Basic Configuration for MM & SD

Contents
Basic FICO configuration for MM & SD ..................................................................................................3
Define Company code ......................................................................................................................3
Define Fiscal year variants ................................................................................................................5
Define Posting Period Variant ...........................................................................................................5
Open and close posting Periods ........................................................................................................6
Define field status variant.................................................................................................................6
Define chart of accounts ..................................................................................................................7
Define Account Group ......................................................................................................................8
Define retained earning Account .......................................................................................................9
Enter Global Parameters................................................................................................................. 10
Define Number Range .................................................................................................................... 11
Define tolerance group for employees ............................................................................................. 13
Define tolerance group for G/L Accounts ......................................................................................... 14
Deactivate document splitting for co code ....................................................................................... 15
Create G/L Account (FS00) ............................................................................................................. 16
Post Journal Entry (FB50) ............................................................................................................... 20
Basic CO Configuration for MM and SD ............................................................................................... 21
Maintain Controlling Area ............................................................................................................... 21
Assign company code to controlling area ......................................................................................... 22
Maintain Controlling Area ............................................................................................................... 24
Maintain Number Ranges for Controlling Documents ........................................................................ 26
Create Cost Center ........................................................................................................................ 29
Create Cost Element ...................................................................................................................... 30
Basic MM Configuration for SD ........................................................................................................... 33
Define Plant .................................................................................................................................. 33
Define Storage Location ................................................................................................................. 34
Assign Plant to Co Code ................................................................................................................. 35
Maintain Company Codes for Materials Management ........................................................................ 36
Month end close for MM posting period ........................................................................................... 37
Material Types ............................................................................................................................... 37
Plant Parameters ........................................................................................................................... 38
Define Number Assignment for Material and Phys. Inv. Docs ............................................................ 39
Configure Automatic Postings ......................................................................................................... 39
Post Initial entry of stock ............................................................................................................... 45
Basic FICO configuration for MM & SD

Organizational structure

You can create one or more company codes for your practice. The global parameters are same for all the
company codes. It means you can create one global parameter item and then assign to all the company
codes.

Global parameter Co Code – 1 Co Code – 2

Fiscal year variant SG00
Posting period variant SG00
Field status variant SG00
Chart of accounts SG00
Company code SG10 SG20
Controlling area SG00

Define Company code

OX02 Enterprise Structure  Definition>Financial Accounting  Edit, Copy, Delete, Check Company Code

Select Edit Company Code Data option

Click on the New Entries on the application toolbar

Note: Must fill all the fields even not mandatory.

Press enter or save, the system prompt for the address tab, enter the address detail

Save the entry.

Note: You can create additional co codes as per your requirement in the same way.
Define Fiscal year variants

Financial Accounting (New)  Financial Accounting Global Settings (New)  Ledgers  Fiscal Year
OB29
and Posting Periods  Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)

Not necessary to create a new fiscal year variant and use the existing fiscal year variant K4 (Calendar
period with 4 special period)

Define Posting Period Variant

Financial Accounting (New)  Financial Accounting Global Settings (New)  Ledgers  Fiscal Year
OBBO
and Posting Periods  Posting Periods  Define Variants for Open Posting Periods

Click on New Entries on the application toolbar

Save the entry.

Open and close posting Periods

Financial Accounting (New)  Financial Accounting Global Settings (New)  Ledgers  Fiscal Year
OB52
and Posting Periods  Posting Periods  Open and Close Posting Periods

Note: Year should be the current year (here current year = 2015)

Define field status variant

Financial Accounting (New)  Financial Accounting Global Settings (New)  Ledgers  Fields 
OBC4
Define Field Status Variants

Click on New Entries on the application toolbar and create your entry

Select the filed status variant entry and double click Field Status Group option
Click on New Entries on the application toolbar and create your entry

 Note: The system set optional for all the items as default. You can use that.

Save the entry.

Define chart of accounts

Financial Accounting (New)  General Ledger Accounting (New)  Master Data  G/L Accounts 
OB13
Preparations  Edit Chart of Accounts List
Click on New Entries on the application toolbar and create your entry

 For easy entry, maintain the GL account length is 3. You can create up to 999 GL accounts

Save the entry.

Define Account Group

Financial Accounting (New)  General Ledger Accounting (New)  Master Data>G/L Accounts 
OBD4
Preparations  Define Account Group
Click on New Entries on the application toolbar and create your entry.

 For easy use, create one entry for all GL accounts

Save the entry.

Define retained earning Account

Financial Accounting (New)  General Ledger Accounting (New)  Master Data  G/L Accounts 
OB53
Preparations  Define Retained Earnings Account

Enter your Chart of account. Enter X in P&L statement column and leave the Account column is blank.
The system issue an warning message for the Account is blank, press enter the proceed to save the entry
Enter Global Parameters

Financial Accounting (New)  Financial Accounting Global Settings (New)  Global

Parameters for Company Code  Enter Global Parameters

Select your co code entry and then double click or click on the details icon on the toolbar
Enter the global parameters for the co code (chart of accounts, fiscal year variant, field status variant,
posting period variant)

Save the entry

Define Number Range

Financial Accounting (New)  Financial Accounting Global Settings (New)  Document  Document
FBN1
Number Ranges  Define Document Number Ranges for Entry View
Enter Company code and click Intervals button

Click on the Interval button

Terminology (it is used to avoid number range overlapping)
 Year = Current year
 From Number = No (Interval No, here 01) + 000 (01 + 000 = 1000)
 To Number = No (Interval No, here 01) + 999 (01 + 999 = 1999)

Save the entry.

You need to create number range for the below numbers for MM & SD

No Year From Number To Number Purpose

01 2015 10000 19999 General ledger documents
14 2015 140000 149999 Billing document from SD
49 2015 490000 499999 Goods issue (used for PGI for SO)
50 2015 500000 509999 Goods receipt for purchase orders
51 2015 510000 519999 Invoice receipt for purchase orders

Define tolerance group for employees

Financial Accounting (New)  General Ledger Accounting (New)  Business Transactions  Open
OBA4
Item Clearing  Clearing Differences  Define Tolerance Groups for Employees
Click on New Entries on the application toolbar
 Leave the Group is empty
 Enter the co code
 Enter the below amount

Save the entry.

Define tolerance group for G/L Accounts

Financial Accounting (New)  General Ledger Accounting (New)  Business Transactions  Open
OBA0
Item Clearing  Clearing Differences  Define Tolerance Groups for G/L Accounts
Click on New Entries on the application toolbar
 Enter the Co code
 Leave the Tolerance group is empty
 Enter the below tolerance values

Save the entry.

Deactivate document splitting for co code

Financial Accounting (New)  General Ledger Accounting (New)  Business Transactions

 Document Splitting  Activate Document Splitting
Double click on Deactivate Per Company code option

Check the inactive indicator for your co code

Save the entry.

Create G/L Account (FS00)

FS00 Easy Access

Enter the GL account number, Co code and click the create icon

Select the account group, set either P&L or balance sheet account indicator and then enter the short and
normal text
Click on the control tab

Enter the marked fields as per your GL account requirements

Click on Create/Bank/interest tab

Enter filed status group as SG00 and set post automatically indicator if required.

Save the entry. The system issue a warning message, proceed to save the entry

You need to create the below GL accounts for your MM & SD process.

Type/Description Tab Control Data Tab Bank Tab

GL Co C AG PL BS Description AC TC PT Rec Ac OI LI FSG PA

100 AS00 AS00 X Share Capital SGD AS00

101 AS00 AS00 X Cash SGD AS00

102 AS00 AS00 X Vendor Recon SGD Vendor X AS00

103 AS00 AS00 X Customer Recon SGD Customer X AS00

104 AS00 AS00 X OBYC-BSX SGD X X AS00 X

105 AS00 AS00 X OBYC-WRX SGD X X X X AS00 X

106 AS00 AS00 X OBYC-PRD SGD X X AS00

107 AS00 AS00 X OBYC-GBB-VBR SGD X X AS00

108 AS00 AS00 X OBYC-GBB-VAX SGD X X AS00

109 AS00 AS00 X OBYC-GBB-BSA SGD X X AS00 X

 GL : GL account number
 Co C : Company code
 AG : Account group
 PL : P&L statement account indicator
  BS : Balance sheet account indicator
 AC : Account currency (Your co code currency)
 TC : Tax category
 PT : Posting without Tax allowed indicator
 Rec Ac : Recon account for acct type
 OI : Open item management indicator
 LI : Line item display indicator
 FSG : Field status group
 PA : Post automatically

Post Journal Entry (FB50)

FB50 Easy Access

Click on the Company Code button to set your co code

Enter all data and then save

Basic CO Configuration for MM and SD

Maintain Controlling Area

OX06 Enterprise Structure  Definition  Controlling  Maintain Controlling Area

Select Maintain Controlling Area option

Click on New Entries button

Save the entry

Assign company code to controlling area

OKKP Enterprise Structure  Assignment  Controlling  Assign company code to controlling area
Select your controlling area (SG00) and then double click on the Assignment of Company code option

Click on New Entries button

You can add your all co codes to the controlling area and save the entry
Note: All the company code should use same chart of accounts (SG00) and fiscal year variant (K4)
Maintain Controlling Area

OKKP Controlling  General Controlling  Organization  Maintain Controlling Area

Select Maintain Controlling Area option

Double click on your controlling area (SG00)

The system display all the data as per controlling area creation, you have additionally maintain the cost
center standard hierarchy (SG00)

Double click on the Active components option

Click on New Entries button

Fiscal year = current year and activate cost centers and sales order
Save the entry

Maintain Number Ranges for Controlling Documents

Controlling  General Controlling  Organization  Maintain Number Ranges for Controlling

KANK
Documents
Enter your controlling area (SG00) and click on Groups button

Click Menu  Group  Insert

Enter the group name, from number, to number and then click the + icon and save

Select the Group

Double click on the Not Assigned item  COIN CO Through-postings from FI (The system change the
line item font color to blue once double click, it means the line item is selected)
Click on the Element/Group button to add the item to the group
Note: COIN is enough for posting from FI to CO.

Save the entry

Create Cost Center

KS01 SAP Easy Access

Enter cost center and valid from and the press enter
Save the entry (The system issue a warning message for profit center is blank, press enter to proceed)

Create Cost Element

KA01 SAP Easy Access

Prerequisite: We need to create a GL account before cost element creation. The GL account must be a
P&L GL account (not balance sheet GL account)
Create cost element

Enter the cost element and validity date and enter

The system copy the description from the GL account master. You need to enter the cost element item
category only

Go to Default Acct Assignment tab

If you want to maintain a default cost center for the cost element, then maintain the cost center here. It
is an optional entry

Save the entry

Basic MM Configuration for SD

Define Plant

OX10 Enterprise Structure  Definition  Logistics - General  Define, copy, delete, check plant

Select Define plant option

Click on New Entries button

You have to select the factory calendar as per your country. If the plant in India then select the calendar
= IN

Save the entry, the system prompt for the address information, fill the address and save.

Define Storage Location

OX09 Enterprise Structure  Definition  Materials Management  Maintain storage location

Enter the plant and press enter

Click on New Entries button

Enter the storage location and description

Save the entry

Assign Plant to Co Code

 OX18 Enterprise Structure  Assignment  Logistics - General  Assign plant to company code

Click on New Entries button

Enter co code and plant

Save the entry

Maintain Company Codes for Materials Management

Logistics – General  Material Master  Basic Settings  Maintain Company Codes for Materials
OMSY
Management

Enter the financial year and period (current calendar year and period)
Save the entry

Month end close for MM posting period

MMPV

You have to do month end process for every month in MM perspective

Enter the co code

Enter the period to open (It means the previous period is closed. In this example period 8 is open and
period 7 is closed)
Enter the financial year
Click on the execute button

Material Types

OMS2 Logistics – General  Material Master  Basic Settings  Material Types

Select the material type and then double click on Quantity/Value updating option

Set the qty updating and value update indicator. If not set this indicator, then you cannot place the stock
in to you plant

Save the entry

Plant Parameters

Materials Management  Inventory Management and Physical Inventory  Plant Parameters

Click on New Entries button

Save the entry

Define Number Assignment for Material and Phys. Inv. Docs

Materials Management  Inventory Management and Physical Inventory  Number Assignment 

OMBT
Define Number Assignment for Material and Phys. Inv. Docs

Number range already available, if not then enter a number range for the calendar year

Configure Automatic Postings

Materials Management  Valuation and Account Assignment  Account Determination  Account

OBYC
Determination Without Wizard  Configure Automatic Postings
Double click on BSX transaction

Enter you chart of accounts and press enter

You have to select the indicator for rules (select valuation class and general modifier for rules) and save
Enter the valuation class and GL account

Save the entry.

For GBB transaction

Save
Save the entry

You have to do required transaction. Refer the below table for rules option.

Rules for transactions

Key Description Valuation class General Modifier

BSX Stock Posting X
GBB Offset posting X X

Calendar settings

SCAL

If you have any error message like Calendar is not extended for the current year at the time goods
movement, you have to extend your calendar.

The calendar code is defined in the plant definition (here SG is the calendar)

Holiday Calendar (holiday calendar is assigned to the factory calendar)

Select the Holiday calendar and click on the Change button

Select the calendar, the calendar SG is valid to 2020. If not then click on the change button
You have to enter the to year

Save the entry

Factory Calendar

Select factory calendar and then click on Change button

Select your calendar and check the valid to. Here the calendar is extended to 2016. If not then click on
the change button

Note: The holiday calendar should be extended before the factory calendar extend

Save the entry

Post Initial entry of stock

MB1C SAP Easy Access