recurring entry program. the validity period must . specify the first and last day of execution as well as the interval in months. For period postings. With a recurring document postings can be made periodically or on a specific date.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi

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be defined within which the Recurring Document should be run. Then, there are two ways to set the exact dates that the information held in the Recurring Document will be posted: Specify the posting frequency by entering the day of the month and the period in months between postings. Alternatively, a run schedule can be configured that defines the calendar dates on which the system is to post the entry.

43. Enter Run Date for (T. Code – OBC2) Recurring Documents 44. Execute Recurring (T. Code F.14) Document

Settlement Period
01/01/current FY – 01/31/current FY Batch Input Session Name eg DGREC Execute (F8) The system displays the message Session DGREC was created

45. Change/Update Recurring Document

(T. Code – FBD2)

46. Display Recurring (T. Code – FBD3) Document 47. Delete Recurring (T. Code –F.56) Document

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 48. View Recurring (T. Code – F.15) Document 49. Executing Recurring (T. Code-SM35) Entry Batch Session

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The batch input session will post the Accounting Documents and update the scheduling information in the Recurring Documents, such as the number of documents posted, the next date when a new document will be created from a recurring entry, etc.

Clearing

50. Outgoing Payments (T. Code – F.07) 51. Incoming Receipts (T. Code – F-06) 52. How to clear Line items (T. Code – F-03)

Only G/L Accounts that are open item managed can be cleared. The net value of all selected line items must be zero (or within the tolerance) For automatic clearing posting, certain items can not be cleared A)noted items B)statistical postings C)withholding tax items

53. Post with clearing 54. Automatic Clearing

(T. Code-F-04) (T. Code-F.13)

In it, the user only specifies the account to be cleared. The system then selects open line items with matching amounts and Assignment Numbers and clears them automatically. The system will also

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi

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generate this document header if open items are cleared by running the clearing program. If the clearing date is not specified then the date on the clearing document will default to the most recent date of either the Document Date or Posting Date of the documents that contain the line items selected for clearing.

55. Account Display (T. Code – FS10N) 56. Permit Negative Postings 57. Define Reason Codes (T. Code- OBBE) 58. Reversal Document – (T. Code - FB08) Transaction Code

Types of reversal Negative postings / Standard reversal In order to reverse a document make sure that the original document contains no cleared line items. If the document does contain cleared items, then these items must be reset before reversal can take place. A new document number is created for the reversal document. Documents can also be reversed if : The document contains only Customer, Vendor, or G/L Account line items.

the system reverses the document using the posting date of the document to be reversed. such as Cost Centers and Business Areas are still valid. All values in the original document. Financial statement version 59. Code –GGB0) . Code-OBXM) (T. Code –FKMT) (T. Code –OB58) This groups together income/ balance sheet account statement format Only assign group number if you are using the consolidation functionality of SAP. Financial Statement Version (T. Create/Change Validation (T. Analyze GR/IR Account 61. Code –FBKP) (T. Maintain FI Configuration Automatic Posting 64. If a reversal date is not specified. Maintain GR/IR Clearing Account 60. Code –F.19) (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 17 The document was posted in FI (not SD or MM). Code –MR11) (T. Automatic Account Determination 63. Allows you to define your own individual checks for specific fields when a business transaction Validation and Substitution 65. Create FI Account Assignment Model 62. SAP allows for only one Financial statement version for a single COA.

therefore.g. Create/Change (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 18 is being processed. Code –GGB1) Substitutions 67. applying a particular interest rate for a specified period of time. message The system checks any combination of specified criteria (e. Profit and Loss (T.50) Adjustment G/L Interest Calculation G/L Interest Calculation 1. you can validate against any number of Boolean statements before the data is posted 66.. Validation consist of three part prerequisite. Code –F. Activate Validations & (T. Code OB46) Interest can be calculated on G/L or customer account. Code –GGB4) Substitutions 68. check. an Account/Cost Center combination) for validity before posting a document A Validation can consist of up to 999 steps. Interest Types Calculation (T. 1) Account Balance Interest calculation: Applied to entire balance for a .

Code OB82) Click on new entries :Enter the bal interest indicator(KB)/(KI) :Enter frequency period :Enter settlement day(e.g 10). Code OBAA) Interest Calculation 3. 2) Calculation of interest on arrears: Applied to individual items of account receivables and payables. A certain interest rate is applied to the items that are still open or unpaid at a specified date. (Name IntId: KI) 2. Prepare interest on (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 19 specified period of time. Name . Click on new entries Give name to interest ID. Prepare for Balance (T. :Enter calendar type(g) Interest determination (e. tick month end indicator) :Select balance plus interest check box and save Click on new entries . calc type Can create two types a) Balance interest Calculation type(S) (Name IntId: KB) b) Item interest Calculation type (P).g.

You can make this specification dependent on currency and a validity date. Reference interest rates are the key by which specific interest can be assigned to specific period: Examples of reference interest rate include LIBOR.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Arrears calculation 20 4. Define time Dependant (T.g.g db>cr db>dr di>cr 5. Enter int cl indicator (e. etc.so that you can apply different interest rates for debit items and credit items for G/L acc. Fed Rate. Code OBAC) Reference Rate :Enter the Arrears interest indicator :Select open item /item cleared with a payment :Calendar type(G/J) :Transfer day(2) :Tolerance days(1) : Only cal interest on debit items. For each indicator we have to specify debit interest rate and credit interest rates . :Enter text In this you specify how the interest rate is determined for each interest indicator. Code OB81) Terms(Assigns reference interest rate to interest indicator) . Define Interest (T. bd1/bd2/Id1/Id2) Sequential number (01/02) e.

9.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi di>dr 21 premium:5 amount from(blank) 6. Select Check box post interest settlement. Company codE Calculation period. Enter Interest Values (T. Code OBBS) The Translation Ratio is used to make simplify the . Code F. GL. Interest Run Calculation (T.52) Enter COA. Select execute. Code OB07) (T. Code SM35) G/L Exchange Rate G/L Exchange Rate 1) Define Additional Local Currencies 2) Check Exchange Rates Types 3) Define Translation Ratio for Currency Glbl settings. cocd multiple currencies (T. Prepare GL Account (T.2006 Interest: 7. Code OBV2) Balance Interest Calculation 8. Code OB83) Enter: Reference Rate Eff from (29.88 Prior to this make sure that you have created two accounts Interest received (revenue) Interest paid (expenses) Click on account button 7. Run session (T.06.

The relation between currencies have to be maintained per exchange rate type and currency pair in the translation factors. Because inflation can dramatically change the relationship between currencies.99999. Code GCRF) . This usually has to be performed only once.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Translation 22 management of extremely large/small exchange rates that may exceed the capabilities of the standard exchange rate Normally it is a good idea to keep the translation ratio at 1:1. because this is how most exchange rates are quoted Enter the detail of all 3 types and save The Currency Translation Ratio identifies the relationship of the units of one currency to the units of another. It enables SAP to process exchange rates that would normally exceed the maximum allowable exchange rate of 9999. 4) Specifying Translation Ratios (T.

validity date from. target currency and save.00001 9999. from currency. either manually or through the use of an outside interface from Reuters or any other service that provides foreign currency exchange rates Enter exchange rate. Example Xb gbp=1. 1999. on January 1st. direct quotation. Code OB08) translation factors can be maintained on a time-dependent basis Exchange Rates identify the relationship between two currencies (e.694 RUB)..99999) Rates can be updated as often as needed.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 23 5) Enter Exchange Rates (T. one USD was equal to 22. Whether the exchange rate is defined or communicated using .50 direct quotation All R/3 applications and functions process exchange rates using the direct quotation as well as the indirect quotation.g. The exchange rate is limited to the following extremes (0.

For each currency . Example: local currency: EUR. The indirect quotation is also known as the volume notation: The currency value is expressed in units of the foreign currency per unit of the local currency. The use of indirect quotation is neither application nor country-specific .08696 USD For one unit of the local currency EUR you will receive the displayed number of units of the foreign currency.it affects all the components in which exchange rates are used.direct quotation: 1 USD = 0. foreign currency: USD .indirect quotation: 1 EUR = 1. The direct quotation is also known as the price notation: The currency value is expressed in the local currency per unit of foreign currency.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 24 the direct or indirect method of quotation depends on the market standard or the individual business transaction.92000EUR One unit of foreign currency USD costs the displayed number of units of local currency .

To reduce maintenance. Furthermore: the program RFTBFF00 maintains the exchange rate table automatically by . For each exchange rate type one of the following tools can be used: Inversion (of the tools available. inversion is the oldest and is seldom used today)s Base Currency Exchange Rate Spreads Note: Just one of these three tools can be used per exchange rate. the exchange rate is highlighted to show this Maintaining exchange rates is an on-going task. for different exchange rate types different tools can be used. however.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 25 pair you can define either the direct quotation or the indirect quotation as the standard notation for the exchange rate. If the exchange rate you enter does not have the same quotation as the standard quotation set up here. R/3 offers several tools.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi uploading an input file in multicash-format. a direct connect is set up directly between an external system and a SAP System. file structures and so on in the documentation for this program. data suppliers. You can find information on the file format. 26 Another option for transferring exchange rates is offered by the program RFTBDF07. . which uses a data-feed interface to transfer data in realtime. if the external data-feed supports real-time exchange rate supply. With Remote Function Call (RFC).

Example of Valuation method is Strict lowest cost principle Lowest cost principle Prepare Automatic Posting for (T. If valuation is carried out for an Acct. Code –OBA1) Foreign exchange Valuation Assign exchange rate (T. Code –FS00) difference key in loan account Create G/L account for exchange rate gains and loss Foreign currency valuation (T. you must define the ER gains and loss Acct for each reconciliation in sub ledger Acct. which is managed in Open item mgt.05) Foreign currency is valuated by balance Evaluation Key Date=Date of .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 27 FX Valuation FX Valuation Define Valuation Method (T. Code –F. Code –OB59) You must define parameters for valuation procedure and ER determination.

each open account item in a foreign currency is valuated individually. all the OPEN ITEMS that were posted in a foreign currency are valuated: The valuation is based on the individual open account items in a foreign currency. Fixed-Term and Foreign Exchange Transactions: Fixed deposit accounts (open item management) in foreign currencies . a test run is carried out. that is. Under Selections: Activate “Valuate G/L Account Balances When foreign currencies are valuated.Type= Company code currency Creating postings=Yes or No No If not activated (no). The accounts that are valuated are listed in the Customizing documentation.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 28 valuation Valuation Method= Strict lowest cost principle Lowest cost principle Valuation in Curr.

If it includes it is a net base amount otherwise it is gross amount. whether to include cash discount or not. This applies to input and output tax. Input tax is calculated using the net invoice amount and is charged by the vendor. A base amount may includes cash discount or not. It varies from country to country. Define Condition Types Menu Path >SPRO >Financial Accounting >Financial Accounting Global Settings >Tax on Sales and Purchases >Basic Settings >Check Calculation Procedure Click on New Entries Enter condition type name (Base amount) Condition class (Taxes) Calculation type (percentage) Condition category (Tax) Access sequence(if not selected might give rise to issues when defining tax code) Under changes which can be made Select item condition check box . Base Amount Tax is calculated from expense or revenue. To determine the base amount. which is a base amount. set the indicator in basic settings of taxes on sales / purchases in SAP reference IMG guide (company code global settings). Taxation Sales and Use/ Purchase Tax Tax on sales and Purchases Tax on sales and purchases are levied on every sale transaction in accordance with the principles of VAT.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 29 are valuated in SAP FI-TR. Output tax is calculated using the net price of products and is charged by the customer.

Press enter key. The calculation procedure groups different types of taxes i. DI (Input tax Demo corp) . 4.g. Tax rates are assigned to the tax types (e.. enter your own tax code e. Then the system will give you a message 5. c) calculate additional tax portion d) verify the tax type e) determine the G/L account f) show tax correctly on tax forms The tax code contains the tax rates. input tax and output tax. Code – OBBG) The calculation procedure determines for which amount the individual condition types are to be calculated. from level. It consists of steps. This can be the base amount or a subtotal. it is advisable not to change the Tax Codes are used for the following reasons: a) verify the amount of tax. specify condition type. which are included in the tax procedure. Code – FTXP) for sales / purchases (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi >Define Condition types > 30 Check calculation (T. Steps 1. 2. A tax code may have several tax rates entered for different tax types but usually only one tax rate is entered Steps 1. Enter procedure name and description 3. Select TAXGB and click on copy as button.. to level and posting key.e. In the tax code box. Code – OBQ3) Procedure Assign Country to Tax Define tax codes (T. It also determines the posting rules for taxes. A/R Sales Tax ).g. Click on copy all button From my experience. For each step. b) calculate the amount of tax.

There we need to define two . Define Accounts (Account Tax (T. Code – OB40) Determination) Click on out put tax. 3.g. input tax) Check: Tick the box Reporting country(GB) Note: Firms may have many tax codes for input tax because of different tax rates. TDS is deducted while posting invoice or while making payment. a tax code separately and assign account for each tax code. Insurance commission. Whenever you make payments in respect of the above you have to deduct the TDS from these amounts and pay to the tax authorities to meet the statutory obligation. In such case you have to define for each tax rate. enter COA Check the tax code box Click on save Click on accounts button In the tax code field >Enter input tax code (RI) and In the account field >Enter purchases account In the tax code field >Enter input tax code (RO) and In the account field >Enter Sales account Specification in the General Ledger Assign (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 2. Code – FB02) Tax (T. Enter tax type (e. professional charges. salary payments. 31 4. Code – OBCL) Codes for Non Taxable Transactions Withholding Tax(TDS) Define Withholdin g Tax Type for Invoice Posting This is used for service charges. contract payments.

withholding tax is posted at the same time that the payment is posted. 1. is reduced by the withholding tax amount. Invoice Posting Payment Posting 32 Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages. In the base amount section Select Gross Amount radio button. in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable).Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi withholding tax types. depending on the legal requirements in each country. In the rounding rules section The first radio button will be selected automatically 2. As a rule. Enter withholding tax type and description. Step 1. 2. Select post w/tax amount check box In the accumulation type section Select no accumulation radio button In the control data Select all the radio buttons .

To apply this formula for calculation withholding tax you to select the check box in the withholding tax code. Click on new entries Withholding tax type Withholding tax code Withholding tax country Valid from date and save. Save Create Posting Define Withholdin g Tax Codes Define Formulas for calculating withholdin g Tax In this activity create a formula for calculating withholding tax for difference range of amounts. to activate the formula. You can create this for both the types (payment posting & invoice posting) Click on new entries Enter Cocd/withholding tax types Enter W/Tax Type Enter W/Tax Code Description Base amount percentage Post indicator >1 W/Tax Rate > Percentage % and save W/Tax Type for Payment Assign Withholdin g Tax type to Company Code Activate Click on position button Enter company code Press enter key .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi In the base amount section Select Withholding tax code level 33 In the withholding tax amount Select Withholding tax code level 3.

Code – SM59) Communications between R/3 and a sales/use tax package are established using SAP RFC (Remote Function Calls). 1 Establish Physical Destination (T. You must create an RFC destination that specifies the type of communication and the directory path in . The external tax system (3rd party tax package) performs tax calculation based on its own jurisdiction codes. Code – XK02) Code in the Vendor Record Posting Withholding Tax Master 34 Activate Ext. make sure that you have Created a General Ledger Master Record as TDS Payables (Taxes) (FS00) It is a liability account and balance sheet account Select debit / credit check box Select withholding tax type check box Select withholding tax codes check box Enter withholding tax type Enter withholding tax code Press enter key Save Tax Interface configuration Tax Interface configuration Tax calculation and reporting is performed by an external tax system. the third party software package must be installed at the customer site. In order for SAP Tax Interface System to work with an external tax package. The external tax system communicates with R/3 through the SAP Tax Interface System.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Extended Withholdin g Tax Assign W/Tax (T. In addition to this. the appropriate version of SAP’s certified tax partner’s API (Application Programming Interface) must also be installed at the customer site. W/Tax check box and save Prior to this.

You must set up the RFC destination as a TCP/IP communication protocol. enter the host name of the server where the external tax package resides. Click Save. . the external tax package’s executable or shell script program.g. In the field Target Host. then this would be an explicit communication setup.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 35 which the tax package executable or shell scripts program is installed. Click Explicit host.132 Gateway service e. click Application Server to select as the program location.105.66.sh RFC Destination: eg. • SAP and Tax Software Package reside on different servers If R/3 and the external tax package were to reside on different servers.g 207. along with the directory path in which it was installed. In the field Program. The destination name is user defined. input the external tax package’s executable or shell script program along with the directory path in which it was installed. Enter RFC Destination: eg. TaxWare_Maxtax Technical Settings Connection types :TCP/IP Application Server :Program/Taxware/salestax/avp. Vertex_Maxtax_Unix Technical Settings Connection types :TCP/IP Explicit host Program/Verterx/verrfc Set up Gateway Gatewayhost e. must be specified. Click Save. Sapgw02 There are two recommended methods to define the directory path: • SAP and Tax Software Package reside on the same server If R/3 and the external tax package are to reside on the same server. In the field Program.

set up the correct SAP gateway host and gateway service. The user has read/write authority. You do that by going to: System Information Function List Check if the following functions are listed: RFC_CALCULATE_TAXES_DOC . 8. The external tax package’s API for the R/3 tax interface is installed correctly and is the correct version. If this test fails. 9.6 version of the API. The correct permissions are set for the user account. This setup is frequently an area of concern. 2. Code -SM59) If necessary. also verify that the external tax package installed supports the R/3 4. 4. The directory path and the name of the executable program are correct.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 36 2 Test Connection (T. verify that: 1. The R/3 RFC libraries are the correct version. Program location and host name are correctly specified. The gateway host and service name is correctly specified 5. 7. An understanding of the directory path is of utmost To test the connection between R/3 and the external tax system. choose the Test connection button in the upper left-hand corner of the screen. If the connection is successful. If any error occurs. 3. The external tax package has been installed correctly and is the correct version. halt the installation! This test must be successful in order for R/3 to communicate with the external tax package. 6. The connection type is TCP/IP.

These tests might also be useful to resolve customer problems.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi RFC_UPDATE_TAXES_DOC RFC_FORCE_TAXES_DOC 37 RFC_DETERMINE_JURISDICTION 3 Testing the external system tax data retrieval (T. Jurisdiction code determination 2.Code SE37) Testing the external system tax data retrieval In order to test the external tax system. Testing can be done for: 1. See the chapter "Configuring the communication" for details. Timeout during allocate" / "CPI-C error CM_RESOURCE_FAILURE_RETRY " It was not possible to connect to the remote machine. See the chapter "Configuring the communication" for details. • Short-dump: "Start of TP … failed" / "CPI-C error Please verify if the program name in the destination has been set up correctly. The RFCenabled function modules can be tested with the R/3 Function Builder Test Utility. • Short dump: "Function … is not available" You probably don't have a version . Tax update 4. dummy RFC-enabled function modules were created in R/3 to simulate the external tax RFC functions. Tax calculation 3. Tax forced update It is imperative to perform these tests and check its results before continuing with further configuration.

OBBG) Each country can have only one tax procedure. This information is to be updated into the external audit register file for legal reporting purposes. 1 External Tax System ID (ExID): Define an ID for the active external tax system.6 release. consult you external tax package vendor or the manual 1 of the external tax system. See the chapter "Configuring the communication" for details. 4 Activating the Tax Interface System Step 1 Define Tax procedure to a country Step 2 Activate External Tax Calculation (T. Check your input parameters. For example :( External Tax Interface. 38 • The export parameters indicate an error (RETCODE>0). MM or FI document is successfully posted to accounting. Version) The External Tax Document is the entity name for tax relevant information for one particular document. 2 RFC Destination: 3 Interface Version (Int. These errors are never R/3 errors! If necessary. An External Tax Document is created when a SD. but nothing comes back. • No error occurs. Don't forget to enter the destination of the RFC target system.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi of the external tax package that supports the R/3 4. Configuring the External Tax Document Step 1 Define Number ranges for external tax documents Step 2 Activate External Tax Document (T.CodeOBETX) The ‘Active’ flag controls if an External Tax Document can be updated into the external tax audit file .

Allowable departure country is the plant’s country and/or the company code’s country. The tax category allows tax classification to be entered in the customer master and material master This configuration defines the possible tax classifications for the tax category in the customer master on the billing screen. and point to user defined tax codes Tax codes can be automatically derived (T. Multiple tax classifications may need to be set up for special tax rules and regulations based on material.CodeOVK1 ) A tax category has to be defined by departure country.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 39 Defining the tax jurisdiction code structure (T Code OBCO) for legal reporting purposes. Although these concepts have no meaning for external tax calculation. If this flag is not set. it influences the relevant input data passed to the tax interface system for tax calculation and postings.CodeOVK3) T. SAP tax calculation engine needs to know how a jurisdiction code is structured as well as if tax should be calculated /posted by line item. This flag is read during the SD. The A/R material tax classification indicator is also used as a key in automatically determining the tax code within SD (see Setting up SD condition records). MM and/or FI document posting process. Customizing Master Data Tax Classifications (SD) Step 1 Define tax category by departure country (SD) Step 2 Customer master configuration (SD) Step 3 Material master configuration (SD) (T. the tax information will be lost and there will be no External Tax Document updated to the external audit This configuration step is required by “SAP tax calculation engine”. These tax classification indicators are user defined.CodeOVK4) Customizing .

The A/P material tax classification indicator is used as a key to automatically determine the tax code within purchasing. Multiple tax classifications may need to be set up for special tax rules and regulations based on material. plant and account Master Data Tax assignment for purchasing transactions Indicators (MM) The tax code can be overwritten within the purchase order (item details) and the invoice verification document. These tax classification indicators are user defined.Code OMKM) Step 3 Assign tax (T.40 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi from material.Code classification OMKL) indicators for account assignment (MM) Step 5 Assign tax classification indicators for account assignments (mm) (T.Code OMKO) .Code classification indicators to plant OMKN) (MM) Step 4 Define tax (T.Code OMKK) Step 2 Define tax classification indicators for plant (MM) (T. and point to user defined tax codes Step 1 Set tax indicator for material (T.

The plant master record contains a tax jurisdiction code identifying the ship-from location. Control data Address. The material master record has a material tax classification indicator that along with the customer tax classification indicator automatically determine the tax Step 1. 41 This information in the form of tax jurisdiction codes is stored on the master records. This code provides the external tax system with the ship-from location for A/R and the ship-to location in A/P. The customer master jurisdiction (representing the ship-to location) and the taxability indicator assist in determining the tax.Code OX10) The jurisdiction code relevant to a plant’s location must be maintained on the plant master record. A tax classification indicator is also stored on some master records. Control data and Billing Step 2 MM01 create Maintain material / MM02 master tax change classification (SD) Step 3 Maintain plant master jurisdiction code (SD) (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Sales & Use tax calculations require Step 6 location information to properly Maintaining determine where consumption of Master Data (SD) tangible personal property occurred.A Maintain Customer Tax Jurisdiction Code Step 1B Maintain Customer Tax Classification V-03 or V-09 / VD02 or XD02 V-03or V-09 / VD02 or XD02 Address. Maintaining Master data must be maintained to .

The ship-to location represents where the consumption of goods and services occurs for sales and use tax calculations. Step 4 MM01 create Maintain material / MM02 master tax change indicator (MM) The tax classification indicator on the material master provides the taxability of the material for all purchasing transactions.42 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi provide ship-to and ship-from location Master data information for procurement of goods (MM) and services within the MM and FI modules. This indicator and the ship-to and ship-from jurisdictions provide the information necessary to calculate the sales or use tax. Step 1 Maintain plant master jurisdiction code (MM) Step 2 Maintain Cost Center master jurisdiction code (MM) Step 3 Maintain Vendor master jurisdiction code (MM) The location of a cost center can also represent the ship-to location. This provides the taxability determination for the purchasing of goods and services. KS01 create / KS02 MK01 create / The location of a vendor provides the MK02 change ship-from location. Also. The ship-from location is required to correctly calculate sales and use tax in certain jurisdictions. the tax classification of the material must be maintained. Screens: Purchasing Setting up tax codes .

In order for the tax procedure to determine the desired G/L (tax liability) accounts per tax code. which is assigned for each relevant condition type in the tax procedure TAXUSX.Code during tax code creation in order to properties FTXP ) define it as input/ output tax.Code OBCN ) Accounting key is equal to process key. This is accomplished by the accounting key. sales/use Step 2 Maintain tax code (T.Code FTXP ) Step 1 Accounting key/Process Key (T. Accounting key 2. are used to read the tax condition records stored in table A003. Step 3 Maintain tax accounts (T.calculated during the tax procedure execution – can be posted to the desired G/L account. it makes uses of three interconnected concepts: 1.Code condition FTXP ) record(s) tax. Tax code condition records are stored in condition table A003. Process key 3. The plant’s country (SD) or the company code’s country (MM) along with the tax code. The process key defines through the posting indicator if a tax liability account can be assigned for a tax code or if tax amounts are to be distributed to . The tax code also be entered and changed manually in both MM and FI. etc. Transaction key Each condition type amount . which was automatically determined from the SD/MM condition records.43 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Step 1 Tax code properties have to be set first Maintain tax code (T. Check for each tax code the corresponding accounting key for all ‘active’ condition types using transaction FTXP. Tax procedure also determines the G/L (tax liability) accounts to which the tax amounts are to be posted to accounting.

Code OB40 ) The transaction key defines the tax liability account and posting keys for line items that are created automatically during posting to accounting.Code OBCL ) Setting up SD condition records Configuring Tax Per Document – Max Tax VK11 create / VK12 change . Step 3 Set dummy jurisdiction code for non-tax relevant transactions (T. which have the posting indicator unequal to ‘3’ is also transaction key. Step 2 Transaction Key (T. Good receipt and goods issue transactions are non. However.Sales & Use tax relevant transactions.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 44 the expense Only the process keys. tax code and jurisdiction code is required. Therefore. it is enough to assign the exempt tax codes and a dummy jurisdiction code that has no purpose in taxation. Transaction keys (or account keys) are defined for each chart of accounts. due to design reasons.

As one is used for Paper transaction and another for electronic transaction. 140821 Make sure you have created g/l Bank account Each house bank can have several different bank accounts linked to it. House Bank is identified by a unique bank key Due to the fact that there’s been a rise in the number of bank mergers. some firm find it necessary to set up for one single banking institution two house banks within one company code.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 45 Process Description/Task Create Bank Change Bank Display Bank Display Bank Changes Create House Bank Bank Accounting Transaction code FI01 FI02 FI03 FI04 FI12 Effect in FICO Enter Bank country: GB Bank key e.g. Enter House bank id (alpha . Each house bank is tied to a company code.

3 .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi num) Bank key (6 digits) 46 Create G/L Account for 1) Check issued out(clearing acc) 2) Outgoing Wire Transfer 3) Interim Postings 4) CheckReceived(clearing acc) 5) Main Bank Account For checks issued out – based on checks cleared in the bank account the following entry will be passed automatically. 1)Create Account Symbols eg Acct=main bank/Txt= Acct=Bank chrg/Txt= Acct=Wire trn/Txt= 2) Assign Accounts to Account Symbols (Assign acc symbol to G/L account) 3) Create Keys for Posting Rules e.g Y101= Main Bnk Acc Y102= Confirmed Define Check lots (final step in configuring AP bank account FCHI Define Void reason Code G/L Account Cashed checks Global Settings for Electronic Bank Statement FCHV FF. (DR Cheque issued out CR Main bank account) For checks Received based on checks cleared in the bank account the following entry will be passed automatically (CR Cheque Received DR Main bank Enter Paying company code House Bank Account ID Click on Change status to maintain check lots Enter the reason for example Incorrect check printing.

Interim Posting: DR(40) Main Bank CR(50) Interim Posting Doc type SA . Money coming in) Posting type: Clear: Debit(40) main bank account. The posting rules represent posting transactions typical of the bank statement. credit check in Posting type 5 : Post to G/L Account) Check Issued Out: DR Check Out CR(50) Main Bank Doc type SA Post key 50 Posting type 4 (Clear debit G/L acct). whether bank or a sub ledger posting.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi cash Y103=…… 4) Define Posting Rules 47 Here you will now assign the key created for posting rules to the various account symbols and specify whether it will be a debit or credit and to which posting area.e. such as: Incoming check Credit memo Debit memo Check received: You debit the Main Bank Account (i.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 48 Posting type 1(Post to G/L account Out going Wire transfer: DR Wire Transfer CR(50) Main bank Doc type SA Post key 4(Clear debit G/L acct). Bank Charges: DR(40) Bank Charges CR(50) Main Bank Doc type SA Posting type 1(Post to G/L account 5) Create Transaction Types E. Z_76 zitra electronic bank 6) Assign External Transaction Types to Posting Rules : Assign bank details. All the house bank accounts at a particular bank are usually assigned to the same transaction type. then double click on it Click on new entries. for which the account statements are to be imported . Give external numbers to .G. to a transaction type. Highlight the transaction type you created.

is correct . Then double click on Bank Charges. Then double click on allocation amount. Then position the cursor on . ZDEMO..g. and then you get a msg. foreign currency amt.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 49 correspond with G/L account/posting rules defined. delete doc number. Assign Bank Accounts to Transaction Types Import Electronic Bank Statement Manual Bank Statement 1 Create and assign business transaction Define Posting Keys and Posting Rules for Manual Bank statement Define variant for manual bank statements FF. customer match code. but change if from 13 to 6 Click on the Check Icon. foreign currency. copying from SAP01 to your variant of which you define now e.g. Variant ….5 Enter transaction type(e. then click on copy icon . CHIN) Enter Posting rule Enter text description 2 3 Select SAP01 Double click on SAP01 Go back to the previous screen.

Takes you to a different screen Change accordingly by double clicking on . Account Symbol= Checkdp Document type=DZ Posting Type =8 Put the cursor on SAP01 and click on the copy button.g. Take you to From SAP01 Variant to your defined Variant. Checkdp=incoming check Assign Accounts to Account Symbol Account Mod=+ Currency=+ Create Keys for Posting Rules Zchq= Direct Check Define Posting Keys and Posting Rules for check deposit Create and Assign Business Transaction Define Variant for Check Deposit Bank Accounting>biz trans>check deposit>define posting keys and posting rules for check deposit Bank Accounting>biz trans>check deposit>Create and assign business trans Bank Accounting>biz trans>check deposit>define variant for check deposit Define Posting Rules ZCHQ Dr Psky 40.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 50 Change description of variant Click on activate icon Check deposit Create Account Symbol e.

the cash journal incoming postings will be made. Field status: G001 Post Automatically: Keep local currency only Line item display The cash journal supports posting of cash receipts and payments.changing the input number. Wherever small payments are received from customers. GL Code must be on post automatically. Click on save Manual Bank Statement Process Manual Bank Statement Post Process Electronic Bank Statement Post Electronic Bank Statement Edit Cash Management Position Pmts Cash Position Cash Create G/L account for Cash Journal Journal. FF67 FEBA FEBP FF6A FF7A Img>FA>Bank accounting>Biz Trans>Cash Journal The cash payments for small amounts to employees or vendors can be done using the cash journal. You can: Have a separate cash . make sure that balance in local currency is not set and that the account currency is same as company code currency.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 51 the possible fields and then . Sort key: doc no fiscal year. I f you want several cash journal in different currencies.

Choose a business transaction code or create a new one. If you want to run several cash journal in the same currency in one company code. . you have to select different cash journal G/L account.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi journal for each currency. Code FBCJ) Switch to the relevant transaction type: Cash receipts. vendor and general ledger accounts Use business transactions (instead of usually required postings keys & accounts) to post the data. 52 Post to customer. Cash payments. Vendor and Customer accounts. Define your own business transactions. Cash Journal entries are saved locally in the cash journal subledger. but postings are automatically calculated and displayed on GL. Document type Sk Define for Document type Maintain Number Range for cash journal document You can run several cash journal with different currencies in one cash Journal G/L account. Set up Cash Journal Access Cash Journal Post Cash journal (T.

clear and post the items that have not been posted automatically. You have two options here: Immediate posting create a batch input session. The system then automatically makes the postings to the bank account. vendor account.TXT and ITEM. along with the two file names. Define check lots FCH1 Define check void reason EDI Partner Profile Bank statement processing FCHV WE20 Processing of electronic bank statement consists of two phases: You need to import the bank data into the system (sometimes it is necessary to transfer the file into a format readable by SAP before).TXT contains the transaction information.TXT contains bank statement header information and ITEM. The transfer program (for example: MultiCash) uses the bank data to generate two files for further processing. Vendor / Customer account etc. Using this format. customer account. you need to enter the format. Run the post processing transactions . STATE. STATE. Print cash journal document Set up print parameter for cash journals Check lot will determine the check number that is used on payments. bank clearing account. For the import. You must at least have one reason. and.TXT. Cost Centre. a number of bank statements can be imported simultaneously.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 53 Enter all required data (amount. along with the payment clearing. then run it.) Save or Post your transaction. and stipulate the type of further processing. if required. SAP does not allow the user to void a check without a valid void reason. .

Maintain terms of payment for installment payments (T. The conditions define the invoice payment due date and the cash discount offered for early settlement of the invoice. PAYMENT TERMS Maintain Terms of Payment (T. Payment terms can also be configured for installment plans. the system needs the following three data elements: Baseline Date: The date from which the due date is derived. In this case. Code OBB8) 54 Payment Terms are conditions established between business partners to settle the payment of invoices. In order to perform this calculation. Code OBB9) . each installment may have a different payment term assigned to it.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi We propose to use MT940 format file for Electronic Bank Payments. R/3 is delivered with typical payment term keys. Payment terms enable the system to calculate a cash discount and invoice due date. however. Cash Discount Percentage Rate: The rate used to calculate the discount value. new payment terms can be defined in configuration. Cash Discount Periods: The period during which the discount is allowed to be taken.

Otherwise.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 55 Dunning Dunning IMG>BizTrans>Dunning Defining Dunning Area T Code OB61 Dunning Areas is a organizational units with in the company code. The individual dunning areas can use different procedures or the same dunning procedure. to a profit center. The dunning area can correspond. for example. The dunning area is then entered in the line item. The system enters the dunning area into the master record automatically with the corresponding data. . a sales organization or a business area. Define Dunning Keys Define Dunning Block Reasons (optional) ( T Code OB17) ( T Code OB18) Reasons for not dunning a particular line item or a particular Customer or vendor. The dunning areas with the required dunning procedures are to be entered into the customer or vendor master record if you use different dunning procedures. a distribution channel. the system uses the standard dunning procedure.

there are five other segments to be configured for dunning as dunning procedures. In the configuration we will define main screen Dunning interval days.No of dunning levels .Line item grace period . Code FBMP) Dunning block reason defined at customer master for excluding a particular customer or it can also enter for a line item while entering line item Besides the main configuration.Total due items from dunning level .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 56 Define Dunning Procedure (T.Min days in arrears (acct). . days between the dunning levels . Define Dunning grouping (T Code OBAQ) Define Interest (T Code OB42) . 1 . Grace periods per line item which are taken into consideration during determination of the due date for the dunning run. Here you maintain Dunning Level Dunning Charges Dunning Minimum Amount Dunning txt Special G/L indicator. These minimum days in arrears have no influence on calculating the days overdue. total of due item from the defined dunning levels.

Code OB78) Correspondence Types Dunning Run (T. Code F150) 57 .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Rates(optional) Assign Dunning (T. Code XD02) Procedure to Customer / Vendors Accounts Define Correspondence (T. Code OB77) Types Assign Company Codes to Correspondence company Codes Assign Programs for (T.

Code OBA3) Special Vendor(SPVD) Goods Supplier(GOSL) Domestic Supplier(DOML) Regular Vendor(REGV) Example Vendor(REGV)1-999 Note! Number range must not overlap (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 58 Process Basic AP Settings Accounts Payable Core Settings Description/Task Transaction Effect in FICO code Example of which could be: Define Account Groups (T.g 01>wrong entry>Entry made wrongly 02>Negative postings>Posted Negatively Define Reason Codes (T.Code XKN1) (T. Code – Cash Discount OBXV) Enter COA Save rules first Enter (tick) for debit and credit 2) Cash Discount Lost (Expenses)(CR) e. Code – OBXU) Prior to this make sure you’ve created G/L accounts for 1Reconciliation 2 Cash Discount Taken(Revenue) (DR) Enter COA Save rules first Define Accounts for Lost (T.Code One-Time Vendor(OTVD) with Screen Layout OBD3) Create Number Ranges for Vendor Accounts Document Types for Number Ranges Assign Number Ranges to Vendor Account Groups Create Tolerance Group for Vendors Define cash discount base for Incoming Invoices Define Accounts for Cash Discount Taken (T . Code – OBAS) (T. Code OBA7) (T. Code – . Code OBBE) Define Accounts for (T.

59 payment(Dr)/Underpayment (Cr) Define Accounts for Bank Charges Define Dunning Procedure Create Vendor Master Record (T. Credit Cash Under Payment Debit Cash Over Payment. Code XK01/FK01) Enter COCD & Account group Click enter Then give details of the company you want to create. click on Debit/Credit as well as Reason Codes. Code – OBXK) (T. Code – FK15) . Code FBMP) (T. Prior to this make sure you’ve created G/L accounts for Bank Charges.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Prior to this make sure you’ve Over payments / Under OBXL) created G/L accounts for Over Payments In the account are determined based on field. Bank key= six number Bank account=eight number Vat = 11 digits Eg GB226789829 Copy Vendor Master Record (T.

30 cr vendor acc .40 debit expense acc Posting an invoice received from a vendor will: Create the Invoice Receipt Document. Update the Material master record when appropriate. Post entries to the appropriate G/L Accounts. Update Purchase Order History when appropriate. Update the Vendor Account (sub-ledger). 70 debit asset . 50 cr expense acc In case where a Your firm is overcharged by a vendor. At the same time. In vendor credit memo the R/3 system defaults the document type KG Direct Invoice– “Posting to Trans Code: F-43 an Asset Credit Memos Trans Code: F-41 Enter Vendor Credit Memo Trans Code: FB65 Display Document Trans code: FB03 . a credit is posted to the appropriate G/L Reconciliation Account (Accounts Payable Account) assigned to the Vendor. a debit is posted to the GR / IR Clearing Account (and cleared) and a credit is posted to the Vendor Account (subledger).Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 60 AP Business Transactions Invoice Posting – “Direct Trans Code: F-43 Invoices AP Processes Enter Vendor Invoices Trans Code: FB60 30 cr vendor acc. trans type 100 for external asset acquisition 21dr vendor . When the Vendor Invoice is posted. For this reason your company receives a credit memo which can be deducted from the original invoice.

14 Recurring Entries Cr gr/ir acc Post Goods Receipt Trans code: Dr expense account MIGO/MB01 Change Goods Receipt Trans code: MB02 Display Goods Receipt : Trans code: MB03 Reverse (Cancel) Goods Trans code: Receipt MBST Goods Return : Trans code: MB01 Cr Vendor Acc Invoice Verification Trans code: Debit gr/ir Acc 61 .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Change A Document Trans code: FB02 Display Document Trans code: Changes FB04 To park an invoice Trans code: F-63 To park a credit memo Trans code: F-66 Change Parked Documents Trans code: FBV2 Change Parked Document Trans code: Header FBV4 Display a Parked Trans code: Document FBV3 Display Changes to a Trans code: Parked Document FBV5 Delete Parked Documents Trans code: FBV0 Post Parked Documents : Trans code: FBV0 Reversal of Individual Trans code: Documents FB08 Vendor down payment Trans code:F-47 Post Vendor down Trans code:F-48 payment Post Manual Outgoing Trans code:F-53 Payment Post Debit for Manual Trans code:F-31 outgoing payments Mass Reversal of Trans code: F.80 Documents Create Posting for Trans code:F.

Code – Display (line items) FBL1N) Display /Change Vendor (T. Code – Screen FK03) View Vendor Account (T. .98) AP Payment Run Payment Run Maintain Payment Program Trans code: FBZP The systems take into account in a payment run Payment method specifications in the IMG. 62 Specifications in the vendor master records Information in the documents(incoming invoices) Specifications made when maintaining the payment run parameters.F. Reversal of Individual Trans code: Logistics Invoice MR8M Documents Process Automatic Clear F.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi MIRO Display Invoice Trans code: Verification Documents MIRO .13 Vendor transfer post/ F-42 without clearing Manually Clearing Vendor Trans code: F-44 Line Items Display / Vendor Change Trans code: Line Items FBL1N Reset Vendor Cleared Trans code: Items FBRA Display Vendor Initial (T. code.Code-FK10N) Account Balance Display Report (T.

• Clears open items. The Payment Run is executed in batch mode. • Supplies data for the payment media print programs.63 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Perform Automatic Trans code: F110 The payment run considers the following dates Payment Run for Checks: a)Customer due date Maintain Header Data b)Vendor due date c)Documents entered date The payment run: • Posts payment documents. The field “Identification” is used to differentiate between program runs that have the same run date. Every payment run of the payment program is identified by two fields: Run Date=Todays date Identification= The run date does not have to be the actual date when the program is executed but this is recommended. Posting date =todays date Doc ent up to=todays date Customer item due by=today’s date+ 7days Company code= Payment Mthd= Value date=Today+30days Click on additional Log Activate the following . Its main purpose is to help identify the program run. The actual Payment Run can be started immediately or scheduled to run at a later date and / or time.

the .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 64 Due Date Check. Payment Method Selection in All Cases.(YOU MAY SKIP) Click on Proposal Icon Click on the start immediately check box Click on the Green tick box Click on enter Go to the main menu> edit>payment>schedule program>click on it Select start immediately check box Click on the green tick button Press the enter key Go to Edit>payments>payment list>click on it The Payment Program selects Open Items to be paid depending on the following: • • Date of the Payment Run Next Posting Date While editing the parameters. Line items of the payment documents Choose Printout/Date Medium. If the Proposal Payment Run does not pay certain Open Items. an Additional Log can be requested for test purposes.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 65 reasons are detailed in this log. Trans code: F-58 Trans Code: FCH7 Trans Code: SP01 Trans Code: FCH8 Transaction Code: FCHN Trans Code: FCH1 Trans Code: FCH2 Trans code: FK10N FCH5 S_P99_4100009 9 Doc Type KZ . On the basis of this information. the user can decide how to resolve the situation Copying the Parameters of a Previous Check Run: Posting a Manual Payment aka “Hot Checks Posting a Manual Partial Payment of Open Line Item Reprint Checks (Includes Voiding Old Check To Print Checks from the Spool Cancel Payment / Void Checks Display Check Register Display Check Display Payment Document Perform Vendor Balances Inquiry Create Manual Check Information Payment List Trans code: F110 Trans code: F-58.

list display by collective number Outline Agreement / Term Contract Outline agreements.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi AP Procurement Process Procurement Process 1 66 Create Requisition Change Requisition Display Requisition Individual release of Purchase Requisition Collective release of Purchase Requisition List Requisition (General) List Requisition (Acc. Ass) Request for quotation Requisition For Quotation. list display by general criteria Change Outline Agreement Display Outline Agreement by Material or Service Release Contract(Outline Agreement) General Evaluation of An Outline Agreement (OA) To Print Contract: Create Purchase Order (Known vendor) Create Purchase Order (Unknown vendor) Change Purchase Order General Evaluation of a Purchase Order Release Purchase order Display Purchase Order ME51 ME52 ME53 ME54 ME55 ME5A ME5K ME41 ME4S Doc type NB 2 Doc type NV 3 ME31/ME31K ME3K ME32K ME3M ME35K ME80RN ME9K ME21N ME25 ME22 ME80FN ME28 ME23N Doc type NB 4 No Accounting Impact .

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Display Purchase order ME2L by Vendor Display Purchase order ME2N by PO number Display Purchase order ME2K by Account Assignment Display Purchase order ME2N by Open items Report Purchase order ME2N Purchasing Order MCE1 Analysis Info record per vendor ME1L Purchasing Order Price ME1P history 5 67 Goods Receipt for PO MIGO Debit Inventory Acc Credit GR/IR acc The posting of a Goods Receipt results in the following: A Material Document is created (stock quantity is increased).Purchase Order history is updated. a debit to the stock account and a credit to the GR / IR (Goods Receipt / Invoice Receipt) Clearing account is posted 101 Good receipt Cancellation of Goods Receipt MIGO .An Accounting Document is created (G/L Accounts are updated). When a Goods Receipt is posted.

The open item represents the payable to the vendor and remains open until a vendor payment is processed Change Invoice Document Delete Invoice Document Display Vendor Display Vendor Line Items 7 Payment MR2M MR5M XK03 FBL1N The payment on account transaction results in the following entry on the Funds’ balance sheet DR Vendor Number (recon xxxx) CR 101005 Inter-company cash As you will note. the balance against the vendor is a debit (reverse of the normal).6 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi The Vendor Invoice gets Invoice verification/Post MIRO/MR01 included in the Purchase Document 68 Order history to update the status of the Purchase Order Line Item. upon receipt/entry of the invoice into SAP. In order to settle this item. the following entry will occur: DR GL Expense Account/Inventory . A Debit is posted to the GR / IR Clearing Account to reverse the original entry. An open item (credit) is created in the Vendor Account (sub-ledger) with a corresponding credit to the appropriate Reconciliation (G/L) Account defined in the Vendor master record.

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account CR Vendor Number (recon xxxx) For a purchase order the entries will be as follows: GoodsReceipt: DR GL Expense Account/Inventory account CR GR/IR Clearing (xxxxx) Invoice Verification: DR GR/IR Clearing (xxxxxx) CR Vendor Number (xxxxxxx) The vendor account (open items) must be manually “cleared”, a process that normally is automatically performed as open items are paid. If you fail to do complete this procedure, the vendor account will not be cleared and will retain a debit balance with no offsetting entry. After payment, the desired balance in any vendor account should be zero.

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Account Receivable Basic Settings Process Description/Task Create Account Groups Create Number Ranges for Customer Accounts Assign Number Ranges to Customer Account Groups Define Document Types Transaction code Effect in FICO (T. Code – OBD2) (T. Code – XDN1) (T. Code – OBAR) (T. Code OBA7) (T. Code – FS00)

Create General Ledger Account “Accounts Receivables Define Accounts for (T. Code –OB09) Exchange Rate Differences Create Accounts for Bank (T. Code –OBXK) Charges Customers Create General Ledger (T. Code – FS00) Account – Customer Down Payments Received

Account group Liabilities, sort code 031 or 026 , reconciliation account customers, GO67 double click on Acct type D and SPL. GL A
In the recon. Acct field (Enter GL Account - Accounts Receivables) In SPl. GL Account field (Enter GL Account – Customer Advances / Down

Create General Ledger (T. Code – FS00) Account – Reconciliation Create Reconciliation for (T. Code – OBXR) Down Payments

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi
Payments)

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Create Customer Master Record Change A Customer Master Record Centrally

(T. Code – XD01) (T Code: XD02)

Display a Customer Master Record Centrally Display Changes to a Customer Block/Unblock Customer Mark Customer for Deletion Create Tolerance Groups for Customers Create Tolerance Groups for Employees Invoice & Payment Create Customer Invoice

(T Code: XD03) (T Code: XD04) (T Code: XD05) (T Code: XD06) (T. Code – OBA3)

(T. Code - F22/FB70)

PstKey 01 = (Debit Customer – Invoice), PstKey 51 Credit Revenue Account Document Type: = Customer Invoice

Define Accounts for Cash (OBXI) Discount Customer Payment (T. Code – F-28) Receipt

Dedit the Main bank account(Pst ky 40) Credit the Customer Account Pst ky 15) Invoice Payment Post Customer Down Payment Unblock Invoice for Payment Enter Customer Credit Memo (T. Post Key: 40 Debit Entry (Account: General ledger revenue account A customer may be issued a credit memo for numerous reasons such as inadequate Create Customer Credit Memo (T.Code-F-28) 72 You can use this to process under payment.Code-F-29) PstKey40 Debit Bank Account. Document Type: DG = Customer Credit Memo Pst Key: 11 (Credit Memo – Credit Customer) Account: Enter Customer Number. Code –FB75) . over payment (difference needs to be credited to customer account) and Overpayment (the difference is due to a late fee – the paper invoice doesn’t show the late fee therefore neither does the open item in the system).FBL5N ) (T.Code.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Post Incoming Payment (T. Pst Key 19 Credit Customer (T. Code – F-27) Credit memos are used to reduce the amount of a customer's debt (a credit is applied to the customer's account reducing the total amount due) caused by events occurring after the receivable was set up.

This process is used if Payment with Printout Accounts Receivable Customer Transfer (T.) Pst Key: 09 = (Special G/L Debit). in accordance with certain configuration settings. The basic document entry requirements are the same. Code – F-02) When a check is returned from the bank. Code –F. Regardless of the reason. and subsequently offsets future billings.Sp.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 73 goods. damaged goods. Account: Customer Number.21) . Post Key: 50 = Credit Entry Account: Cash account-Local Depository Account The need to post a payment and print a refund check without running the payment program for credit memos. Returned checks (T. the credit memo is applied against the customer a account balance. the credit memo posting is similar to other standard document postings within the SAP R/3 system. This result in the amount being recorded to the balance sheet account xxxx (Please note that a valid customer account must be created prior to posting any invoice or returned check item. etc. the transaction is posted to the Customer with the use of Special GL indicator R. Once posted. G/L R (for returned Check).

Code –F.29) (T. Code: F. Code – FB09) (T. CodeS_ALR_87012172) (T. Code – F. Code – FD11) (T.99) Account Clearing .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Posting without Clearing Account Receivables 74 you need to transfer a value from one customer to (usually) another customer.2D) (T. Code – FD10N) (T. Since this transfer happens without clearing you run this transaction without selecting open items and therefore the amount you are transferring out is not dependent on any prior postings to that customer PstKey12 (Reverse Invoice) for a Customer/Credit against the first account PstKey 01 (Invoice) for a Customer/Debit against the second account Customer Displays Customer Master Data Comparison Customer Balances View Customer Line Items Display Customer Balances Change Customer Line Items Customer Account Analysis Create Evaluation Customer aging report Report Selection (T. Code.FBL5N) (T.

If the clearing date is not specified then the date on the clearing document will default to the most recent date of either the Document Date or Posting Date of the documents that contain the line items selected for clearing . Code FBRA) (T. Code FB15) (T. Code FB17) . Customer Account Clearing Manual Clearing of Open Items Automatic Clearing /G/L Account (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Clearing 75 Clearing is the process of matching open debit entries with open credit entries within the same account. Code F. Resetting Cleared Items Assign and Clear Open Items Edit Assigned Open Items (T. The system then selects open line items with matching amounts and Assignment Numbers and clears them automatically. The system assigns a Clearing Number to the matched items. The system is able to post a line item and clear it against an open item or items in one transaction (Post With Clearing). The system will also generate this document header if open items are cleared by running the clearing program. Code F-32) (T. Code – F-32) (T.13) the user only specifies the account to be cleared.

Standing Order) . Code: FB12) Statements/Request Correspondence Maintain Correspondence (T.Code:F.65 ) (T . Code: FB03) (T. Code: FB04) (T. Code: FB08) Recurring Entries (e.63) Request Print Letters (Customer): Bulk Printing of Account Statements Reprint Quarterly Account Statement (T . Code: FB02) (T.61 ) Document Maintenance Documents Display/ Searching for Documents Changing Documents . Code: FBV0) (T.Code: F.27 ) (T .Code:F.g.Display Documents Changes Post/ Deleting Parked documents Reversing Documents (T. Code: F.64) Delete Correspondence (T .Code:F.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 76 Correspondence Correspondence Account (T.

Standing Order) Recurring Entry Change Recurring Entry Create Posting Documents from Recurring Entries List Recurring Entry (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Recurring Entries(e. Code VA11) Inquiry: A document created in the Sales & Distribution module that records information about products possibly desired by a prospective customer The following activities can be executed in an Inquiry: – Automatic pricing – Manual availability check A typical business transaction within a sales and distribution department generally begins through contact with the customer. Code VA21) Quotation: A document created in Sales & Distribution. Code F. Code: FBD1/F.15) (T. The sales representative maintains this contact through regular visits. Code: FBD2) (T. Code VA13) (T. Code VA12) (T. Code F.14) (T.g. telephone conversations or by organizing a mailing campaign. Or The customer enquires for a product/service or 2 Change Inquiries Display Inquiries Create Quotations (T. which .15) 77 Sales Cycle Sales Cycle 1 Create Inquiries (T.

an availability check is being run which determines when. the system determines the price for a specific material quantity. he/she then submits a request for quotation (RFQ) regarding the product (referred to as a material in R/3) and its price. The quotation document contains a binding price listing for the quantity of the requested material and the time period during which the price will remain in effect. . However.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi records the response to an inquiry. For the RFQ document. the system does not check to see if that material is available. The sales representative responds to this RFQ and creates a quotation. the data from that RFQ can be copied into the quotation. 78 The following information can be recorded in a Quotation: – Material Number – Price – Alternative Items As a result of this contact. the desired material can be delivered. Simultaneously. If the RFQ document for a desired quotation already exists. This may involve negotiations about discounts and other conditions. and how much of. To obtain more information. the customer becomes interested in a product.

There are two types of outline . Aside from this.3 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Change Quotations (T. the document types are: a RFQ. this will result in an order. you determine the time period during which the customer will accept the product. There are also different types of documents within order processing. there are also the document types that result from outline agreements being made. Should the customer then decide to buy. An order can be generated from the quotation as a follow-up function. You achieve the same result when you create an order and use an existing quotation as a reference. Code VA22) Display Quotations (T. The data from the quotation is copied into the order during this process. Both of these procedures can be used for all document types that may be used as references for the order. When you close an outline agreement with a customer. Code VA23) Create Sales Orders (T. a quotation. price and delivery date of a product to be purchased by a customer. The document type that is used most frequently is the standard order. an existing order. quantity. Code VA01) Sales Order: A document 79 created in Sales & Distribution that records the material number. a contract or scheduling agreement and an invoice.

however. which only covers the acceptance of a total quantity within a designated time period. Information in a Sales Order includes the following: – Customer Number – Material Number – Order Quantity – Price – Delivery Date Sales Orders can be created with reference to: – a Quotation – another Sales Order – a Contract – a Billing Document .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi agreements. when you would like to make use of a quotation where the validity has already expired. The release order then causes individual deliveries to be made in the form of standard orders. The other type is the contract. One is the 80 scheduling agreement. or when you wish to combine items from several quotations into a single order. There may be times. in which the individual components of the order are determined along with their delivery dates. A Sales Order is a contractual agreement between a Sales Organization and a customer concerning goods to be delivered or services rendered.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 81 When a Sales Order is processed. Code VL01N) (T. Code VA02) (T. The Delivery Note serves as a basis for: – Picking the material – Creating Shipping Documents – Transportation – Billing – Delivery Notes contain the following information: – Material Number – Actual Quantity .Code VL01NO) The Delivery Note is a document created in the Sales & Distribution module that initiates the shipping activities associated with delivering materials to a customer. the system can automatically execute the following functions: Credit Checking – Pricing – Material Availability Checking – Transferring requirements to Materials Requirements Planning (MRP) – Shipping Point and Route Determination Pricing details in the Sales Order include the amounts that will eventually be posted to the General Ledger for Cost of Goods Sold and Revenue 4 Change Sales Orders Display Sales Orders Create Delivery Note With Reference to Sales Order) Without Order Reference (T. Code VA03) (T.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi – 82 Delivered Picking Information (from where the Material is sourced) – Billing Status No financial accounting transaction is recorded when a Delivery Note is created. Code VL02N) . which can be thought of as a schedule line.Outbound Delivery Single Document (T. A Goods Issue is a document. the system runs a check to determine if the order quantity will be available by the desired date. he material quantity that is to be delivered to a customer on the requested date is fixed in the item. only those quantities of the material which are confirmed in a scheduled delivery. Shipping activities must already be completed before a Goods Issue can be posted for a delivery. no quantity changes can be made to the Delivery Note. However. Goods Issue for a Sales Order: 5 Create Good Issue . that is used as the source document for recording changes in stock levels associated with delivering materials to customers and for recording the financial impact of such transactions in the General Ledger. posted in the Sales and Distribution module. As soon as an item is entered. can be taken in the delivery. After a Goods Issue has been posted.

Code VL06G ) (T. Code VL09) (T. As a result of a Goods Issue. Code VL23) (T. posted in the Sales & Distribution module.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Reduces warehouse stock 83 Contains information used in automatic account assignment such as the Movement Type (used to identify the transaction as a Goods Issue) and the Plant from which the material was shipped. that supports the creation of Customer Invoices. Credit or Debit Memos. and the recording of the financial impact of these transactions in the General . integration to the Financial Accounting module occurs with the automatic creation of an Accounting Document containing the following accounting entries: Debit to the Cost of Goods Sold G/L Account Credit to the appropriate Inventory G/L Account Debit to the Cost of Goods Sold G/L Account Credit to the appropriate Inventory G/L Account 6 Create Good Issue -Collective Processing Via Outbound Delivery Monitor Create Good Issue -Schedule Background Processing Create Good Issue -Cancellation/Reversal Create Billing Document (T. Code VF01) The Billing Document is a document.

Billing Documents in the Sales & Distribution module include: Order-related Invoice Credit Memo Debit Memo Billing Documents are created by referencing Delivery Notes. integration to the Financial Accounting module occurs with the automatic creation of an Accounting Document containing the following accounting entries: Debit to the Customer Account (sub-ledger) and the appropriate G/L Reconciliation Account assigned to it.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Ledger. Credit to the appropriate G/L Revenue Account. As a result of a Billing Document. Some of the creation scenarios include: Creating individual Billing Documents for one Delivery Note. Billing Document Types are automatically proposed based on the Sales Document on which they are based. 84 The Billing Document Type identifies what Billing Document is being created in the system. . Creating individual Billing Documents for two or more Delivery Notes.

Code VF04) (T. Credit to the appropriate G/L Revenue Account 7 Change Billing Document Display Billing Document Billing due list Cancel Billing Create Incoming Payments (T. When the Accounts Receivable Department receives payment from the customer. Code VF03) (T. Code F28/F-06)) Customer payments can be received directly and entered in the system manually. or they can be processed through a Lockbox. Code VF02) (T. Code VF11) (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 85 Debit to the Customer Account (sub-ledger) and the appropriate G/L Reconciliation Account assigned to it. the Accounts Receivable account is cleared (with a credit) and a Debit posting is made to the Cash account for the same amount .

Acct type for Acct. Select line item display and Sort key 031 Account type (Liabilities) Sort Code 001 Only balance in local currency FSV (GO67) Select D & W and double click on it. Type). Sundry Debtors Account & Bank Bills Discounting (T. Code – OBYK) In the Bank Acct field (enter bank sub account) Usage (discounting) In the Special GL field (W) In the Customer Recon. Code – F-33) Discounting Reverse Contingent (T Code – F-20) Liability . Acct field (Enter Accounts Receivables Account) In the Special GL field (Enter BOE Receivables Account) and save (T. Code – FS00) (T. Code – F-22) (T. In the Recon. Acct field (enter Accounts Receivables Account) In the bank sub account for liabilities field (Enter Bills discounting Account) AND SAVE Customer Sales Invoice Bills of Exchange Receipt (T. Code – F-36) Dr Bills Receivable Account Cr Accounts Receivable / Customer Account Bills of Exchange (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 86 Special G/L Transactions Bills of Exchange Process Bills of Exchange Description/Task Create General Ledger Accounts Bills Discounting Accounting Link between Sundry Debtors and Bills of Exchange Transaction code (T. Code – OBYN) Link between Bank C/A. Code – FS00) Effect in FICO Account type (Asset) Select Customers (Recon.

Code – OB73) . Code – OBYH) Account Determination or Assignment 87 Please make sure that you have created GL Accounts for Collection Charges. Bank Discount Charges BDS / Bank Collection Charges BIK Bank of BOE Tax BWS / Revenue from Discount Charges DSK Revenue from Collection Charges INK / Revenue from BOE Tax WST Prepare BOE Charges Statement (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi View Customer Wise / Due wise Bills of Exchange Bill Charges and (T. Go to menu bar item edit Copy Rules In the Dialog Box From = INT To = Your Company Code Select each item of description and assign General Ledger Account for each transaction key. Discount Charges and assign these accounts to the relevant transaction keys.

Down payment to vendors Account type(Liabilities) Sort code: (vendor number) Reconciliation (Vendor) FSV( G026) 88 Define alternative (T. Code – F-43 T. Account field.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Special G/L Transactions down Payment to Vendors Down Payment to Vendors Creating a General (T.64) Special G/L Transactions Down Payment from Customer . Code – OBYR) Reconciliation account for down payments In the Recon. Code – F. Code – F-48) (FBL1N) T. Code – FB12) (T. Enter Reconciliation Account (Vendor Advances / Down Payments) Press Enter key and save Posting Down Payments Display Change Line Items (FBL1N) Posting Vendor Invoice Down Payment Clearing ( Clearing Vendor Normal Items Vendor Statement of Accounts Request for Correspondence / Statement Maintain Request / Correspondence (T. Enter Accounts Payables Account In the special GL Account. Code – F-54 (T. Code – OB78 (T. Code – FS00) Ledger Account . Code – F-44) (T.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Down Payment from Customer Create G/L Account (Advances from Customers) Link the advances from Customers (G/L) to sundry Debtors (AR/GL Acc-Reconciliation) Define alternative reconciliation Down Payment Receipt Enter sales Invoice Transfer of advance amount from customer to normal account by clearing GL Account (F-39) Open Item Account Clearing Reset Cleared Items 89 (OBXR) (F-29) (F-22) (F-44) (FBRA) .

code – OB45) (T.Code OB02) (T code – OB02) (T code: PA40) (T.29) 90 Process Description/Task Asset Accounting Transaction code Effect in FICO . Code – OBAN) T. code: OB38 (Transaction Code – OBVU (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Credit Management Credit Management Overview of Credit Management: Define Credit Control Area Assign Company Code(s) to Credit Control Area Define Customer Credit Groups Define risk categories Define Credit Rep Groups. Code – FY01) (T.31 (T. code: OB51) T code: OB45 (T code F. code – F. Code – F. Code – OBAJ) (T.30 reports) (T. Define Credit Rep as an employee Associate partner role with Credit Rep Group Define default values for new customer Additional texts for the Credit Manager Tables – Model Transfer Change View ‘Specify Data Volume for A/R Info System’: Overview Change View ‘A/R Info System – Select Evaluations’: Overview Define Background Job T.

Code – EC08) Key figures that directly affect fixed assets include the capitalization ratio and the fixed-assets-to-net-worth ratio. which takes the depreciation regulations applying to that country into account Copy from OGB-> Chart of Depreciation Your Specify description of Chart of depreciation Copy / Delete (T. Depreciation area could be either one of the following :01 Book depreciation (Local Currency) :02 Cost-Accounting Depreciation (Mgt Reporting) :30 Group Reporting GBP (Group IAS Reporting) CONFIG Go to Edit from the main menu > Selections > Select All (F7) Click on it Deselect 01 (Book Depreciation) You have actually selected only 01 (Book Depreciation) . Code – Depreciation Area OADB) Each depreciation area within the Chart of depreciation makes use of different valuation types. Valuation types are used to stipulate criteria for calculating the value of an asset. COD is created at client level Specification of individual depreciation area are grouped together in a Chart of depreciation There’s a special COD for each country.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset Accounting 91 Copy Reference Chart of Depreciation (T.

asset under construction. Furniture. The valuation type could include the parameters which control the normal depreciation for each of the assets. Plants and equipments. Examples of asset class are Buildings. low value asset.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 92 But the system will select 30 by itself ENTER DELETE Assign chart of (T. Select the existing screen layout and Click on copy as button . Valuation types are used to stipulate criteria for calculating the value of an asset. Code – AS08) Range Intervals Define Asset Classes (T. The same types of assets are allocated to the same asset class. Office equipment. Code – OAOA The minimal classification of asset classes is determined by legal requirements. Trade marks. How to maintain asset class How to maintain asset class How to maintain asset class How to maintain asset class Specify Account Determination Create Screen Layout Rules Define Number (T. and several company codes can be allocated to the same chart. code – OAOB) depreciation to your company code Valuation Type Each company code is allocated to one chart of depreciation. Each Depreciation area within the Chart of depreciation makes use of different valuation types.

scr lyt. 3. Screen Layout. number range. Number allocation 4.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 93 The allocated asset number is also determined by the asset class. Loss on sale of asset . Account number assignment. Asset class also controls the account determination for the postings of G/L accounts. Acquisition/Production of Asset (Buildings) b.Code FS00) Create G/L accounts in FI a. 2. 2. Expected useful life Valuation basis Config Enter new entries Specify : Acc det. Profit on sale of asset (Profit on Sale of Buildings) d. Sale of asset (Sales of Buildings) c. (Value of assets belonging to the same asset class is then transferred to the same main G/L accounts The function of asset class includes: 1. etc Inventory data (tick include asset) Create G/L accounts in FI (T. Definition of default values Example of the type of information assigned within ach of the asset classes are: Suggestions concerning the depreciation process 1. base unit.

Accumulated Depreciation Account (Accumulated Depreciation on Buildings) H.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 94 (Loss on Sale of Buildings) e. Special Depreciation Using FS00 Enter GL Account Number Company code Select account group (Assets) Select balance sheet accounts radio button Enter short text Long text and Click on control data Select only balances in local currency check box Select line item display check box Sort key (018) And click on create / bank / interest button Filed status group G007 Save Using the above method please create the following general ledger master records Sale of Buildings…Other assets (Account Group Income) Only balances in local currency Sort key 018 Field Status Group G052 (Accounts for Fixed Asset Retirement) Accumulated Depreciation on Buildings…Other assets (Account Group Assets) Reconciliation Account . Depreciation (Expenses) g. Retirement / Scrapping f.

and production costs field > Enter GL Buildings Account In the Retirement Account Assignment Clearing Account revenue from asset sale field >Enter GL Account (Sale of Buildings A/C) In the gain from asset sale field >Enter Gain on Sales of Buildings Account In the Loss from Asset Sale field >Enter Loss on sale of buildings account In the loss made on asset retirement w/o reven. Field >enter scrapping on buildings account Highlight and double click .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi (Select) Sort Key 018 Field Status Group G007 95 Profit on Sale of Buildings… Other assets (Account Group Income) Sort key 018 Field Status Group G001 Loss on Sale of Buildings… Other assets (Account Group Income) Sort key 018 Field Status Group G001 Depreciation on Buildings… Other assets (Account Group Expenses) Sort key 018 Field Status Group G001 Scrapping on Buildings… Other assets (Account Group Expenses) Sort Key 018 Field Status G018 Integration with General Ledger GL Accounts Menu Path >SPRO >Financial Accounting >Asset Accounting >Integration with the General Ledger> Assign GL Accounts > Click on the process button Highlight and double click acquisition In the acquisition Acquis.

Company interests can be taken into account within the scope of the depreciation area cost accounting. the calculation of replacement values and the calculation from imputed interest can be carried out here. For example. Code – OAYZ) Select your Asset Class and The calculation stipulations for each of the valuation aims are grouped into one Depreciation area. Double click on depreciation areas Activate deactivate button of 01 Book Depreciation Give layout rule is 2000 (select from the list) The Depreciation areas trade balance sheet and the balance sheet for tax purposes are responsible for valuing fixed assets within the scope of trade and tax laws. Select buildings Or other assets Double click on Logical Field Groups Select 2 (Posting Information) and Double click on Field Group Rules Define Screen Layout Rule for Asset Master Data .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Depreciation 96 In the ordinary depreciation account assignment Enter accumulated depreciation on buildings account in the first field Enter depreciation on buildings in the second field and save Deactivation of Tax Depreciation and Consolidated Depreciation in Asset Classes (T. company specifications concerning the depreciation periods.

. Define Base Method Base Method Type of depreciation (ordinary or special depreciation) we have to specify treatment of end of depreciation.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 97 Make 10 Capitalization date as required field Select check box for Main number and sub number Save Create Screen Layout (T. Select 01 Book Depreciation and Click on details button Select Monthly Posting Radio Button and save Specify Intervals and Posting Rules (T. Code – OAYR) Specify Rounding Off Net Book Value (T. Code – FBN1 /OBA7) Make Depreciation Key as required entry Select Main Number and Sub Number check boxes and save Click on Define Document Types Click on position button Select AF(Doc Type) and double click on it (Number range 04) Enter company code. highlight company code and click on posting rules. Code – AO21) for Asset Depreciation Areas Select 2000 from the list and Double click on Field Groups Rules Specify Document Type for Posting of Depreciation (T. Code – OAYO) Select your company code and double click on Rounding Specifications Select 01 book depreciation Click on automatic calculated depreciation Click on rounding whole number.

g. remember to activate. For multi level base method choose EXPLICIT [0012] method.Code AFAMD) E.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 98 Base methods are valid in all charts of depreciation. Normally the base methods supplied by SAP are sufficient and it not recommended for creating new methods to use.5% max declining method MAX %=12. Click on process button Select 0014 and Click on copy as button Change the name as RB01 (Base method for RECO) and save Click on New Entries Enter Declining Balance Method Name Description of the Method is Minimum / Maximum Percentage Method and save Define Decline Balancing Method (T. It is particularly important to enter a depreciation type and the depreciation calculation method. 10%min 12. Activities Enter a technical name and a description for the base method. so that the system does not calculate depreciation. In AW01N to see the depreciation of second year “comparisons”. Maintain the base method.5% Min%=10% Define Maximum Amount Methods . After changing key. and therefore no errors. You assign base methods to depreciation keys.

Code – level Method AFAMS) assign 99 step. Depreciation -> Depreciation Methods -> Declining MultiPhase Depreciation Depreciation -> Calculation Methods -> Multi-Level Method Enter Chart of Depreciation Press enter key Enter name to Multilevel Method Description as 10% for RECO Validity Start >from ordinary depreciation start date Save and go back Select your method (R01) and double click on levels In the Acquisition Year >Enter 9999 In the years field >Enter 999 In the periods field >Enter 000 In the base value field >01 (Acquisition Value) In the percentage field > 5% and save Define Period Control (T. You then them to depreciation keys.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi In this Define Multi Level (T. Activities 1. Enter the characteristics of the multi-level methods. Maintain the multi-level methods and their descriptions. Each level represents a validity period for a given percentage rate. Click on New Entries Period Control Method Period control method of the depreciation key for calculating depreciation or imputed interest . Code Methods -AFAMP) Period control function determines the start and end of depreciation calculation at the time of acquisition and retirement. 2. transfer and subsequent acquisition. you define multimethods.

Period control : Transfer Period control used with transfer postings. E.g.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 100 Period control: Acquisition Period control used for acquiring transactions (in the year of capitalization). When you enter a changeover method for one of these phases. The depreciation key (Valuation key) controls the depreciation method used. Maintain Depreciation (T. Period control: Retirement Period control used with retirements. You can divide the duration of depreciation into several phases.Code Key) -AFAMA) . the system changes over to the next phase as soon as the event specified in the changeover method has occurred. Straight line. Reducing Balance. You can use a SAP standard depreciation Key (LINR) across all the depreciation areas. This is for straight line depreciation calculation pro-rated per period for acquisition and disposal You maintain depreciation keys by assigning calculation methods to them. In the Period Control Method field > Enter 006 as name of the method In the description >Enter 01/06/06/06/06 In the acquisition field >01 (Prorate at period start date) In the acquisition in following year field >06 (At the start of the year) In the retirement field > 06 (At the start of the year) In the transfer field >06 (At the start of the year) Save . Period control: Acquisition in the following year Period control used with subsequent acquisitions. The system then uses the depreciation calculation that is specified in the calculation method for this phase.

AS06) Before an asset can be deleted.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 101 Enter Depreciation Key(Linr) and description Select Period control according to fiscal years check box Select depreciation to the day check box Manual Depreciation Definition Depreciation area (T. In Asset Master You will enter fields such as :Asset Class description :Account determination(from asset class) : Serial number (The serial number enables the manufacturer to uniquely identify the asset. Display Asset Master (T.AS05) (T. The manufacturers’ serial number maybe required when making inquiries of the manufacturer. Code . Or if the additional purchase will increase the recommended useful life of the asset. A sub-number is .AS02) (T.AS01) Record Time dependent data is all data which can be altered during the useful life of an asset. :Capitalized on (could be first day in the month of invoice receipt or on project go live) :Cost centre :Vendor :Depreciation key :Useful life Change Asset Master Block Asset Master Record Delete Asset Master Record (T. Code . SAP also requires a one-year minimum retention for assets with transaction postings. Code .AS03) Create Sub Asset (T. Code – AS11) Master An asset sub-Master is created when an item associated to the original asset is purchased that increases the value of the asset and allows the asset to do something it could not do before. Code . Code . Example is the cost centre to which the asset concerned is allocated. it must have a zero net book value (NBV). Code .OAYZ) Create Asset Master (T.

Code –AFAB) Asset Acquisition (T. The document type is determined by the type of entry. Code – ABZE) (T. Code AB03) (T. Code –AJRW) (T. in some case it is a creditor invoice with the abbreviation KR Pstky 31 Cr Vendor PstKy 70 Debit Asset Account To reduce Asset cost Asset Acquisition w/Autom. Code –AR01) 102 also created for the sales tax paid for a vehicle purchase This is required for balance sheet.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset Explorer/ Sub Asset with Values Change Asset Fiscal Year Asset Balances Asset History sheet Process Asset Depreciation Asset Documents Document Reverse Display Documents Change Document Asset Postings Acquisition (T. (T. Code – ABZP) (T. Code – AW01N) (T. Offsetting Entry Clearing Offsetting Entry Acquisition from in house production From Affiliated Company Credit memo in Invoice Year (T. credit memo reduces the acquisition and production costs of an . Code AB08 ) (T. Code – F-90) from external vendor Asset must be capitalized and a start date for the depreciation must be determined. Code – F-91) (T. CodeABZON) (T. and is produced on the basis of the defined asset classes. Code AB02) (T. Code – ABGL) A credit memo must be applied to correct the cost of an asset that was capitalized in the system during the current year.

Code – AIBU) DR Real Estate CR AUC Asset Exchange 1 2 Create New asset Create Purchase Requisition (T. Code. Therefore. Code – ABNAN) (This transaction is used to post values to an asset that was acquired in a prior fiscal year. essentially. or to a clearing account. invoice receipt . normally when an invoice is received. AUC Create Asset Shell Distribute AUC Settle AUC (T. Capitalization Post capitalization (T. essentially. the accumulated depreciation for the closed fiscal year must be corrected manually using a Write-Up transaction to complete this activity.ME51) Complete the purchase requisition. This document describes the process for posting the credit memo to a clearing account. the system cannot correct the depreciation posted in the closed fiscal year. It is possible to post the credit memo when posting an external acquisition. represents the Opposite of an invoice for a purchased asset. purchase order. Code –AS01 (T. Code -AS01) (T. represents the opposite of an invoice for a purchased asset. When credit memos are received for a fiscal year that is already closed. either integrated with a vendor.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 103 asset and. Credit memo in Next (T. goods receipt. Code – ABGF) A credit memo reduces the acquisition and production Year costs of an asset and. Asset is capitalized by the first accrual posting. Code – AIAB) (T.

the Good received department enters a delivery note into the system. the old asset will have a net book value of zero Invoice Payment/Verification.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 104 and vendor payment transactions using the normal processes for all purchased assets. Book all postings to the NEW asset number. Code -ME28) (T. Code -ME54) (T.Code-ABUMN) After the transfer. Code -ME22N) (T. A posting is then entered into the good received stock. Code -AS01) (T. do NOT charge anything to the old asset. In the invoice verification module. Code -MIGO) Sometimes PO is allocated to Supplier number When goods are delivered. This initiates an adjustment posting from the goods received stock and at the same time sets up a record in accounts payable. After the transfer. Code -ME52) (T.Code-ABUMN) 4 Asset Exchange (Even) 1 2 (T.delete (trash can) Purchase Order Approval Goods Receipt (T. Code -AS02) Create New asset Transfer the old asset to the new asset (T. Change Requisition close each line item Requisition Approval Create Purchase Order Change Purchase Order . Code -MIRO) 3 Transfer the old asset to the new asset Change status of old asset (T. (T. the old asset will have a net book value of zero . Code -ME21N) (T. the invoice is entered together with the delivery note.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 3 Process Asset Transfer Transfer within Company Code Intercompany Asset Transfer Display Transfer Asset Asset Disposition (Scrapping) 1 (T. and the loss if any being transferred to the P&L 2 Sale to Unknown Customer 1 Change status of old asset (T. using transaction AS02. Code -AS02) The result of this posting would be as follows CR Asset Cost DR Accumulated depreciation CR/DR Loss/Gain in the P&L 2 Sale to Unknown . This would result in the asset being de-activated in the asset register. missing/stolen and/or sold. Code -AS02) 105 Asset retirement by scrapping (T.Code-ABAVN) revenue) by sale to unknown customer Change Status of old asset (T. Upon completion of this transaction. Code -AS02) Asset retirement (with (T. damaged/scrapped.Code-ABAVN) This transaction is used to retire an asset that is no longer useable.Code ABUMN) (T. Code -AS03) Change status of old asset (T. This transaction is also used to reduce the value of an asset. the Status in the asset master record is changed to indicate the retirement.Code ABT1N) (T.

Code-ABAVN) (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Customer 1 2 3 4 Asset retirement (with (T. Code -AS02) asset Create AR Master Record (Customer) Enter Transaction (T. Asset retirement Change status of old asset (T. to debit accumulated depreciation and to debit/credit a gain/loss account for the difference. debit the customer (employee) and credit account xxxxx Revenue from Asset Sale. .Code-ABAVN) (T. The gain or loss is the difference between asset cost and accumulated depreciation Gift to Employee 1 2 Lost. Code – XD01/FD01) (T. Code –FB70) Change the status to “Sold to Employee”. (Sale to Employee) 1 2 3 4 Asset retirement Change status of old asset Create AR Master Record (Employee) Enter Customer Invoice(Employee) (T. Code -AS02) Change the status to “Gift to Employee”. Stolen.Code-ABAVN) revenue) by sale to known customer Change status of old (T. Stolen or Destroyed”. Code -AS02) (T. Code -AS02) Change the status to “Lost. Code –F-92) 106 Change the status to “Sold to Customer”. Damaged 1 2 Asset retirement Change status of old asset (T.Code-ABAVN) (T. This will create a receivable in the customer account together with the relevant postings in the asset register and P&L. This transaction will credit the G/L asset reconciliation account. Code – XD01/FD01) (T.

Code –F-02) credit the asset and debit the proper expense account depending on the nature of the expense. 2 3 Asset retirement Change status of old asset (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 3 Asset being purchased As a result of Insurance Settlement 1 2 3 Enter Invoice (T.) and debit the appropriate cash account where check is deposited.Code-ABAVN) (T. Code –F-02) Credit the account (investment) and debit the original liability account (F02). Neither side of the transaction is budget-relevant . Change the status to “Reversed Asset in Error”. (The asset was booked some time ago. Code -AS02) A charitably loaned (Asset is returned to the owner) 1 General G/L Posting (T. Code -AS01) (T. and you unbook the asset and expense in the current period 1 General G/L Posting (T. Code –FB70) credit the customer (insurance co. Manual Adjustment. Code –FB70) 107 debit the insurance company and credit account xxxxxx Insurance Settlement Create New asset Post Value to Asset Enter Invoice (T.

F-43 (T. Code -AS02) Change the status to “Returned to owner”.Code-ABAVN) Change status of old (T. Code -AS01) (T.ME54.Code-ABAVN) Retire the current asset without revenue. ME28.Code-ABAVN) (T.MIGO. asset 108 Asset sale without customer (T.2 3 Asset sale to a (Non Customer) 1 Asset Trade-In Procedures Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset retirement (T. Code –F-02) Pstky 31 Cr Vendor Pstky 70 Dr Asset If the old asset had a net book value a journal entry must be completed to adjust the value of the new asset. ME52.Code-ABAON) This process will take place when a current asset is being traded-in to purchase a new asset.ME22N. MIRO. 1 2 3 Asset retirement Create New asset Purchase New Asset Via Purchase Order/ Direct Invoice (T. ME21N. Code -ME51. The asset is retired without revenue because we never receive actual money for the asset Dr Accumulated Depreciation . 4 Journal Entry Retirement of Asset (To be used as a Trade-in on A New Asset) 1 Asset retirement (T.

asset history. etc. CodeAW01N ) (T. It also allows you several different viewing options. individual asset or groups of assets. Code-AW01 ) (T. book value and accumulated depreciation value. asset acquisition.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Cr Asset Acquisition Acquisition of New Asset from Trade-in 1 2 109 Create New asset G/L entry (T. e. Dr Asset(New) Cr (Loss Account) Asset Explorer Display Asset Values Asset Balances (T.g. Code -AS01) (T. Code –F-02) Once the new asset master record has been created and the purchasing process completed. the monetary value of the new asset will be the purchase price of the new asset plus the amount received for the old asset. asset retirement. A manual journal entry will need to be made to adjust the value of the new asset. Asset Report Asset Retirements Asset Transactions S_ALR_87012052 S_ALR_8701204 8 . no adjustment is necessary. If the net value of the old asset is zero. Code-AR01 ) This transaction allows you to pull up a list of assets to view acquisition value. This is the general Journal voucher entry for manual adjustment.

type of depreciation run. fiscal year. you can no (T. Code-AJAB) Year-end closing program. Code-F-03) . Code-AFAB) This is normally carried out as part of month end processing. Asset Clearing Asset Clearing Year End Closing Year End Closing (T. You enter the company code. Once the fiscal year is closed. Code-AFBP) 110 account group and per depreciation area) o The planned annual depreciation The depreciation posted up to this period The depreciation to be posted in this period this list also identifies Assets with errors and the reason for the error Accounts that are not defined Procedure Posting Depreciation Run Depreciation Run (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset Acquisitions S_ALR_87012050 directory of un posted S_ALR_87012056 assets Recreation of the Log for a Depreciation Posting Run Asset Accounting Log for Depreciation Run (T. you use the year-end closing program to close the fiscal year for one or more company codes from an accounting perspective.

In Asset Customizing. you can reset to the last closed fiscal year here. by recalculating depreciation). you can start additional posting run. The fiscal year that is closed is always the year following the last closed fiscal year.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 111 longer post or change values within Asset Accounting (for example. Settle all assets under construction that were completed in the fiscal year you want to close. PERFORM THE FOLLOWING BEFORE RUNNING ASSET ACCOUNTING YEAR-END CLOSING PROCEDURE: Determine the company codes that are to be closed. If the depreciation amounts changed since the last regular posting run. check what the last closed fiscal year was (Accounting _ Financial Accounting _ Fixed Assets _ Periodic Processing _ YearEnd Closing _ Undo _ Entire Company Code). If LVAs(Low Value Assets) were collected in a profit and loss account. If you want to make corrections in a fiscal year that is already closed. You can start additional Posting . You cannot close the current. Start the program for recalculating depreciation.the balance from this account must be capitalized to an asset. Check hether all low value assets have been capitalized. in order to include any possible changes in the depreciation terms for assets in the fiscal year to be closed Run the last regular depreciation posting run.

112 Run reports on the current asset values. . then check ‘Asset class’ to maintain at the asset class level 3 4 5 T-code OAYZ T-code OADB T-code OABC (Deselecting ‘Ident’ (for identical) here allows adjustment postings to book 10 only) 6 Specify depreciation area applicability for transactions menu path: Asset Accounting (Lean Implementation) Depreciation Areas Specify Allowed Depreciation Types for Depreciation Areas Make tax book applicable for all activities used by book 01 7 Set Transfer of Depreciation Terms T-code OABD (Deselecting ‘Ident’ (for identical) here allows different depreciation schedules to book 10 vs. Analyze. whether these values meet the requirements Open New Depriciation Area 1 Assign Financial Statement Version to company code and deprecation area Make Depreciation Key default available for change by Screen Layout Assign Tax book to Asset Classes Change name of tax book (optional) Specify rules for value takeover T-code OAYN 2 T-code AO21 Drill into screen layout rule.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Runs for Special Periods.

Repeat depreciation run for the last period of that closed fiscal year. Repeat depreciation run for the last period depreciation run of the current fiscal year.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi book 01) 113 8 Create Tax Adjustment Transaction Types for book 10 Copy 100 to Z transaction type Restrict to Book 10 T-code AO73 T-code OAYA T-code AFBN 9 To Post Asset that has not been posted in a closed Fiscal Year 1 Post-Production: Activate on existing asset base 2 3 4 5 6 Reverse fiscal year closed by following the 'Reverse Year-end Closing' procedure. Open the accounting fiscal year Post the fixed asset acquisitions in the reopen fiscal year. T-code OB52 . Closed fiscal year by following the 'Yearend closing' procedure.

sales and distribution and accounting and controlling views. Raw Material The combination of this Valuation Class+ the Movement Type(which I have defined below) helps in determining the Gl accounts. For eg Goods receipt is defined with movement type 101 Goods issue to production order is defined with movement type 261 Scrapping of goods is defined with movement type 551 Goods delivered to the customer with movement type 601 Initial upload of stock is defined To view valuation class (accounting 1 view ) (T. In the accounting view of Material master amongst other values we have a Valuation Class field. Read this statement twice to understand how gl accounts are automatically updated . Code MM03) Movement type . Examples of Valuation Class could be Finished Goods.Semi Finished goods. This Valuation class is the vital link which ensures that Accounting documents are posted automatically.7 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Closed the accounting T-code OB52 fiscal year 114 FI-MM/SD Integration FI-MM Material Master Material master has various views right from Basic views to Purchasing views. production. All Material movements in MM happen with respect to a Movement Type.

and valuation class. Double click BSX and select Valuation modif. Credit Change in Finished goods For change in Finished goods we update transaction key GBB and general modification key AUF. The accounting entry posted is as follows:Debit Inventory of Raw Material.Code OBYC) .Code OBYC) SAP helps us to have different gl accounts for the various movements for the same material by linking this movement type to a transaction key. Goods Receipt of Raw Material against a purchase order:Movement type for goods receipt against purchase order is 101. Credit GR/IR (Goods Receipt/Invoice Receipt) For the GR/IR account you need to update the WRX transaction key with the GL code GR/IR Movement type used for posting – 101(GR agst prod order) Debit Finished goods In transaction key BSX for the valuation class finished goods we attach the Finished goods GL code.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi with movement type 561 115 MM Transaction Good Receipt of Raw Material against a purchase order (T. Movement type used for posting Goods receipt ( made for finished goods against a production order) Good issue (T. You need to update the BSX transaction key with the GL code Inventory of Raw material account. Raw material is issued to the production order.

Code OBYC) Material Raw Material consumption account is attached to GBB and general modification key VQP is Credit Inventory raw material .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 116 the above transaction is 261 – Goods issue to order Debit Raw material consumption Credit Inventory of Raw Material The transaction Key GBB needs to be updated. Credit Inventory Material Movement type 331 Debit Raw consumption. Within GBB transaction there are various account grouping (general modification). GBB key is used for various offsetting posting entries. Movement type used for posting – 601 Debit Cost of goods sold transaction key GBB is updated with general modification key VAX Credit Inventory of Finished goods Movement type use for posting – 551.Code OBYC) Goods issue (sampling for quality) (T. Debit Raw material scrapped The Raw Material scrapped account is attached to transaction key GBB and general modification key. of Raw Goods Issue (Posted for sales) (T. In this case you need to update general modification VBR with the Raw Material consumption account.Code OBYC) Goods scrapped (T.

so that it becomes blue. 261).Code OMWB) STEP 1 Go to options>simulation>application area Select: simulation for Inventory management movements.g.117 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Movement type used for posting Initial stock (T.3000).Code OBYC) – 561 upload Debit Inventory of Raw Material The transaction key GBB Credit Stock data takeover account The transaction Key BSA To help identify the identifier in GBB Transaction Key (T. Now here it shows the offsetting entry posting and the required account modifier. STEP 6 Double click on GL ORDER for example. STEP 7 Click on Account Assignments. STEP 2 Go to options>simulation>input mode Select :the input of material number or input of valuation STEP 3 Go to options>simulation>account check Select :No check of referenced G/L accounts STEP 4 Click on simulate STEP 5 Select :Valuation class(e. Movement type(e. In this case the general modification required is VBR.g. Thus simulation helps us in finding the general modification required for transaction key GBB FI-SD .

SAP provides the following six ways of determining the Gl accounts in SD.Code-VKOA) 118 transactions happening in the Sales and distribution module will result in FI postings.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi All Billing (T. Pricing Procedures IMG >Sales and Distribution>Basic Functions>Pricin g >Pricing Control Step 1 Define And Click on Maintain pricing Assign Pricing procedure Step2 . You make the allocation for each of these through access sequences. All we need to do is to configure the revenue account or the discounts and Sub charges. 1) Application (key for the Sales and Distribution application) 2) Account determination type 3) Chart of accounts (from the FI System 4) Customer account assignment group 5) Materials account assignment group 6) Account key The account keys are attached to the condition type in the sales pricing procedure. All accounting entries with respect to the billing will have one side of the account as a Customer or receivable and the other side to be a revenue account Eg Debit Customer Credit Revenue Account You have to bear in mind that the customer account gets picked up from the customer master data.

Procedures and double click on control Controlling General Controlling Maintain Controlling (T.119 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Highlight what ever procedure. Code – OKKP) Enter Company Code Enter Name . Code –OX06) Area (Enterprise) Maintain Controlling (T.

When a controlling area is created. it is immediately active. Code – KANK) Every transaction initiated . Select Check Box Profit Center Projects Sales Orders Cost Objects Real Estate Management and save Maintain Number (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Area (Controlling) 120 In the Assignment Field > Select Controlling area same as company code In the currency setting Select 10 (company code currency) Enter fiscal year variant Give a name to cost center standard hierarchy and then System will give a message Click on Yes button and save Enter fiscal year In Activate Components Cost centers >Component Active Select AA Activity Type Check box Order Management >Component Active Commitment Management >Component Active Profit Analysis >Component Active The Reconciliation ledger is used to reconcile the change in values that affect the balance sheet with data in the Financial Accounting module.

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Ranges for Controlling Documents

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in the CO module generates a document. Examples of transactions in CO are planning primary costs, or making an assessment of actual costs Each document created in the system has a number. These numbers can be assigned manually (i.e. externally by the user) or internally by the R/3 system. Transactions, and therefore document numbers, are organized in the R/3 system in Number range groups. A range of document numbers is assigned to each group, so that documents relating to a particular type of transaction are easily recognized by their numbers.

Enter Company Code and Click on Groups Select COIN and From the Main menu >Go To >Insert enter the name of txt as well as number range e,g 1-49999 press enter, then it shows you your number range, however , sometimes coin does not get assigned, there fore, you would have to assign it by checking the box which is assigned to your number range and the double click on COIN, which then turns blue, and then you right click then select maintain

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi
button . you then get a msg COIN CO through to FI.

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Postings

Maintain Operating (T. Code – KEP8) Concern Maintain CO Versions (T. Code – OKEQ)

Select 0 Version and double click on Controlling area settings Enter controlling area Click on Settings for fiscal years Please make sure that all check boxes of all the years have to be selected and do not select any check box for version locked. Save

Create GL Account for (T. Code – FS00) “Raw Material – Controlling Account”

Cost Element Accounting Cost Element Accounting Activate Reconciliation Ledger (T. Code – KALA)
The reconciliation ledger is a tool used to portray transaction figures in

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controlling in summarized from. In the reconciliation ledger, controlling data is totaled and valuated. It shows you the data in all controlling applications for a cost element as well as totals for company codes, business areas, object type, and object classes and so on. The reconciliation ledger has the following task It reconciles controlling with financial accounting It provides an overview of all cost incurred The reconciliation ledger contains information about data flows : Which business transaction causes the data flow Between which object type, object classes Between which company codes, business areas and functional areas The SAP R/3 system summarizes information about which costs were incurred on which object (cost center, orders and so on). It also summarizes data for object of the same object type, company code, business area, object class and functional area. Postings in the reconciliation ledger are differentiated according to the following criteria and creating a total. Account (cost element) Company code Business area Functional area Origin (subdivision of the cost element) Object type (cost center, internal order, project and

Traveling expenses. Code – OK13) (T. . consumption account in fact any Profit and Loss GL account The integrated nature of the R/3 System means that you need to create expense accounts in Financial Accounting with corresponding primary costs elements in Controlling. Code – KA01) Before creating Primary cost make sure that they are created in the GL accounts Sort code: Posting date Field status: G004 cost They are those which are created from FI general Ledger Accounts and impact the financial accounts eg. Code – OBYB) (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi so on) Object class 124 Activate the reconciliation Ledger in your controlling area at the start of a new posting period. If necessary. Code – OKKP) (T. repost for previous periods in your controlling area to do so choose reconciliation ledger > Repost Assign reconciliation document type to CO Maintain the CO –FI automatic account assignment configuration Reconciliation Posting Assign Reconciliation Ledger Number range Create (Primary Cost Element) (T.

The R/3 system uses the name from the master data for G/L accounts in FI for the cost element. All primary elements can directly. Examples of primary cost elements are material costs and salary costs Primary cost elements are for actual costs You only create primary cost elements if the chart of accounts contains the corresponding G/L account. you first need to create them as G/L accounts in FI. you can change this name in CO. Before you can create primary cost elements in CO. you require a costcarrying object (such as a cost center) to identify the origin of the costs.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 125 This ensures that you can reconcile expenses in FI with primary costs in CO. cost post To be able to post to a primary cost element. However. Configuration In the cost element field press F4 and .

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 126 select the account you want to make as cost element Enter valid from/ to and Press enter key The period of validity should begin on the first day of the current fiscal year. Code – KA06) They are those which are created only in controlling and do not affect the financials of the company. These are used to record internal value flows like activity allocations. Secondary cost elements are created for all specified cost . It is used for internal reporting only. The Carrier of such transaction would be the Secondary cost element Secondary cost elements are posted indirectly. Secondary Cost elements are created in and for CO for the purpose of Allocation of Costs within CO. for example IF you want to debit one cost object and Credit another cost object. assessments and settlements. Only then are backdated postings possible. The postings to these accounts do not affect the Profit or Loss of the company. Create (Secondary Cost Element) (T.

For example. 31 Order/Results Analysis: When you create a cost element.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 127 elements. pa segments etc. it is always helpful to segregate the secondary cost elements from primary by using distinct account number ranges for each Cost Elements Default Settings Create a Batch Input Session (T. This assignment determines the transactions for which you can use the cost element. and the name is taken from the cost element category. Code – OKB2) (T. category 01 (general primary cost elements) is used for the standard primary postings from Financial Accounting or Materials Management. . you must assign a cost element category. The following categories exist for secondary cost elements: 21 Internal Settlement: Cost elements of this category is used to settle order costs to objects in controlling such as cost centers. Code – OKB3) Enter controlling area Valid from Valid to Session name Batch input user Click on execute button.

You can run the batch job online or in the background .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 128 Then you can see the list of the GL Accounts will become cost elements but make sure that you have to each and every account and change the field status group from G001 to G004 then only you will be able to use them as cost elements Note! Check for cost elements that have been accidentally included. but for performance reasons. Execute Session Batch Input (T. . Select the process and Click on process executable button. it is recommended that the program be run in either background or display error only mode. Once you click process button on A small window appears then Select display errors only and click on process button. Code – SM35) Whatever the name you have given in the create batch input session will appear in this process. it will exist until validity period expires. Once master dater has been created in the system.

Code KAH3 ) Cost Centre Accounting Cost Centre Accounting Maintain cost centre categories (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 129 Create Groups Cost Element (T. . The one that is used is determined by the controlling area in which you are working. When running a batch online. The group can be used in all controlling areas that work with the same chart of accounts. A cost element group is always created with reference to a chart of accounts. They can be based around areas of responsibility. Code – KAH1) Correct any fallout or errors after processing. Displaying the cost elements in cost center groups (T. Code – OKA2) Cost centers can be organized around many different criteria. you can correct any errors as they appear.

a new cost centre would absorb the settings that are configured here. Enter Cost Center Name. any future changes to a category will not have a retroactive impact on previously created cost centres.based field for cost centre Create Cost Centers (T. To affect. Something to remember is that. Code – KS01) Cost center is an organizational unit & area of responsibility.Validity date Press enter key Please make sure that you select from the list AND do not select Numeric values only Characteristics values can be selected.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 130 or according to physical or accountingcharacteristics. Each new cost center must be assigned to an end node of the standard hierarchy. you must make desired changes manually Define time. There is only one standard hierarchy for each controlling area. Enter cost center name and description Person responsible (optional) Department Cost center category (SELECT FROM THE . Code – OKEG) (T. It is a cost object where cost is collected. an existing cost centre.

SAP will stop the assignment with an error. Code – KSH1) (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 131 LIST) Hierarchy area (will be displayed automatically) Business area Currency and . if you attempt to enter master at summary level. Name > Cafeteria Description >Canteen Expenses Element Category >43 (select from the list) and save Similarly you can create Telephone Expenses / Bank Charges / Medical expenses The performance of a cost How to see cost center wise data (T. Code – KA06) Create Activity Types (T. Remember. Code – S_ALR_87013611) Enter name to Cost Center Group and Press enter key Enter Controlling Area Fiscal year From period to period Plan Version (automatically appears) but make sure that it will be 0 version Enter cost center group or value (any cost center you want to take the report for) Cost element group or Value Enter cost center or cost center group Enter cost element or cost element group Posting date from /to Display variant >1SAP (select from the list) Enter Cost element name Cost Center > 555 or any Valid from /to Click on Master Data on the tool bar Enter for example. Code – OBC4) (T. Code – KL01) . Code – KSB1) Create Secondary Cost Element (T. cost centre should be assigned to the lowest node on the standard hierarchy. Create Cost Center Groups Field Status Variant Run Cost Center Reports (T.

For an activity type. CPU minutes or units produced. are used.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 132 center must be measured in order to make an internal performance allocation. administrator hours. which involves in operations expenditure for example telephone expenses. Activity Type is nothing but an activity. machinery repairs. quantities or number of units. or no activity types to a cost center. You can assign one activity type. a price can be calculated for each activity type. Choose allocation cost field(secondary cost) . Measurement units. procurement expenses etc. multiple activity types. such as direct labor hours. Working with the complete costs of a cost center from an actual or planned activity. Enter Activity type name and description Valid from/to and click on Master data Enter Name and description > Labor charges Enter Cost center category Choose Activity types. Typical examples of activity types for cost centers are machine hours. you must first specify whether or not an allocation is possible.

For example. They can also serve as base values for assessment or cost distributions. Finally. are clearable activities. however. and a debit will be posted for the receiving cost center. The activity category that is given here must correspond to the specification made above regarding allocation. It will be used to develop the internal cost allocation for the activity. the secondary cost element is entered in the Cost element field. The value 1 stands for normal activities.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 133 The entry made in the Activity type category field will also indicate the allocation status of the activity type. Non-clearable activities are required if a cost center does not submit any service or activity to another center. The Activity price indicator determines which procedure Will be used to determine the price scale with which this activity type will be cleared. Statistical key figures are used in the R/3 system for analyses and evaluations. but would like to determine its labor utilization rate internally. it is possible that the costs for a Create Statistical Key Figures (T. which can be cleared between cost centers. That means that a credit will be posted for the submitting cost center. Direct labor minutes. Code – KK01) .

and in all subsequent posting periods of the fiscal year. E. number of work centers or number of telephone units These Total values are not carried over to the . The new value is then used from the point in time when it was changed.in this case the number of phones in a particular cost center. or basic telephone charges. Key figures defined as fixed values are valid as of the posting period. number of employees. number of telephone calls Examples of fixed values include surface area (in square meters) and space (in cubic meters). Fixed values remain constant over a long period of time They can. The standard for the distribution would be a statistical key figure . also be changed. work centers or telephone units.g. space. and onwards for all following periods. of course. Examples of summarized values include number of employees. Examples of statistical key figures are surface area. might be divided up between individual cost centers.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 134 telephone system. Key figures defined as Totals values are valid only in the posting period in which they are entered.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi
following periods.

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Summarized values can vary from period to period. Enter Name. In the Stat. Key. Fig. UN field >Select % or any other measurement unit. Select total or fixed values radio button and Save Note: The statistical key figures are not automatically updated from Controlling to Profit Center Accounting. You have to carry this out manually in Profit Center Accounting by calling up the appropriate report.

Assign Transactions to Statistical Key Figures General Postings

(T. Code – KANK) (T.Code F-02)
For example Debit (40) > Canteen Expenses (select from the list) Amount > 5000 Text > payment of canteen expenses Credit (50) > Bank or Cash Amount > 5000

Create General Ledger (T. Code – FS00) Accounts Distribute expenses to (T. Code – KB31N) other Cost Centers

Enter Document Date and posting date Document text Screen variant (01SAP Cost center) will be appeared automatically In the receiving cost center field (enter the cost center to which the expenses have to allocated using the percentage rates). In the statistical Key figure field >enter the SKF through which we can

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi
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In the total quantity field > Enter the percentage rate In the text field > Enter the text and save Please make sure that you will be assigned the number range to Process RKS before you come to enter statistical key figures

To see the balance in service cost center Display the cost center hierarchy Display the cost center hierarchy along with the master data Displaying the cost elements in cost center groups) Maintain Automatic Assignment

(T. Code OKB9)

Automatic account assignment is used only for actual postings if, for example, cost element 459000 is to be posted in company code US01, an order from the controlling area will be proposed for the account assignment (e.g., order number 10000082) You can now find out about the BArin column by clicking on it, otherwise click on "Continue". The cost accounting object can be entered in the columns for a cost center, an internal order or a profit centre. Actual postings include, amongst other things, repostings of costs and revenues, internal activity allocations, and statistical key figures.

Setting Up screen Variant

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Unlike with periodic allocations, each transaction in this process is entered manually. A large amount of information must be entered. For activity allocation, for example, you must enter the sending cost center, the activity type, the amount and unit of activity, the receiving cost center, a receiver order or other cost accounting object. To facilitate this, the R/3 System provides screen templates which only contain those fields that are needed to enter your current transaction. If these screens do not meet your needs, you can design others in Customizing. Procedures like these, which are repeated, can be automated. Some preparations are required to make this possible. The following questions must be answered: Which cost managing objects allocate your costs and Which cost accounting objects are the receivers? Which expenses or activities are to be allocated? Which criteria or keys/codes should be used for the allocation? You must also indicate if

Period Allocations

at the end of an accounting period There are periodic allocations which must be carried out. 1)Periodic Reposting (T. Due to the method in which they post. the cost element that is to be posted must be entered without fail. But the reference to the original document remains intact. These are: Reposting which are credited to clearing cost centers.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 138 the sending and the receiving cost center must be iteratively processed. both periodic reposting and distributions will allocate primary cost only Config In the screen for creating header data for periodic reposting there is an additional option: as well as the object currency and the transaction currency. The assessment cost element is not included in the segment data because the cost element remains intact during a primary cost reposting. Code – KSW5) In Cost Accounting. you can also include the consumption data. To make this work. . Periodic Reposting allows for any CO object to be sender or receiver.

Repost Line Using FI (T. Press Enter.and the transaction currency could . Code – KB61) Document Assign Process RKU1 (T. Determine Assessment Receiver types Define Assessment (T. if an incorrect cost element was posted. Code – KB11N) Costs Reposting are only performed in Controlling and have no effect on Financial Accounting. Code – KB13N) Manual Re postings of (T. orders can still be used as senders. Code – KCAU) (T. you would need to indicate when the period of validity ends and provide descriptive text about the cycle. Code – KB14N) Costs: Reverse Planning Department (T. The cost element category should be 42. Code – KA06) Create Assessment Cost Element Similar to Create Secondary Cost Element Because assessment allows you to settle both primary and secondary cost. If this were a new cycle. Manual Re postings of Costs :Display (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 139 For reposting. you must give the new cycle an identification code. The assessment element is a secondary cost element used to post both the sender and receiver during processing. It can be up to six characters in length. a new type of cost element called an assessment element must be created. However. Code – KSU1) In the Cycle field. The object. the reposting must be done in Financial Accounting. Code – KANK) to Controlling Area Manual Re postings of (T. Code – KP06) Wise Periodic Allocation 2 (T.

statistical key figures and activities. distribution. statistical key figures or activity types. It is generally sufficient to define one cycle for reposting. The sender and receiver relationships and the corresponding distribution rules are stored in R/3 as Cycles.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 140 be included in the procedure and also if a separate document should be created for each of them. Be aware that this would greatly increase the volume of data. hence you click on the ATTACH SEGMENT Every segment in a cycle should be given a meaningful name and some descriptive text. Receiver Factors Tracing For the tracing factor in this case. Code S_ALR_87005742) . you may consider actual or planned costs and consumption. The tracing factor can be restricted to individual cost elements. assessment. and indirect activity allocation for the entire controlling area. Create Cycle Assessment (T. A segment can be attached to a cycle. You must specify a assessment cost element Sender and Recvr The sender and the receiver of the assessment can be more closely defined in the Allocation characteristics field group.

Code – KSV1) Enter Distribution ID as well as starting Date . you must give the new cycle an identification code.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 141 Breaking down into several cycles that are processed in sequence can be very practical. we will learn how to create and maintain cycles. In the Cycle field. the reference to the original document is removed. However. A cycle is divided into segments. It can be up to six characters in length. When this is done. if. this can also be done in the application. Cycles are generally created and maintained in Customizing. you would like to clear departments within the company independently. A segment contains the senders and receivers who are subject to the same allocation rules. for example. (T. Procedure of creating Assessment Cycle. Code – KSU5) Distributing primary costs. Using an assessment cycle. Assessment Cycle Run Assign Process Called RK1U (Actual Overhead Assessment) Periodic Allocation 3 Distribution Specify receiver type for distribution Define Distribution (T.

Only the output quantity from a single activity type can be included in the activity allocation. As with reposting. Segment data does not include an assessment cost element because the cost element remains intact through the distribution. you can see that only sender rules on . As with assessment. be aware of the following distinctive features. With regards to the segment.Code KCAL) (T.Code KSC1) In the screen for creating header data for indirect activity allocation. the allocation of quantities and the retroactive identification of an activity quantity.e. there is no option for iterative processing. Define sender and receiver categories for Indirect activities Define activity types for indirect activity allocation Create actual Indirect Activity Allocation (T.. Periodic Allocation 4 Indirect Activity Allocation Indirect activity allocation. only cost centers may be used as senders. With the indirect activity allocation.Code KL01) (T. but unlike with assessments. In the header data there is the consumption data as well as the object currency and the transaction currency. i.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Press Enter 142 Enter Text Description of Distribution.

Furthermore. The affected cost centers are debited in cost accounting. imputed costs are irregular costs (e.or a combination of the two is also possible. you must always enter at least one cost center and at least one activity type. At the same time an imputed cost object is credited.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 143 quantity are available for indirect activity allocation. The imputed cost object can be a cost center or an internal work order. the expense is spread out over the periods that it affects. All imputed costs for a controlling area are Period allocation costing Percentage method . The sender is always a cost center in connection with an activity type. A costing sheet must be setup to carry out the imputed cost calculation automatically.g. Therefore. and several cost centers can clear one activity type . In cost accounting. vacation bonuses) which are spread out over all posting periods throughout the fiscal year. In SAP’s Controlling. It contains the rules for the calculation. The complete expense is posted in Financial accounting. over all 12 periods in the year. one cost center can clear several activity types.. e.g..

or later using an import feature. In the actual cost system. Click on the Standard reports node to open the next hierarchical level. In the additional conditions. the standard reports must be imported. Periodic Report Cost centre>info sys> standard report. The cost elements whose posted values form the basis for the imputed cost calculation are stored in the so-called base conditions. cost center reports or cost element reports are often used to compare actual values with planned or target value The reports are always assigned to a client. For example. This can be done when the client is created. the imputed costs are determined on the basis of amounts that have actually been posted. If the original delivery client was customized to meet company-specific needs. There is only one valid sheet for each controlling area at any given time. You can use the Import standard reports feature to import selected standard . There are a number of standard reports for Cost Center Accounting that comes with the system.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 144 grouped into a costing sheet. the standard reports are already available but not activated But if a new client is set up. you should define the percentage that should be added to the base condition values.

Assuming you want to generate report group Area: Cost Centers. you deselect everything. the data from the SAP database is prepared for analysis through the report. When it is going to take some time to generate. The report will always be displayed in this language. When generating reports.Code GCRS) 145 reports from client 000 The Report language feature can be used to specify the language in which the Report Writer should generate the report. all the report groups are selected again. then you select the required report group Then you click on generate button. If you are only generating one report. If you select online processing. you can select online processing.Code OKB6) . It also shows the progress of the generating process General report (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Specify report language (T. it is a good idea to select background processing. this gives a list of all reports/report groups in the client. In the status bar you see a message that the report group is being generated. First you come to a dialog box that offers both Processing modes.

There are two types of PA . Often. customers. analyses of sales statistics on products. A company might want to compare the operating profits from products that were procured against the operating profits from products that are manufactured in-house. and target revenues are not enough to evaluate a company's success adequately.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 146 Profitability Analysis Profitability Analysis Profitability Analysis is used to present a company's operating profit and show the sources of this profit.

or when the invoice is posted. different valuation bases can be used The costs of the sales volume and revenue deductions are transferred using the account-based estimated value. on the other hand. This means that it is not possible to transfer data when the order is received. In costing-based profitability analyses. data can be transferred at two different points: when the order is received. The revenue and revenue deductions are transferred to Profitability Analysis when the revenue is posted. Account based Account-based profitability analyses. the . are always reconciled with Financial Accounting. but are available at a much later stage than costing-based profitability analyses In account-based Profitability Analysis. Data Flow in PA When data is transferred from the Sales and Distribution system. Valuation is performed using costing-based estimated values.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Cost based 147 Costing-based profitability analysis is used as a fast evaluation tool for Sales Controlling. The product costs are transferred when the goods issue is posted.

and those contained in the order In account-based Profitability Analysis. Characteristics such as sales order and company code. You can define your characteristics If the characteristic's ID begins with the letters WW. A line item is generated in Profitability Analysis for each item in the order or billing document. you choose the option. (Max of four to five digits) it means that it was defined by the user (in other words.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 148 appropriate operating concern is identified from the company code and the controlling area. a line item is passed on in the same way for each item. Code – KEA5) If you want to look at the characteristics for a specific operating concern. do not appear in the list So you would have to create . it was not predefined in the system) Sometimes. Or Select All Characteristics If otherwise. This line item is passed on to Profitability Analysis along with all the characteristics that have been defined in Profitability Analysis. and cost or revenue element Maintain Characteristic (T. which the system always takes into account. Chars from Operating Concern.

Characteristics such as sales order and company code. you have to define operating concerns. Or Select All Characteristics If otherwise. The structure of an operating concern is determined by analysis criteria (characteristics) and the values to be evaluated (value fields). it was not predefined in the system) Sometimes. Attributes are Fiscal year variant: this should match that of the controlling area. Code – KEA0) Maintain value fields 149 If you want to look at the Fields for a specific operating concern.) Define attributes (Attributes. which the system always takes into account. you choose the option. You can define your Fields If the Fields ID begins with the letters VV(Max of four to five digits) it means that it was defined by the user (in other words. controls the time frame buckets in which CO-PA is updated). An operating concern is an organizational unit in Financials. Code – KEA0) 1. Fields from Operating Concern. it cannot be changed unless it is change to a FYV that has more posting .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi (T. do not appear in the list So you would have to create In order to use Profitability Analysis (CO-PA). once set. Maintain Operating Concern (T.

When you click the save button again you click on create data structures button (left side bottom ) You can select When the below screen appears. 2). it is next to impossible to delete the characteristics. Value fields are what exactly stores the values (relating to both currency .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 150 period than the original Fiscal Year Variant assigned. Currencies: COPA stores values in only one currency By maintaining the attributes. Click on Activate Icon (left side top) Data structure controls which characteristics or value fields will be used in the operating concern Note! Once a characteristic is included in Operating Concern. and is posted to. you make an operating concern "known. Then enter the name for operating concern and description Select costing based check box And click on create button (data structures) Save. Create Data Structure STEPS 1. Click on process button and press enter key Then the following message will appears click YES button 2.

Revenue . Code – KEBD) >Enterprise Structure >Assignment >Controlling >Assign controlling area to Operating Concern > (T. A value field should group similar types of currency transactions (eg. Code – KEN1) Condition Types to Quantity Fields .Gross Weight FKLMGBilling Quantity in SKU(Stock keeping unit FKIMG-Invoiced Quantity.g.field allows you to change the natural sign of the incoming value into COPA. e. there are no fixed value fields .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 151 and quantity.RB00. COGS) into one bucket. Code – KE4I) SD uses condition to represent different activities when creating a billing document. you must choose each value field you would like to use Set Operating Concern Assign Controlling Area to Operating Concern (T. unlike characteristics . You would need to work closely with the SD team to determine what condition types they are using. KF00 -Outgoing Price. The +/. The quantity field you use depends on your business Mapping of SD Condition Types to Value Fields Mapping of SD (T.Sales Discount or PTBLInvoice Amount. Example of Quantity Value fields are BRGEW. Sales discount. The conditions are given values based upon the configuration of each condition type.

Direct Postings from FI / (T. Enter controlling area and fiscal year Press enter key In the active status field press F4 Select status 2 (component status active for costing based analysis) and save Select FI and double click on Assignment Lines Select 10 >Direct Costs from FI and Select 60 >PRD Material Ledger Single Level And double click on SOURCE button Assign cost elements by using Cost Accounts or Cost Element Groups and in the source area select the check box “Costs / Revenues” Save And double click on “Value Fields” Click on new entries In the “quantity / value” field (select quantity field from the list) and in the “value field” field (select ABSMG (for sales quantity) and save. The quantity fields are also used in calculation to determine profitability by sales quantity. Code – KE12) MM Define Number Ranges (T. Code – KEKE) requirements. Code – KEN1) for Actual Postings Enter Operating concern Click on change intervals button Go back Click on Maintain Groups Then the following screen appears Select Order Re Projects and Change interval Insert interval Save Execute a Report on .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 152 Activate Analysis Profitability (T.

In profit planning. you specify an ID and a description for the planning layout. the indicator "Ext" is not checked off. Define Planning Layout . The number statuses are imported with their values at the time of export. After the import. Code – KE3M) (T-.Code . choose Interval -> Transport. you define a number range for updating plan line items in each of your operating concerns. the system automatically assigns a number. Notes on transporting You transport number range objects as follows In the initial screen. Actions Define a number range. which lies within your selected interval. Prerequisites You must have system authorization for maintaining number ranges. Note that all intervals for the selected number range object are deleted in the target system first. Dependent tables are not transported or converted In the first step.KEN2) 153 In this step. Click on create button. only the intervals you export are present. Since the system does this automatically.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Profitability Analysis Report Overview Define Number Ranges for planning Data (T. You need to have defined the operating concern completely.

You specify the product characteristics. Code – KES1) (T. Here.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 154 It Takes you to a new Planning Layout. Maintain Versions (0) Assign Quantity Fields (T. you specify the first characteristic that is to be included in the planning layout.Code – KE4M) Profit Centre Accounting .

Maintaining Standard Hierarchy T. be referred to as a complete group of profit centers. customers.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 155 Profit Centre Accounting The Profitability Analysis is used in the SAP R/3 system for the internal analysis of units which. This analysis is geared towards the market. product groups. Code – OKE5) . can be defined by the user. products. Maintain Controlling (T. or in other words. The standard hierarchy can.Code KCH2 A so-called standard hierarchy is defined in the SAP R/3 system to which all profit centers have to be assigned. for the most part. customer groups and markets. therefore.

Code – OKB9) (T. Code – 3KEI) Click on the create icon. Code – KF59) 156 .g. Enter a header E. Code – KA01) (T. Code – GB02) (T. Code – KCH1) A profit center group is a hierarchical structure of . ( Business Area Derivation Rule) Enter from account number to account number > Business area and profit center name and save. Code – 3KEH) Click on new entries Enter in the account from field give the starting account and in the account field last account number available in the list of accounts you have in the company code and save Derivation Rule for finding the profit center (T. Creation of Center Group Profit (T.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Area for Profit Center Create a Dummy Profit Center (T. Code – KS02) (FS00) (T. This is the default profit centre for the entire controlling. There can be only one dummy profit centre per controlling area Create Profit Center Assignment of Profit Center to Cost Center Create General Ledger Master Record Create a Revenue Element Maintain Automatic Account Assignment of Revenue Element Maintain Documents Types for Profit Center Accounting Define Number Ranges to Local Documents Choose Additional Balance Sheet Accounts (T. Code – GCBX) (T. Code – KE51) (T.

The standard naming convention below is to be used when creating new groups and hierarchies. It has to contain all profit centers belonging to the controlling area and reflect the organizational structure of Profit Center Accounting. Z for maintenance by SASC Position 2&3: Company ID 24 Position 4&5: SH for standard hierarchy Position 6: .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 157 profit centers. Before a profit center hierarchy can be built it is necessary to create profit center groups. Profit center groups are used for reporting. Profit center groups are the main elements in the hierarchy and without them it is not possible to assign profit centers to a hierarchy Naming convention A profit center group can have a maximum of 10 characters. where it does not make sense to enter or display data at the lowest level (with a high level of detail). The standard hierarchy is a special type of profit center group. Position 1: L for local structure. allocations or in various planning functions. You can use profit center groups to group profit centers together according to company-specific criteria.

as you won’t be given the opportunity later. Prior to accessing this window. Line item > select this . select the node from which you want to extend the group. and choose Insert at same level or Insert at lower level. Beneath a node there may be sub nodes) You can create your groups successively in the group structure display. Code – 1KEF) This defines how postings will update in PCA environment. Select new entries Enter fiscal year >This is the period for which the company is to create its balance sheet and inventory. (A node is a branching point in a hierarchy structure.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 158 C of cost center hierarchy or P for profit center Position 7&8: ZZ for highest level or business unit ID Position9&10: Running number The Highest node in the profit center standard hierarchy is Z24SHP0000. Set control parameters for actual data (T. it is important that the proper controlling area is set. To do so. (0000 = highest level) Create Profit center group: Structure Enter( For example ZZ2HT) Type a description against the profit center group and click on to create a node on a lower level. The setting here are maintained by fiscal year.

It helps in providing more information than that is provided on the cost centers. Code – 0KE5) for Actual Data Plan Versions (T.you should expect interaction to come only cost centre accounting or internal order accounting. This helps control whether plan data from applications is updated automatically in PCA or if you have to manually transfer the postings. Code –OKEQ) Here make the setting required for updating the actual and plan data. Code – KE5Z) Internal orders Internal orders Thus internal order is used to monitor costs for short term events. Procedures Highlight 0 plan version Click on setting for profit center accounting. Set control parameters (T. . Select new entries Enter fiscal year Select on line transfer check box Select line items check box Exchange rate type M and save Profit center actual line item (T. For automatic updates into PCA. activities. All others are manually transferred. Enter settings for fiscal year and currency.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 159 option if you want to write line item documents for each item you transfer actual data.

An order type includes the following administrative information for orders: Is the classification active? Is Commitments Management active? Are revenue postings allowed (an order with revenues can only be settled to a GL-account or a business segment)? Is the plan integration with Cost Center Accounting active? How is the status management being used? Which order layout should the master data display determine? What are the residence times for order archiving? Overview order types: $$ . Order Master Data: Define Order types (T. There are various types of internal order the common ones being a Real order where you collect costs and settle it at the month end 1. Code (T. If used intelligently it is a real handy tool. Internal order is basically a cost object which is used to monitor cost of a time restricted job.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 160 It can be widely used for various purposes. Activate Order Management in Controlling Area 2. Code KOT2_OPA) The order type subdivides orders according to their purpose.

P006 FXA Project Control Order: .Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 161 Internal Order Model Order A001 Accrual calculation order F001 Factory Orders F002 Intra Company orders I001 Internal Order Marketing I002 Internal Order Sales I003 Internal Order Service I004 Internal Order General Admin I005 Internal Order R&D I006 Default order assignment (settlement CCA) L001 Belgian capital expenditure P001 Project support order P002 Asset Rental P003 FXA Project Control Order: COS P004 FXA Project Control Order: R&D P005 FXA Project Control Order: Marketing/S.

Real orders for trade fairs. In Internal numbering system automatically assigns a number from the given number range. Statistical orders for motor vehicle expenses. In external numbering the user has to manually assign the number from the given number range. Number range can be internal or external. from CO) An Internal order is created under an Order type. Maintain Number Ranges for Orders (T. A number range is assigned to the internal order type.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 162 Admin R001 Remaining COS order STAT Statistical Internal Order X001 Default order assignment (excl. Code KONK) Number Ranges Number Range needs to be assigned to the internal order type. The order type is clientspecific. which means that every order type can be used in all controlling areas. It is used for classifying various types of internal orders according to usage for e. 3. real orders for Capital investment measure. An order type is used for storing various control parameters and various defaults while creating an internal order. Procedure Click on the order type .g.

Define Model Orders (T. internal order groups Order groups are used for several purposes: Order planning. Code (T. but serve merely as references for creating "normal" orders. then you save Model orders are not orders in the commercial sense. collective processing and surcharges. Reporting groups can be created and changed locally adhering to the above structure. all the fields active in the relevant order type are copied from the model order to the new order. then. Maintain UserDefined Planner Profiles 7. settlement. edit>assign element group. then you will see that it has been assigned. 6.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 163 you’ve created. Since at any time all groups are offered in a specific system. When you create a new order. reports. click on edit> select element Check the box of the group. The Model order is assigned as the reference order in the order type. 4. Code OKOS) . They are not available on the template system. Code (T. Code KOH1) 5. Maintain Planner Profile (T. Model orders contain default values for the orders in an order type. the group name needs to distinguish whether the group is maintained locally or centrally by the SAS (Z*).

a secondary cost element is required (21). Settlement: Maintain Allocation structure (T. like cost center. If settlement element is activate within settlement assignment. Code KA01 Primary KA06 Secondary) 164 Settlement cost elements are used in a specific case to act as the sending and receiving account during settlement. Code (T. Define Budget Profile 9. It also determines which cost element will be used to debit and credit the sending order or receiving object. Maintain Number Ranges for (T. like a G/L account or fixed asset. The receiving object will determine whether you use a primary or secondary element. This group of cost element is called the origin. Code OK06) 11. If the receiver is internal within CO. either a primary or secondary cost element will be needed to facilitate the posting. Code OKOB) (T. Maintain Settlement Profile 12. Maintain settlement cost element (T. Code. 10. SNUM) The first step here is to create a group number to which controlling area can be assigned. This defines which cost elements on the order can be settled.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi for Overall Planning 8. The second step is to . If the receiver is external to CO. a primary cost element(22) must be used because of the necessary FI impact.

I was given an error msg which say that Retained Earning account is not specified as a balance sheet account. Code S_ALR_87012995) (T. (T. . they are only displayed. Code okkp) Year End Closing Activities FI Select posting period for new fiscal year Carry the balance forward ( (T. Code S_ALR_87012994) (T.16) If you tick the postings are not performed. Orders: Current Period/ Cumulative 15. List Orders 16. List Cost Elements by Orders 18.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Settlement Documents 13. List Orders by cost elements 17. Activate Order Management in Controlling Area 165 assign your controlling area to the new range.Code F. Code S_ALR_8701299v) (T. Problems Encountered After I carried out the test run. Code S_ALR_87012996) (T. Code (T. Orders: Actual/Plan/Va riance Report 14.

05) AA MM HR Account Payable Close the posting period for the old fiscal year Create the Balance S_ALR_87012284 sheet and P/L Statement Balance Sheet / Profit and Loss Statement Post Depreciation Perform inventory and material valuation Post wages and salaries of last posting period.Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 166 The reason was that I had assigned it as being a P/L account Solution Create a new GL account called it retained earnings under assets. Code F. Went into trans OB53 then reassigned the GL account I created as being the new retained earning account. . Prepare the balance sheet Periodic Closing> Closing> Regroup>GR/IR Clearing (T.19) And Periodic Closing> Closing>Valuate> Foreign Currency Valuation (T. Code F.

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 167 .

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