SAP Manual 3 2014

DIRECTOR GENERAL AUDIT & ACCOUNTS TRAINING INSTITUTE,
LAHORE.
SAP-ERP Financial
Summary
Accounting Manual-3
of
TFIN_52
Muhammad Akhlaq Khan, FM
These notes are prepared from the SAP ERP Financial Manual 3 during
SAP training at SIEMENS Academy, Islamabad, during November-2014.
Financial Accounting TFIN 52 Compiled by: Muhammad Akhlaq Khan, FM / AO, AATI, Lahore.
Short Contents
Unit 1 Organizational Structure............................................................................................. 7
Lesson 1 Assignment Company Code .............................................................................7
Chart of Accounts ............................................................................................................. 7
Chart ofDepreciation........................................................................................................... 7
Lesson 1.2 Cost Accounting Assignment.........................................................................10
Lesson 1.3 Depreciation Areas / Posting of Values:........................................................11
Lesson 1.4 Introduction to Assets Class.........................................................................12
Unit 2 Master Data............................................................................................................. 13
Lesson 2.1 Functions of Assets class...............................................................................13
Lesson 2.2 Assets Master Record.....................................................................................18
Lesson 2.3 Mass Change.................................................................................................20
Unit 3 Assets Transactions.................................................................................................. 21
Lesson 3.1 Assets Acquisition......................................................................................... 21
Lesson 3.2 Segment (and Profit Center) Reporting in FI-AA...............................................23
Lesson: 3.3 Asset Acquisition (2)...................................................................................25
Lesson 3.4 Assets Retirement.......................................................................................... 26
Lesson 3.5 Assets Transfer Intra-company (Within the Same Company Code)
orIntercompany (Within two company Codes)...................................................................27
Lesson:-3.6Assets under Construction.............................................................................29
Lesson 3.7 Unplanned Depreciation.................................................................................29
Unit 4 Periodic Processing and Valuation...........................................................................30
Lesson 4.1 Depreciation Areas, Depreciation Keys, Depreciation Calculation and Posting...........30
Lesson 4.2 Fiscal Year Change and Year End Closing in Assets Accounting.....................37
Unit 5 Information System................................................................................................ 38
Lesson 5.1 Report Selection............................................................................................ 38
Lesson 5.2 Value Simulation........................................................................................... 39
Lesson 5.3 Assets History Sheet.....................................................................................40
Unit-6 Standard Reports in General Ledger Accounting, AccountsReceivable Accounting
and Accounts Payable Accounting......................................................................................... 41
Lesson 1 Information System..........................................................................................41
Lesson 6.2 Report Variant and Variables.........................................................................42
Unit-7 List Viewer............................................................................................................... 44
Lesson 1 SAP List Viewer Design.....................................................................................44
Lesson 7.2 Selections...................................................................................................... 46
Lesson 7.3 Changing the Screen Layout.........................................................................49
Unit 8 Drilldown Reporting in Financial Accounting..........................................................50
Lesson 8.1 Architecture of Drilldown Reporting...............................................................50
Lesson 8.2 Characteristics and Key Figures.....................................................................52
Lesson 8.3 Form Types.................................................................................................... 53
Lesson 8.4 Navigation in Reports....................................................................................55
Lesson 8.5 Form & Report Definition...............................................................................56
Lesson 8.6 Report/Report Interface and Report Assignment...........................................58
Unit-9 Special GL Transactions.......................................................................................... 59
Lesson 9.1 Application view for Special GL Transactions.................................................59
Lesson 9.2 Configuration of Special GL Transactions......................................................63
Unit 10 Parking Documents............................................................................................... 65
Lesson10.1 Basics of Parking Documents........................................................................65
Lesson 10.2 Parking Documents & Processing Parked Documents...................................67
Lesson 10.3 Document Parking and Workflow.................................................................69
Unit 11 Validation & Substitution.......................................................................................73
Lesson 11.1 Basics of Validation / Substitution...............................................................73
Lesson 11.2 Definition and Execution of Validation in Financial Accounting....................77
Lesson 11.3 Definition and Execution of Substitution in Financial Accounting................78
Lesson 11.5 Validation Rule for Account Assignment Combination.................................80
Unit 12 FI Archiving........................................................................................................... 81
Lesson 12.1 Basics of Classification of Data Archving.....................................................81
Lesson12.2 Preparatory Activities System Settings.......................................................84
Lesson 12.3 Executing Archiving in Financial Accounting Using example.......................86
Table of Contents
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Unit 1 Organizational Structure......................................................................7

Lesson 1 Assignment Company Code ......................................................7
Chart of Accounts .......................................................................................7
Chart ofDepreciation....................................................................................7
Depreciation Areas:................................................................................8
Lesson 1.2 Cost Accounting Assignment..................................................10
Lesson 1.3 Depreciation Areas / Posting of Values:................................11
Lesson 1.4 Introduction to Assets Class.................................................12
Unit 2 Master Data......................................................................................13
Lesson 2.1 Functions of Assets class........................................................13
Functions of Asset Class:......................................................................13
Asset Class: Account Determination / Account Assignment:................13
Assigning G/L Accounts:.......................................................................14
Number Range Intervals:......................................................................14
The Screen Layout of Asset Master Data:............................................14
Activate Account Assignment Objects:.................................................15
Tab Layout for Asset Master Record:....................................................15
Screen Layout of Asset Depreciation Areas:.........................................15
Additional Functions for Asset Classes:................................................16
Special Asset Class:..............................................................................16
Lesson 2.2 Assets Master Record..............................................................18
Creation of Master Record:......................................................................18
Creating Multiple Similar Asset Records:..............................................18
Time Dependent Data:.........................................................................18
Changing Asset:...................................................................................18
Asset and Equipment Master Record....................................................18
Depreciation Areas in The Master Record:...........................................19
Asset Sub Number:...............................................................................19
Personal Value List:..............................................................................19
Lesson 2.3 Mass Change..........................................................................20
Mass Changes to Asset Master Data Using Worklists:..........................20
Substitution Rule for Mass Changes:....................................................20
Unit 3 Assets Transactions..........................................................................21
Lesson 3.1 Assets Acquisition..................................................................21
Asset Accounting and Other Subledgers:.............................................21
Asset Acquisition Various Options:.......................................................21
Lesson 3.2 Segment (and Profit Center) Reporting in FI-AA.......................23
Posting to FI Characteristics:................................................................23
Derivation of Profit Center and Segment..............................................24
Lesson: 3.3 Asset Acquisition (2)............................................................25
Non-integrated Asset Acquisition:...........................................................25
Integrated with Material Management (MM)...........................................25
Lesson 3.4 Assets Retirement...................................................................26
Integrated Asset retirement:................................................................26
Lesson 3.5 Assets Transfer Intra-company (Within the Same Company
Code) orIntercompany (Within two company Codes).................................27
Transfer Cross-Company Depreciation Areas:......................................28
Lesson:-3.6Assets under Construction......................................................29
AuC Settlement on a Line-Item Basis:...............................................29
Lesson 3.7 Unplanned Depreciation..........................................................29
Unit 4 Periodic Processing and Valuation...................................................30
Lesson 4.1 Depreciation Areas, Depreciation Keys, Depreciation Calculation and
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Posting.........................................................................................................30
Over view:...............................................................................................30
Depreciation Areas:.................................................................................30
Depreciation Types:.................................................................................30
Depreciation Key and Depreciation Calculation:.................................31
Calculating Depreciation Values:..........................................................31
Imputed Interest:..................................................................................34
Replacement Value: Index Series:........................................................35
Depreciation Run Program RAPOST2000...........................................35
Lesson 4.2 Fiscal Year Change and Year End Closing in Assets Accounting
...................................................................................................................37
Fiscal Year Change:...............................................................................37
Year-End Closing (in Asset Accounting)...............................................37
Periodic APC Values Posting:................................................................37
Unit 5 Information System.........................................................................38
Lesson 5.1 Report Selection.....................................................................38
Report Tree and Area Manu.....................................................................38
SAP List Viewer:...................................................................................38
Lesson 5.2 Value Simulation....................................................................39
Simulation with the Asset Explorer:.........................................................39
Simulation Versions:.............................................................................39
Lesson 5.3 Assets History Sheet..............................................................40
Structure of Asset History Sheet:.........................................................40
Unit-6 Standard Reports in General Ledger Accounting,
AccountsReceivable Accounting and Accounts Payable Accounting..............41
Lesson 1 Information System...................................................................41
Lesson 6.2 Report Variant and Variables..................................................42
Report Variants: Selection Criteria.......................................................42
Unit-7 List Viewer........................................................................................44
Lesson 1 SAP List Viewer Design..............................................................44
SAP List Viewer: Display / Change Document:....................................44
SAP List Viewer: Generic Functions:....................................................44
List viewer: Display Variants and Fields:...............................................45
Classic List and Grid Control in the Line Item List:...............................45
User Parameters for the List.................................................................45
Lesson 7.2 Selections...............................................................................46
Lesson 7.3 Changing the Screen Layout..................................................49
Standard Layout: Default and Initial Layout:.......................................49
User-Specific Layout:............................................................................49
Unit 8 Drilldown Reporting in Financial Accounting..................................50
Lesson 8.1 Architecture of Drilldown Reporting.......................................50
Using the Report Painter:.....................................................................50
Form Types: Drilldown Reporting in FI:.................................................50
Lesson 8.2 Characteristics and Key Figures.............................................52
Key figures:..........................................................................................52
Drilldown List & Detail List:..................................................................52
Lesson 8.3 Form Types.............................................................................53
Single-axis Form Without Key Figures:.................................................53
Single-Axis With Key Figures:...............................................................54
Two Axes (Matrix).................................................................................54
Lesson 8.4 Navigation in Reports.............................................................55
From Drilldown List to Detail List:.........................................................55
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From Detail List to Drilldown List:.........................................................55

Navigation in Classic Drilldown Reports:..............................................55
Lesson 8.5 Form & Report Definition........................................................56
Defining characteristics for all columns (general selections):..............56
Steps for Creating Report.....................................................................57
Lesson 8.6 Report/Report Interface and Report Assignment....................58
Report Assignment...............................................................................58
Unit-9 Special GL Transactions..................................................................59
Lesson 9.1 Application view for Special GL Transactions.........................59
What are Reconciliation Accounts?.......................................................59
Posting in Sub-Ledger:.............................................................................59
Special G/L Transactions Alternative Reconciliation Accounts...........59
Special General Ledger Classes...........................................................59
Types of Special General Ledger:.........................................................60
Down Payment in the Customer Area...................................................61
Special GL Transactions Individual Value Adjustment:.......................61
Bills of Exchange Optional:................................................................62
Lesson 9.2 Configuration of Special GL Transactions...............................63
Special G/L Transactions: Definition of Properties and Accounts..........63
Automatic Statistical Offsetting Entries:...............................................64
Setting Up Your Own Special G/L Transactions Statistical Items with
Automatic Offsetting Entries:...............................................................64
Unit 10 Parking Documents.......................................................................65
Lesson10.1 Basics of Parking Documents.................................................65
Holding and Parking Documents.............................................................65
Scenarios for Entering Documents:......................................................65
HOLDING documents...............................................................................65
PARKING documents................................................................................65
Lesson 10.2 Parking Documents & Processing Parked Documents...........67
Editing Parked Documents:..................................................................67
Posting Parked Documents:..................................................................67
Deleting Parked Documents:................................................................68
Document Parking Reporting and Overview:.....................................68
Lesson 10.3 Document Parking and Workflow..........................................69
Benefits of SAP Business Workflow:.....................................................69
Workflow Management Architecture:...................................................69
Workflow Design and Process Flow-1...................................................70
WHAT Is Carried Out? Workflow-Related Tasks.....................................70
Workflow Definition: Workflow Builder:................................................71
Who is Doing Something:.....................................................................71
Workflow and Financial Accounting:.....................................................72
Calculation of Release Approval Pathe:................................................72
Unit 11 Validation & Substitution................................................................73
Lesson 11.1 Basics of Validation / Substitution........................................73
Comparison of Validations / Substitution..............................................73
The Validation Function........................................................................73
In substitution,.....................................................................................73
Application Area...................................................................................73
Working With the Formula Editor..........................................................75
Operands and Operators:.....................................................................76
Lesson 11.2 Definition and Execution of Validation in Financial Accounting
...................................................................................................................77
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Validation Procedure:............................................................................77
Messages:............................................................................................77
Fields Comparison:...............................................................................77
Lesson 11.3 Definition and Execution of Substitution in Financial
Accounting..................................................................................................78
Substitution Procedure:........................................................................78
Substitution Methods...........................................................................78
Substitution with a Constant:...............................................................78
Lesson 11.4 Additional Technique for Substitution/Validation...............79
Rules:...................................................................................................79
Set Usage:............................................................................................79
Lesson 11.5 Validation Rule for Account Assignment Combination..........80
Defining a Validation Rule for Account Assignment Combinations:......80
Validation Types:..................................................................................80
Unit 12 FI Archiving...................................................................................81
Lesson 12.1 Basics of Classification of Data Archving.............................81
Lesson overview:.....................................................................................81
Introduction:............................................................................................81
Definition of Data Archiving.....................................................................81
What is Not Archiving?.........................................................................82
Reasons for data Archiving:..................................................................82
Cooperation Between System Administration and Departments:........83
Schematic Data Archiving Procedure:..................................................83
Lesson12.2 Preparatory Activities System Settings................................84
Archiving Objects:...................................................................................84
Customizing Settings (Basis Support)..................................................84
Lesson 12.3 Executing Archiving in Financial Accounting Using example86
Archiving Procedure:............................................................................86
Monitoring an Archiving Procedure:......................................................86
Access to Archived Data:......................................................................87
UNIT 1 ORGANIZATIONAL STRUCTURE
Lesson 1 Assignment Company Code
Chart of Accounts
Chart ofDepreciation
The client :-is the highest level in the SAP system hierarchy. It also denotes
the specific logical systemyou are working on. Specifications that you make
on this level apply to all company codes.
Each company code: is an independent accounting unit. The legally
required balance sheet and profit and loss statement are created at this
level.
Each business area is to be regarded as a financially separate unit for
which an internal balance sheet andprofit and loss statement can be created.
Note: Document splitting A function of the New G/L Accounting
makes it possible to create (complete) balances for the business area
characteristic.
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Other (FI) characteristics for which complete balances can be created in

the standard system with activated new G/L Accounting are the Profit
Center and Segment.
In our training system New G/L is fully active. FI Sub-Ledger Fixed
Assets(FI-AA) is fully integrated with the (New G/L). But to understand the
mode of operation of FI-AA, it is not really important which G/L is used.
Chart of Accounts and Chart of Depreciation:
All General ledger accounts are defined in the chart of accounts. Asset
Accounting (FI-AA) works with the Chart of accounts assigned to the
company code. Any company code can modify the chart of accounts to meet
its requirements e.g. country specific, industry specific, global etc.
Since the chart of depreciation must be country specific. SAP provides
sample chart of depreciation for many countries. These Charts of
Depreciation contains predefined depreciation areas. You can use these
country specific charts of depreciation to create your own company specific
chart of depreciation.
Definition of Chart of Depreciation:
Charts of depreciation are used in order to manage various legal requirements for the
depreciation and valuation of assets. These charts of depreciation are usually country-
specific and are defined independently of the other organizational units. A chart of
depreciation, forexample, can be used for all the companycodes in a given country.
Country-Specific Charts ofDepreciation:
In the simplest scenario, all of your company codes are in the same country and aresubject to the same legal requirements for asset
valuationmeaning that you only need one chart of depreciation.
Each depreciation area represents a specific type of valuation (for
example,book depreciation or taxdepreciation, and so on). You can also
define your own depreciation areas for a chart of depreciation.
Each company code uses one (operative) chart of accounts and one chart of
depreciation.
All or several company codes can work with the same chart of accounts and
the same chart ofdepreciation.
Sample chart of depreciation ODE Sample Chart of Depreciation OUS
Page 7 of 108
01 Book Depreciation. 01 Book Depreciation.

02- Special tax depreciation 10- Federal tax ACRS /MACRS
03- Special depreciation reserve 11- Alternative minimum tax
10- Valuation of net assets 12- Adjusted current earnings.
15- Balance sheet for tax purposes 13- Corporate earnings & profits.
20- Cost accounting depreciation 20- Insurance
30- Consolidated balance sheet 30- Consolidated balance sheet
(local Curr.) (local Curr.)
31- Consolidated balance sheet 31- Consolidated balance sheet
(Group Curr.) (Group Curr.)
32- Book depreciation in group 32- Book depreciation(group
currency currency)
41- Investment support (reducing 40- State modified ACRS
APC)
51- Investment support as a reserve
For information about the (sample) chart of depreciation used in AC305 refer to the
explanations for this slide!
The depreciation areas in a chart of depreciation are defined with a two-
digit numeric key. Depreciation area 01 is always what is known as the
leading depreciation area. The leading area 01 (currently) reflectsthe local
accounting principles in each sample chart of depreciation.
Other depreciation areas can contain the following valuations, for example:
Tax balance sheet valuation
Costing-based valuation
Valuation approaches in other currencies and/or valuation approaches
( such as group valuation)
Capital tax valuation
Differences between book and country-specific tax-based depreciation
Page 8 of 108
Depreciation Areas:
Asset portfolios and transactions are often valued differently for different
purposes; for example, different valuation approaches should/have to be
used for:
Book depreciation (according to local requirements)
Balance sheets for tax purposes (insofar as another valuation is
permitted)
Internal accounting ( cost accounting)
Parallel accounting, such as for creating a consolidated balance sheet
according to IFRS and/or US GAAP.
These various valuation approaches are mapped in the SAP system by
means of depreciation areas.
Steps in Assets Accounting
First, completely set up the company code in Financial Accounting.
Then allocate a chart of depreciation to the company code (in a separate
project, if possible).
The company code is then expanded by means of various Customizing
activities to include the necessary data and information.
The company code is then ready for use by Asset Accounting
Page 9 of 108
Lesson 1.2 Cost Accounting Assignment

In the master record, you can assign the following Management Accounting
objects:
Cost center
(Internal) order: the order can be real or statistical (Object of Project
System)
Activity type: as purely statistical information (Object of investment
management)
These CO objects are assigned to a controlling area which can, in turn,
include one or more company codes.
It is also possible to assign objects from other applications (with controlling
functions) in addition tooriginal the CO objects. Examples:
WBS element (Work Breakdown Structure)
Real estate object
Maintenance order: as purely statistical information
Objects from Public Sector Management (PSM)
As such we can post depreciation from any depreciation area to (CO) objects.
We can psot the following (CO) objects:
A cost center
A (real) order
A cost center and a statistical order
A WBS element ((Work Breakdown Structure)
A cost center and a statistical WBS element
A real estate object
Objects from Public Sector Management
However, it is not possible to assign an asset to two cost centers.
HINT: Asset can be assigned to a (real) order that can then be (periodically)
settled to the respective cost centers.
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Lesson 1.3 Depreciation Areas / Posting of

Values:
Assets are to be valued for various business, (taxation) legislation and legal
purposes. With FI sub-ledger FI-AA, you can manage different valuation
approaches for each asset in depreciation areas.
However, financial statements are not created / required for the values of all
depreciation areas. Therefore, settings must be made in Customizing that
define which values should be transferred to Financial Accounting
Statements and how this is to occur.
When using the Account Approach ( see section Periodic Processing and
Depreciation), you have the following options:
(0) Area does not post (No values posted to Financial Accounting)
(1) Area posts in real-time (assets values are posted to FI online while
depreciation shouj be recorded periodically)
(2) Area posts asset values and depreciation periodically.
(3) Area only post depreciation (of course, periodically)
(4) Area post assets values directly and depreciation periodically.
The settings (5) and (6) are only required when using the Ledger
Approach in the NewGeneral Ledger accounting.
Object Depreciation Valuation of Assets
0 No depreciation No valuation of asset
1 Periodical On line real-time
2 Periodical Periodical
3 Periodical No positing
4 Periodical Directly
Depreciation Areas and Financial Statement Versions:
You can post both the asset values and the depreciation values from the
individual depreciation areas to separate financial statement accounts or
profit and loss accounts.
You can define any number of financial statement versions per chart of
accounts. The definition is made in the Customizing of the general ledger.
You can specify in the Financial Statement Version the item which
should appear in the Balance Sheet and the Profit and Loss Statement.
In Customizing for Asset Accounting, you assign a financial statement version

for each depreciation area, if asset reports should be able to display financial
statement items.
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To finally display the final statement items in the asset reports, you have to
select the correct sort variant. There are maximum five versions of financial
statements in 2nd Manue.
Page 12 of 108
Lesson 1.4 Introduction to Assets Class

Assets are assigned to asset classes. Examples of asset classes are the
Buildings Vehicles,
Fixtures and Fittings Machines
The Classes of Assets are created at client level.
Each asset class consists of two main sections:
a master data section, and
a depreciation data section.
The Depreciation data section is assigned to at least one chart of
depreciation. An asset class can also be linked to multiple charts of
depreciation. This enables a globally uniform class catalog in spite of
different depreciation areas.
You can complete the asset class with default values for master data
information and the depreciation terms for each depreciation area.
In addition to default values assets classes also carry control data, like :
o account determination
o number range intervals
o Screen layout.
You can suppress (hide) individual depreciation areas per asset class.
For each depreciation area you can propose the depreciation attributes which
can be overwritten if necessary.(You can also choose that the attributes be
specified by the system.If the depreciation attributes are specified by the
system, they are not changeable.)
Asset Class and Asset Mater Record:
The asset class is the main criteria for classifying assets. In other words each
asset is assigned to only one asset class. You can specify certain control
parameters and default values for depreciation calculation and other master
data in each asset class.
There is also at least one special asset class each for assets under
construction and low value assets.
Intangible assets (e.g. patents, copyrights, software) as well as leased assets
can also be created in FI-AA
HINT: Technical management of assets is done using (logistical)
component Plant Maintenance (PM). In SAP (technical
documentation) you also see the solution nameEnterprise Asset
Management (EAM).
Page 13 of 108
The Treasury system is used to manage financial assets. It is a part of

Financial Supply Chain Management (FSCM).
Page 14 of 108
UNIT 2 MASTER DATA

Lesson 2.1 Functions of Assets class
Functions of Asset Class:
Asset Classes are the most important means of structuring fixed assets
according to the requirements of your enterprise. The definition of asset
class applies to all company codes in a client.
An asset class consists of two mainsections: (1)- Master Data section and (2)
Depreciation Data Section
Master Data Section
Master data section contains the control data and default values for the
administrative data
Depreciation Data Section:
Depreciation data section contains control parameters and default values for
depreciation terms foreach depreciation area.
When you create asset master records, this data is automatically adopted
from the asset class you specify. By entering useful default values, you can
reduce the time and effort needed to create new asset master records. This
also ensures that the records in a given class are handled uniformly.
It is recommended that you define as many asset classes as you have assets
with different types of valuation.
The asset class is the main selection criterion in all standard reports in FI-AA.
Before creating individual asset classes first consider, (what form your
complete asset class catalog is to take).
Then you need to check with your colleagues from FI whether corresponding
general ledger accounts already exist and if so, which ones, or whether they
still need to be created.
Asset Class: Account Determination / Account Assignment:

Account determination meansestablishing a link between the asset
master records, their values and the general ledger accounts to which the
related asset values and depreciation are posted. This is also called account
assignment.
Account determination key is stored in Customizing of the asset class
If you have several similar asset classes, you can use the same account
determination key in several asset classes and transfer the values to a fixed
asset balance sheet account in the financial statement.
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If you use different company codes with different operational charts of

accounts, however, you needonly one account determination key to post
values of the asset of one class to different accountsin different charts of
accounts.
Assigning G/L Accounts:

With account determination or the account determination key, you define all
necessary general ledger accounts for all asset transactions and processes
that you need or want to enter.
For those depreciation areas that post depreciation to the general ledger,
you must assign thefollowing additional G/L accounts:
For ordinary depreciation:
Accumulated depreciation accounts
Expense accounts
Revenue accounts for a write-up
For unplanned depreciation:
Accumulated depreciation accounts
Expense accounts
Revenue accounts for a write-up
For revaluations of depreciation and for interest (cost accounting area), if
necessary/desired.
Number Range Intervals:

The number range controls the assignment of the number of the asset
master record. You define number assignment as either internal or external.
In internal number assignment, system automatically assigns the next
available number in the numerical sequences form the defined number
range interval.
In external number assignment, the number is assigned by the user or
by another system.
You can assign each company code its own number ranges, or specify cross-
company code numberassignment.
The Screen Layout of Asset Master Data:

In the screen layout of asset master record we determines
Which input fields can be processed
Which fields are to be defined as required fields and
Which fields are not to be displayed at all?
This allows you to reduce the number of master data fields, which are
specifically needed for and to ensure that certain important control
information is entered.
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In addition to the information on the field selection (required entry, optional

entry, display,hide), the screen layout specifies the maintenance level of
master data fields. It also determines whether the master data fields are
allowed to be used as a reference.
The maintenance level specifies at which level maintenance of each data
field is permittedpossiblemaintenance levels are:
Asset class
Main asset number
Sub number
The reference provides information on which field contents can be copied
into the new master record when an asset is created using a template.
Activate Account Assignment Objects:

Some fields of the asset master record are Account assignment Objects,
which have to be activated before they can be maintained in the screen
layout and in the asset master record.
On the one hand, you can post (cost-accounting) depreciation to account
assignment objects like:
Cost Center
CO internal order
WBS(Work Breakdown Structure)element
Real Estate object (e.g. buildings, or land)
Various objects from the Public Sector Management (PSM) component,
such as funds centers, funds or grants;
on theother hand you are able to post APC values (acquisition &
Production Cost)to account assignment objects, like investment order or
WBS elements of an investment project.
Tab Layout for Asset Master Record:

In SAP Release 4.5A, tab pages are used to display asset master records.
You can specify a layout for the master data of each asset class. The layout
defines:
The number of tab pages
The names of the tab pages
The logical field groups (groups / field group boxes, such as the visible
logical field groupsGeneral data and Posting information in the figure
above), that are to appear on the tab pages.
HINT: Using this layout you can define the layout of the asset master record
that best suit your needs.
Page 17 of 108
Screen Layout of Asset Depreciation Areas:

In each asset class, you enter a screen layout for each depreciation area.
These rules apply to the (input) fields of the depreciation data section.
Paper HINT: SAP supplies standard screen layoutrules 1000
Questio
n
and 2000 in the standard system.
These screen layout rules also contain a maintenance level. The
maintenance level guarantees thatdepreciation is controlled uniformly. There
are three options:
1. Asset class: This maintenance level ensures uniform control of valuation
at asset class level.
2. Main asset number: The control of valuation is uniform at the level of
the asset masterrecord. The entries made in the asset class are adopted
in the asset master record, and can be changed there. All asset sub
numbers that belong to this asset master record adopt these values from
the main number i.e. Screen Layout rule 1000.
3. Asset Sub-number: Valuation can be controlled more flexibly. Asset sub
numbers canreceive their own individual depreciation terms, i.e. Screen
Lay out 2000.
Additional Functions for Asset Classes:

Copying Asset Classes from Reference:
You can create new asset classes by simply copying existing asset classes.
The default values of the depreciation area section are also automatically
copied. Which can be changed later on.
Defining allowed entries for user fields and other information fields:
In the asset master record the following fields are available as standard for
general and user-specific structure of fixed assets:
Evaluation groups(1 to 5): These are asset master record fields that are
used to map customer-defined / customer-specific information.
Environmental protection indicator: In this field you can save the
reason for an environmental protection investment (for example, new
climate-protection regulations).
Reason for investment:In this field you can enter an explanation for a
capital investment (for example, replacement acquisition).
Asset super number: This can be assigned to an asset. This is useful, for
example, if several assets are to be assigned to an asset super number (for
example, business unit or production line).
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You can use all of the above mentioned fields as selection criteria in
reporting in FI-AA.
Storing Default Values in the Asset Classes:

Once you have defined the possible entries, you can store these values as
default values in Customizing.
You can also enter default values for insurance values, net worth valuation,
leasing and of course for depreciation parameters in the depreciation data
section ( Depreciation key, useful life) as well as index series.
Special Asset Class:

Special Asset class have two sub classes of Assets: 1) Asset under
Construction (AuC) and Low Value Assets (LVA)
Asset under Construction (AuC)
Assets under construction (AuC) require a separate asset class and
corresponding G/L account,because they have to be shown separately in the
financial statement.
By choosing the standard depreciation key 0000 you can ensure that
depreciation is not calculatedfor assets under construction in depreciation
areas (at least for the depreciation areas in the financialstatement).
However, special tax depreciation and investment support are also possible
for assets under construction.
You can also enter down payments on assets under construction in accounts
payable accounting processes. But this is to be done through Special G/L
Accounts.
Even after an asset under construction has been fully capitalized, you can
still post credit memos.For this to be possible you must permit negative
(APC) values in the detail screen of the depreciation data section.
Investment Management (IM) is available to help you manage more
extensive asset investments. Itintegrates internal orders and projects with
assets under construction.
Low Value Assets (LVA)
You can choose whether to manage low value assets (LVAs) using individual
management or collective management. For each type of management, you
have to set up a separate asset class.
If you select collective management for low-value assets, a base unit of
quantity must be specifiedfor this asset class.
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Lesson 2.2 Assets Master Record

Creation of Master Record:
When you create an asset master record, you have two options:
1- Enter the company code and asset class for the new asset master record
2- Use an existing asset master record as a reference and copy it. While
copying, make sure that you do not copy unwanted data from the
reference asset, e.g. capitalization date.
In both cases enter all the required fields and all other desired information in
the master record and then save your new asset master record. When you
save your entries, you receive an asset number.
Creating Multiple Similar Asset Records:

When creating asset master records, you can create multiple similar
assets.However you can also make separate entries for each individual asset
in the following fields:
Description of the Asset
Inventory number
Business Area
Cost Center
Evaluation groups 1-5.
Time Dependent Data:

Some information in the asset master record can be managed as time-
dependent data. This is of particular significance for the assignment of
assets to CO organizational units, for example, costcenter or project.
Shift operation and asset shutdown can have a direct effect on depreciation.
Therefore you shouldenter them in the time-dependent data, where they can
be changed on a monthly basis.
Changing Asset:
Each time you change an asset master record, the system creates a change
document. The changedocument contains a list of fields that were changed
and the number of changes to a field. Inaddition, the name of the user and
the old and new contents of fields are stored.
HINT: If many asset master records are affected by a change, you can carry
out a mass change.
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Asset and Equipment Master Record

The method for assigning equipment to an asset is to enter the asset number
in the relevant master record. Several pieces of equipment can be assigned
to an asset, but a piece of equipmentcan only belong to one asset.
You can set up the system so that when you create an asset master record,
the system automaticallycreates an equipment master record. In this case
the system copies the values of certain master data fields, (forexample, the
Company Code and the Inventory Number). If you change master data in the
asset at alater point in time, the system then automatically updates the
fields in the equipment master recordand the other way around. In addition,
you can set up a workflow that informs the person responsible in PM (Plant
Management) when asset are created or changed.
Depreciation Areas in The Master Record:

The default values in the depreciation data section of an asset master record
come from the asset class. You may change or add to them in the different
depreciation areas of the asset master record.
Some of the data in the depreciation areas of the asset is derived from the
acquisition posting.
Informations such as index, variable depreciation portion or scrap value are
additional parameters that are manually used / needed in the cost-
accounting depreciation area.
Asset Sub Number:

If a fixed asset is made up of many component assets, you may want to
manage these component assets as separate sub numbers. This might be
useful for both technical and accounting reasons.
You can specify external or internal number assignment for the asset
subnumber. You make this specification in the asset class. For example, you
could use external number assignment during legacy data transfer and then
switch over to internal number assignment after the legacy data transfer is
complete.
You can divide assets by sub numbers, if you want to:-
manage the values for subsequent acquisitions in separately e.g.
buildings.
manage the values for individual parts of assets separately.
split the asset according to various technical aspects
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Personal Value List:

As of release 4.6 you have the option of storing values that you require
frequently in a personal value list.
The personal value list can be turned off if you do not want to use it, i.e. a
user specific decision.
After turning off the personal value list the F4 help for the asset field,
displays the general and former search help.
HINT: If entries already exist in the personal value list, they have to be
deleted before the general search help can be displayed.
Lesson 2.3 Mass Change

The system provides the support if the Asset Accounting Department wants
to use mass processing to change the cost centers of assets.
Mass Changes to Asset Master Data Using Worklists:

To carryout mass changes, you can also edit a work list from the FI-AA
application menu, if you have the authorization for this application
transaction.
The individual steps for a mass change to asset master data are summarized
as follows:
1. Create a substitution rule to specify which fields you want to change and
how you want to change them for thisIn Asset Accounting application
menu, choose EnvironmentMass change Rule.
2. The saved substitution rule must then be assigned to a company code.
3. Create a list of assets to be changed ( a work list). This can be done by
calling up any ABAP asset report or by using the menu path.
4. Using the program called, select the master data to be changed and press
the Create Work list pushbutton in the results screen.
5. Enter a description and select a purpose for your work list. The purpose is
a pre-defined standard task in the system (for example, change master
data).
6. In the dialog window that appears, select the defined substitution rule for
the mass change and save your data.
7. Now (only) the work list still has to be processed.
8. Check whether your mass change was successful by displaying the
assets or running an appropriate report.
Note: Substitution rule works if it is assigned to a company code.
Substitution Rule for Mass Changes:

A substitution rule consists of two parts:
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1- Conditions that identify the records to be selected: You can create

conditions using the Form Editor or in expert mode. To use expert
mode, you have to know the (technical) field and table descriptions of the
input fields involved.
2- Substitutions (if the conditions are met) that identify the replacement
values. These can beconstant values, fields, field assignments, or user
exits
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UNIT 3 ASSETS TRANSACTIONS

Lesson 3.1 Assets Acquisition
Asset Accounting and Other Subledgers:
In asset Accounting we first of all make Asset Accounts Configuration,
Secondly we prepares the Asset Master data and then thirdly, we record the
Asset Transaction Data.
The integration of subsidiary ledgers with general ledger is as important as
the integration of accounting logistics functions.
Every transaction (in customer and vendor accounts in the sub ledgers
Accounts Payable and Accounts Receivable and in the asset accounts) has a
direct effect on the corresponding accounts of the general ledgers. Thats
why subsidiary ledgers are always in balance with their G/L reconciliation
accounts.
The G/L reconciliation accounts need to be set up in advance together with
the fixed assets department.
Asset Acquisition Various Options:
The acquisition posting can be created in the department that is primarily
responsible for this business transaction. There are two main ways of
acquiring asset: External Acquisition and In-House Acquisition:
External Acquisition:
There are four options for acquiring asset externally:
1- Acquisition in FIAAIntegration with Accounts Payable if an incoming
invoice is available, but without reference to the purchase order. You can
post the vendor and asset in one document.
2- Acquisition in FIAAwith automatic offsetting entry, but without a link to a
purchase order and without integration with Accounts Payable. The
offsetting account also has to be cleared, i.e. acquisition via clearing
account. It usually happens when the asset receives before the receipt of
its invoice or Accounts Payable department posts invoice beforehand in a
separate step. The offsetting account is also to be cleared.
3- Acquisition of Asset in FIAA with offset clearing: The first posting is usually
made in FI-AP. The asset posting then also clears the clearing account.
4- Acquisition of Asset with the involvement of Materials Management (MM):
The posting/activation of the assets takes place in Logistics.
Acquisition from In-house:
5- Acquisition of asset via investment management component i.eproduction
and capitalization of goods or services that are partially orcompletely
produced in your own enterprise. In it we generally, capitalize production
costs by creating an investment measure ( order/project) inInvestment
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Management (IM) and settling to an asset under construction and then to

converting it in a final asset.
6- A final, however less common acquisition alternative: Settlement of a CO
order that has already been charged the incoming invoice directly to a
fixed asset.
Note :When posting to assets, you must enter a transaction type. The
transaction typeidentifies the different transactions in the asset history
sheet.
Entry View and General Ledger View:
Document splitting is a functionality that is enabled by the new G/L. It is used
to create (complete)balance sheets on different characteristics under the
company code. Standard (document splitting)characteristics are
the profit center,
the segment, or
the business area
HINT: Document Splitting is a function of the new G/L and does not have
anything to do with the direct logic and function of asset accounting.
Asset Explorer:
You can display planned values, book values and transactions directly in the
Asset Explorer in aprint preview format, and you can print and export this
information. On the planned values tab page you can use the calculate
depreciation and recalculate depreciation functions.
Asset Acquisition: Master Record Changes:
The following information is automatically set in the asset master record at
thetime of the first acquisition posting:
Date of asset capitalization (derived from the asset value date).
Date of initial acquisition on relevant master record (also derived from the
asset valuedate)
Acquisition year and acquisition period (derived from the posting date)
In Customizing for Asset Accounting, you can enter default values for the
asset value date for eachtype of accounting transaction.
The system determines the start date for ordinary depreciation using the
asset value date of theacquisition posting and the period control method,
(see Deprecation Key for more information), andwrites this date to the
depreciation areas in the asset master record.
When you post the acquisition integrated with FI-AP, the system
automatically enters the vendor inthe origin data field of the asset master
record.
Asset Acquisition: Value Fields:
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The asset value date is the actual date the asset is updated and determines
the depreciation start datealong with the deprecation key (for each
depreciation area).
The system determines the planned annual depreciation based on the
depreciation start date and the depreciation terms. When further
transactions are posted, these values are updated.
The posting date and the asset value date must always be in
the same fiscal year!
FI Document Number Assignment:
The number range interval for the assignment of FI document numbers is
defined in the document type.
HINT: Although the document type is defined across all clients, the FI
document number rangeinterval should be created specifically for the
company-code.
When creating a document in the SAP System, you can either use the
document type suggested by the system.
The document type, which is defined across all clients, is a two character
alphanumeric entry
Gross or Net Document Type:
Among other things while making entries with a particular document type.
You also defines whether an FI document that was created with the
corresponding document type is posted Gross or Net.
HINT: In this case, the Gross or Net do not refer to tax issues. They describe
the option that the system automatically calculates the cash discount
amount and deduct it from the capitalization amount of the asset (Net
document type) or alternatively capitalize the asset without the cash
discount amount (gross document type)
The SAP standard system includes the following standard documents types:
Gross Document types AA and KR: in it we post the integrated gross
amount and deduct the cash discount at the time of payment. If
payment is made in the given time.
Net Document types AN and KN: in it we usually first post a cash
discount clearing account with the amount of cash discount expected
to be received at the time of payment. The asset is recorded at the net
mount (invoice price less discount) if this discount is lost the value of
the asset will be corrected later on by recording the cash discount lost
account.
Transaction Types:
Transaction types must be used with every posting. Transaction types
identify acquisitions,retirements, and transfers, amongst other things.
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Asset history sheet and other FI-AA reports used the transaction type to
identify the different kinds of transactions and display them separately.
You can also define your own transaction type. However, SAP provides all
necessary transaction types in the standard system which are stored
according to the transaction type in Asset Accounting Customizing. These
can be edited / copied / created there. Every transaction type is assigned to
a transaction type group. This cannot be changed in individual customers
and is predefined by SAP
Lesson 3.2 Segment (and Profit Center)

Reporting in FI-AA
Posting to FI Characteristics:
It becomes more and more important to build balance sheets not only for
company code, but also for profit centers and segments. The new G/L
functionality document splitting offers the possibility to build complete
balances on those entities.
Derivation of Profit Center and Segment
From what source fields we update a target fields is called derivation.
Standard Derivations:
From cost centers we derive Profit Center
From Profit Centers we derive Segment.
If we do not use Profit Center and Segment then we drive from cost centers the
Business area
Expenses are allocated to cost centers while receipts are allocated either to Profit
Center or Business Area.
No Unique Derivation of Profit Center:
Profit Center and Segment cannot be maintained directly in the asset master
data, some issues can arise:
1- There is no check for a unique profit center and segment assignment
directly in the asset master data.
2- The reconciliation between G/L and sub-ledger FI-AA regarding the profit
center and the segment is not always guaranteed example:
a. If you use substitutions while posting acquisitions or depreciation,
the profit center in the FI document can be different to the proper
derived profit center of the CO object in the asset master.
b. A change of the profit center in the CO object is possible without
any correction postings in FI.
No Unique Derivation of Profit Center
If more than one CO object with different profit centers is assigned to the
asset master record, we defined a complex internal logic, which controlled
the derivation of the profit center while posting the asset.
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Set the indicator Account assignment object is same in asset master and
posting if you want to prevent the account assignments object being
changed while making account assignment. This ensures that account
assignment is only possible to the account assignment object entered in the
asset master record. This flag is essential, during posting to ensure that the
segment and profit center values are the same as in the asset master data.
Note: the new G/L scenario (Segment Reporting for Fixed Assets) is
only needed if scenario (Preparations for Consolidation) is not
assigned, because scenario (segment reporting for fixed assets) saves
the consolidation transaction in the new G/L summary table
FAGLFLEXT. This is also done by the scenario (Preparation for
Consolidation)
Drive Profit Center and Segment:
If you maintain two CO objects in the asset and profit center and segment in
the two CO objects are not the same, error message appears. The profit
center is not unique. The account assignment objects Cost Center and
Internal Order refer to different centers:
- Profit center from Cost Center: 0001
- Profit center from Internal Order:0003
To save the profit center and segment in the asset master data the table
ANLZ was prolonged (extended, protected) with these two fields.
HINT: ANLZ is the main table in which the record of assets is maintained.
Lesson: 3.3 Asset Acquisition (2)
Non-integrated Asset Acquisition:
An acquisition which is not integrated with the Material Management (MM) or
inventory management (IM) or controlling object (CO).
If asset acquisition postings are not integrated, you would normally use a
clearing account. This should be a general ledger account with open item
management to guarantee that you can clear the account (later).
Reasons for not making integrated postings:
- The invoice arrived before the asset
- The asset has already been delivered but the invoice has not
beendelivered.
One entry is recorded for Accounts Payable (i.e. Dr. Clearing Account, Dr. Tax
account and Cr. Vendor Account) and the other for asset (i.e. Dr. Asset and
Cr. Account Clearing). The sequence is to be determined by the transaction.
The clearing account is cleared in a separate step in the general ledger
either manually or by running the automatic clearing program.
From Release 4.6, the automatic offsetting entry was simplified further and
enhanced. Now we are able to :
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- Create a new asset master record when posting

- Post several existing asset master records in one step.
Integrated with Material Management (MM)
An acquisition of asset in integration with MM shows the following logistic
process / activities:
1- Purchase Requisition (Optional activity)
2- Create master data for recording the asset if required,
3- Purchase order (in it we can specify asset master record number)
4- Goods receipt: at the time of entering purchase order we decide
whether the asset is to be posted directly to Asset Accounting when
goods receipt is posted (as valuated goods receipt) or whether
capitalization does not take place until the invoice receipt is posted
(non-valuated goods receipt). The first option is exercised when the
goods receipt takes place before the receipt of invoice. When the
invoice is received later there may be difference in amount posted and
amount written on the receipt. In such a case adjustment posting are
made to the asset account, no correction entry is required as system
has still not capitalized the asset, however system capitalizes the asset
from the date of receipt of asset.
5- Invoice receipt: on the receipt of asset (in case of non-valuated goods
i.e. invoice received later) the asset is capitalized after the receipt of
invoice.
6- Creation of asset (after the receipt of asset as well as invoice) the asset
is capitalized, line item is created and value fields are updated.
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Lesson 3.4 Assets Retirement

There are different ways of posting retirements:
1. Retirement with revenue and customer (integrated asset retirement)
2. Retirement with revenue, but without customer (not integrated)
3. Retirement without revenue (Asset retirement by scrapping)
The first three points can each be entered either as complete or as partial
retirement
4. Mass asset retirement (with work list)
5. Retirement of several assets (within the manually posted retirement
transaction).
Integrated Asset retirement:
Open the Asset Retirement Screen; select the Asset Retirement checkbox
when posting the revenue from Asset sales account.
The system will display a dialog box. Here you enter the following data, if it
has not already been proposed:
Asset number
Retirement transaction type
Asset value date (date of the retirement)
The portion or part of an asset being retired or the indicator for
completer retirement,
Complete Retirement with Revenue:
While making retirement entries with revenue when we give the above date,
the system automatically calculate gain /loss on the asset retirement. In
addition the system determines the asset balance sheet value and the
proportional value adjustment (Book value accumulated depreciation)
The values of the accounts for Revenue from asset sales and Clearing asset
retirement can be shown in the notes to the financial statement.
Asset Retirement Calculating Gain / Loss:
The system determines the period for the asset retirement on the basis of
thedate provided to the system as value date of the assetretirement (asset
retirement date). Using the period control method (period control key of
thedepreciation key), the system automatically calculates how long
depreciation is (allowed to be)posted for the asset.
The system automatically determines the proportional value adjustments
(depreciation) up to thisperiod that apply to the part of the asset being
retired, and cancels this depreciation.
At the same time, the system posts the asset retirement.
System calculates the gain or loss results from following data;
Amount of the asset retirement;
The amount of value adjustments; and
The revenue received form the sale of asset.
Mass Retirement (Using Work-lists)
Mass retirement, with or without revenue, is defined as a standard task in the
system:
To carry out a mass retirement, follow these steps:
1. Use an asset report to create a list of the assets to be retired.
2. Create a work list.
3. Select a purpose for the work list:
o Retirement without revenue
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o Retirement sale (with revenue)

4. Enter the revenue distribution.
5. Process the work list, or edit the work list before releasing it.
Lesson 3.5 Assets Transfer Intra-company
(Within the Same Company Code)
orIntercompany (Within two company Codes)
Asset Accounting distinguishes between different types of transfers,
depending on circumstances:
transactions within one company code (Intra-company Transfer) or
Transactions between different company codes (Intercompany Transfer).
Possible reasons for intra company code transfers:
A master record was created and posted to in the wrong class (in the
previous year).
You would like to split up an asset or move part of an asset. Part of the
asset must thus be transferred to a new asset.
You would like settle an asset under construction and transfer it to a
finished asset.
HINT: It is certainly possible to map the AuC (Asset Under
Construction) settlement process using the transfer, but SAP
provides a much more convenient solution for splitting and
settling an AuC in the standard system
NOTE: The system uses transfer variant 4 for intra-company asset transfers.
One of the functions of the transfer variant is to determine the transaction
types with which the transfer is recorded in thesource and the target asset.
HINT: From Release 4.6 onwards, you can create an intercompany and intra-
company asset by using asset transfer transaction. While doing so you can
use field transfers to determine which entry fields should be transferred from
the source asset record to target asset record.
The Automatic intercompany asset Transfer function can be used
when either:
An asset has been sold to another company code, or
Simply transferred to another company code.
The following distinction is made for transfers:
When the asset is a transfer within a legal unit i.e. one company (both
company codes belong to the same company), SAP refers to such transfer
as relationship type 02. Both company codes are to be considered
legally dependent.
When the transfer of asset is taking place between legally independent
organizational uniti.e. company codes of different companies. The
company codes are then not linked to one another via company, but still
belong to a single company group mapped via the client i.e. group. This
arrangement can also be redefined using a relation typeit is a transfer
of relationship type 01.
The system automatically determines the relationship type using the
company IDs of the company codes. This assignment can be checked again
in Customizing for Asset Accounting.
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Exception to the default rule can be defined in a customer-specific program

exit.
Definition of Global Company:
The smallest organizational unit for which individual financial statements are
required according to the relevant commercial law. This means that a legally
independent unit can be or is also reflected by the company.
The transfer method is used to control how the values are transferred from
the source to the targetcompany code.
Transfer Method:
Since release 4.0 you can use automatic intercompany transfer to ensure the
acquisition and retirement parts of the transfer in one step.
Depending on the hierarchical organizational structure of your enterprise,
this combined transaction can be posted as an intra-company transfer
transaction type.
The transfer method is used to control how the values are
transferred from the source to the target company.
Gross Transfer Method:
In most cases this method is used for intra-company code transfer, because
it is un usual to add sales revenue to the asset. In the gross transfer method
the historical values of the assetis transferred to the target company code.
Net Transfer Method:
When you use the Net method or the New Value Method, you have to enter
sales revenue.If there is no gain or loss on the asset retirement, the sales
revenue equals the net book valueof the asset.Using the Net Transfer
Method, the net book value (of the source company code) is capitalized on
thetarget asset.
New Value Method:
When you use the New Value Method, the system capitalizes the amount of
the sales revenueon the target asset.
Standard Setting for the Transfer Variants:
The standard settings for the SAP transfer variants covers 80% of transfer
actions.
The standard SAP assumption is that transfers of relationship type 02 (i.e.
two company codes butone company) are always transfers within one legal
unit (the global company). Therefore, they are always represented as intra-
company transfers (i.e. intra-company transferstransaction types using the
gross method). The individual company code is not anindependent legal
entity, and does not create balance sheets for external purposes.
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HINT: If the structure of your enterprise is not reflected here, you need to
define your own transfer variants with standard or user defined transaction
types.
Transfer Cross-Company Depreciation Areas:
If company codes are assigned to different charts of depreciation, the charts
may contain differentdepreciation areas ( different keys/different area IDs)
but have the same functions. When this isthe case, you must define cross-
company depreciation areas before asset transfer.
Cross-Company depreciation areas do not have their own control
parameters. Instead they consist solely of a key that is uniform throughout
the client, and a short description.
If a corresponding cross-company depreciation area is not defined, the
system enters an asterisk (*)as a generic entry for the cross-company areas.
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Lesson:-3.6Assets under Construction

Assets under construction have two phases that are relevant to Asset
Accounting:
The under construction phase
The useful life phase
The assets have to be shown in two different (balance sheet items) during
these two phases. Therefore, they have to be managed using different
objects or asset master records for the under-constructionphase and for the
completed asset(s).
The transfer from the under-construction phase to completed asset is
referred to here ascapitalization of the asset under construction. Assets in
the under construction phase in FI-AA can bemanaged in the following ways
As a normal asset master record ( for summary settlement)
As an asset master record with line item management
When capitalizing the asset under construction, you transfer the values to
one or more completed assets and the system automatically separates the
transactions of current year from transactions of the previous years. This is
done by using differenttransaction types.
You can use Investment Management (IM) for large investment measures
where you would also like to add internal activities ( and map these in the
system).
AuC Settlement on a Line-Item Basis:
Proceed as follows to settle the asset under construction on a line-item basis
to one or more completed assets:
Assign a settlement profile to your company code in Customizing for Asset
Accounting.
Select all line items that you want to settle in the same proportion to the
same receiver.
Define distribution rules for these line items.
Post the settlement of line items to the specified receivers using the
distribution rule.
Note that this posting procedure settles all line items to which a distribution
rule is assigned.
If you want to settle using amounts, then you have to select and distribute
one line item after the other.
When you settle, you do not have to settle all line items at once, and you do
not have to distribute 100% of each line item.
Settlement Profile: (1) Summary Settlement and (2) Line item management
Distribution Rules: How much % of the work under construction shall Class
be transferred to completed asset. notes
Lesson 3.7 Unplanned Depreciation
The normal depreciation can be scheduled using depreciation keys.
A user can also schedule unplanned depreciation for individual assets
manually in FI-AA.
When you enter the relevant transaction type, the system recognizes that
you want to performmanual depreciation.
In a dialog box you can select the depreciation areas for which you want to
enter depreciation. The depreciation could be current-value depreciation for
example that is allowed for book depreciation but not for tax depreciation.
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As you have only manually scheduled the depreciation, the system does not
create an FI document. This FI document is not generated until depreciation
posting program is run.
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UNIT 4 PERIODIC PROCESSING AND

VALUATION
Lesson 4.1 Depreciation Areas, Depreciation Keys,
Depreciation Calculation and Posting
Over view:
In Asset Accounting we must have to perform some processes at period
intervals.
If you want to plan primary costs on a cost center basis, you can periodically
determine planned depreciation and interest and pass these on to primary
cost planning in the CO system via a report.
Investment support is a subsidy that a company receives for certain asset
investments. Assets that are eligible for such a subsidy are marked in the
asset master records with an investment support key. All specifications for
claiming the investment support are stored in the definition of this key. You
can post the claim manually or in a mass procedure.
Inflation management is required in countries with high rates of inflation or
deflation.
Note: You can now also use the Schedule Manager in FI-AA to define
schedule, process, and control periodically recurring activities.
Depreciation Areas:
Configuring Depreciation Areas:
Depreciation areas are identified in the system by a two-character numeric
key. You also define per depreciation area how to post the asset balance
sheet values and depreciation to the general ledger accounts. You can also
define depreciation areas for reporting reasons only.They will also values and
calculate depreciation, but will not post any values to G/L Accounts.
You can calculate different values in a depreciation area for specific purpose
(for example, for the balance sheet, for cost accounting or for taxes)
You also define per depreciation area which values have to be managed (for
example ,APC or positive /negative net book values). Class notes: when Net Book
Value goes negative that APC( Acquisition and production Cost) is used.
You also define for each depreciation area how posting values and
depreciation terms should or can be transferred to other areas.
Depreciation Types:
The system supports the following depreciation types:
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1. Ordinary depreciation: This is the planned reduction in asset value due

to normal wear and tear.
2. Special depreciation: This represents a purely tax-based type of
depreciation for wear andtear. This form of depreciation usually allows for
depreciating a percentage of the asset value, and this percentage may be
staggered within a tax concession period, without takingthe actual wear
and tear on the asset into consideration.
3. Unplanned depreciation: This is concerned with unusual
circumstances, such as damage tothe asset, that lead to a permanent
reduction in its value.
4. Unit-of-production depreciation: This allows you to take fluctuations in
activity into account for the depreciation calculation. It makes the amount
of depreciation dependent upon seasonal usage of the asset (example:
Driven kilometers of a truck or produced units of amachine)
Depreciation Key and Depreciation Calculation:
Specifications and parameters that the system requires to calculate
depreciation amounts are enteredin calculation methods which are assigned
to the depreciation key
Individual calculation methods are:
The base method.
The declining-balance method.
The maximum amount method.
The multilevel method.
The period control method.
The depreciation methods are assigned to the depreciation key.
Advantages of calculation methods (as compared to calculation key):
Country specific requirements are represented by method specific to a
particular chart of accounts.
They allow you to avoid the use of an ever-increasing number of internal
calculation keys.
You can enter depreciation key as default value for aparticular company
code or depreciation area.
Detail List of Methods: the detail list of calculation methods assigned to a
depreciation key can be called directly from transaction AFAMA, from the
asset master record and or from the Asset Explorer.
Calculating Depreciation Values:

The depreciation terms are stored in the asset master record. The system
calculates the annual depreciation using the depreciation key and the useful
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life. Depending on the purpose of the depreciation area, other terms such as
revaluation or imputed interest, are also calculated.
The system determines the depreciation start date using the asset value
date and the period control method.
The Asset Explorer displays the values and the depreciation for every
transaction and each area.
From the asset explorer, you can display the calculation of depreciation
values.
HINT: Please note that changes to the settings of the depreciation keys
(Customizing changes) do not automatically lead to a correction of
depreciation amounts for already posted /active assets. For that to happen,
you have to execute a recalculation of depreciation.
Depreciation Calculation on the Basis of Periodic Intervals:
With SAP Solution ERP 6.0, (and active Enterprise Extension EA-FIN), the
calculation logic fordepreciation changed from transaction based
calculation (old logic) to calculation on the basis of period interval
(new logic).
The new calculation program calculates the exact same depreciation amount
as the old logic, as proved in the example given below
Example:
1. Acquired an Asset for $1000 having useful life of 10 year on 1st January of
a year.
2. Partial retirement/scraping (40%) on 1st July of the same year
3. Partial retirement scraping of a further $200 on 1st October of the same
year.
Calculation of Depreciation using old Logic:
Depreciation amount for acquisition=1000 x 10% = $100.00
Depreciation amount on 1st Retirement = -400 x 10% x $-20.00
06/12 = $-5.00
Depreciation amount on 2nd Retirement= -200 x 10% x
03/12 = $75.00
Total Depreciation for the year =
Calculation of Depreciation using New Logic:
Depreciation amount for 1st Period interval= 1000x10% $50.00
x6/12 = $15.00
Depreciation amount for 2nd Period interval= 600x10% $10.00
x3/12 =
rd
Depreciation amount for 3 Period interval= 400x10%x
3/12 = $75.00
Total =
The calculation of depreciation using new logic (sometimes also described as
using Depreciation Engine) in principle enables a more exact and precise
calculation of depreciation amount.
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Note: This means that changes of depreciation terms during the fiscal year
are possible. The changes during the fiscal year, lead to different
depreciation amounts, compared to the old calculation logic.
Time Dependency of Depreciation Terms:
With the new depreciation calculation it is possible to manage important
Depreciation parameters time dependently:
The following parameters can be changed on the time dependent basis.
1. Depreciation Key,
2. Useful life (year / period)
3. Variable Depreciation portion.
4. Absolute Scrap Value
5. Percentage Scrap Value.
Using the buttons Further Intervals (in the detail screen of the depreciation
area) and Add Interval, you can define a time-dependency for depreciation
term for each depreciation area.
The logic and method for working with time-dependent depreciation terms is
comparable with theprocedure for time-dependent data in the master data
area. Time-dependent changes can thereforealso be defined by creating new
intervals.
The Summary of whats new in FI-AA deprecation calculation with
ECC 6.0 and active EnterpriseExtension EA-FIN (Financial Extension)
The Summary of whats new in FI-AA deprecation calculation with ECC 6.0
and active EnterpriseExtension EA-FIN (Financial Extension) is given in the
following points:
Depreciation calculation on the basis of period intervals/use of the
Depreciation Engine
Time-dependent depreciation terms
Support for an (automatic) changeover method to period/months. However,
this is not a Standard method, it must be implemented using the BAdI
(Business Add-In)FAA_DC_CUSTOMER
Note: the time dependent intervals are also visible in the Asset Explorer.
If time dependent depreciation term are used a difference can arise in
depreciation amounts as compared to depreciation calculation before SAP
ERP 6.0
Example:
An asset with original useful life of 5 years, purchased for Rs. 10000, to be
depreciated on straight line. After 2 years the useful life is shortened to 3
years.
Depreciation calculation without Depreciation Calculation with ECC 6.0
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the option of time-dependent using time dependent depreciation

definition of the change parameters.
Fiscal year APC Depr. Fiscal year APC Depr.
Acq year 10000 2000 Acq year 10000 2000
Acq year +1 4000 Acq year 2000
Acq year +2 4000 +1
Total 10000 10000 Acq year 6000
+2
Total 10000 10000
If time-dependent depreciation terms are not used, a change would
have the effect that all open (andfuture) fiscal years are/were recalculated.
The new logic of the depreciation calculation creates a new period interval
for all changes taken place during the fiscal year. Hence the change effects
only the future periods.
Cost Accounting Depreciation Area:
You can define whether interest should be calculated for the cost-accounting
depreciation area, andwhether depreciation should continue below zero. You
make these specifications when you definethe depreciation areas.
You can use index series for indexing the acquisition value and thus
calculate a replacement value.
The above example from the slide contains the following depreciation terms
and information:
1 Depreciation key LINA: Straight-line from replacement value, pro rata
temporis with curb and interest
2 Ord. dep. Start: 02/01/YYYY Depreciation and interest in year 1: 11/12
of the annual value.
3 Index: 103% for APC (the calculation of depreciation from the second
year is based on the indexed replacement value)
4 Interest: 10% interest on half the acquisition value.
5 Automatic calculation:
1 Depreciation after planned life end: This indicates that you want
the system to continue depreciation after the end of the planned
useful life.
2 Depreciation below book value: Set this indicator if you want the
system to continue depreciation after the book value is zero. The
depreciation area must allow negative net book value (a
changeover key may be used).
3 Effective life after planned end (with curb): The actual, not the
planned life determines the rate of depreciation.
Example of index series is that your index for year 2004 is 100 & you bought an asset for 10,000. It is now 2008 & your index is 150. The
report will show that your asset is worth 15,000.
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Automatic calculation of Depreciation Indicator means:
Depreciation after planned life end: This indicates that you want the
system to continue depreciation after the end of the planned useful life.
Depreciation below book value: Set this indicator if you want the system
to continue depreciation after the book value is zero. The depreciation area
must allow negative net book value ( a changeover key may be used).
Effective life after planned end(with curb): The actual, not the planned
life determines the rate of depreciation.
Imputed Interest:
For cost accounting, you might have to calculate imputed (assigned) interest
on the capital tied up in assets. For this specify the following settings:
Allow the calculation of imputed interest for the depreciation area.
Determine that interest should be posted for the company code and the
corresponding depreciation area.
Use a depreciation key to which calculation methods for the depreciation
type Interest areassigned, or define such a key user-specifically.
If the calculation of the interest is based on a replacement value, the
system calculates indexed interest.
The system posts interest (periodically) during the periodic depreciation
posting run. It posts to theaccounts that are entered in the account
determination for each depreciation area. Furthermore, an additional account
assignment can be made to the cost center or the internal order entered in
eachasset master record (as is the case with depreciation).
Replacement Value: Index Series:

If revaluation (indexing) is used in a depreciation area, you can specify a
default index series forcalculating the replacement value in the asset or
asset class.
For each fiscal year, you should specify index figures for the index series. If
they are missing, thesystem switches to a simulated annual rate.
An indexed revaluation can also be calculated for accumulated depreciation
and imputed interest (if the interest calculation key is based on replacement
value).
Specify in the depreciation area if you want to post to the general ledger,
indicating whether youwant to post revaluation of APC only, or also include
depreciation/interest.
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Depreciation Run Program RAPOST2000

The depreciation program RAPOST2000 can be used to post (if required)
Ordinary depreciation (book depreciation and cost-accounting)
Tax depreciation, or allocation and write-off of reserves due to special tax
depreciation
Unplanned depreciation (or other manually planned depreciation)
Imputed interest
Revaluation of APC or of accumulated depreciation
HINT: Program RAPOST2000 posts the depreciation amounts in Fixed Asset
Accounting and also directly to the G/L accounts. Alongsideadditional
account assignment objects are posted and the program creates Controlling
documents
Using a test run you can check for any possible error, such as locked cost
centers. Any errors that occur are displayed in an error list.
Post Depreciation: Specify Account Assignment Type:
You need to make following settings to post depreciation
1. Configure depreciation areas in which you want to post depreciation
2. Specify G/L Accounts for depreciation postings in your account
determination
3. Assign the document type for depreciation postings in your account
determinations
4. Specify intervals and posting rules per depreciation area
5. Activate account assignment objects and
6. Specify Account assignment types for (active) CO account assignment
objects to be able to post (Cost Accounting) depreciation to the
Controlling objects of the asset master record.
Log of Program RAPOST2000 (Test Run)
This program caries out all essential checks during the test run, and records
any arrors:
Incorrect account assignment objects (e.g. a cost center that is locked in
CO)
Account assignment types missing in Customizing for Asset Accounting.
You receive the error message Account xxxx requires an assignment
to a CO Object.
Accounts for depreciation posting missing
Posting period was entered incorrectly (related to the posting interval
entered inCustomizing) on the initial screen of RAPOST2000
`Settings missing for the depreciation posting cycle in the depreciation
area
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HINT: The errors are indicated by red traffic lights at the end of the log. You
can choose the Error list button to see more details.
There is also a document simulation function related to the depreciation test
run. You can branch from the log to a simulated FI document.
If you execute a productive depreciation run, you can see all documents of
the (entire) period in the posting run log. The corresponding program is
called RAPOST2001 and you can find it in the Asset Accounting Application.
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Lesson 4.2 Fiscal Year Change and Year End

Closing in Assets Accounting
Fiscal Year Change:
The fiscal year change program opens new annual value fields for each
asset.
The earliest you can start this program (in the production system) is in the
last posting periodof the current year.
You have to run the fiscal year change program for your whole company
code.
You can only process a fiscal year change to a subsequent year if the
previous year has already been closed for business.
Take care not to confuse the fiscal year change program with year-end
closing (program)for accounting purposes.
Year-End Closing (in Asset Accounting)
Year-End Closing (in Asset Accounting) - Preparations:
After the depreciation lists and asset history sheet have been checked,
depreciation is posted.
If an area posts asset balances periodically to the general ledger, you
have to start report for periodic APCvalues postings
(programRAPERB2000) at least once in the update run.
If the final result is not satisfactory, you can carry out depreciation
simulation or (bulk) changes, or make adjustment postings.
If you change any depreciation values, you must run depreciation posting
again.
The year-end closing program (RAJABS00) checks whether:
Depreciation and asset balances are posted in full
Assets contain errors or are incomplete
If the program does not find any errors, it updates the last closed fiscal year
(for each depreciationarea). The report also locks all closed fiscal years
against postings from the asset area.
If a closedfiscal year is subsequently released for posting, it can only be
closed again once the year-end closingprogram RAJABS00 has been run
again.
You find the year-end closing program in the Asset Accounting Application.
Periodic APC Values Posting:
Settings for using program RAPERB2000:
Define(new)document type:
Create number range interval:
Now create the new document type for your company code(s) in
Customizing.
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When you execute the test run, the report provides a comprehensive log (in
ALV format). You can go directly from the log to a simulation of documents.
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UNIT 5 INFORMATION SYSTEM

Lesson 5.1 Report Selection
Report Tree and Area Manu
Up to release 4.6 the Asset Accounting standard reports were contained in a
report tree, which was stored in Customizing for Asset Accounting.
The report trees were then replaced by area menus. The area menu for
reporting is called FIAA (Information system Asset Accounting).
This in turn, is embedded in the Asset Accounting area menu (ASMN), which
can be changed and displayed in area menu maintenance transaction.
SAP List Viewer:

Asset reports (since release 4.6) use the ABAP List Viewer (ALV). This tool is
used to standardize and simplify using reports in the SAP system.
There is a new graphical design, which makes it even simpler to process and
display lists and reports using the ALV(ABAP List Viewer) Grid Control.
Important List Viewer functions:
Deleting and inserting columns
Arranging the values in columns in ascending or descending order
Calculating totals or subtotals across one or more columns within a list
Using layouts to save an individual report structure so that you can use it
again later
Set filter: You can choose to have only those lines displayed that meet
certain criteria.
You can add any number of asset input fields to ALV reports in FI-AA
usingFIAA_SALVTAB_* structure
Sort Variant:
All reports allow you to sort (and total) data in different ways using freely
definable sort criteria. The different sort criteria are combined in sort
variants.
A sort variant consists of a maximum of five sort levels which are determined
via ABAP Dictionaryfields.
HINT: Maximum 5 sort criteria can be saved as a variant.
The report can output a total and, in some cases, a statistic for each sort
level.
In total column, you can specify the levels at which you want totals to
output.
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You can see a more detailed breakdown of the total of a group level in
some lists by selecting the Statistics indicator.
You can use the sort variant with any FIAA report.
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Lesson 5.2 Value

Simulation
Simulation with the

Asset Explorer:
The Asset Explorer offers
extensive possibilities for
evaluating individual asset
master records.
By entering a asterisk * in the sub-number field, you can (even request
combined reporting for a main number and the sub-numbers belonging to it.
Choose the Display dep. calc. function to see a detailed display of the
calculation of depreciation in the system.
The Posted Values tab page displays not only the planned data for a fiscal
year, but also the amounts actually posted to date.
Asset Explorer is used to create a preview of how the values for individual
assets will develop bymeans of simulated transactions and/or simulated
depreciation terms.
Depreciation Simulation:
Simulation, in this context, refers to an experimental change to depreciation
parameters affecting thevaluation of assets. This change can apply to:
a single asset,
the entire asset portfolio, or
Parts of it.
When you simulate the development of asset values, you can change all the
important depreciation terms using a simulation version and simulate the
depreciation for future fiscal years;
Note: You have the option of including depreciation for your planned
capital investments in the forecast. To take advantage of this option,
you have to be managing the planned investment amounts as planned
costs on an order or project in CO. By assigning depreciation terms and
a planned start-up date to the order or project, you make it possible for
the future depreciation to be displayed.
Simulation Versions:
Simulation versions allow you to simulate a change of depreciation logic.
For each area, asset class, and depreciation key, specifies which depreciation
key and useful lifeshould be chosen as alternatives for simulation. The
validity interval excludes assets with acapitalization date that lies outside
that range.
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Lesson 5.3 Assets History Sheet

Structure of Asset History Sheet:
The asset history sheet is a very important and comprehensive year-end or
intermediate report.
You can create it using various sort versions and totals at any group level,
just like any other report.
You can create a compact totals list that does not contain information on the
individual assets.
From the total display of the asset history sheet, you can call the sheet for
the individual assets. From there you can go to Asset Explorer.
You can also use the RRI (report report interface) to start other FI-AA
reporting programs.
SAP deliverscountry-specific (history sheet) version. These meet the
legal requirements in the given country.
You can also define your own history sheet versions:
Size: Not more than 10 rows and 8 columns
Store the headers of the history sheet items
Define how the values are supplied to the history sheet items
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UNIT-6 STANDARD REPORTS IN

GENERAL LEDGER ACCOUNTING,
ACCOUNTSRECEIVABLE ACCOUNTING AND
ACCOUNTS PAYABLE ACCOUNTING
Lesson 1 Information System
Where are the Reports:
You can find the reports you require in various places in the system:
You can access important reports using the information system for each
area (GeneralLedger, Accounts Receivable, and Accounts Payable) and on
the general report selectionscreen.
Reports are also included in role-based user menus.
Under (System, choose System Services Reporting.)The general ABAP
execution screen appears, here you can enter the report name. If you do
not know the technical name of the report you can use the F4 help
Report Names:
You can often work out the names of the standard reports form the letters
they contain. The reports starting RF are differentiated by account type.
Report start with RFK(for vendors), RFD (for customers), RFS (for G/L
Accounts), RFB (for document reports)
Accounts Payable Information System: Reports for Accounts Payable
Accounting:
This information system contains all the key reports that you need as an
accounts payable accountant. The accounts payable information is split in to
reports for
vendor balances,
vendor items,
master data, and
payment transactions
In Dynamic Selection, you have various selection options (for example,
industry accounts grup, country, city and so on).
If you use the search help, you will also receive complex selection options
that you can use for different reports.
You give the filter criteria on the basis of which system collects data form
tables.
Accounts Receivable Information System: Reports for Accounts
Receivable Accounting:
When you use the selection and output control, you can restrict the data
displayed in the list. For example, for report on customers sales, you can
create a current or historical customer list that is stored by the customers
sales. To do this, choose Additional Selections and enter appropriate intervals
before you run the report.
When you enter the sales, you can use single values or ranges by selecting
and / or excluding single values and ranges.
General Ledger Information System: General Ledger Reports:
The G/L account balance list displays the selected totals figures by reporting
period. You can see the carry forward balance at the start of the fiscal year,
the total for the carry forward period, the debit and credit totals for the
reporting period, and the debit and credit balances at the end of each
reporting period.
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At the end of the list, you can see the total for each company code and the
final total for all
Lesson 6.2 Report Variant and Variables
Business Example: Employees in G/L Accounting, A/R Accounting and A/P
accounting wants to use different selection criteria to access data relevant to
them. They need to be able to save these selection criteria, as some of them
will not change for long time, so that they can access the date quickly and
easily.
Report Variants: Selection Criteria

You can define multiple report variants for one report. These report variants
contain differentselection criteria. A variant is a selection memory for a
specific quantity of saved selection criteria. Instead of entering values for
selection criteria each time to get the report, you enter the values once and
then save them as a variant. Next time to execute the report you can use
this variant. The option of creating variant with your own selection criteria,
thereby reducing time and effort later, is particularly useful for reports that
are used frequently or periodically.
A report, therefore, can have different report variants, each of which provides
a specific type of information based on the criteria that you defined in that
variant.
Report Variants: Attributes:
Enter variant attributes for your variant; first a Variant name, and then the
Description.
If you select only for background processing field, then the variant
is only permitted for background processing. If you do not select the field,
the variant is permitted for background and online processing.
If you select the Protect variantfield, then only you can change the
variant.
System variants are only displayed in the catalog and not in F4 Input Help if
you select the relevantindicator.
You can assign certain properties to some fields. For example, you can
protect a field, hide a field or make a field a required entry field.
Report Variant : Selection Variables:
Instead of entering values for selection criteria each time you start a report,
you can enter the values only once and then save them in a variant. If you
call up the report and use a variant, but still want to display certain values up
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to the current date (e.g. open item up to a certain key date) you can use
selection variables.
For example : if you want to see all the items up to a specific key date in a
report you can choose the Selection Variable Pushbutton when maintaining
attributes or more specifically when maintaining the selection screen objects
and then you can choose the type of selection variable.
Currently, the following two types of selection variables are supported (but
not for each selectioncriterion):
Table variables from TVARV
Dynamic date calculation
Table variables from TVARV: You use these variables when you store
statistical information thatcan be used in different reports. This means that
when you save the attributes for the variant, you canmaintain
parameters in table TVARV that contain your selection options, single values,
and/orintervals by choosing Maintain environment Selection variables.
Once you have maintained theseselection variables in table TVARV, you can
use them in any other report variants and reports.
Dynamic date calculations:The prerequisite for using these variables is
that the correspondingselection criterion in the program is type D (date). If
you change the selection variable from type Tto type D, the Name of
Variables field is no longer ready for input. You can only set values usinginput
help.
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UNIT-7 LIST VIEWER

Lesson 1 SAP List Viewer Design
The SAP List Viewer is a generic display tool that creates a standard
ergonomic list from predefined data.
The List Viewer standardizes and simplifies the use of lists in the SAP system
by providing auniform interface and list preparation function.
You can use the List Viewer to display simple andhierarchical sequential lists.
The SAP List Viewer contains a number of interactive functions such
assorting, summation, filters, and so on.
You can change the layout of lists without selecting data firstand save the
changed list layout in variants.
SAP List Viewer: Display / Change Document:
The SAP list viewer provides the following functions for displaying and
changing documents.
Select detail:
To get the information from an item, you have to select it first. You can then
use the eyeglasses icon or double-click the item(for using drilldown facility)
to display the individual document. You canalso call up the item with the
pencil icon if you want to make changes to the document.
Select Items:
To select an item, select it on the left side of the line item list. To select
multiple items, select a single item, hold Crtl, and select the other items. To
select all the items, use the appropriate icon.
Once you have selected multiple items, you can carry out a mass change in
the correspondingdocuments. To see the changes in the line item list, choose
Refresh List. If changes fail you can see the reason in the Change errors log
using the corresponding pushbutton.
You can choose whether you want to branch to the document item view or
the document overview of the document display. The accounting editing
options contain a corresponding checkbox.
SAP List Viewer: Generic Functions:
Some of the functions provided by the SAP List Viewer include the following
generic crossapplication functions:
Select Columns:To select a column, you click the column headings once. To
select multiple columns, select a column, hold Crtl, and select the required
number of columns
Sort: You can sort list in ascending order or descending order. You can sort
the list by selecting the required column and then choosing the required
function
Filter: You can set and delete filters in the same way.
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Summation: you can create total and sub-totals for specific values. Create
totals by selecting the required column and then choosing the appropriate
icon.
List viewer: Display Variants and Fields:
In addition to the display variants provided by SAP, you can also create your
own display variants.This allows you to define your own specific view of a
list.
You select fields that you want to see from the fields available in the column
set. You can hide fields that you do not require. You can also sort fields in the
column selection in the order that you require.
You can also add special fields to the column set in addition to the fields that
are already displayed.For more information, refer to SAP Notes 215798 and
420591.
If you require offsetting account information, refer to SAP Note 112312. This
is not a modification of the standard system, but a business transaction
event.
HINT: SBWP Stands for (SAP Business Workplace )
Classic List and Grid Control in the Line Item List:
When you display the list, you can choose between the ALV classic list and
the ALV grid control(grid design).
With some lists you cannot switch between the two layouts; this is a special
feature of the line item list.
The ALV classic list is the list that is displayed when no specific settings have
been made. This list is essentially the print screen and offers a better
overview of the sorted list when the item of multiple accounts are displayed.
The grid control design has proportionate text and is particularly useful when
you display individual accounts online for internet services offered by SAP
programs.
User Parameters for the List
You can display (and change if necessary) the settings using transaction
FB00, the accounting editing option on the Line Items tab page. You can
display and change parameters using transaction SU3.
Using parameter IDs, you can enter user default values in fields where the
value usually remainsconstant. If, for example, you switch the list to grid
control, the value will be saved in your user parameters. When you call up
the list, this value appears automatically in the corresponding design. This
means that you do not have to manually switch the list again. The next time
you log on to the system you do not have to re-select the required layout.
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Lesson 7.2 Selections

Selection Criteria for Line Item List:
You can use specific selection criteria to choose line items that you want to
evaluate.
These selection criteria refer to:
The accounts in which you want to see line items in specific company
codes
Selection criteria that you can choose using search help
The selection of line items themselves, based on their status and category
In addition, you can also choose the following for the list output:
Layout
Maximum number of items
Selection of G/L Account, Vendor and Customer
When you can make your account selection for G/L accounts, customer
accounts, and vendor accounts, you can use simple and multiple
selection to include or exclude individual accounts and account intervals
from the selection.
If you select the Work lists Available field, you can activate and deactivate
the input fields for worklists on the selection screen for each line item list.
If the work lists exist, when you select the Worklist Input Fields Active
field when you call up the selection screen for the line item display,
thisselection screen is displayed with input fields for work lists.
Selection using Search Help
If you select items using search help, the system provides input help for the
G/L account line item list:
G/L account number in chart of accounts (also in combination with the
company codespecification)
G/L account name (G/L account long text) in chart of accounts (also in
combination with the company code specification)
G/L accounts with deletion and block indicators
Keywords
Alternative account numbers
When you select items using search help, the system offers input help for the
vendor line item list:
General vendor data (search term, postal code, city, name, and number of
vendor)
Vendor country/company code
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Vendor by personnel number

Vendor by purchase, material, or plant reference
When you select items using search help, the system offers input help for the
customer line item list:
General customer data (search term, postal code, city, name, and number
of customer)
Customer country/company code/account group
Customers with rental agreement
Customers for each sales group or with plant reference
Head office customers
Item Selection:
You can select item list based on their status and category.
When you select open items, you select items that are or were open at a
specific time. The current date is proposed by default.
If you choose Cleared Items, the system displays items that were cleared by
the clearing datespecified and that were still open on the key date. If you do
not specify the clearing date and the key date, the system displays all the
cleared items.
If you want to see open and cleared items, choose All Items. You can restrict
this selection using theposting date
Head Office / Branch
In some industries, customer submit order locally via branch but pay
invoices centrally through the head office. SAP differentiates between the
flow of goods and the flow of money. In the SAP system, you can set up head
office and branch accounts.
All items posted to a branch account are automatically forwarded to the head
office.
If you select the branch office /head office indicator, a dialog box appears for
each branch account. In the Dialog box, you can choose whether the branch
can display items that are managed at the head office.
If you deactivate the dialog box, the setting made in the Items Managed at
Head Office field applies automatically.
Selection by Net Due Date:
When you display the line items you can make a selection by net due date.
If you select the Selection by Net Due Date field in the editing options of the
user parameters, the system activates the input fields for the selection by
net due date on the selection screen.
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Key for Icons:

In the header of the ALV (ABAP list viewer) classic list, you can display the
key for the icons for the item status (open, Parked, cleared), as well as the
icons for the due date (overdue, due not due)
In the editing options for the line items display, you can select whether you
want to see these keys when you call up the list.
Comments: The key date is the determining factor in classifying whether an
item is open or cleared. By backdating an item, you can display the status of
the item on a key date in the past. Items posted after the key date are not
displayed.
The Assignment Field as Sort Field:
In addition to selecting columns, when you create or change the layout, you
can also define sort criteria for sorting and create subtotals.
The system automatically fills the assignment field for a line item according
to the Sort Field entry in the master record when you post items.
The assignment field can be a combination of up to four fields with a
maximum of 18 characters e.g. to display the document number (10
characters) and the posting date (six characters), these field names can be
included in the assignment field definition.
If you chose the Purchase Order Number sort key in the customer/vendor
master record the assignment field for the line item contains the purchase
order number for customers / vendors.
If you select the sort key for the Cost Center in a general ledger master
record, the assignment field in the corresponding G/L account item for the
line item contains the number of the cost center when you post to this G/L
Account
The line items in the line item display are frequently sorted by the value in
the assignment field.
Example: When an invoice is posted in the Sales Department(SD), an
accounting document is created in FI. The accounting document has a
document number that is usually not identical to the number of the invoice in
Sales Department. Using the reference and the assignment, you can find out
the SD document on which the accounting document is based. The reference
and the assignment in the FI invoice are copied from the reference and
assignment in the SD billing document. You can define which number
(Purchase order, sales order, delivery, billing document) are copied as a
reference and which are copied as an assignment in the SD document and
then copied into FI. You can then use these fields as selection criteria in FI.
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Page 60 of 108
Lesson 7.3 Changing the Screen Layout

SAP provides various standard layouts that you can supplement with other
(standard) layouts.Standard layouts start with a slash (/). You can choose a
standard layout as your default layout. If theindicator for a display variant is
set as the initial variant, this variant is always used for the list outputunless
you explicitly specify an alternative display variant.
You can also choose a user-specific layout, provided that you can save user-
specific display variants.
Standard Layout: Default and Initial Layout:

The standard layout is the layout that applies to all users.
You can select a layout for the list output for your line item display. If you so
require, this layout is displayed again the next time you call up transaction
FBL*N
If you have not selected a layout, the list layout from the default selection
screen is selected from your user parameters. You can default the input field
for each account type.
If you do not make an entry, and no default setting is made for the selection
screen in the user parameters the system uses the ALV initial layout. You
cannot define the ALV initial layout in the accounting editing option; you can
only do this in the line item list itself. You default the ALV initial layout in
display variant management.
If you do not make a default setting in display variant management, the
system chooses the ISAP layout.
User-Specific Layout:
You can create a user specific layout, which only you can use.
If you want to work with your user-specific layout, call up the relevant line
item list with your new user-specific layout. In the editing options of the user
parameters, the default selection screen is updated with your new user-
specific layout. If you also want to be able to call up the line item list using
another layout in you selection as well as your user-specific layout, deselect
the Save Last Layout for default field.
The following order applies: User-specific initial screen (set as default) has
priority over generalinitial variant (set as default).
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UNIT 8 DRILLDOWN REPORTING IN

FINANCIAL ACCOUNTING
Lesson 8.1 Architecture of Drilldown
Reporting
Drilldown reporting is a dialog-oriented information system for evaluating
data from the Financial Accounting, GL, AR, and AP databases.
Drilldown reporting contains helpful functions for navigating in the dataset. It
also contains several additional functions for processing a report
interactively.
SAP Graphics, SAPmail, and various printing functions are connected to
drilldown reportingtogether with Microsoft Word for Windows and Microsoft
Excel.
Using the Report Painter:
You can use the graphic interface of the Report Painter for various activities.
Form Types: Drilldown Reporting in FI:
The following report types can be used for G/L account evaluations:
1. Reports for financial statement analysis:
These reports are based on the financial statement versions defined in
Financial Accounting. You can carry out any number of variance analyses
based on actual and plan data (annual, half-year, quarterly, and monthly).
2. Key figure reports:
For key figure reports, the system takes into account only the financial
statement items in the financial statement version that you need for the
calculation of specific key figures (ratio analysis). This is not the case for
financial statement analysis reports. Financial statement version key figures
could be for example, equity ratio (stockholders equity: total equity), debt-
equity ratio (external capital: stockholders equity), and capitalization ratio
(fixedassets: total assets). You can create key figures from report rows and/or
columns using anintegrated formula interpreter.
3. Balance display:
You can use the following report types for customer or vendor drilldown
reports:
a. Balance display
b. Line item analysis
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Architecture of Drilldown Reporting:

A report definition can contain 1) characteristics, 2) key figures, and 3)
forms.
A report is a number ofinteractive, controllable report lists and graphics that
are displayed on the screen.
Characteristics:
Drilldown reporting provides useful functions for navigating within the
dataset.It also containsseveral additional functions that can be used to
process a report interactively (sorting, specificationof conditions, ranked list,
and so on). You can send report lists (for example, as a fax), display themon
the Internet, or transfer them as files to Microsoft Word and Microsoft Excel.
Key Figures:
Drilldown reporting also contains functions for printing reports. There are
various print preparation functions for you to structure your report as you
require (such as page break, headers and footers,and underlining).
Forms:
A form describes the basic content and formal structure of report lists. A form
can be seen as a semi-finishedproduct for a report; it is later completed with
characteristics and key figures when youdefine the report. Characteristics
appear in the form as well as in the report. You can choose keyfigures either
in the form or the report.
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Lesson 8.2 Characteristics and Key Figures

Characteristics specify the classification options for the dataset. Examples of
characteristics arecompany code, business area, and plan/actual indicator.
The time reference (fiscal year, period) isalso a characteristic.
Characteristic values are concrete forms of a characteristic. Possible values
for the characteristic company code could be 0001,0002, 1000 or all the
company code defined in the system.
A combination of characteristics and characteristic values is generally called
an object in drilldownreporting.
Key figures:
In the application there are various key figures that can be relevant to
evaluations. Key figures are not just values and quantities, but also
calculations involving these values andquantities with user-defined formulas.
The following are examples of key figures:
Value: Balance sheet value, debit total, sales/purchases
Quantity: Number of employees, sales quantity, etc.
Calculation: Sales per employee, plan/actual variance
Drilldown List & Detail List:

There are two types of list for displaying information: The detail list and the
drilldown list.
Drilldown List: In a drilldown list, several objects (for example, assets
under construction, vehicles, and chemicals) are formatted using a selection
of key figures. Usually, the key figures are in the columns of the list (for
example, balance sheet value, total debit postings, total credit postings). The
rows contain the characteristic values of all the characteristics that are
drilleddown.
Detail List:In a detail list, an individual object (for example, business area)
is formatted for all keyfigures according to the form. Usually, the key figures
are in the rows of the detail list (for example, balance sheet value, total debit
postings, total credit postings).
Class Notes:
Drill down means seeing the detail list of the figure
appearing in the report (financial statements)
The last list up to which we go by using drill down
option is called the detailed list.
Format of the report is known as form.
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Lesson 8.3 Form Types

Three types of form exist: 1) Single-axis form without key figure, 2) Single-
axis forms with key figure, 3) Dual-axis form with key figures
Single-axis Form Without Key Figures:
If you are using a single-axis form without key figures, you define either
The form rows orcolumns with characteristics.
When you access the initial screen, the system displays an empty list with
columns.
Single-axis form with key figure
If you are using a single-axis form with key figures, you define either
The form rows orcolumns with key figures and characteristics.
When you access the initial screen, the systemdisplays an empty list with
rows.
Dual-axis form with key figure
If you are using a dual-axis form with key figures, you define
The form rows and the columnswith key figures and characteristics.
When you access the initial screen, the system displays an empty list
containing rows and columns.
You are free to define whether the rows containkey figures and the
columns contain characteristics, or vice versa.
It depends on what youwant to report.
When you create a form, you define the name and the type of form
that you want to process.
A form is a formal structure of report list a semi-finished product later
completed with characteristics and key figures.
Single-axis Form Without Key Figures:

In a single-axis form with no key figures, you make selections only in the
characteristics columns. The characteristics that you select in the form
define the column content. You can also perform calculation with formulas
(for example the variance could be the difference between plan and actual)
You select the key figures and the drilldown characteristics i.e. the
characteristic whose values you want to use to navigate in the report when
you define the report (e.g. the characteristics business area, financial
statement item, or account number).
The drilldown list contains a two-line column heading. The key figures (for
example, balancesheet value, total debit postings, total credit postings) are
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in the first row and the characteristics that you selected in the form (for
example, fiscal year, prior year, and variance) are listed below. The values
for the drilldown characteristics are in the rows (forexample, assets under
construction, vehicles, and chemicals for the business area).
In the detail list, the characteristics chosen in the form are contained in the
columns, and thekey figures are contained in the rows. The detail list
displays the results of a selected characteristic value (for example, assets
under construction for business area).
Single-Axis With Key Figures:

In a single-axis form with key figures, the key figures are integrated with
characteristics in the rows of the form (for example, fiscal year balance sheet
value, prior year balance sheet value withvariance).
In the report definition, only the drilldown characteristics are chosen (for
example, business area, financial statement item account number, and so
on).
In the drilldown list, the key figures integrated with the characteristics are
the columns of the form, and the values of thedrilldown characteristics form
the rows (for example, assets under construction, vehicles,chemicals, and so
on)
The detail list has one column and contains the selected characteristic value
for which youwant to report (for example, assets under construction), and
the key figures are in the rows.
HINT: When you use a single axis form with key figures, you define either the
rows or the columns for the form. From the initial screen, the system displays
a list containing rows but no contents. However, you can use the column
display function to tilt the form. This means that you are free to decide
whether you want to define rows or columns for this form type.
You define the detail list when you define a form. This means that the
position of the elements that you define in the form corresponds to the
position in the detail list. Therefore, for single-axis forms with key figures, the
key figures are defined in the rows by default.
Two Axes (Matrix)

In a form with two axes (matrix), both the rows and columns are defined
using key figures orcharacteristics. The key figures have to be in either the
rows or the columns of the form, but you can enter the characteristics in the
rows and the columns.
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When you define the report, you then choose only the drilldown
characteristics (for example,business area, company code, account number,
and so on).
Hint: in all types of forms, you can use various functions to change the layout
and settings as you require (colors, number format, separators, text, and so
on)
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Lesson 8.4 Navigation in Reports

From Drilldown List to Detail List:
If you want to switch from the drilldown list to the detail list, choose the
Detail list symbol. All ofthe row selection symbols are then highlighted in a
different color. Choose the required evaluation object. The system then
displays the required detail list.
Back to Basic List: If you want to return to the basic list, choose the XX
symbol (in red). Note that changes that you make in settings in the
meantime are retained.
From Detail List to Drilldown List:

If the basic list is defined as the detail list for a report, the detail list is the
first screen to be displayedwhen you execute your report. If you want to
switch from the detail list to the drilldown list, chooseDrilldown list. The
system then highlights all the free characteristics in the navigation block.
Choosea characteristic by clicking it. The system then displays the drilldown
list.
Navigation in Classic Drilldown Reports:

You are in the drilldown list in which the FS item characteristic is drilled
down. The navigation area for the drilldown list contains additional
characteristics that you can use. If you want to exchange the FS item with
another characteristic, for example, Period, first click FS item and then
Period. The two characteristics then change places: FS item is not available
for selection in the navigation block, and Period is drilled down for all
characteristic values.
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Lesson 8.5 Form & Report Definition

SAP delivers standard forms, which you can use as templates to create your
own forms. The namesfor these standard forms are 0SAPBLNCE-01 through
0SAPBLNCE-NN, and you cannot use thesenames for your own forms.
Defining characteristics for all columns (general

selections):
Form Definition: Example of Financial Statement Analysis
Firstly:define the characteristics that you want to be valid for all columns in
your form.Since you want to enter actual data in all the columns of your
form, you can define thisgeneral characteristic by choosing Edit General
Selections.
A dialog box appears for you to select the characteristics for the general
selections. In thedialog box, add the characteristic Record type to the table
of selected characteristics and define the value 0 for actual data.
Form Definition(2): Example of Financial Statement Analysis
Secondly: Define the characteristics ofthe individual columns.
A dialog box appears, in which you can select Key figure with characteristics.
A second dialog box appears. Choose Balance sheet value (BILWERT) from
the list of available keyfigures. In this case, the key figure reflects the values
of the balance sheet that you want toevaluate for your report.
To carry out an actual year comparison you also require the Fiscal year
characteristic.
Define the characteristic values for the characteristics that you have
selected.
You can enter three different lengths of text. These are then used as the
column headings for the elements. You can enter a short, medium, and long
text. Using the text type, you can laterdetermine which text is used for each
column. If you want to enter a two-line heading, youmust separate the two
lines using a semicolon (;).
Form Definition(3): Example of Financial Statement Analysis
In the third column, you define the variance between the first and the second
column.
To do this, place the cursor on the third column and choose Edit Element
Define Element.
On the following screen, choose Formula. The formula editor appears, in
which you definethe formula that is to be used to calculate the variance.
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Using the formula editor, you can perform standard arithmetic

operations (+, -, *, /) with any elements.
Under ID, double-click the first volume, select the minus sign, and then
double-click the second volume under ID.
On the following screen maintain the text types for the Variance columne.
Save the form
Steps for Creating Report

Enter the name of a new report or choose the name of the report whose
definition you want to change. You have to choose an appropriate form for
the report type (financial statement analysis, financial statement key figures,
or balance display). You can choose a reference report if necessary.
On the Characteristics tab, the system displays a list containing all the
available characteristics. In the characteristic list, select the characteristics
that you want to use for your evaluation in the report, and use the arrow
buttons to add them to the report. Thesecharacteristics are the drilldown
characteristics that you use to navigate in the report.
Using the Sort characteristics function, you can determine the order of the
characteristics in the navigation block of the report list for the executed
report. The order of the characteristics determines the layout of the standard
drilldown. The characteristics that you define for characteristic value when
you defined the report are above the navigation block and you cannot re-sort
them. To improve performance, you should not select characteristics that you
do not need in the drilldown report. Even if you are printing, you should only
retain the characteristics that you actually require, otherwise the system
outputs superfluous subtotals. The number of characteristics offered for
selection is restricted by the selection criteria defined in the form. If you
have already specified a characteristic in the form. If you have already
specified a characteristic in the form, it is no longer offered for selection.
Report Definition (2) Example of Financial Statement Analysis:
Once you have selected a characteristic, all the values for this characteristic
are included in the report. There are various ways of restricting the value
quantity of a characteristic for output in the report.
On the Characteristics tab, you can restrict the characteristic values for each
drilldowncharacteristic chosen. There are various options dependent on the
report definition and the characteristic selected.
You do not make an entry. If you do not make any of the restrictions
described below,the system selects all the characteristic values when you
run the report.
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SAP recommends that you choose characteristics carefully to limit the

quantity for data selected. This improves system response times.
You define a characteristic value for a characteristic. The characteristic and
thecharacteristic value then appear above the navigation block on the report
list and have been defined (that is, you cannot use the characteristic as a
drilldown characteristic).
You use a variable for characteristic values
Lesson 8.6 Report/Report Interface and Report

Assignment
If you want to report on a number of characteristics or changing
combinations of characteristics, youwould have to define a very
comprehensive report that might not actually be executable online dueto the
large volume of data.
The report/report interface enables you to link several individual reports,each
with a limited number of characteristics, to perform flexible data evaluations
online. Recipientobjects can be other drilldown reports, report portfolios, BW
(Business Warehouse) reports, ABAP reports, Report Writerreports, or
transactions.
Using the report-report interface you can, for example:
Link reports that contain different characteristics in an application. This
enables you toreporton a larger number of characteristics than with
individual reports.
Link reports created in the different application classes.
Report Assignment
You assign the recipient reports in the report definition by choosing Options.
Choose Report
Assignment and define the report type (report portfolio, BW report, drilldown
report, ABAP report,Report Writer report, or transaction).
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UNIT-9 SPECIAL GL TRANSACTIONS

Lesson 9.1 Application view for Special GL
Transactions
Class Notes:
Characteristics of Special GL Transactions:
Special GL transactions are not made directly in G/L Accounts rather they are made in
the alternate G/L.
It can be a single line item
While making entry the system gives the POP UP notice.
These transactions can neither be held nor can be parked.
What are Reconciliation Accounts?

Transactions in the sub ledgers (accounts receivable and accounts payable,
for example) are also posted on the reconciliation accounts in the general
ledger. The aim is to have the values available in form of totals as well as in
general ledger to be able to quickly create a financial statement. To
determine the payable / receivables, the balances of the reconciliation
accounts can be directly displayed instead of having to search for the values
in the sub-ledger.
The reconciliation account to be posted is entered in each customer/vendor
master record. The Reconciliation Account field can be foundin the company
code segment of the customer/vendor master record.
Posting in Sub-Ledger:
If, for example, a customer invoice or customer credit memo is entered on an
account receivable, itis posted in the same way on the created reconciliation
account. Its account number can be seen on the FI document.
Special G/L Transactions Alternative Reconciliation

Accounts
Special G/L transactions are transactions in the accounts receivable and
payable, which are displayedseparately in the general ledger and the sub
ledgers. This may be necessary for internal reasons or forcertain report
purposes. For example, down payments may not figure in the balance sheet
together with receivables and payables for goods and services.
Transactions in the sub-ledgers are linked to the General Ledger by
reconciliation account defined in the sub-ledger master record. If sub-ledger
account assignments are made using a special G/L indicator, the postings are
performed on alternative reconciliation accounts (special G/L Accounts to
allow these transactions to be able to be displayed separately.
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Special General Ledger Classes

Special G/L transactions can be divided roughly into three classes: 1) Down
payments, 2) Bills of exchange and 3) Other transactions
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Down Payment Request Noted item

For Down Payment
Down Payment Free offsetting
Bills of exchange payment Noted Item
request For Bills of
Bills of Exchange Free offsetting Exchange
Check / Bill of exchange Free offsetting
Individual value adjustments Free offsetting
Guarantee of payment Automatic
offsetting Other Transactions
Interest
User-defined
1- Transactions in connections with down payments:

SAP provides specially preconfigured programs and entry screens for the
administration of requests for down payments. They may be for A/R or A/P
and can be called up from respective standard menus. Furthermore, the
processing of down payments is integrated in the dunning and payment
programs,.
2- Transactions in Connection with Bills of Exchange:
Bills of exchange are used to deal with country-specific particularities. The
SAP system contains special preconfigured programs and entry screens for
recording bills of exchange. Options for processing bills of exchange are
available in the standard menus for A/R and A/P
3- Other transactions:
The functions of the special G/L transactions are used for many different
kinds of business transactions. These transactions are controlled using
other option in the document entry menu in A/R and A/P. The special G/L
indicator makes it possible to pass on documents for individual items to a
reconciliation account. The indicator regulates the type of processing that is
triggered for the business transaction
Types of Special General Ledger:

There are three ways of transferring special general ledger entries to the
system. They are also called special general ledger types:
1- Automatic offsetting entries (statistical):
These are the statistical type of entries that are always posted on the
sameoffsetting account. They are not the part of financial statement. They
are usually included in the notes to financial statements. Example: Posting of
a guarantee of payment.
To simplify the posting procedure, the number of the account for the
offsetting entry is defined in Customizing. The system then makes the
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offsetting entries automatically. Whenyou clear open items in the respective

account, the system clears the respective items in theoffsetting account
automatically.
These transactions are called statistical postings, since they are generally
shownin thenotes to the financial statements (or not at all).
2- Noted items:
Noted items are individual account assignments that are only used to remind
the respective department of due payments or payments to be made and are
not intended to be displayed in the general ledger. Example: Down payment
request.
Noted items are special G/L transactions with informational character which
only remind the user about due payments or payments to be made and are
not displayed in the general ledger or added to it. Only one line item is
updated if a noted item is created. No offsetting entry is made. As a result,
system does not apply zero balance check on noted items. The payment
program and the dunning program can access noted items for further
processing.
3- Free offsetting entries
Free offsetting entries are part of the financial statements. They are postings
with freely definable offsetting entries. Example: The bank posting of a
received down payment.
Special G/L transactions defined as free offsetting entries create proper
postings in the general ledger. The alternative reconciliation account is
debited or credited automatically,depending on the type of posting. The G/L
account for the offsetting entry must be enteredby the user
Down Payment in the Customer Area

The procedure is as follows:
1- Down payment request: Down payment requests are noted items. They
do not change any account balances. You can issue dunning notices and
make payments automatically based on down payment requests.
2- Down payment received: Received down payments are displayed as
payables on youraccounts. They must not change the balance of the
Receivables reconciliation account.Received down payments are
administered in the Down Payments Received alternative reconciliation
account, in the Payables area on the financial statements.
3- Customer invoice: The customer receives an invoice whenever goods
are supplied or services performed.
4- Posting a down payment clearing with invoice: The down payment is
no longer considered adown payment from this point. The amount
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should/must be displayed as payment on the normal reconciliation

account.
5- Clearing:-Clearing of the items during the payment of the customers
balance
Special GL Transactions Individual Value Adjustment:

Disputed or doubtful receivables are entered as individual value adjustments
when preparing the balance statements for year-end closing. The special
general ledger procedure is suitable here, since the transaction is entered in
the customer account as well as posted to the special G/L account,
Individual Value Adjustments for Receivables.
Description of the procedure for individual value adjustments:
1- The receivable is entered to the customer account. Rs. 20,000
2- The individual value adjustment (without tax) is entered. The expenses
are now at the right place on the Expense for Individual Value
Adjustment account for the income statement reporting Customer
refused /disputed amount Rs. 5000/-
3- The individual value adjustment is cleared after the key date for the
balance sheets, meaning it is reversed.
4- The final value adjustment is made after you ascertain that the receivable
is uncollectable. Inthis case the Expenses for Uncollectable Receivables
account are posted. No special G/L account is used, since adjustment
postings must be made on the regular customerreconciliation account.
Bills of Exchange Optional:

Bills of exchange are a type of short-term financing.
If an invoice is paid with a bill of exchange, the payment period is extended
for your customers (for example, to three months). If you wish, you can pass
on the bill of exchange to a third party to refinance it. It can be discounted at
a bank prior to thedue date, which means the bank charges interest.
Bills of exchange are treated like special G/L transactions in the SAP
system.
These transactions aretherefore automatically recorded in the sub ledger,
separately from other transactions, and posted toa special G/L account. As a
result, you can obtain an overview of the activities concerning bills
ofexchange at any time. You can post receivable and payable bills of
exchange and incoming andoutgoing checks and bills of exchange.
Example of a receivable bill of exchange free of charge as displayed above:
1- The receivable is entered to the customer account.
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2- The customer initiates the payment with a bill of exchange. The account
balance is nowregistered as a receivable bill of exchange and not as the
normal balance of the account receivable.
3- The bank collects the money from the account of the customer on a fixed
date.
4- The collected amount is transferred to your company account.
5- The amount is posted to the account of the customer and the respective
accounts cleared.
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Lesson 9.2 Configuration of Special GL

Transactions
Basic Settings for Special G/L Transactions: Posting Keys:
Special G/L transactions are posted from the application side using special
posting keys and special G/L indicators. The posting keys require a special
configuration for this.
Special G/L transactions inthe standard system are assigned the posting keys
09 Debit
For D Customers
19 Credit
29 Debit
For K For Vendors
30 Credit
Basic Settings for Special G/L Transactions: Configuring the
Alternative Reconciliation Accounts
Special G/L transactions are posted to an account defined in Customizing and
not to the reconciliation accounts defined in the master record. These
accounts must be created in financial accounting as G/L accounts and
configured according to the requirements.
The special G/L accounts have been defined as reconciliation accounts for
the D or K account types.
In contrast to normal reconciliation accounts (customers/vendors), the line
item display is generally active for special G/L accounts. This means a list of
the line items can be displayed.
You can use the field status group to change the screen layout for postings
entered.
Configuration of Special G/L Transactions-Properties and Accounts
Determination:
Special G/L transactions are preconfigured in the standard system. You can
made individual adjustments, e.g. if you wish to make changes in the
following areas:
Different account numbers for reconciliation accounts or special G/L
accounts.
Other posting keys or G/L indicator for individual transactions.
Other settings for the automatic postings, including the
o accounts to be posted,
o posting keys, and
o rules for account assignments with automatic postings.
The special G/L indicator defines the particular configuration of a special G/L
transaction and the account type (customer or vendor account).
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Special G/L Transactions: Definition of Properties and

Accounts
The characteristics of each special G/L indicator are defined in connection
with the account type under Properties.
Noted Items: You can determine that a special G/L transaction does not
update any account balances.
Relevance for credit limit check: You can include special G/L transactions
in the credit limit check for customers. Noted items are generally not taken
into account. All other transactions can be selected accordingly as desired by
the user.
Warning against commitments: You can define a warning message to
notify the user of the existence of a special G/L transaction when posting to a
customer or vendor account.
Target special G/L indicator: This entry is only relevant for noted items.
For noted items, you can set which special G/L indicators are allowed to be
added as target special G/L indicators when entering (applying) a payment
request. The target special G/L indicator is used in the standard system for
down payment requests.
Special G/L transaction class: The special G/L transaction class
determines whether the transaction is a down payment, a bill of exchange,
or any other type of transaction.
Posting key: Only these posting keys can be used with the respective
special G/L indicators.
The alternative special G/L account that is to be selected when special G/L
indicators are used is saved separately in account determination for each
chart of account. The system proceeds from the reconciliation account found
in the master record of the customer or vendor and assign the special G/L
Account defined in the account determination during posting.
Automatic Statistical Offsetting Entries:
Statistical postings are always made on the same offsetting account. The
account is stored on the basis of a combination of the account type
(customer or vendor account) and the special G/L indicator used.
Setting up you Own Special G/L Transactions Noted Items:
When setting up several special G/L transactions, you can take advantage of
all of their technical features.
No transaction figures are updated for noted items. There is no offsetting
account assignment, only information ( A REMINDER) on the customer or
vendor account.
An example: You ship goods in containers and would like the system to show
which customer currently has a container. A corresponding special G/L
indicator, which is defined as a noted item, should be created in the
configuration. An alternative reconciliation account should be stored.
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Setting Up Your Own Special G/L Transactions Statistical

Items with Automatic Offsetting Entries:
To set up a special G/L transaction with automatic offsetting entry, in addition
to saving an alternative special G/L indicator, you also create a clearing
account in the table for accounts for automatic (offsetting) postings (in the
same way as with the guarantees of payment special G/L transaction)
Setting up Your Own Special G/L Transactions Transactions with
Manual Offsetting Entry:
You want to save alternative G/L account (alternative reconciliation account)
for the selected special G/L indicator. The offsetting account is entered
manually during the transaction.
UNIT 10 PARKING DOCUMENTS

Lesson10.1 Basics of Parking Documents
Holding and Parking Documents
An employee in Financial Accounting is occupied with entering documents.
The document the employee is currently dealing with consists of ten line
items. The cost center to be posted to for item nine cannot be determined
uniquely by means of the documents. What option does the employee have?
The document cannot be saved or posted, since it is not complete. The
addressed G/L Account needs to be assigned to a cost center. If the
employee interrupts the posting procedure, all the data has to be re-entered
the next time. This extra work should be avoided.
Scenarios for Entering Documents:

Document entry can be I interrupted for a variety of reason. The user
departments looking for a way of temporarily saving the data entered up to
the point of interruption, to resume entry at a later time.
There are two different ways of saving documents (without performing
proper Financial Accountingposting), i.e. either to hold the document or to
park the document
HOLDING documents
The Hold Document function lets you save data that has been entered
temporarily, to continue entry at a later time. Documents held by the system
1 do not have to be complete.
2 Noaccount balances are updated and
3 the data of the document is not available for evaluation.
4 No document number is assigned.
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5 The person making the entries is asked to name the document after
selecting the Hold Document function.
6 The document can be found under this name at a later time.
PARKING documents
Document parking enables you to enter
1 incomplete documents in the SAP system without having to run the
extensive input checks.
2 the system assigns it a document number via the document type in the
same way as with normal Financial Accounting postings.
3 The user must pass on the number if it has been assigned externally.
4 Parked documents can be supplemented, checked, and posted later on
by any clerk having authorization to make input.
5 No data, such as transaction figures, shall be updated with the figure of
the parked items.
6 Data from parked documents is available to the system for real-time
evaluations.
7 Any part of the parked item can be changed, completed, posted and
deleted at a later point in time.
8 Parked items can be completed and saved after performing checks of
the system.
9 In Case the parked item is deleted later on the number given by the
system will not be re-used for any other item.
10 Deleted parked item have the status of Z.
Data can be parked for accounts receivable, accounts payable, G/L accounts,
and assets. Only receipts can be entered for assets, however. Postings for
down payments cannot be parked.
HINT: Special G/L Transactions cannot be held or parked.
The Park Document function is available for conventional postings (complex
posting screen old version) and the new posting mask (enjoy posting
screen new version).
No data, such as transaction figures, can be updated when parking
documents. The only exception to this is cash management.
The tax amounts calculated on the basis of the parked document can be
used to assert claims withregard to tax in due time at the tax authorities.
When parking documents, the user department must also make sure that if
deswired, the parked document are completed to turn them into proper
Financial Accounting postings for the posting deadline. Parked document that
are no longer required should be deleted to provide a better overview.
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Substitutions are not supported by the document parking feature. If you want
to use substitutionswith parked documents, you have to turn them into
accounting documents first.
The Park Document functions are more effective than the Hold Document
functions. For example, many companies use document parking to
implement the dual-control principle. Authorization let you model areas of
responsibility clearly.
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Lesson 10.2 Parking Documents &

Processing Parked Documents
Areas of use for document parking
Temporary storage of input values when parking documents
Helpful for displaying multilevel models when parking documents (for
example, dual-control principle, approval procedures).
Work assignment using work lists (streamlining/acceleration of workflows)
Ways of using document parking
Customer accounts (invoices and credit memos)
Vendor accounts (invoices and credit memos)
G/L accounts (G/L account postings)
You can park documents for customer accounts, vendor account, and G/L
accounts.
Document that have been parked in the system usually require further
processing. There are various ways of doing this. The usual procedure,
however, is to edit parked document and then post them as necessary.
Parked documents should only be deleted in exceptional cases.
You can also display parked document in the system (individually or with list
selection; also possible with the line item list)
Editing Parked Documents:
You can edit parked documentsnumber of header and item, for example,
completing them incrementally. A number of header and item field can be
edited, including the documents. The document change rules that are saved
for documents posted in the system do not apply to parked documents.
However, following items of the parked item cannot be changed:
The currency,
the document type
number, and
the company code.
Changes can be made as often as required. Multiple changes are also
possible.
You can make changes to individual documents and individual items, or use
document lists or line item lists to change several documents.
Changes to parked items can be displayed either before or after posting
them.
Posting Parked Documents:
You can post parked documents as standard transactions individually or
using a selection list. If you post several documents via a selection list, the
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system subsequently out puts a list indicating whether the documents have
been posted successfully. Parked documents that could not be posted due to
missing information, such as cost account assignments, can be post
processed in the list. You can also create a batch input session to post parked
documents.
When a parked document is turned into a proper document
The usual document posting checks are performed
A normal, complete Financial Accounting document is created
The history (such as changes to parked documents) is documented
The document number remains the same
The transaction figures are updated
The parked document is deleted with the creation of normal document.
Whenever a parked document is posted, the data from that parked document
is deleted, a document is written to the document database, and the
respective data (transaction figures and so on) isupdated. The document
number of the parked document becomes the number of the
posteddocument.
The person who made the entries is noted in the document header of the
Financial Accounting Document.
Deleting Parked Documents:
You can delete parked documents that you do not want to post. Note that the
document number ofthe deleted document cannot be reused in such cases.
The document has status Z: Parked documentthat was deleted.
Document Parking Reporting and Overview:
Document parking is linked to the account display and reporting functions in
Financial Accounting.Numerous reports can evaluate parked documents. You
can include parked documents in the document journal. You can view parked
documents in the line item display.
Parked document Reporting
The difference between parked documents and documents posted properly:
are listed in the table given bellow:
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Lesson 10.3 Document Parking and

Workflow
Work Flow at a Glance:
In SAP Business Workflow, the four process dimensions
Organizational structure (Who?)
Process structure (When? In what order? Under what circumstances?)
Function (What?)
Information (With which data?
The process to be modeled as a workflow is saved in the system as
parameters, using a graphicdefinition tool. During the process, the workflow
manager that is, the system - performs all thetasks that were conceived
when the process was defined. As a result, users are relieved of
anyavoidable organizational tasks and can concentrate on the aspects of
their actual work.
SAP Business Workflow:
Is a tool for the automation of business processes in SAP Systems and
between systems.
Is not tied to a particular application and can be adapted to customer
requirements
Works the same way in all applications
Coordinates all integrated tasks
Supports the user activities.
Benefits of SAP Business Workflow:
SAP business workflow supports your companys processes within a SAP
system It also supports communication between business processes
operates on different systems
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SAP Business workflow provides users with all information they need to
perform the next step.
SAP provides standard workflow templates that model business processes.
You can customize these SAP workflow templates or create your own.
Workflow Management Architecture:
Put simply, workflow means: The right work at the right time for the
right employee.
SAP Business Workflow has three-tier architecture. This modularization of
components provides thefoundation for a high degree of flexibility.
The right work: Whatever you wish to do during the workflow, it must be
implemented in the Business Object Repository (BOR) as a method of a
business object type.
At the right time: The process level describes the business process as a
sequence of individual steps. The workflow definition is the total of all steps
put together. Individual steps can refer to methods of the BOR (Business
Object Repository), but they can also beused to control the process - for
example, to enable loop-type processing, query conditions,or provide values
in the interface ( container). Workflow Builder is the tool you use tomaintain
the process level.
For the right employee: The organizational level establishes a link to the
organizational structure.
There is a group of potential processors available for each task that is
performed as part of the workflow.
You can restrict this group by specifying restriction for the processor in the
workflow step. The selected processors receive a work item at their
business workplaces at runtime. When the work item is executed, the
corresponding method of the business object type is started.
Workflow Design and Process Flow-1
The business process is stored in the workflow definition. The event-driven
process chain (EPC) isused to display the process. Single-step tasks are
essential elements of the workflow definition.
Single-step tasks
Represent the SAP functions from a business point of view
Every single-step task uses precisely one method
The SAP Business Workflow is based on an object-oriented structure. Objects
are defined in the object repository provided by SAP. Object methods
Represent the SAP functions from the view of the business object
(technical view for example, create, delete, change)
Provide a uniform, transparent interface for SAP functions (transactions,
function modules, reports, ...)
Are used to encapsulate the functions
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The processors responsible for a specific activity in the workflow are defined
either by their assignment to an object of the organizational structure or by
means of a rule. Rules are used to determine the responsible processors
dynamically, that is, independently of information that is only available at
runtime.
Workflows are usually initiated by a triggering event. Events are used to
display the changes instatus of objects within the system. Like methods, they
are defined in the object repository for eachobject type. Events are triggered
in the respective applications.
Work items represents single-step tasks during runtime. They are sent to the
responsible processors by the work flow manager.
Whenever a processor accepts a work item to process it, the work item
disappears from the inboxes of the other processors.
When a work item is processed, the corresponding object method is called up
Designing the (Entire) Workflow for a Parked Document
For every business step, ask yourself:
What work has to be done? This tells you which object type and method
you require.
With dialog step: Who has to do the work? This tells which processors are
responsible.
What text is to be displayed at the work item recipients workplace? This
text is maintained as a task when creating the step Define your answer in
the design.
WHAT Is Carried Out? Workflow-Related Tasks
Posting invoices
Releasing purchase requisitions
Changing material masters
Approving leave
Creating customer accounts
Deleting purchase orders
1. Creating requirement coverage requests via the Internet
Tasks represent steps of the business process. The process you want to
model must be broken downinto individual tasks during the definition. The
definition of the workflow determines the tasks andthe order in which they
are to be carried in the process. A task refers to a specific object type in the
Business Object. Repository (storage area) and to a specific method defined
there. In exceptional cases, a business process might only have only have
one task. A workflow definition should be created even in these cases,
however. Tasks are represented by work items at workflow runtime. The work
items appear in the recipients inbox.
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Workflow Definition: Workflow Builder:

The Workflow Builder is the main tool of the WebFlow Engine. It allows
workflow definitions tobe created, changed, tested, and displayed. (It is a
software which enables to define workflow)
Each task must be assigned possible processors. This is the group of
employees at your companywho come into question for carrying out the
respective task.
Who is Doing Something:
You define a workflow step when you enter a job in the workflow definition. In
this workflow step, you can enter responsible processors. You can also
exclude processors explicitly.
The system calculates the intersection of possible processors and
responsible processors at runtime. The system then checks each user
included in to ensure that it has not been excluded in the workflow step
definition. If the results of both inspections are positive the user receives a
work item in his inbox and then belongs to the recipients of the work item.
User Interface: Inbox in the SAP System
The Business Workplace consists of three screen areas:
Selection tree: You can find the selection tree on the left side of the
Business Workplace.
From here, you can select work items to be executed, workflows you have
started, and documents.
Work list: The work list is displayed at the top right of the Business-
Workplace screen incase you want to mark the Workflow folder. The
system automatically puts the entries ingroups in this folder. There are
special folders in which you can find overdue work items or missed deadline
work items. If you mark Inbox in the selection tree, you can see all
workitems and documents in this area of the screen.
Work item preview: The work item selected from the work list is displayed
in a preview atthe bottom right of the screen. Not all functions of the work
item display or workflow log areavailable. It is possible for the user to make a
decision from within the work item preview.
Inbox:
The work item can be performed directly in the worklist. The corresponding
applications are started directly and provided with the required data by
double-clicking them. Recipients can display the attachments of the work
item and add new ones. You can add various types of documents to a work
item as attachments, such as SAPscript documents, Microsoft Office
documents or internet pages.
The WebFlow Engine determines the recipients of the work item. All selected
recipients can viewthe work item and perform it at their Business Workplace.
Only one user can perform the work item,however. If, therefore, a user starts
to perform the work item, the other recipients are unable toexecute this work
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item. A recipient can accept a work item. An accepted work item can only
beperformed by the user who has accepted it.
Workflow and Financial Accounting:
Workflow variants can be created for document parking in Customizing of FI.
Whether thedocument release is supposed to be active is specified here
together with the minimum amount forwhich this is necessary.
You can find out which workflow templates are delivered in the A/P
Accounting document of the Financial Accounting documentation. Further
information on workflow can be found under Cross-Application Functions in
the SAP Business Workflow document.
The company codes can be assigned workflow variants. No documents are
released if any companycode is not assigned a workflow variant. The
workflow variant and the corresponding companycodes must have the same
currency.
Assigning Workflow Variants to Company Codes:
It is possible to apply different release procedures to different A/R and A/P.
This can be controlled by release group field in master record of A/R and A/P.
The release group is required to determine the release approval path at the
time of processing. Therelease approval path is determined by the workflow
variant in connection with the document typeand release group.
The sub workflows that is initiated by releasing the amount and who is to
release are determined bythe release approval path and the particular
amount. If no release group is defined, the initial releasegroup is then used
for access.
Calculation of Release Approval Pathe:
The release procedure is represented by subworkflows in the workflow
terminology. For document parking workflow variant ( incombination with
release approval paths) are assigned amounts, which determine the release
procedure to be initiated and performed. The subworkflows control the
individual release procedure.
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UNIT 11 VALIDATION & SUBSTITUTION

Lesson 11.1 Basics of Validation /
Substitution
Class notes:
Validation: Setting some specific parameters for certain fields. If those
requirements are fulfilled the system lets the user to proceed otherwise not.
Substitution: The data given in one field should be repeated in the other field
Note: Substitution Rules override the derivation rule. Validation and Substitution
rules have no impact on parked or holed items but have impact on posted
documents.
Comparison of Validations / Substitution

Validation and substitution tools can be used to validate and substitute data
immediately upon entry.
The Validation Function helps you to check the entered values and
value intervals. When data isentered in the system, the Rule Manager
validates the data according to the predefined validation rules. The system
accepts only validated data. Validation rules are applied using BOOLIAN
LOGIC (if,<,>,=,#). When you enter a validation rule the system checks it to
ensure that it is syntactically correct (i.e. according to the rules). You can also
define the result of noncompliance with the validation rule, e.g. message of
warning or informing is issued but user allowed to continue, force the user to
correct the error before continuing the processing.
In substitution, the values entered into the SAP system are validated
according to a prerequisitedefined by the user. If the prerequisite is met, the
system replaces the values entered with othervalues.
Procedure:
The measures required to execute validation/substitution are: Decide,
Correct, Define, Assign and Activate.
Decide for which area of application validation/substitution should
apply.
Select the correct call up point for the validation/substitution
The validation/substitution must be defined.
You must assign your validation/substitution to an appropriate
organizational unit
activate it.
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Application Area
Using the area of application and the call-up point, the fields that can be
used for validation / substitution are specified. You can select the fields from
this pool while entering your rules for the prerequisites and checks.
The application area is where the validation, substitution, or rule is used. The
following applicationareas use validations and substitutions:
FI Financial Accounting,
CO Cost Accounting,
AM Asset Accounting,
GL Special Purpose Ledger,
CS Consolidation (validations only),
PS Project System,
RE Real Estate,
1. PC Profit Center Accounting (substitutions only),
GA Allocations (FI-SL) (substitutions only)
Each application defines the structure available and replaces its fields for
substitution.
Call up points are specific places in an application that specify the exact
location where avalidation/substitution occurs.
When you create validation /substitution and rules you must assign an
application area and call-up- point code to the validation, substitution, or
rule. The key for the application area specifies the general application area
where the validation / substitution is used
The combination of application area and call up point determines the
Boolean class for a validation,substitution, or rule. Boolean classes establish
the dimensions that can be used in the definition ofvalidations, substitutions,
and rules. They also specify which message classes can be used forvalidation
messages.
Three call up points have been provided for FI:
Document header
Document line
Complete document
At the complete document call-up point, you can use only those numeric
fields with which you primarily execute mathematical calculations.
Following operators are available for matrix validation or matrix substitution.
(Important: you must enter a blank space after the keyword and immediately
before the opening parenthesis.)
Operator Description
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SUM( ) Total of the document

AVG( ) Average total of the document
MAX( ) Maximum value of all document lines
MIN( ) Minimum value of all document lines.
GROUP BY Compare a group of totals with another group
of totals.
Working With the Formula Editor

Fields (Attributes) O
Account number PE
Business Area RA
Constants = <> ( )
Functional Area T
Partial field OPERENDS
Product
Annotation O
Special
Set DirectoryRegion RS
The formula editor provides a user- >= <= < >
friendly interface for entering AND OR > <>
arithmetic and logical statements. NOT IN LIKE
+ - * /
Depending upon the contents and FALS
TRUE
requirements, different pushbuttons E
are available whith which you can
enter operands and operators for
logical statements in your formula.
Your entry undergoes a step-by-step inspection for the correctness of the
syntax (including the parentheses)
The system permits only syntactically correct statements to be entered, as a
result, no errors occur when entering rules.
You can work in the Formula Builder using three different settings:
The default setting when you call up the Formula Builder is Short
descriptions. All operands(such as table fields, sets, exits, and so on) are
displayed using their respective descriptions.
If you want to enter statements using the technical names of the
operands rather than thedescriptions, change the setting by choosing
Settings Technical names.
By setting Expert mode, the technical names of the operands are
displayed. You can alsoenter a statement directly. In this case, the
statement field is ready for input.
Difference between operands and operators
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Operands are the variables or constants on which the operation is performed. Where as
operator is what operation is performed on the variables or constants.
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Operands
Annotations =
Constants TRUE, T. FALSE, F
Field constant comparison Table field = literal
Partial field comparison Table field: n1 n2 = literal
Field Comparison Table field1 = Table field2
Pattern Comparison
Table field LIKE Text pattern
Set
Table set name
Rule
Exit & Rule
Mathematical formula Uxxx
SUM, AVG, MIN, MAX
Logical Operators Comparison Operators
AND (NAND) = Equal to
OR (NOR) > Greater than
NOT < Less than
IN
>= Greater than or equal to
LIKE
<= Less than equal to
Implementation
Equivalence <> Not equal to
Operands and Operators:

The following elements are available to enter rules for the prerequisites
(validation & substitution)and checks (validation):
Operands
Logical operators (Boolean terms) and
Comparison operators.
Assignment and Activation:
You must assign your validation/substitution to an appropriate
organizational unit it means avalidation/substitution, e.g. company code for
FI, company code or company for FI-SL, controlling area for CO). A
validation/substitution can be valid for several company codes at the same
time.
Only one validation/substitution can be activated for one company
code for a call up point.
Furthermore, the validation/substitution for the correct call up point must be
activated.
0 Inactive
1 Active for dialog and batch
2 Active except for batch input
Types of System Messages:
WWarning
I Information
E Error (requires that the entry be corrected)
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A Cancel
Lesson 11.2 Definition and Execution of

Validation in Financial Accounting
Validation Procedure:
Validation enables the customer-specific validation of certain fields / field
combinations / documenttypes.
Validation consists of several steps (up to 999 are possible), each with 3
parts:
Prerequisite Check Message
If the prerequisite statement is satisfied (TRUE), a check is performed. If the
result of the check isFALSE, the system posts a message, e.g. if the posting
date and invoice date are not the same a warning is to be issued.
Messages:
You can use a predefined message or create a new message for validation.
A message can contain up to four fields. The & character is used as a
wildcard for field values to be output in the message.
Messages can have different meanings:
1. I = Information W = Warning
E = Error (requires the entry to be corrected) A = Cancel
Fields Comparison:
You can do the following in a logical statement:
Compare fields with one another: This statement is TRUE if the date
in the document date field is not the same as thedate in the posting
date field.
Validate field contents for certain values
Check or compare only a part of the field. If you want to execute
such a partial check, enter the following:
The table name and the field name (table name - field name)
A blank space it is important to insert a blank space before the first
colon.
A colon (:)
The digit that you want to be checked in the field name
A colon (:) 1 always represents the first digit of the field (the number
you enter does not represent a value, it represent the position of the
value within the field)
Example: BSEG-HKONT :3:
The system checks only the third digit of the Account field to determine if a
conditionis TRUE.
Example: BSEG-HKONT :1-3:
The system checks only the first three digits of the Account field to
determine if acondition is TRUE.
Example: BSEG-HKONT: 3-:
The system checks from digit 3 to the end of Account field to determine if a
conditionis TRUE.
Compare text patterns in your statements using the LIKE keyword.
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Example: BSEG-KOSTL LIKE *3*3

In this example the sign * represents any combination of characters. The
system searches for all cost centers (field KOSTL.) where the value 3 is used
after the first and second combination of characters (e.g. 363, 323, 2303)
Within text pattern searches, you can also use the + sign to represent a
single character.
Lesson 11.3 Definition and Execution of
Substitution in Financial Accounting
During document entry, the system sometimes automatically determines
values for field from values that were entered for other fields, such as the
business area or the profit center on the basis of an assigned cost center or
an internal order. For downstream components as well as (occasionally) For
Financials itself, it is sometimes necessary or desirable to execute additional
substitutions when entering document.
Substitution Procedure:
Substitution permits the customer-specific enhancement (substitution) of
certain field contents.
Substitution consists of several steps (up to 999 are possible), each with two
parts:
Prerequisite Replacement
If the prerequisite is satisfied (TRUE), substitution is performed.
Substitution Methods
Important HINT: The field must be released for substitution no other user
has occupied this field or using this field.
For each of the fields you selected, a dialog box appears in which you can
define the substitution method. You can choose between:
Constant value
Exit
Field-field assignment
You can then later enter either a constant value, the name of an exit to be
carried out at runtime or thename of a field, the content of which is to be
used for the substitution.
Substitution with a Constant:

A substitution step contains the following components:
Prerequisite
The prerequisite statement establishes which conditions must be fulfilled
before thesubstitution can be performed. If the prerequisite statement not
fulfilled (false), thetransaction is continued without substitution. If the
prerequisite statement is true, thetransaction is continued with the
substituted value(s).
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Substitution value(s)
The substitution value is a numerical value or a string of letters that replaces
the valueentered. A single substitution process can replace more than one
value.
Substitution with Field Field Assignment
If the substitution step prerequisite is true at runtime, the system substitutes
the contents of the field with the contents of the source field.
Lesson 11.4 Additional Technique for

Substitution/Validation
Rules:
A rule is a logical statement that you can use in a prerequisite statement, a
check, or another rule.
A rule permits complex logic to be summarized; it can be reused.
Technically, a rule is nothing morethan, for example, a prerequisite or check
of a validation.
If a Boolean statement is used often or if it contains complex logic, you can
create a rule for this statement, e.g. a validation contains an extensive
prerequisite that is also to be used in a substitution.
Example: RULE 1 AND BKPF-BLART<> SB
In this example the rule is named RULE1, table name is BKPF and field name
is BLART. When the system processes this statement, it first processes RULE1
and then check whether the document type is not SB.
The rule name can be a maximum of 11 characters long.
Set Usage:
A set is a flexible data structure for mapping ordered amounts and
hierarchies. Sets are maintainedand administrated centrally.
HINT: A combination of multiple Boolean logics is a set and a
combination of multiple sets is a rule.
They are used in almost every component of the FI-SL system: in Boolean
logical formulas invalidation, substitution and ledger selection, during
allocation (assessment / distribution), inplanning, in roll-ups, in currency
conversion, and so on.
To improve system performance, you should use basic or single-dimension
sets rather than long listsof Boolean statements or user exits.
Syntax rule: Table name field name IN set name.
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You can use multi-sets (a combination of sets for various fields [dimensions])
to execute crossvalidationwith values of different characteristics.
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Lesson 11.5 Validation Rule for Account

Assignment Combination
Defining a Validation Rule for Account Assignment
Combinations:
You can also define validation combinations for customer-defined fields that
are stored in the totals table without using exit programming.
Caution: This function can only be used when the new G/L is active. It is
not available for classic general ledger accounting.
For each validation strategy ( which in turn contains the actual
derivation rules/steps and is assigned to a company code and / or
ledger group) ONE validation type must be selected.
Validation Types:
There are two validation types:
Valid account assignment combination Only the combinations defined in
the rule are accepted by the system during posting.
Invalid account assignment combination All combinations defined in the
rule are rejected by the system during posting.
With introduction of new validation rule for account assignment, now we can
do following
The validation is not scenario-dependent e.g. you want to check / validate
the presence of asegment this is performed without checking if the
scenario Segmentation (FIN_SEGM) is assigned to a ledger.
In the application, the validations for account assignment combinations
are checked whensimulating the FI documents, not during posting.
The validation accesses the entry view and not the general ledger view
(just as transaction code OB28).
Validation Types:
Invalid account assignment combinations = Non-valid combinations
Valid account assignment combinations = Valid combinations
The validation type specifies whether the defined rules or account

assignment entries are to bechecked with regard to their validity. It also
specifies how the system is to interpret the rule later.
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UNIT 12 FI ARCHIVING
Lesson 12.1 Basics of Classification of Data
Archving
Lesson overview:
The data archiving function enables you to remove mass data from the
database that is no longer needed in the system however, which must still be
stored so that it can be analyzed. In this lesson, data archiving is defined; in
addition, you learn reasons for executing an archiving project. Furthermore,
the data archiving procedure is described.
Depending on country, there are different regulations governing how long
documents, master data, and so on must be retained in systems. In all cases
Financial Accounting application manager have to clarify with the
department with time need to be adhered to.
Introduction:
In todays data base system, a large data volume can often lead to
performance bottlenecks that cause poor performance on the user side and
increased consumption of resources on the administration side. Therefore,
data that is no longer required from the perspective of applications can be
removed from the database. Simply deleting the data, however, is not an
option since read access to the data must often still be provided. Therefore,
the data must be transferred from the database to external storage media so
that it can be read later.
Data archiving in SAP lets you safely remove application data that is no
longer required for day-todayactivities from the database. This transferred
data is saved to archive files that can be accessed ata later time. The result
is a lean database that can be administered efficiently and inexpensively.
Definition of Data Archiving

Data archiving is the consistent transfer of data objects from SAP system
database tables; all thetable entries that characterize a data object are
written to an archive file outside the database.Business consistency is
ensured by SAP archiving programs that, based on archiving objects, storeall
relevant table entries together elsewhere.
The contents of business objects in the SAP system are distributed over
several tables in the database. Archiving objects bundle the logically related
tables of business objects. This ensures that, within the framework of data
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archiving, all information regarding a business object is transferred out of the

database, and thus is no longer in the database.
Data is archived in online mode, in other words, the system does not have to
be shut down duringarchiving.
What is Not Archiving?

Since the term archiving is used in many different ways in the IT world,
further important terms in the area of data archiving will be discussed here in
demarcate the realm of data archiving.
Archiving is not, reorganization, backup, document storage and deleting of
test data.
Reorganization: because during database reorganization, data is removed
from and loadedback into the database to optimize the physical distribution
of data on the hard disk.
Backup:A backup means storing the contents of the database to avoid data
loss in case of systemfailures. The goal is to restore the database as closely
as possible to the condition it was inbefore the failure. Backups are generally
made at fixed intervals and according to a fixedprocedure. Some
organization having sensitive data prepares back up on real time basis
Reloading the saved data is called restoring or Disaster Management.
The storage of documents is generally considered to be the electronic
storage andadministration of documents on storage systems outside of the
SAP system. The documentsare transferred to a document storage system;
the SAP system then contains a link pointing tothe externally stored
document and permitting access.
Deletion of Test Data: Only data from completed business processes can
be archived. Test data seldom reaches thisstatus.
Data must be archived in such a manner that it can be called up at any time
for queries. Thesequeries can come from, for example, tax authorities.
Data is archived independently of the version of the hardware and software
(metadata is stored). Inthis way, archived data can be easily called up, even
after a system upgrade.
Reasons for data Archiving:

As a database grows, so does the amount of data administration work for
recovery and backup tasks. Securing SAP system services requires the use of
an increasing number of resources. Furthermore, upgrades of the system
/database require proportionately more and more effort with increasing
database size.
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Why Archiving Data?

Improve response time, ensure good response times.
Lower the effort for database administration
Reduce the system downtime for software upgrades, recoveries and
offline database backups.
In this regard special attention should be paid to:
Country-specific storage regulations;
Ensuring Accessibility of auditors.
Potential reusability of data.
Cooperation Between System Administration and

Departments:
The goal of the database administrator is to keep the database as small as
possible, in other words, to delete as many data objects as possible to
reduce the load on the database. On the other hand, the goal of the
departments is also to provide fast online access to as many documents as
possible for queries, lists, and searches.
Data archiving process involves finding a mutually satisfactory compromise
between these tow demands. In any case, the long-term goal must be keep
the data volume in the database as constant as possible and to archive data
with foresight rather than as a reaction.
Schematic Data Archiving Procedure:

he actual data archiving process has three steps:
Generating the archive file(s): In the first step, the write program
generates one (or more)archive file(s). Then the data to be archived is
read from the database and written to thearchive file(s).
Storing the archive file(s): After the write program has finished
generating the archive files,they can be stored.
Deleting data: The deletion program first reads the data in the archive
file and then deletesthe corresponding records from the database.
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Lesson12.2 Preparatory Activities System

Settings
Archiving Objects:
A central element in data archiving is the archiving object. It defines the
smallest unit that can bearchived in and deleted from the database in its
entirety and describes how and which databaseobjects must be accessed to
completely archive a business object.
An archiving object is basically made up of three components:
Data declaration part
Customizing settings
Programs
The data declaration part describes all the relevant database objects that
characterize an applicationobject.
The Customizing settings are used to set archiving object-specific
parameters for an archivingprocedure.
Programs:Among other things, archiving object programs include:
A write program that writes the data objects sequentially in the archive
files,
A deletion program that deletes from the database all the data objects
that could be read inthe archive file beforehand, and
A display program that permits archived data objects to be read.
Customizing Settings (Basis Support)

Archiving Customizing is used to set parameters that affect how data are
archived. Customizing is divided into the following areas:
Step 1: Basis Customizing
In Basis Customizing (transaction FILE), a logical file path is defined if one
does not already exist asa global path for data archiving and a physical path
is assigned to it. The logical path is used merelyas a bookmark for the
physical path that is generated at runtime. (This is executed by Basis
Support /System Administration employees.)
Step 2: Cross-Archiving Object Customizing
The parameters set here apply to all application and archiving objects for
using all archiving objects.
Therefore, these settings are executed by the Basis administrator.
Information provided by the data archiving monitor includes:
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Overview of all archiving objects that have run

Detailed information about the individual archiving procedures
Progress bars while processing archive files
help analyzing open alerts
Step 3: Archiving Object-Specific Customizing
The parameters that can be set here apply only to the corresponding
archiving object. In archivingobject-specific Customizing, settings for the
deletion program are maintained in addition to a logicalfile name for the
specific archiving object.
Here, you can set whether the deletion program is to be executed
automatically after an archive fileis generated. Among other things, one
variant each for the test run and the production run is createdand the
maximum size of an archive file is specified in this area.
Basic logic is used in the programs for archiving Financial Accounting data. It
should, for instance,only be possible to remove master data from the system
if a deletion indicator has been set in themaster record from the application
side. In this way, it can be ascertained that a master record is nolonger
required by the department and is thus available for archiving or is
scheduled for archivingaccording to the wishes of the department.
Deletion indicators can/must be set for customers/vendors not only in FI, but
also in MM/SD.
In the case of customers/vendors, there are also validations for:
Customer = ?vendor
-Alternative payee
You can specify the minimum runtime for accounts in days in Customizing.
When documents arearchived, a check is made whether this minimum
runtime has been maintained.
You should determine the minimum runtime of documents, depending on
either the account type orthe account, if all the accounts of an account type
or if certain accounts are of interest.
You can specify the minimum runtime in days depending on the document
type in Customizing.
When documents are archived, a check is made whether this minimum
runtime has been maintained.
If there is no entry or if a runtime value is empty, the system uses a
minimum runtime of 9999 days.
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The data relevant for specifying the document runtime are the posting date
(the clearing date in thecase of open item-managed accounts) and the key
date for the archiving procedure. The correspondingly longer definition of the
runtime (document types / account types) determines howlong the
document resides in the system.
Lesson 12.3 Executing Archiving in Financial

Accounting Using example
After values have been defined in Customizing, Financial Accounting
archiving can be performed in companies on a regular basis in consultation
with the department.
Generally, the documents are archived first (due to the checks executed
during archiving). If theseare removed from the system, the transaction
figures are archived followed by the master data.However, you can also
archive only documents over the long term.
Archiving Procedure:
The specific archiving procedure is scheduled and processed as a
background job. It selects the dataobjects from the database. The constraints
that characterize a data object are considered here. Thenevery data object is
checked whether it may be archived. If so, the data object is written to
thearchive file. If Customizing is set so the deletion program is to run
automatically, the associateddeletion procedure is started automatically
when a file is closed.
The deletion program can be scheduled separately if the deletion program is
not executed automatically by the settings in archiving object-specific
Customizing. In this case, the archive files from which the data objects can
be read in current deletion procedure and then deleted in the database must
be selected.
An archiving procedure is scheduled using transaction SARA by pressing the
Write pushbutton. Thisis divided into 4 steps:
Create an archiving variant
Specify the execution user
Specify the start time
Define the spool parameters
The data that are to be archived for the selected archiving object are
specified in the archivingvariants. As a rule, archiving variants can be reused
only if the associated jobs are deleted. Thedefinition of the variant must also
include whether a test run or a productive run is involved.
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In FI, for example, you can archive master records, documents, and
transaction figures. You canmake the archived data available again using
retrieval programs. During every archiving procedure,the system generates
administration data with information about the archived/regenerated data.
Monitoring an Archiving Procedure:

Various system administration tools are available to monitor archiving
procedures:
Background processing tools
o Job logs
o Spool lists (if generated)
System monitoring tools
o Monitor for data archiving in the CCMS monitor sets
A log is generated during an archiving procedure. If the application generates
specific log, this log is used; otherwise the default log is used. The default log
contains the number of archived data objects, the affected tables, the
number ofprocessed table entries and the file sizes. In application-specific
logs, the archiving contents can bedefined down to the document level.
Conditions to be Fulfilled for Archiving Documents:
If documents are no longer required in Accounting after a certain time has
elapsed, you can remove them from the database. Certain conditions are
required for this; these are checked by the system Archiving is executed by
Basis Support and FI System Support in Consultation with the department.
The desired document type and account type runtimes are specified for each
company code in Customizing.
To ensure that only documents that are no longer required are archived from
the system, a number of conditions must be fulfilled. The archiving program
checks the achievability for the document header and document position
levels. If one of the requirements for a document is not fulfilled in the checks,
the entire document is not archived.
The document header must fulfill the following criteria before it can
be archived:
The document type runtime must have been exceeded.
The document must have been in the system for longer than the
minimum number of days(minimum duration).
Documents with a withholding tax remain in the system for at least 455
days.
Recurring, parked, or sample documents are not taken into account.
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The document position must fulfill the following criteria before it can be
archived:
The document must no longer contain open items. The system takes into
account onlycleared items or those without open item management.
1. The account type runtime must have been exceeded.
For the runtimes, a key date is used as a reference date; this can be
specified for every program run.If no explicit key data is provided, it is set to
the current execution date.
Access to Archived Data:

The most important requirement for archiving user data is that this data
belongs to completedtransactions/periods and are thus no longer required for
current business processes. However, it mayhappen that this data needs to
be accessed even after archiving, such as in the case of a complaint,for
evaluations or for internal or external revisions.
The Archive Development Kit (ADK) stores the data in such a manner that
read access is possible atany time. A requirement for this is the existence of
suitable reading programs that are provided bythe corresponding archiving
object. They are used to read the archived data objects according to
theselection criteria and to display them in a form suitable for the user. FI
provides very user-friendlyaccess to previously archived data. Users are
asked whether they also want to view the archived data.If so, the display is
as user-friendly as access to data located in the system.
A transaction figure is the total number of postings on an account in debit or
credit. In the SAP system, one transaction figure is usually maintained for
credit and one for debit for eachaccount.
The financial statement of the company code is created according to these
transaction figures.
Transaction figures can be archived only if periods open for posting are no
longer in the period to bearchived. The periods for posting must be closed for
the entire period to be archived.
G/L accounts, customers, vendors, and bank data can be archived in
Financial Accounting if thedepartment agrees and the legal requirements
have been fulfilled. If a master record is no longerrequired for postings by the
department, a posting block is usually set as a first step. If this masterrecord
is not required for a long time, the deletion flag is set. The deletion flag
shows a user who isprocessing the master record that this master record has
been flagged for deletion. The deletion flagis one of the requirements that
are checked by the system before master data are archived. Thisensures that
Page 107 of 108

the department has no objections against archiving the master data.

Therefore, it shouldbe carefully checked which employees can receive the
authorization for setting deletion flags when issuing these authorizations.
==============================================
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Page 108 of 108

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DIRECTOR GENERAL AUDIT & ACCOUNTS TRAINING INSTITUTE,

Unit 1 Organizational Structure......................................................................7

From Detail List to Drilldown List:.........................................................55

Other (FI) characteristics for which complete balances can be created in

01 Book Depreciation. 01 Book Depreciation.

Lesson 1.2 Cost Accounting Assignment

Lesson 1.3 Depreciation Areas / Posting of

Depreciation Areas and Financial Statement Versions:

In Customizing for Asset Accounting, you assign a financial statement version

Lesson 1.4 Introduction to Assets Class

The Treasury system is used to manage financial assets. It is a part of

UNIT 2 MASTER DATA

Asset Class: Account Determination / Account Assignment:

If you use different company codes with different operational charts of

Assigning G/L Accounts:

Number Range Intervals:

The Screen Layout of Asset Master Data:

In addition to the information on the field selection (required entry, optional

Activate Account Assignment Objects:

Tab Layout for Asset Master Record:

Screen Layout of Asset Depreciation Areas:

Additional Functions for Asset Classes:

Storing Default Values in the Asset Classes:

Special Asset Class:

Lesson 2.2 Assets Master Record

Creating Multiple Similar Asset Records:

Time Dependent Data:

Asset and Equipment Master Record

Depreciation Areas in The Master Record:

Asset Sub Number:

Personal Value List:

Lesson 2.3 Mass Change

Mass Changes to Asset Master Data Using Worklists:

Substitution Rule for Mass Changes:

1- Conditions that identify the records to be selected: You can create

UNIT 3 ASSETS TRANSACTIONS

Management (IM) and settling to an asset under construction and then to

Lesson 3.2 Segment (and Profit Center)

- Create a new asset master record when posting

Lesson 3.4 Assets Retirement

o Retirement sale (with revenue)

Exception to the default rule can be defined in a customer-specific program

Lesson:-3.6Assets under Construction

UNIT 4 PERIODIC PROCESSING AND

1. Ordinary depreciation: This is the planned reduction in asset value due

Calculating Depreciation Values:

Depreciation calculation without Depreciation Calculation with ECC 6.0

the option of time-dependent using time dependent depreciation

Automatic calculation of Depreciation Indicator means:

Replacement Value: Index Series:

Depreciation Run Program RAPOST2000

Lesson 4.2 Fiscal Year Change and Year End

UNIT 5 INFORMATION SYSTEM

SAP List Viewer:

Lesson 5.2 Value

Simulation with the

Lesson 5.3 Assets History Sheet

UNIT-6 STANDARD REPORTS IN

Report Variants: Selection Criteria

UNIT-7 LIST VIEWER

Lesson 7.2 Selections

Vendor by personnel number

Key for Icons:

Example: BSEG-KOSTL LIKE 33