Account Group

7)

Define Account Group :– Chart of accounts contains different types of accounts, In

order to manage and control a large number of G/L accounts  in SAP, they are
arranged in account groups. Account group must be specify while creating the G/L
account

Grouping of GL A/C’s according to its nature. The account group controls 

✓ The number ranges of your GL Accounts 
✓ Controls field status of GL Masters

Define Accounts Group

Path: - same as above  T C: /NOBD4

IMG Menu Path :-  SAP Implementation Guide > Financial accounting –> G/L
Accounting –> GL Accounts –> Master Data–> Preparations –> Define Account
Groups

Select New Entries

Chart of A/c Name From A/c To A/c

A/c Group No No
7878 SCPL Share Capital A/c 100000 100099
7878 RSPL Reserves & Surplus 100100 100199

7878 SCLN Secured Loans 100300 100399

7878 UNSL Unsecured Loans 100400 100499
7878 CLPR Current Liabilities 100500 100599
7878 FAST Fixed Assets 200000 200099
7878 CAST Current Assets 200100 200199
7878 ACDN Accumulated Depreciation 200200 200299
7878 SALE Sales 300000 300099
7878 OTHR Other Income 300100 300199
7878 INCR Incr/Decr in Stock 300200 300299
7878 RMCN Raw material consumption  400000 400099
7878 PRSN Personnel staff cost 400100 400199
7878 MFRG Manufacturing Expenses 400200 400299
7878 ADMN Administrative Expenses 400300 400399
7878 INTR Interest 400400 400499
7878 DEPR Depreciation 400500 400599
Save
 
While assigning From & To numbers for Accounts group, starting number
1=Liabilities, 2=Assets, 3=Income and 4=Expenses category. This Account Group
represents P&L Account & Balance Sheet.

Interview Q
What does Account Group Represent?
This Account Group represents P&L Account & Balance Sheet.

Difference between GL Account group/ vendor Account group / Customer

Account Group???
Assignment for today /// do R& D

What is Pre requisite for account group?

Chart of Account

Eg : 2  only for information point of view.

Exercise : 

TO COPY ACCOUNTS GROUP (within SAP software): /NOBD4

 Identify the Chart of Accounts which you want to copy. Say, for example
7878. New Chart of Accounts may be 2501
 Select Position
 Type in Chart of Accounts “7878”, Ignore Accounts Group, Enter
 “7878” Accounts Group will be displayed in proper manner. 
 Select all Accounts Group one by one by clicking (by Mouse) on 1 column
st

(the square box before Chart of Accounts column).

 Now, press F6
 Now it is copied to screen. Replace the existing Chart of Accounts column
(“7878”) by your new chart of accounts 2501, very carefully. While
executing this process, do not hit enter key. 
 After all replacing, now hit Enter key.
 Now Save the Data.
What is a Account group and where is it used? 

An Account group controls the data that needs to be entered at the time of
creation of a master record. Account groups exist for the definition of a GL
account, Vendor and Customer master. It basically controls the fields which pop
up during master data creation in SAP

RETAINED EARNINGS ACCOUNT:

What Are Retained Earnings?

Retained earnings are an important concept in accounting. The term refers to the
historical profits earned by a company, minus any dividends it paid in the past.
The word “retained” captures the fact that, because those earnings were not paid
out to shareholders as dividends, they were instead retained by the company. For
this reason, retained earnings decrease when a company either loses money or
pays dividends, and increase when new profits are created.

Profits give a lot of room to the business owner(s) or the company

management to utilize the surplus money earned. Often this profit is paid out
to shareholders, but it can also be reinvested back into the company for
growth purposes. The money not paid to shareholders counts as retained
earnings

Retained Earnings Account. Retained Earnings Account is used to carry forward

the balance from one fiscal year to the next fiscal year. You can assign a
Retained Earning Account to each P&L account in the chart of accounts (COA).

We maintain two types of Accounts and both are used differently in closing
procedure. For balance sheet, the balance is carried forwarded to the same
Account in the next year. But, in case of profit and loss statement, balance is
carried forward to a retained earning account in SAP and the profit and loss
Account is set to zero. we can define one or two Retained Earning
 Eg

                                                     Profit & Loss Account

                                                                                                                                                     
                                                                                                 

To By

             Expenses Ledgers                  Income Ledgers

                          Total           8,00,000                               Total          10,00,000

Balancing Amount                2,00,000

(Net Profit)

This Net Profit should be transferred to

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

                                                         Balance Sheet
                    Liabilities                               Assets

Retained Earnings A/c          2,00,000

Define Retained Earnings Account: (OB53) 

 
A/C’s Path: SPRO→FA (NEW)→GL A/C (NEW)→MASTER DATA→GL A/C→
PREPARATIONS → DEFINE RETAINED EARNINGS A/C Chart of Accounts:

Define Retained Earnings A/c

Path: - Same path as above T C: /NOB53
Chart of A/c Company Code 7878

P&L A/c 100100A/c No.

   X

Save, (message: “Account 100100 is not created”, this means simply we are
assigning Retained Earnings Ledger Number and we have not created any Ledger.
Once we start creating General Ledger, first create this Retained Earnings Account
as it is SAP Processing Ledger.) Now, ignore the message and enter

Here we have defined Account No. 100100, because this Retained Earnings A/c
ledger falls under Reserves and Surplus Account Group, hence we have defined
first Ledger Number of Accounts Group.( of reserve & surplus account group)

Here, ‘X’ is SAP delivered key. It activates carry forwards of Profit to Balance Sheet
and it also activates to create P&L Ledgers.

Step 7

Note : Variant  means when you want to execute transaction in SAP   then there
are certain  field present in the screen that comes after running the transaction,
the information you fill in the screen field  can be saved for future .
the save data or screen is  called varient.

9) Define Posting Period Variant  T C:/NOBBO 

 Open & Close Posting Periods

 (Here we are opening Accounting Periods for posting vouchers. Here In-
charge will open in which month End user has to post vouchers) 

SAP FI posting periods are used to open and close periods of a financial year.
Posting periods are maintained in a posting period variant that is assigned to
a company code. One posting period variant can be assigned to more than one
company code.
Posting periods can be maintained for each account type, i.e. Assets (A),
Customers (D), Vendors (K), Materials (M), G/L Accounts (S), and Contract
Accounts (V). It is not mandatory to maintain the posting periods for each account
type because by specifying account type “+” (all account types) posting periods
can be maintained for all account types in a company code.

Path: - SPRO>Financial A/cing>Financial A/cing Global Setting>Ledger>fiscal year &

Posting Period>Posting period>Define variant for Open Posting
Period  
Select New Entries
Variant Name
  7878 Variant for 
Save

Open & Close Posting Periods /nob52

Maintaining Posting Periods

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

Assign posting period variant to company code

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

11) Assign posting period variant to company code

Path: - Same as above  T C: /NOBBP

Select Position
Company code 7878
Enter
Type Company code 7878   Save

What is Posting Period Variant?

Posting period variant (PPV) is an variant that controls to open and close the
posting periods for entries.
Scenario
During fiscal year 2021, Company (Babaji) has declared the profitability to its
managements and public up to first quarter i.e 30th June, 2021. After declaration
of profitability, the profit figures should not be changed.
If we open periods April 2021 to March 2022, if users posts any transactions with
April date then the profitability figures declared will be changes. So the SAP
consultant close the posting periods from 1st April, 2021 to 30th June, 2021 and
open posting periods from 1st July, 2021 to 31st March, 2022.
 To open posting periods from July 2021 to March 2022, we represent
in SAP as 4, 2021 – 12, 2022.
 So the users can post entries from July 21 to March 22, this is called
as open and close posting periods.
 Posting period variant enables to close and open posting periods for
all company codes at same time 
Note : Meaning  of ZZZZZZ ( infinity)   

Scenario  2 : 

If you want to restrict posting to particular account group, 

eg  SA document. Even though plus+ is open & how you going to closed
SA document, For July 
Go to /n ob52
Mention  :company code  …… 7878
In Account type : SA   check period open ( it would be 1 period) change it
to 5 period 
th

Save.

Scenario 3
If you want to allocate the account group in posting period how to do
that ?  and what are its effect.
A)
Go to /nob52
Enter  : company code : 7878
In Account from  & To Account  ( mention the Account group that you
want) & save
But it not recommended.( reason it would take only that account group
transaction through out the year). Its always better to keep it blank or
mentioning (zzzz ie is infinity) in to account.
 Document  Type:

Document types are defined at the client level so document types are apply for
all company codes. Document type key is used to classify accounting documents
and distinguish between business transactions to be posted.
Standard SAP system delivers the standard document types. So we can use this
standard document types or define new document types as per business
requirements.
Document type control account type  & number range.
Note : Header level is control by document type.
          & item level is control by posting key.

: (TC:/NOBA7) These Document Types are system defined. If required, we can

define our own Document Type. In Accounts language, we call types of Vouchers.
For ex: Purchase Voucher, Sales voucher, Debit Memo Voucher, Credit Memo
Voucher and the like. Once we receive the Vouchers, we mark manually the
Voucher numbers and then we make entries in computer. In SAP Language we call
Vouchers as Document Type. And these Document Types should be assigned with
No. Ranges (Without  this  No. Range, the system will not allow you to make any
entries.) Purpose of No. range is, the system will do automatic numbering for all
the entries. But while defining number ranges for each document type, we have to
define respective document type number while defining number ranges in number
column.  These Document Types we are going to treat in A/cs Payables, A/cs
Receivables and Asset Accounting.
Step 3 :– In next screen follow the IMG menu path for defining Document types
IMG Menu Path :- SAP Customizing Implementation Guide –> Financial A/C –>
Global Settings –> Documents –> Document Header –> Define Document types
Step B        New  entries
Step 4 :- 
                In next screen click on new entries to create new document key

Step C
 
Step 5 :- Update the required data
1. Document Type :– Enter unique 2 digits code
2. Number Range :– Enter number range code
3. Reverse Document Type :- Enter reverse document type key code
4. Number Range Information :- Number ranges are maintained for the
document types
5. Accounts Types allowed :– Select account type for the document type i.e
Assets, Customer, Vendor, Material, G/L Account
6. Control Data:- Select control data for the document type.
 
The configuration screen contains a number of fields and we will discuss them
one by one.
Properties
Number range objects, reverse document type and authorization group
configured in the properties section as explained below.
NUMBER RANGE
Number range object will be maintained at the document type level. Number
ranges will be maintained at the company code, 
REVERSE DOCUMENT TYPE
Reverse document type maintenance is optional. If no document type
maintained, then the posting and reversal document types will be the same. If a
different document type required for reversals, then this field to be maintained
and number ranges also to be maintained at the company code level.
AUTHORISATION GROUP
It allows to restrict the document type for specific objects.
Account Types Allowed
Restriction of account types mentioned below are at the client level.
ASSETS
By selecting this checkbox, a document type allows asset transactions.
CUSTOMER
By selecting this checkbox, a document type allows customer transactions.
VENDOR
By selecting this checkbox, a document type allows vendor transactions.
MATERIAL
By selecting this checkbox, a document type allows material transactions.
G/L ACCOUNT
By selecting this checkbox, a document type allows G/L account transactions.
It is not mandatory to choose all the account types or specific account types. As
per the requirements of a company you should choose respective account types.
Control Data
It helps to restrict or apply the following checks.
NET DOCUMENT TYPE
This checkbox is applicable only for accounts payable to deduct cash discounts
while booking invoices. It is optional.
CUSTOMER/VENDOR CHECK
To restrict either multiple vendors or multiple customers in a document this
checkbox to be selected. It is also possible to post multiple line items to the same
vendor.
NEGATIVE POSTINGS PERMITTED
By selecting this checkbox, the SAP systems helps to reverse incorrect postings for
each item to remove the effect on transaction figures.
INTER-COMPANY POSTINGS
To be selected to allow intercompany postings.
ENTER TRADING PARTNER
To be selected to allow manual input of a trading partner while booking
transactions.
Required during Document Entry
Fields enclosed below can be marked as mandatory at the document type level.
REFERENCE NUMBER AND DOCUMENT HEADER TEXT
By selecting these checkboxes, reference number and document header texts
fields will become mandatory fields. It is also possible to maintain these fields as
either optional or required at the G/L account field status group level.
 
BATCH INPUT ONLY
To restrict document type only for batch input postings, this checkbox to be
selected. For example, if a document to be restricted for manual postings and to
allow only batch input postings, then this check box to be selected.
 
EXCHANGE RATE TYPE FOR FOREIGN CURRENCY DOCUMENTS
Exchange rate type ‘M’ fetches automatically while booking any transaction. To
overwrite this, we can specify the exchange rate type at the document type level,
so the SAP system will not use ‘M’. If the exchange rate type is not maintained,
then the SAP system fetches the exchange rates maintained at ‘M’ level by
default.
Joint Venture
DEBIT REC.INDIC AND REC.IND. CREDIT
These checkboxes are applicable for joint venture accounting only. To share
incurred costs, these indicators to be defined at the document type level. The
costs will be settled through periodic settlement.
 Defining No. Ranges for Document Types:
TC:/NFBN1/NOBA7 

(You can define in FBN1 if you know document type number directly.)

01 (system defined) and Document Type SA, both are same, stands for G L Entries.

X1 stands for Recurring Entries (means End-user use this option to make entries 
which will occur every month, like Rent payments, loan Payments, where the End
users store ready-made journal entries in SAP, and while making entries, just they
will change Date and post it.)
X2 stands for Sample Document entries. (This option will be used by End-user for
storing Provisional Entries).

Step 1
Go to document type (/NOBA7), select “position”. type Doc. Type SA, Enter.
Select SA, click on 2 icon (Details icon). Remember No. Range 01 (system define),
nd

now click on No. range information.

Step 2
Enter Co. Code: 7878
Select 2 Interval (Change Interval button)
nd

Select Interval Button (Insert Interval button)

In No. column type 01 (G L Entries))  
Year: 2021   From number : 1 to number : 100
save
Note : 
Nr status  :  blank ( once you post the transaction   it will be automatically get
updated)
EX ( if you want to assign manual the number after the posting then tick mark it or
else keep it blank, the system will allocate the document number once you post
the transaction.) 

                                                           

Step 1
This is just for information  : it is the interview question 

               What is The Meaning of "Net document type"

Answer)
When you post a vendor invoice, you use the document type to specify whether
you want to use the vendor net procedure. In this procedure, the system
automatically splits the offsetting postings into the net amount and the cash
discount due. This is done when the document is posted
Eg
Say you have a vendor invoice and the payment terms are 2% discount if they pay
within 30days
when you enter the invoice with document type KN (Net doc type) then the
discount is calculated and posted to the account defined in config
Ex:
Cr Vendor $100
Dr Expense $98
Dr Discounts $2
 

Interview question
Can you make a field mandatory at document type level & which are those ?
A)
Yes we can make 2 field mandatory at document type level ie reference number 
& Document header text. 

Define Tolerance Group for G/L A/c  T C :/NOBA0 

Path: - SPRO>Financial A/cing>G/L A/cing>Business Transaction>
Open Item Clearing>Clearing Differences>Define Tolerance Group for
G/L A/c 

SAP Tolerance Groups define posting authorizations of users in SAP ERP system.
These posting permissions define the amounts that certain groups of accounting
clerks are allowed to post. SAP Tolerance Groups determine various amount limits
for employees and predefine the maximum amount an employee is permitted to
post, the maximum amount the employee can post as line items in a customer or
a vendor account, the maximum cash discount percentage the employee can
assign in a line item, and the maximum allowed tolerance for payment differences
for the employee.
In accounting, tolerances are divided into three groups. The three tolerance
groups are:

 Employee tolerances
 General ledger account tolerances
 Customer or vendor tolerances

Example: we have made provisional entries as TDS Payable Rs. 5000

(Credit ), while executing payment of TDS , permitted difference  is
Rs. 100 (Below case), we can execute TDS Payment Rs. 4900 (Debit).
Is allowed.Less than Rs. 4900, system will not allow to post.

Select New Entries

Co.Cod Grou Description Debi Credi % %
e p t t Dr Cr
7878 Tolerance group for 100 100 1 1
7878
Save
 Define Tolerance Group for Employees:

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

IMG Menu Path :- SAP Implementation Guide –> Financial A/C –> G/L Accounting
–> Business transactions –> Open Item Clearing –> Clearing Differences –> Define
tolerance group  for employees

(This configuration depicts permitted postings for End-users) 

1. Group :- Enter four digits unique code

2. Company code :-  Enter appropriate company code that you wants to define
tolerance group and currency will be automatically updated 
3. Amount per document :- Enter the maximum document amount  the
employees is authorized to post
4. Amount per open item account item :– Enter the maximum amount  the
employees is authorized to process the open items
5. Cash discount per line item :- Enter the maximum cash discount percentage
the employee can grant per line item
6. Permitted payment difference :- Enter the amount  that is permitted for
payment difference in Revenue and expense field
7. Percentage :- Enter the percentage that is permitted for the payment
difference. 
 Configuration step : 

Select New Entries

Enter Company Code
Ignore Tol Group
In per document column enter 9999999999
In item document column enter 99999999
In percentage column enter 5% 
Now Save data. 

Eg: 
Amount per document determines that the user has a privilege to  post a
transaction  maximum up to the specified amount per document/invoice. Amount
per open item pertains only to Customer/Vendor line items (F-43,F-22) and not to
G/L line items (F-02) Percentage specified in Cash discount field determines the
upper limit of  discount which user is authorized to process.
This permitted payment difference apply to the open item managed g/l clearing
account and during Customer/Vendor payment clearing.  During clearing process
system considers  which ever is the lowest whether the specified amount or the
percentage.

Cash discount adjusted field applies during customer/vendor payment clearing.

Amount specified in cash discount adjustment will add to the already existing
discount conditions. If the payment received is less than the supposed amount
and if the difference is not more than the amount specified in this field, system
consider this as additional discount and it will reflect in the g/l assigned for
discount loss/gain.

This configuration enables end-users to make entries.(Employees means here

SAP-End Users. Through this option we can control End-Users postings per
Document. For example, if we define 1,00,000 in amount per document field, End
user will not be able to post amount more than 1,00,000 per voucher/document.)

We can assign as per category-Accounting Clerks, Accounts Manager 

(Transaction Code:/NOB57), the tolerances by defining tolerance group will
 be assigned to respective category. For example: Tolerance group ABC1 and
configure the following tolerances:

            (We do this authorization of SAP End user postings at the time of Go-Live.)
Accounting clerks:

500,000 units of local currency per document

100,000 units of local currency per open item

5% cash discount

We can define tolerance group ABC2 and assign following tolerances:

Accounting manager:

1,000,000 units of local currency per document

500,000 units of local currency per open item

10% cash discount

 Field  Status  Variant::

During document entry, field status group controls which fields are required for entry
and which fields are set to optional and suppress. The field status groups are available
under field status variant and it will be assigned to company codes in SAP.
Scenario
At the time of posting on the SAP screen, we get 70 fields approximately like quantity, Text,
Cost Center, profit center, value, date, etc.
For any postings we will have a debit entries and credit entries, so we will have 75 debit fields
and 75 credit fields. It is not easy to update all the 150 fields and post a document. In order to
overcome this issue, SAP has provided the option to make the fields as required, optional and
suppress.

Example : – Quantity
Suppress: – If you choose quantity as suppress, at the time of posting this quantity field will not
visible on the screen.
Required: – If you choose quantity as required, at the time of posting quantity field will appear
on the screen and you have to give value in the quantity field. Required means mandatory, so
without quantity value you cannot go to next screen.
Optional: – If you selected quantity as optional, at the time of posting the quantity field appears
on the screen and it is your choice to update value or not. Without giving value you can go to
next screen.
The field selection is not common for all accounts, it varies from account to account. For
example for sales account quantity is required and for salaries account quantity is not required.
Important Rules of Field Status Variant
 We need to assign field status group at the time of general ledger master record
creation.
  In field status group, we need to specify which field is required, optional and
suppress.
 At the time of postings, the users gives G/L account number. The fields appears
on the screen based on field status groups assigned to G/L.

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

Maintain Field Status Variant T C: /NOBC4

SAP Customizing Implementation Guide -> Financial Accounting -> General

Ledger Accounting ->Business Transactions -> G/L Account Posting -> Make and
Check Document Settings ->Define Field Status Variants

Select 0001 (Select means you have to click before 0001 column) and then 
Press   F6
Delete 0001, and type 7878 (Company Code) Enter

Click on Copy All Enter & Save

Select 7878 (Company Code )
Double click on “Field Status Group” (left side)
Double click on “ General Text (G001)”

Double click on ‘General Data’ (Blue Line)

Select Required Entry Radio Button for Text
Select next group icon (to the left top)
Select Required Entry for   Business Area
Save
Do the same procedure for G005 also.

Double click on ‘General Data’ (Blue Line)

Select Required Entry Radio Button for Text
Select next group icon (to the left top)
Select Required Entry for   Business Area

14) Assign Field Status Variant for Company Code T C:/NOBC5

Select Position 
Type 7878(Company Code)
In Field Status Variant column Type 7878 (Company Code)
Save.
Define Posting Keys in SAP  /nob41
 
Posting Keys :–  Posting key in SAP is a two digits numerical key that determines
the type of transaction entered in a line item.
Posting Keys – Scenarios
1. Standard SAP system delivers the standard posting keys, you can use
the standard posting and modify or change as per business organization
requirements
2. Posting keys in SAP controls the entries in a line item of document
entries.
3. It determines account type to post i.e. amount should be posted on
debit side or credit side.
Posting Keys Determines :-
1. Account Types ( A, D, K, M, S )
2. Type of postings i.e Debit or Credit
Account Types in SAP :-
1. Assets
2. General Ledger
3. Customer
4. Vendor
5. Material
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Account Type Customer posting keys :-
Posting Key Description Account Type Debit/Credit
Account Type General Ledger Posting Keys
Posting Key Description Account Type Debit/Credit
40 Debit entry G/L Debit
50 Credit entry G/L Credit
80 Stock initial entry G/L Debit
81 Costs G/L Debit
83 Price difference G/L Debit
84 Consumption G/L Debit
85 Change in stock G/L Debit
86 GR/IR debit G/L Debit
90 Stock initial entry G/L Credit
91 Costs G/L Credit
93 Price difference G/L Credit
94 Consumption G/L Credit
95 Change in stock G/L Credit
G/L Credit
96 GR/IR credit

Account Type Material Posting Keys

Posting Key Description Account Type Debit/Credit
89 Stock inward movement Material Debit
Stock outward
99 movement Material Credit
Account Type Vendor Posting Keys
Posting Key Description Account Type Debit/Credit
21 Credit memo Vendor Debit
22 Reverse invoice Vendor Debit
24 Other receivables Vendor Debit
25 Outgoing payment Vendor Debit
26 Payment difference Vendor Debit
27 Clearing Vendor Debit
28 Payment clearing Vendor Debit
29 Special G/L debit Vendor Debit
31 Invoice Vendor Credit
Reverse credit
32 memo Vendor Credit
34 Other payables Vendor Credit
35 Incoming payment Vendor Credit
36 Payment difference Vendor Credit
37 Other clearing Vendor Credit
38 Payment clearing Vendor Credit
39 Special G/L credit Vendor Credit
 Posting key successfully configured in SAP
Posting Key Name  Debit/Credit
70 Debit asset Asset Debit
 Credit
75 asset Credit
 
Posting key Configuration Steps :- Transaction Code – OB41 ( we would be using
predefine posting keys).

 Follow the IMG Menu path

SPRO > Implementation Guide –> Finance Accounting –> Finance Accounting
Global Settings –> Documents –> Line Item –> Controls –>   Define Posting Keys
 
If you want to create : 
Step 1 :– Click on Create Icon
Step 2:- Update two digits numerical key code in the Posting key field and update
name of the posting key in the name of the posting key field
Step 3 :- Update the following data
1. Debit/Credit indicator :– Select the debit or credit 
2. Account Type :- Select appropriate account type 
3. Other attributes :- Select appropriate attribute i.e Sales related or Special G/L
4. Reversal Posting Key :- Update the reversal posting key
 Step 4:- click on save icon
 
 
 
Interview Questions :-
What is posting key and what does it control?
 
Posting key in SAP is a two digits numerical key that determines the type of
transaction entered in a line item.
Posting keys in SAP controls the entries in a line item of document entries
 
What controls the posting key?
There are 3 correct answers to this question.

currency

account

posting date
 amount

company code

Answer :  BDE

 
 
 
                                     Document  Splitting  
 
Often this function is used to get the financial statements correctly for segment
reporting. 
Splitting of account group according to the category (assets/ liability/ income /
expenses).
Document splitting enables you to draw up complete financial statements for the
following dimensions at any time:
Segments
Profit centre
Business areas
Funds
Receivables
Customer-defined dimension (customer field)

Menu IMG- Financial accounting new- GL Account new- business transaction-

document splitting- classify gl account for document splitting.
                                                            Controlling

The SAP CO (Controlling) Module provides supporting information to

Management for  the  purpose of planning,  reporting,   as  well  as  monitoring 
the operations of  their  business.  Management  decision-making  can  be 
achieved with the level of information provided by this module. The  Controlling 
(CO)  component  of  SAP  R/3  system   contains  all  accounting functions
necessary for effective controlling for businesses. 

Every organization normally have   an  external and internal 

accounting viewpoints. The  external  viewpoints  is  represented  by  Financial 
Accounting (FI)  component and Controlling (CO) represents the internal
accounting viewpoint. FI  deal with overall  financial reporting and accounting  &
CO deal with  cost ( monitoring  cost) & planning.  CO component of SAP  system  
offers  a  broad   selection  of  functional   tools  that  can  be  used  to provide 
management  accounting   information  that  are  useful  for  management     
decision  making. It unable management  to determine variances by comparing
the actual data with plan data.
  Do remember that Financial Accounting and Controlling are independent
components of the SAP system. The data flow from the CO component to FI
component takes on a regular basis.

Maintain Controlling Area:

Path: IMG> Controlling> General controlling> organization> maintaining
controlling area
Double click on Maintain control Area
Select  New  Entries
Controlling Area    7878 (controlling area=co. code)
Name                      Controlling area for 7878
Co. code to controlling Area   : Controlling area same as co. code (select this
option if  there  is  only  one  Co. Code.  If different Co. Codes to be assigned for
the same Controlling Area, select second option.))
Currency type:       10
Currency :              INR
Chart of Accounts :7878
Fiscal year Variant : 56
Cost Centre Standard Hierarchy: 7878hier
Save.
Select ‘yes’ for the message.
Enter.
Double click on assignment of Co. Code
Select  New Entries
Co.Code: 7878

Save.
Double click on Activate components/control indicators
Select  New Entries
Enter Fiscal year  2021
Cost Centers: Component Active (select)
Select  AA: Activity type Check box
Order Management: Component Active (Select)
Select  Profit Centre Check Box

Currency Setting  : Financial accounting : financial accounting global setting :

ledgers : ledger: define setting for ledgers & Company code.
Step 1
 Click  on Currency type :
Company code  :  55su
Currency type : 30
Source currency  : 00
Exchange rate type : M
Translation  date : translation date
Save
      Save.