Wa0000.

SAP
SAP - Systems Applications & Products in Data Processing
BASICS OF ACOUNTING
ACCOUNTING
⮚ Production of financial information

⮚ Means how much spent, how much earned, how much worth, how to
improve.
⮚ The words asset and liability are two very common words in
accounting/bookkeeping.
ACCOUNT
⮚ A record or statement of financial expenditure and receipts relating to a

particular period or purpose.
GOLDEN RULES OF ACCOUNTING
Types of Accounts
REAL ACCOUNT
⮚ Debit what comes into the business

⮚ Credit what goes out from the business
PERSONAL ACCOUNT
⮚ Debit the receiver

⮚ Credit the giver
NOMINAL ACCOUNT
⮚ Debit the expenses or loss of the business

⮚ Credit the income or gain of the business.
ACCOUNTING EQUATION
Based on Double Entry System
⮚ Which says that every transaction has two aspects debit and credit? For
every debit.
⮚ There is an equal opposite credit.
⮚ This helps to prepare balance sheet.
ASSETS = LIABILITES + OWNERS EQUITY.
Assets + Expenses + Drawings = Liabilities + Revenue + Owners Equity.
ASSET
⮚ Resources that help generate profit in your business.
LIABILITY
⮚ In common known as Debt or credit.
OWNERS EQUITY
⮚ The amount of money that we (the owner) have invested in the business.
REVENUE
⮚ Income generated by the sale of goods or services.
DRAWINGS
⮚ Money withdrawn by business owners.

⮚ Eg. Personal Use
EXPENSES
⮚ Money given to buy something.

⮚ Also called expenditure.
CAPITAL EXPENDITURE
⮚ Purchase of Assets
⮚ Item lasts for a more than a year
REVENUE EXPENDITURE
⮚ Payment for something (Expenses).

⮚ Items lasts less than a year.
PETTY CASH
⮚ We enter the basic transactions made.

⮚ 25k to 50k.
PROFIT
⮚ Financial gain
LOSS
⮚ An amount of money lost by a business or organization.
DEPRICIATION
⮚ A reduction in the value of an asset over time.

⮚ Eg. Building, Furniture.
BOOKKEEPING
⮚ Recording the business transactions.
JOURNAL ENTRIES
⮚ Shows the company debit and credit balances.
WHAT IS ADJUSTING JOURNAL ENTRY?
- Usually made at the end of an accounting period to recognize an income

or expense in the period that it is incurred.
⮚ Accrued expenses
⮚ Deferred revenues
⮚ Prepaid expenses
⮚ Depreciation expenses.
LEDGER
⮚ Preparing the ledger with the help of journal entries.

⮚ Recording the transaction made by the business.
BALANCE DAY ADJUSTMENTS
⮚ Adjustments that need to be made on some accounts at the end of the

financial year.
DOUBLE ENTRY SYSTEM
⮚ Recording the transaction in the terms of debit and credit

⮚ Sum of debit should equal the sum of credit.
TRIAL BALANCE
⮚ Shows the total of all your business's accounts, its assets, liabilities,
income, costs and capital.
WHY IT IS CALLED TRIAL BALANCE?
⮚ Because there will always be equal sums on the debit and credit sides of
your trial balance.
PROFIT & LOSS ACCOUNT
⮚ Shows a company's revenue and expenses over a particular period of

time.
BALANCE SHEET
⮚ A financial statement that reports a company's assets, liabilities and

shareholders' equity.
SAP
HOW DOES APPLICATION WORK?
⮚ Computer software package that performs a specific function directly for

an end user or for another application.
⮚ Eg. Operating System
WHAT IS SAP?
⮚ Resource Planning Software. i.e., According to the need of the resource

planning the work creating and executing it.
⮚ World largest producers of software
⮚ Managing the business processes.
⮚ Developing solutions that suit the business.
WHAT IS SAP AND ORIGINATIONS OF SAP?
⮚ SAP Software is a European multinational, founded in 1972 by Claus

Wellenreuther, Dietman Hopp, Hans-Werner Hector, Hasso Plattner, and
Klaus Tschira.
⮚ They launched it with R/1 Architecture.
⮚ Developed for managing business operations and customer relationships.
HOW DOES SAP APPLICATION WORK?
⮚ It connects all the departments in the organisation.

⮚ Exact word (Centralized system for our organization which gives access
for all the department to share their data’s in a common folder so that
they can work effectively (create a better workplace))
WHAT ARE THE SAP BUSINESSES UNDER IT?
⮚ Finance, Sales, Purchasing, Inventory, Production, Human Resource.
WHEN WAS SAP INVENTED?
⮚ 1 April 1972, Weinheim, Germany.

WHY IS SAP USED?
⮚ SAP facilitates effective data processing and information flow across

organizations.
⮚ It connects all parts of business into an intelligent suite on a fully digital
platform.
WHAT ARE THE BENEFITS OF SAP?
⮚ Reduced Costs.
⮚ Data Quality and Security.
⮚ Better Planning and Reporting.
⮚ Customer Service.
DISADVANTAGES OF SAP.
⮚ Expensive
⮚ Complicate to use
MODULES OF SAP
⮚ Financial Accounting (FI)

⮚ Controlling (CO)
⮚ Plant Maintenance (PM)
⮚ Production Planning (PP)
⮚ Quality Management (QM)
⮚ Sales Distribution (SD)
⮚ Material Management (MM)
⮚ Human Capital Management (HCM) (HR)
BASED ON THE DATA EXCHANGE THIS IS CLASSIFIED INTO 2

(TWO).
FUNCTIONAL SAP ERP MODULES
⮚ Human Resource Management (SAP HRM), also known as Human

Resource (HR)
⮚ Production Planning (SAP PP)
⮚ Material Management (SAP MM)
⮚ Financial Supply Chain Management (SAP FSCM)
⮚ Sales and Distribution (SAP SD)
⮚ Project System (SAP PS)
⮚ Financial Accounting and Controlling (SAP FICO)
⮚ Plant Maintenance (SAP PM)
⮚ Quality Management (SAP QM)
TECHNICAL SAP ERP MODULES
⮚ SAP Basis
⮚ SAP Security
⮚ Advanced Business Application Programming (SAP ABAP)
⮚ High Performance Analytic Appliance (SAP HANA)
⮚ SAP Net Weaver
⮚ Information Systems Management (SAP IS)
⮚ Customer Relationship Management (SAP CRM Technical module)
⮚ Exchange Infrastructure (SAP XI)
⮚ SAP Solution Manager
DIFFERENCE BETWEEN SAP AND ORACLE.
❖ SAP ERP
⮚ SAP ERP is complex software.
⮚ Used in both large and small companies.
⮚ Runs on ABAP Language (Advanced Business Application
Programming) extracted from C, C++, & Python.
⮚ SAP cost is higher.
❖ ORACLE
⮚ It is an organized collection of information or data’s.
⮚ It provides high performance authorised access and failure recovery
features.
⮚ Run on SQL Language.
⮚ Lower than SAP.
COMPETITORS OF SAP
⮚ Microsoft
⮚ IBM
⮚ Oracle.
NET SUITE
⮚ It is software which helps unlock critical processes.

⮚ Might replace SAP.
ERP
Enterprise Resource Planning
Organisation /Company Money Man Material Machinery 4M to gain profit
WHAT IS ERP?
⮚ Enterprise Resource Planning

⮚ To deliver an integrated suite (arranging or coordinating) of business
application.
⮚ Automated process.
HOW DOES IT WORK?
⮚ Automate and support a range of administrative and operational (ready

for use).
⮚ Business processes across multiple industries.
⮚ In simple words we can say it covers end to end process.
WHY IS IT USED?
⮚ To create accurate and efficient process.

⮚ Improves internal process and communication. - This leads in increased
efficiency and improve company performance.
WHAT IS CLOUD?
⮚ Storing and accessing the data’s in internet.

⮚ Save files to a remote and use them on demand.
⮚ Cloud software is hosted on the vendor's server and accessed via a web
browser.
⮚ Eg: VPN
I work on VPN connection
So our data’s are safe and we save everything in a share point.
So that our Team leads or Managers can view it and modify it.
WHAT IS A DATABASE?
- First to answer this we should know

WHAT IS DATA?
⮚ Data is nothing whatever is considered as information.

⮚ Eg: Name, Height, Weight, Age, and Gender.
DATABASE
⮚ Systematic collection of data. i.e.., Fixed plans or act which makes the
data management to run easily.
DECENTRALIZED
⮚ Managed by the local bodies.

⮚ Cannot access other department data’s.
⮚ Eg. Tally - Installed by all users and all can use it. But doesn’t have a
single user face access.
Eg. In a company they are manufacturing a particularly good we can take ice
cream.
First the CUSTOMER makes a call to SALES.
Then the SALES respond will check the INVENTORY and let you know.
Then the INVENTORY goes to PRODUCTION PLANNING.
Then on checking the availability. There are some goods missing (butter, fresh
cream). So they go to the VENDORS. Then letting this news to the
INVENTORY about the missing goods. And then the VENDORS deliver the
goods to the PRODUCTION PANNING they send this to the FLOOR
EXECUTIVES. Simultaneously the FLOOR EXECUTIVES informs this to the
HUMAN RESOURCE as there is lack of employees. PRODUCTION
PANNING informs the goods got from VENORS for payments to FINANCE.
The FINANCE discharges the payments to the VENDORS and informs this to
HUMAN RESOURCES and the HUMAN RESOURCES hires employees as
informed by the FLOOR EXECUTIVES. Then the goods are made and sent to
the INVENTORY. Then they let it to SALES.
After all this the goods are prepared and are handover by SALES to
CUSTOMERS.
Then the Sales inform HR and FINANCE.

So the process is too long.
CONS.
⮚ There is no real time information.
Only after the call the decision is made. There is no proper arrangement.
⮚ Loss of Revenue and Customer Dissatisfaction
All the departments store their info separately so when there is a need they plan,
if the plan is made prior it will not create a huge impact. (As it goes dept to dept
the customer is holed while coming back to customer it creates dissatisfaction)
So we lose customers.
⮚ Maintenance cost is huge
If priory known the departments plan accordingly thus can avoid the cost of raw
materials cost, rent for warehouse or transport etc.)
⮚ Labour charge Increases
Due to this when they hire the employee demands higher pay.
CENTRALIZED
⮚ Maintained in a single location/path.

⮚ Can access other department data’s.
⮚ Eg. Bank Main Branch is responsible even the branched can use it.
Sales, Inventory, Product Planning, Finance, HR, Vendors, and Floor

Executives - All feed their data’s in a single path "Centralized system ERP".
Customer makes a call to Sales.
So the Sales directly goes to the ERP checks the data’s and responses the
customer on time.
PROS
⮚ Eliminates duplications.
⮚ Provides the real time information’s i.e., the current and accurate
data’s.
⮚ Increases production, better inventory management, promotes quality,
helps to reduce the material cost, effective human resources
management, and boosts profits.
⮚ More customer interaction leads to better service. Thus gains customer
satisfaction.
CENTRALIZED DATA
⮚ Information.
REAL TIME
⮚ Instant availability & accessibility.

⮚ The current (actual time it works)
⮚ Instant Access of data
❖ Eg. Bank
❖ APN (Access Point Name) The immediate action made.
❖ Eg. Withdrawn money you will receive an immediate notification.
What is SAP HANA?
⮚ High-Speed Analytical Appliance

⮚ It stores its data in RAM
⮚ RAM - Random Access Memory - Short Term Memory
❖ Simple words temporary storage.
❖ It can run only SAP HANA database.
WHY IT IS USED?
⮚ Run both transactional and analytical workloads at the same time.
❖ Transactional
⮚ It is designed in such a way that multiple changes to this data from a
number of users over time where these modifications.
❖ Analytical
ECC AND S4 HANA
⮚ SAP ERP Central Component (ECC) is the previous generation of SAP's

enterprise resource planning software.
⮚ Integrates digital information from one area of business with the data
from other area of business.
⮚ Implemented in small and large scale industries.
ON PREMISES
⮚ Software is installed locally, on your business computers and servers.
OFF PREMISES
⮚ Software hosed by third party and functioned by another third party.
HYBRID
⮚ A combination of both on premise and cloud.

SAP ARCHITECTURE
WHAT IS SAP ARCHITECTURE?
Before that, we will know what is architecture?
❖ The art and technique of designing and building.
So same like that
The SAP System Architecture follows a three tier architecture containing
⮚ PRESENTATION (User enters data in system)

❖ A software layer of the AS ABAP that functions as the user interface
of the system.
❖ The presentation layer analyzes user actions and transfers these to the
application layer.
⮚ APPLICATION (Read/Write from database)
❖ Is a set of executables that collectively interpret & they give input and
output to the user.
❖ Only after getting into the database layer.
⮚ DATABASE (Stores data’s)
⮚ Central database system containing all of the data in the R/3 System.
WHAT IS R/3 ARCHITECTURE?
⮚ So again before seeing this we have to know what is R/1 and R/2
architecture?
First
⮚ R signifies Real-time system

⮚ 3 represents - 3-tier architecture.
⮚ Server - manages access to a centralized resource or service in a network.
SAP R/1 (1973-78)
⮚ It is a stored in a single server.

⮚ Presentation, Application and Database are merged and installed in one
system/Server.
SAP R/2 (1979-83)
Two servers.
⮚ Presentation, Application and Database are merged and installed in two

systems/Servers.
⮚ Application and Database components are installed in other systems.
SAP R/3 (1989)
⮚ Three tier application architecture (Data base, Application Server and

Client).
⮚ Most of the today’s business uses this. (Around 80%).
WHY R/1 WAS EVOLVED TO R/2?
⮚ R1 had all 3 layers in 1 server.

⮚ The computation of data is low.
⮚ Amount of computation increases the R/1 became slow.
⮚ So they introduced Tier 2.
SAP S4 HANA (2014)
Differences between R/1, R/2, R/3.
R/1
BENEFITS ISSUES
⮚ Very simple Poor security

⮚ Less expensive Multi users cannot use
⮚ Server is not needed
R/2
BENEFITS ISSUES
⮚ Good security Costly

⮚ More scalable More Complex
⮚ Faster Execution
R/3
BENEFITS ISSUES
⮚ Very good security Very costly

⮚ Fastest execution Very complex
⮚ Better scalable than R/2
USERS
R/1 Few
R/2 2 to 100
R/3 50 - n. numbers
WHAT IS BUSINESS?
⮚ It is an organisation which engages in industrial, commercial,

professional activities.
⮚ Commonly called the individuals in a group of concern work for the well
being of an organisation to produce goods and services to gain profit.
⮚ Important for country's economy.
⮚ Legal individual independent entity as per Indian Act 1956.
WHAT IS BUSINESS SUITE?
⮚ End-to-end enterprise software applications

⮚ Integrate data, processes and functions for important areas such as
finance, sales and HR.
⮚ Help companies run business operations more efficiently
WHAT IS BASIS?
⮚ It is a foundation for something or it is necessary part of something. ie..,

without this that cannot be fulfilled.
⮚ BASIS - Business Application Software Integrated solution.
⮚ In SAP it means the SAP version of system administration.
SYSTEM ADMINISTRATION
⮚ Field of work in which someone manages one or more systems, be they

software, hardware, servers or workstations.
⮚ Prime motive is ensuring the system running efficiently and effectively.
BASIS cntd..,
⮚ Responsible for making sure that the SAP application server and
applications are installed and configured properly.
⮚ They also maintain the whole landscape and its smooth operation.
SAP System Landscape
Landscape
⮚ View/Scenery
LANDSCAPE IN SAP
⮚ Similar to a layout.
⮚ Landscape is the arrangement for the servers.
⮚ Servers are called as clients in SAP.
SAP is divided into 3 landscapes
⮚ SANDBOX (practice - training purposes) or Research and development

❖ Is similar to DEV.
❖ Area where users are free to experiment without destroying or damaging
any legal contents.
❖ Rarely TR will be generated.
❖ SAP has given it for training purposes
IDES
✔ International Demonstrational and Evaluation System.
DEV
DEVELOPMENT
⮚ Consultants do the customization as per the company’s requirement.

⮚ Two clients 100 - Golden client 110 - Test Client
⮚ Golden Client (100) is only for configuration.
⮚ Test Client (110) testing by consultants/core team test the changes before
import the quality.
QAS
QUALITY Prod Serv
⮚ The core team members and others (clients) test the customization.
⮚ Two Clients 200 Test Client 210 User Testing.
⮚ Test client core team testing.
⮚ User testing users to perform testing of new changes and client
development reports.
WHAT IF THE DEV TESTING IS GOOD AND THE QAS IS NOT?
So they will send it back to DEV
(Information will be sent not the report)
And they will generate a new TR and again they will send to QAS
And they will import the both the TRs.
They will fix the error and the new 1 will be error corrected version and the old
corrected 1.
So they send the both so that they can use it.
Master data’s are used in QAS.
When a master is created system doesn’t generate any TR.
Once it is released from DEV no need to release it from QAS.
Same request
If all is ok same request no. will be given to basis team and the request can be
run lively to PRD.
PRD
PRODUCTION
⮚ Live data of the company is recorded.

⮚ One client where we book business transactions of day-to-day activities.
⮚ Consultant doesn’t have access.
✔ LEGACY DATA’S are not in SAP these are used apart from SAP.
⮚ Information stored in an old or obsolete format or computer system that
is, therefore, difficult to access or process.
⮚ Enterprise essential information that is stored in an old or obsolete format
or computer system
How these are pushed from 1 to next
Transport Request (TR)
| |
Customization Work Bench
These things will take care by BASIS team.
WHAT ARE THE MINIMUM SERVERS REQUIRED?
✔ 2 servers is enough
✔ DEV and QAS 1 server
✔ 1 server PRD separately
WHY MINIMUM 3 SERVERS?
✔ The quality and performance will be more and efficient.
WHY ERP IS DEPENDED ON BUSINESS?
⮚ Reports to decision making to know the profit.
❖ ERP SAP - Integration

❖ Real time - Update of data
CENTRALIZED DATA
⮚ To record the business transactions

⮚ Cash flow, Balance sheet. P & L.
⮚ We get - REPORTS - we file taxes
⮚ So we can take - DECISION - we implement the ideas.
SAP is ECC (ERP Central Component) platform configuration.
2014 -15
SAP came up with their own database.
BIG "O"
Simple Finance
S/4 HANA (HIGH-PERFORMANCE ANALYTIC APPLIANCE)
⮚ Universal G/L - the table named concept called ACDOCA.

⮚ ACDOCA is a standard General Ledger Accounting Transparent
Table in SAP FI application, which stores Universal Journal Entry
Line Items data.
⮚ SAP Graphical User Interface (GUI) - users can interact directly with
the SAP software.
⮚ 8 GB RAM we can access the data’s fastly.
| |
Hot Cold
Can be stored in system the details not used frequently
Can be used frequently
FIORI
⮚ Works only in S/4 HANA

⮚ Apps called as Tiles.
ADVANTAGES
⮚ Improve user satisfaction- increase production and data quality.

⮚ Work from anywhere with optimised native mobiles and responsive
web apps
⮚ Adapt and develop this using UI flexibility and rapid development.
INTRODUCTION TO BUSINESS
WHAT IS BUSINESS?
⮚ It is an organisation which engages in industrial, commercial,

professional activities.
⮚ Commonly called the individuals in a group of concern work for the well
being of an organisation to produce goods and services to gain profit.
⮚ Important for country's economy.
There are three Types of Business in SAP.
❖ GREEN FIELD IMPLEMENTATION PROJECT/ SAP

IMPLEMENTATION PROJECT
⮚ End to end SAP implementation.
⮚ New thing which is created.
❖ ROLL OUT PROJECT

⮚ Already in SAP.
⮚ Have to make some or add some departments.
❖ SAP MIGRATION PROJECT
Transfer from 1version another version.
ASAP methodology is used.
⮚ It is road map for implementation.

⮚ Standard process/system implementation method provided by SAP.
Accelerated SAP
There are 5 phases
⮚ Project Preparation
⮚ Business Blue Print
⮚ Realization
⮚ Final Preparation
⮚ Go Live and Support
To go to each face we need sign off/sign up.
PROJECT PREPARATION
⮚ Initial stage in implementation.

⮚ In this stage SAP partner - sales person identifies the object of the project.
Customer
Discuss to sales manager
Delivery head
Base head
Technical Head
ON SIGHT
⮚ The implementation will go to the client and will be done.
OFF SIGHT
⮚ Support only.
KICKOFF MEETING
⮚ Boost up the client to start the process.

BUSINESS BLUE PRINT
⮚ From the client side they will introduce everyone.

⮚ SAP will introduce the whole team and the terms & conditions.
❖ Includes travel food accommodation.
ORGANISATIONAL STRUCTURE
⮚ Studying or understanding of the client.

⮚ Analysing the business the process.
❖ If the R structure goes wrong the entire process will go wrong.
AS - IS DOC (BUSINESS PROCESS)
⮚ This document defines the existing business software & process.
TO - BE DOC
⮚ How it will be reflected in SAP.

⮚ Contains the summary output in SAP
GAP DOC
⮚ Difference between AS-IS doc and TO-BE Doc.

⮚ We don’t have a solution from SAP.
(Something extra which is not in SAP Standard)
⮚ There are some restrictions.

⮚ For these kinds of things it will take time so this is done through GAP
Doc.
⮚ After all this will be submitted to process head or Head Department.
⮚ After this they will give this as final blue print to next phase.
✔ In first two phases there is no activity done. Just (only) information is

gathered.
REALIZATION (THE SIGN OFF TO BE TAKEN FROM CUSTOMER)
⮚ They start to configure the business process in development business.

⮚ After development we do unit testing.
⮚ Unit testing means before importing the QAS. The consultant will do the
testing. (FI)
⮚ Functional testing means integration testing between modules (FI to MM,
MM to CO)
✔ This system is ready for testing. As SAP software is new to their

business.
So we do training for them i.e..,
FINAL PREPARATION
⮚ The entire thing is here.

⮚ Training to business owners or clients requirement.
✔ Things like what to do how to login and others basic things and how to do
other things.
Cut over activity (important thing)
⮚ In which we upload the legacy data’s (balances of the business like

customer asset G/L and others)
⮚ The client data’s to be uploaded in the SAP system.
⮚ In PRD system it will be uploaded.
✔ Client will do the testing in QAS.
✔ Master data is like vendor name and address and other terms and
conditions.
✔ Master data will be used DEV server also.
UAT Docs
⮚ User Acceptance Testing.

⮚ Then we will take the sign off.
GO LIVE AND SUPPORT
⮚ We are handing over the TR system to the client.

⮚ Min 3 months they we will support then the business centre will start to
do their business.
INTRODUCTION TO BASIS
WHAT IS BASIS? [BASIS - (BACKBONE OF SAP)]
⮚ It is a foundation for something or it is necessary part of something. ie..,

without this that cannot be fulfilled.
⮚ BASIS - Business Application Software & Integrated Solution.
⮚ In SAP it means the SAP version of system administration.
SYSTEM ADMINISTRATION
⮚ Field of work in which someone manages one or more systems, be they

software, hardware, servers or workstations.
⮚ Prime motive is ensuring the system running efficiently and effectively.
BASIS cntd..,
⮚ Responsible for making sure that the SAP application server and
applications are installed and configured properly.
⮚ They also maintain the whole landscape and its smooth operation.
Transport Request (TR)
| |
Customization Work Bench
⮚ This is created at the application level. Changes made to connecting.

⮚ Based on customers input. Changes made in table levels.
Mostly generate by ABAPers.
It doesn’t create child tier only parent tier.
⮚ Mostly generated by ABAPers and functional consultants.

⮚ If customization is raised work bench request should also be raised.
SE10
|
Display
Modify and customization
✔ Main Tier as a Parent Tier in SAP.

✔ Sub Tier is called Child Tier in SAP.
⮚ This will be set up by BASIS Team.
While releasing,
⮚ Child tier should be released first then the parent tier should be released.
⮚ If done vice versa we might get errors.
In work bench request
⮚ It doesn’t create child tier only parent tier.

FI – FINANCIAL ACCOUNTING
FI
⮚ To record the business transaction and to pull the external report like
Balance Sheet, Profit & Loss A/c, Trial balance.
ACCOUNTING
⮚ Accounting deals with recording, maintaining as well as reporting the

financial affairs of the company.
FINANCIAL MANAGEMENT
⮚ This will be done through financial management. (Management of

finances and investment).
INTERNAL REPORT
⮚ The report which cannot be shared.
EXTERNAL REPORT
⮚ The report which can be shared to outsiders like shareholders.
MODULE: - CO - CONTROLLING
⮚ Purely for internal recording.

⮚ Comparisons
⮚ We can also record transactions HOW?
⮚ Pull balance sheet and P & L a/c.
⮚ Linked to hierarchy.
HIERARCHY
⮚ A hierarchy is a way of organizing things that goes from high to low.

⮚ Or chain of command.
COMPANY
ENTERPRISE STRUCTURE OR ORG STRUCTURE
Client
⮚ Where a set of tables and master database stored.

⮚ Without the client we can’t do anything in SAP.
⮚ Highest place in SAP all the modules.
⮚ Represents as numeric it starts from 000 to 999
COA -- Chart of Account – list of G/L accounts
⮚ Chart of Account list of G/L accounts used in company to record the day
to day transactions.
⮚ For a single COA we can assign n number of company codes we cannot
assign n. number of COA to a company codes.
OPERATIONAL CHART OF ACCOUNT
✔ G/L accounts created under operating chart of accounts are used to record
day to day transactions of business.
GROUP CHART OF ACCOUNT
✔ We can use to prepare the consolidation report.

✔ When all the company code is use same chart of account.
✔ Reporting for entire corporate group purpose.
COUNTRY SPECIFIED CHART OF ACCOUNT
✔ G/L accounts created under country chart of accounts are as per the
country legal requirement to provide reporting at per legal requirement
of country.
|
Company
⮚ Legal individual independent entity/organisational unit as per Company

Act 1956 for which we can pull an external financial report (Balance
sheet, P& L) at company level we will pull only the consolidated report.
⮚ They will define it with 6 alpha - numeric characters.
⮚ For a company we assign n. number of company codes.
But
⮚ We cannot assign multiple companies to a single company code.
For Eg.
Reliance (Head Office use reports) Consolidated External Report
| | |
Digital Petrol Service (subsidiary companies) Individual Report
✔ Consolidated will be prepared after Audit of your subsidiary companies.
Company Code COCD
⮚ Company code is an organisational unit within the company.

⮚ Company code is also an independent legal entity for which we draw
final statement like balance sheet Profit & Loss and Trial balance.
⮚ For this audit will be done.
⮚ Then consolidated will be prepared external level.
⮚ 4 alpha numeric character
⮚ Company is not mandatory company code is mandatory
⮚ Each company code must use the same chart of account. (based on client)
Why important?
Here only we can record the day to day transactions.

|
Profit Centre (Module CO) (The least hierarchy) (where we pull balance
sheet, P&L acc and Trial Balance)
⮚ It is created for each branch.

⮚ After this new concept was introduced they removed Business Area
concept.
⮚ Till ECC 5.9 we used to call the old version – Business Area.
✔ G/L concept - they include in FI module.
⮚ We cannot directly post to CO Module.
⮚ This is called Cost Objects - Can be cost centre, profit centre or internal
audit or Statistic key figure.
⮚ To capture this we need to make integration.
⮚ We need to integration with FI module. This integration is called Cost
Element.
⮚ This is internal report which is used for management report.
⮚ The tax can be calculated depends on Indirect tax
⮚ We can capture and distributed.
✔ The transactions are recorded through Cost Element.

✔ Cost element can be captured through P&L acc.
⮚ The least hierarchy.
But here also we can pull or see the Balance Sheet and P&L.
For Eg.
Document Splitting
We can distribute
CGST SGST 12% split as 6 each on.
Tax part with be posted through FI module.

In US they use Segment report instead of Profit Centre.
For them this will be audited as per their terms and conditions.
In ECC we have versions (ERP Central Component)
ECC 6 is bench mark.
In older version we used business area concept.
Business Area - FI module
Business areas can be indentified through braches not departments.
Business Area
| |
Line of Activity Area of Activity
Product wise Like branch wise in another branch
Eg. Manufacturing have different practices.
Only one company code Under which level the management

is looking but under one company we we have to know.
Manufacture different product
How is it going?
What product has been sold more?
⮚ This is a small organisational unit for a company code.

⮚ For this Internal Report will be pulled.
⮚ For this Balance Sheet and P&L can be pulled.
✔ Controlling Area is also a level which comes under controlling module

✔ In FI we will assign because of the new version.
✔ At company code level also we assign controlling area
But on what scenario?
⮚ We will assign controlling area to company where we maintain the same

controlling area to all the company codes.
⮚ At that time we will assign controlling area to companies.
✔ Controlling area is also which comes under CONTROLLING MODULE.

✔ But in FI we assign this because of this version.
✔ We will assign the controlling area to company codes.
✔ And also controlling area to company levels also.
But in what scenario?
1:1 ratio
⮚ For 1 company code and 1 controlling area.
✔ But if you are assigning the controlling area at company level we use the
same COA to all the company codes.
Defining a company in SAP is not mandatory.
Why?
⮚ As only the consolidated report is pulled.
Then when will we define?
⮚ When a client asks for consolidated report we will define a company.
Can we keep the currency in company level and company code level or
should the currency be same.
⮚ It’s not mandate to keep the same currency

⮚ The reason is because we pull the consolidated on basis of the area we
prepare consolidated report.
✔ Eg: Head Office in USA, Branches in India INR. So different currencies
are used.
ACCOUNT GROUP
⮚ Account group controls the master data’s.

⮚ It controls the fields of G/L accounts.
⮚ Its company level.
⮚ Account Group is similar set of G/Ls under that we create G/L account
day to day transaction.
⮚ Account group is of alpha and alpha numeric
⮚ By standard we use ALPHA.
⮚ 1 and 2 series are balance sheet 3 4 5 6 series are P&L a/c
In SAP we have 2 screens.
DEFAULT SCREEN OR EASY ACCESS SCREEN
⮚ To create the master data to record the day to day transactions as per
module wise.
⮚ Used by end users
⮚ Were we pull the report
✔ The consultants will have access to both the screen
✔ From this screen we go to IMG screen
✔ SPRO type and give enter.
IMG SCREEN (IMPLEMENTATION GUIDE) OR SPRO SCREEN (SAP
PROJECT REFERENCE OBJECT) or CONFIGURATION SCREEN
⮚ Used by purely consultants

⮚ Purely use to configure business process.
⮚ The end users cannot access
To reach SAP screen short cuts
⮚ PATH Menu Tree

To define company
⮚ As soon as we log in we get into IMG Screen
⮚ Then type SPRO and give enter
⮚ Select SAP Reference IMG
⮚ Enterprise Structure
⮚ Definition
⮚ Financial Accounting
⮚ Define Company
T-CODES (TRANSACTION CODES)
⮚ Very sure you can use it.
In command box we enter the necessary and hit search.
To find the path using T codes
❖ Search_SAP_menu
To remove the T-Codes
❖ EXTRA --- SETTING --- THEN SELECT THE OPTION FROM IT.
To the view T-codes
❖ In Display IMG --- Add info --- Add Info --- Display Key --- Img
activate.
SAP IS ALWAYS ROLE BASED.
TECHNICAL SPEC
Technical doc will be created by functional spec.
Functional doc will be created by Technical Spec.
How many windows can be opened in SAP?
⮚ 6 is the max
⮚ This can be restricted by the management for 3 windows.
These are the instruction to open and close the screens
❖ /n is used to close the existing screen and to open the required screen.
❖ /O is used keep the existing screen open and to open another screen.
❖ /I is used to close the existing screen.
❖ /osm12 locked data – delete your name and – select the person who
locked it and delete them.
DEFINE COMPANY
To define a company we use a T-Code OX15
PATH
⮚ Log In
⮚ DISPLAYS SAP Easy Access Screen
⮚ In search type SPRO and give enter
⮚ SAP Reference IMG
⮚ SAP Customizing Implementation Guide
⮚ Definition
⮚ Define Company select (clock)
✔ New Entries
✔ Company Id
✔ Company Name
✔ Street PO Box Postal Code City
✔ Country
✔ Language (ENG)
✔ Currency (INR)
After it select Save
❖ Prompt for Customizing request dialog box appears.

❖ Give a short Description and select own request and select TICK.
THUS COMPANY IS CREATED

DEFINE COMPANY CODE
To define a company code we use a T-Code OX02
PATH
⮚ Log In
⮚ Definition
⮚ Edit, Copy, Delete, Check Company Code
Select the Edit Company Code Data.
✔ Select New Entries

✔ Enter your unique Company code
✔ Company name already given
✔ Add data
✔ City
✔ Country
✔ Currency
✔ Language
When you hit save this window appears
Then select the address detail button. Enter all the details.

THUS COMPANY CODE IS CREATED

ASSIGNING COMPANY CODE TO COMPANY
To assign company code to company we use a T-Code OX16
PATH
⮚ Log In
⮚ Assignment
⮚ Assign Company code to Company
Search for your company code and enter the company name near.

❖ Give a short Description and select own request and select TICK
THUS ASSIGNED COMPANY CODE TO A COMPANY
CREDIT CONTROL AREA
To define a credit control area we use a T-Code OB45
⮚ Credit Control area is an organisational element that control and monitor

credit limit of the customers.
⮚ In SAP also we will evaluate the capability of customers to give the credit
or not. So credit control area is created. It will be done through SD
module.
⮚ From FI side we will create the credit Control Area to SD we will give.
⮚ Only credit control code with be created.
⮚ To define this we can give same codes. So if you give individual codes it
will difficult to navigate.
PATH
⮚ Log In
⮚ Displays SAP Easy Access Screen
⮚ Definition
⮚ Final Accounting
⮚ Define Credit Control Area
Then
✔ New Entries
✔ Note Cred. Contr. Area & Currency

✔ All other field will be disclosed SD team.
✔ No need to tick All co. Codes

THUS CREDIT CONTROL AREA IS CREATED

ASSINGING COMPANY CODE TO CREDIT CONTROL AREA
To assign company code to credit control area we use a T-Code OB38
PATH
⮚ Log In
⮚ Assignment
⮚ Assign Company code to Credit Control Area
Then select POSITION and type company code and in description assign the
same company code to it again.

THUS ASSIGNED COMPANY CODE TO CREDIT CONTROL AREA

DEFINE BUSINESS AREA (OPTIONAL)
To define a business area we use a T-Code OX03
PATH
⮚ Log In
⮚ Definition
⮚ Business Area
Then
✔ New Entries
✔ 4 Alpha Numeric
✔ Description with Branch name or location Company name suffixed

THUS BUSINESS AREA IS CREATED

DEFINE CHART OF ACCOUNTS
To define chart of accounts we use a T-Code OB13
⮚ Chart of Account list of G/L accounts used in company to record day to

day transactions.
⮚ For a single COA we can assign n number of company codes we cannot
assign n. number of COA to company codes.
PATH
⮚ Log In
⮚ General Ledger Accounting
⮚ G/L accounts
⮚ Master Data
⮚ Preparations
⮚ Edit Chart of Accounts List
Then
⮚ New Entries
⮚ Enter the Chart of Accounts Code, max length is four.
⮚ 1 Alpha 3 Numeric but given company code for avoiding confusion
⮚ Description
⮚ Language
⮚ Length of G/L acc number Max 10 if single digit it will be prefixed by 0
⮚ Then type of Integration between G/L accounts and cost elements
⮚ Always give Manual Creation of cost elements
⮚ If block is ticked no other G/L accounts can be created under it.

THUS CHART OF ACCOUNTS IS CREATED

⮚ OPERATIONAL CHART OF ACCOUNT
GL accounts created under operating chart of accounts are used to record

day to day transactions of business.
⮚ GROUP CHART OF ACCOUNT
We can use to prepare the consolidation report.
When all the company code is use same chart of account.
Reporting for entire corporate group purpose.
⮚ COUNTRY SPECIFIED CHART OF ACCOUNT
GL accounts created under country chart of accounts are as per the country
legal requirement to provide reporting at per legal requirement of country.
Assign Chart of Accounts to Company Code
To assign chart of accounts to company code we use a T-Code OB62
PATH
⮚ Log In
⮚ G/L accounts
⮚ Master Data
⮚ Preparations
⮚ Assign company code to chart of accounts.
Then
✔ Select Position and enter your company code

✔ Then enter your company code in Chrt/Accts

THUS ASSIGNED CHART OF ACCOUNTS TO COMPANY CODE

Define ACCOUNT GROUP
To define account group we use a T-Code OBD4
⮚ Account group controls the master data’s.

⮚ Account Group is similar set of G/Ls under that we create G/L account
day to day transaction.
⮚ Account group is of alpha and alpha numeric
⮚ By standard we use ALPHA.
⮚ 1 and 2 series are balance sheet 3 4 5 6 series are P&L account.
In HANA
⮚ We create this above one as Acc Group.
Primary Cost Element
⮚ Used to record the direct expenses

⮚ Showed in P&L a/c
⮚ Eg. Rent Wages Commission.
Secondary Cost Element
⮚ Which cannot be created under P&L a/c can be created used CO module
⮚ Eg. Machinery Charges.
PATH
⮚ Log In
⮚ G/L accounts
⮚ Master Data
⮚ Preparations
⮚ Define Account Group
Then
✔ New Entries
✔ Enter the Chart of Accounts key in which the Account Group is to be
created
✔ Enter unique Account Group key 4 alpha numeric
✔ 4 Types
✔ Expense
✔ Incomes
✔ Liability
✔ Assets
Then
⮚ Enter Description for the Account Group

⮚ Enter the number range for the G/L account to be created in the Account
Group.
Then select
✔ field Status
✔ Account Control
✔ In this you can select Suppress, Required Entry, Optional Entry, and
Display.
OPTIONAL
⮚ The field is available on the screen; you can keep it blank or fill it.
REQUIRED
⮚ The field is available on the screen, and you have to fill it.
SUPPRESS
⮚ The field is hidden on the screen.
DISPLAY
⮚ The field is available on the screen, but it's greyed out, you cannot fill
anything in here.

THUS ACCOUNT GROUP IS CREATED

RETAINED EARNING ACCOUNT
To define retained earning account we use a T-Code OB53
⮚ Is an acc is used to carry forward the balances of the P& L a/c of the
current year to next year balance sheet.
⮚ May be net profit or net loss
⮚ 1 time activity - year end activity.
⮚ It will come under reserve and surplus account.
How many retained earning acc?
⮚ Multiple can be created depending on the client request.

⮚ 1 is mandatory for their reporting purposes.
How does Retained Earning Account link to G/L master account?
⮚ Without defining G/L master account retained earning account cannot be

created.
⮚ Once this is created only then G/L will allow.
PATH
⮚ Log In
⮚ G/L accounts
⮚ Master Data
⮚ Preparations
⮚ Define Retained Earning Account
Then
Select POSITION and enter the company Code
✔ New Entries symbol

✔ Enter the P&L statement account type, to determine the retained earnings
account for each P&L account. If you are creating a P&L account, you
must make an entry here.
✔ Enter the G/L Account which will be considered as Retained Earnings
account. X is to denote in Account enter values.
Then
⮚ Select posting key

⮚ Can assign debit and credit values
As it is dummy we will get a error message
So select SAVE button and give enter.

THUS RETAINED EARNINGS ACCOUNT IS CREATED

FISCAL YEAR VARIANT
To define a fiscal year variant we use a T-Code OB29
⮚ To define my financial year and calendar year.

⮚ Some companies will make a day or monthly or weekly audit so called as
fiscal year.
⮚ Some companies do audit weekly or monthly.
⮚ As per the rules it should be made year end as financial year or
accounting year.
⮚ Eg. Bank
⮚ We Can define our own fiscal year variant (12 month)
⮚ If the invoices are missed they will be added end of the financial year.
⮚ If any entries are passing like adjustments in financial year using special
period or not the effect will be showed on last month of the financial
year.
Fiscal Year (Greek word)
| |
Standard Calendar Non Standard Calendar
Jan – Dec April - March, Oct - Sept, July - June
Eg. USA Eg. India Apr 1 to March 31
STANDARD CALENDAR YEAR
⮚ In SAP each month is called a PERIOD

⮚ K is standard variant used in SAP
⮚ It can be defined K1 K2 K3 K4 define std year
⮚ Special period is up to 4 months.
⮚ 1 2 3 4 (4 extra months) special period.
Why SAP defines 4 month special period?
IRS (Internal revenue service in US) Requirements for Fiscal Years
Standard calendar year (Jan to Dec) taxpayers must file by April 15 following
the year for which they are filing, fiscal-year taxpayers must file by the 15th day
of the fourth month following the end of their fiscal year.
For example, a business observing a fiscal year from June 1st to May 31st must
submit its tax return by September 15th.
⮚ All the errors rectification should be posted.

⮚ Will come after the financial year.
⮚ It is not mandate to have a special period it is optional.
⮚ K1 means 12 months + 1 month
NON STANDARD CALENDAR YEAR
⮚ V for Variant
V3 V6 V9
March June September
-1 -1 +1
⮚ If any month crosses more than 6 months they will be the financial year.
⮚ For Eg. March 2021 to April 2022 -- 2021 is financial year
⮚ Sept 2021 to Oct 2022 - 2022 is financial year
⮚ Year shift (Used in non std calendar year)
How do we convert non std to std calendar?
Year shift is used to convert this.
Indicated with - and + sign.

SHORTEND FISCAL YEAR VARIANT (RARE SCENARIO)
⮚ Used at the time of implementation

⮚ Last 3 months might be used as this.
PATH
⮚ Log In
⮚ Financial Accounting Global Setting
⮚ Fiscal Years
⮚ Maintain Fiscal year variant (Maintain Short Year Variant)
Then
⮚ Enter 2 digits of your fiscal year and then description and year dependent
tick or not calendar year tick or not.
⮚ Then enter no. of positions and no of special periods.

THUS FISCAL YEAR IS CREATED

ASSIGN FISCAL YEAR VARIANT TO COMPANY CODE
To assign fiscal year variant to company code we use a T-Code OB37
PATH
⮚ Log In
⮚ Fiscal Years
⮚ Assign company code to fiscal year variant
Then
In position find the company code and give you fiscal variant KC or CZ.

THUS ASSIGNED COMPANY CODE TO FISCAL YEAR
DEFINE POSTING PERIOD VARIANT

To define a posting period variant we use a T-Code OBBO
⮚ In SAP months are called as Periods.

⮚ This is used for opening and closing period in the fiscal year for posting
purpose
⮚ Maintain and control the accounting period is open for postings and
ensuring that the closed period remains balanced and reconciled.
⮚ Used to define the non standard calendar fiscal year. Here we will define
2 important things.
✔ Year shift
✔ Posting period
⮚ So on which month it posted is called as Posting Period for that fiscal
year.
PATH
⮚ Log In
⮚ Document
⮚ Posting Periods
⮚ Define variants for Open posting periods
Then
⮚ Select New Entries

⮚ Enter the company code and a description for it.

THUS POSTING PERIOD VARIANT IS CREATED

ASSIGN POSTING PERIOD VARIANT TO COMPANY CODE
To assign posting period variant to company code we use a T-Code OBBP
PATH
⮚ Log In
⮚ Document
⮚ Posting Periods
⮚ Assign variants to company code
Then
In position find the company code and in the variant column enter the code

THUS ASSIGNED POSTING PERIOD VARIANT TO COMPANY CODE

OPEN AND CLOSE POSTING PERIODS
To open and close posting periods we use a T-Code OB52
⮚ Enables to open the current posting periods and other posting periods
remains in closed.
Open
⮚ The particular period will be opened all the other periods will be closed.
CAN WE OPEN ALL THE 12 PERIODS?
⮚ 1 to 12 can be opened along with special periods also.
WHETHER IT IS MONTH END OR YEAR END ACTIVITY?
⮚ It depends on client requirement.

⮚ Mostly clients will prefer year end activity.
✔ It is linking through the posting period variant.
PATH
⮚ Log In
⮚ Document
⮚ Posting Periods
⮚ Open and Close Posting Periods
Then
⮚ New Entries
⮚ Copy from + A D K M S
❖ + - Accounting Keys
❖ A - Asset Posting
❖ D - Customer
❖ K - Vendor
❖ M - Materials
❖ S - G/L accounts
TO Account - MASKING
⮚ Default ZZZZ
⮚ Inbuilt these 6 keys
From period.1
Year
2021
To Period
12
Year
2021
From Period.2
13
Year
2021
To Period
16
Year
2022
AuGr - Authorisation Group
To have some controls
To do this BASIS team has to do it.
Then copy it
⮚ In variant give your company codes

⮚ Till which we copied.

THUS OPEN AND CLOSE POSTING PERIOD IS CREATED
APART FROM THIS WHAT CAN BE DONE IN POSTING PERIOD
⮚ Authorisation can be given.

⮚ BASIS team will be done – With the help of BASIS team FI can do.
Define Document Types and Number Ranges
To define document types we use a T-Code OBA7
To define Number Ranges we use a T-Code FBN1
⮚ To identify what transaction we have posted/ or we are trying to post.

⮚ Number Range - It is a sequential number range with a start and end
range.
⮚ It defines the number range in the documents and allows you to control
the type of accounts that can be posted to assets, vendor and customer.
⮚ Document Type - Document Type Key is used to distinguish between
different business transactions and to classify the accounting documents.
PATH FOR NUMBER RANGE
⮚ Log In
⮚ Financial Accounting Global Settings
⮚ Document
⮚ Define Document number range
PATH FOR DOCUMENT TYPE
⮚ Log In
⮚ Document

THUS DOCUMENT TYPE AND NUMBER RANGE IS CREATED
EXAMPLES OF DOC TYPE
⮚ SA - G/L Posting
⮚ K - Vendors
⮚ KR - Vendor Invoice
⮚ KZ - Payments
⮚ KA - Vendor Document
⮚ DR - Customer Invoice
⮚ DZ - Customer Payment
⮚ DA - Customer Doc
⮚ DG - Customer Credit Memo
⮚ RV - Billing Doc Transfer
EXAMPLES OF NUMBER RANGES
⮚ SA – 1 General Ledger
⮚ RE – 2 Purchase
⮚ RV – 3 Sales
INTERNAL
⮚ Assign the years and nos.

⮚ Year end activity.
⮚ NR Status – Number Range Status - Docs which are generated (how
much is done)
⮚ The system will generate the numbers.
EXTERNAL
⮚ The user has to give the number manually.

⮚ MM and SD will do.
⮚ Eg. Sales Invoice
Define Field Status Group Variant
To define field status group we use a T-Code OBC4
⮚ Controls end user and this is company code level data.

⮚ Is a group which controls the fields of the end user transaction screen
where we have only 3 radio buttons Suppress Optional Required buttons
no display button.
⮚ There are 41 standard field status types
PATH
⮚ Log In
⮚ Document
⮚ Line Item
⮚ Controls
⮚ Define Field Status Variant
Then
⮚ Select New entries

⮚ And type your company code and the description.

THUS FIELD STATUS GROUP IS CREATED

ASSIGN COMPANY CODE TO FIELD STATUS GROUP
To assign company code to field status group we use a T-Code OBC5
PATH
⮚ Log In
⮚ Document
⮚ Line Item
⮚ Controls
⮚ Assign company code to field status variant
Then
From position search company code and enter the field status variant
(KC01/KC03).

THUS ASSIGNED COMPANY CODE TO FIELD STATUS GROUP

DEFINE TOLERANCE GROUPS FOR G/L ACCOUNTS
To define tolerance group for G/L accounts we use a T-Code oba0
⮚ Setting a limit to post an entry with G/L accounts or to vendor or

customer or with respective with the user IDs.
⮚ Limit to the value posting in G/L accounts or employees or users.
⮚ A tolerance can be set based on amount wise and percent wise also.
⮚ Eg. If the user enters more than the fixed value like 100 Rs 5%. If you
post above 5% it will not agree.
Define Tolerance Group or G/L
✔ This is used for receipts or payments transactions.

✔ It is mandatory step in SAP.
✔ It is related to open item management. - Which is used for payment?
✔ Open Management consent to the amount which is due for payments.
✔ This open item management belongs to balance sheet accounts we can
make the G/L accounts as an open item which belongs to balance sheet
accounts.
✔ This is used for vendor or customer or balance sheet account were
clearing is required. (Outstanding expenses account)
✔ When we see the account in the month end or year end, we will have a
number of credit and number of debit entries. Sometimes we make full
payment and sometimes we make half payments.
✔ We know the closing balance (in manual).
✔ In SAP it is identified by the open management concept.
✔ Accounts as open account management account at that time of payment
system ask we are making the payment against the providence.
✔ When we specify the payments we make against rent that item will be
cleared at any point of time. We can see payable items separately, paid
items separately and all the items separately.
✔ SAP has given tolerance i.e.., payment difference.
✔ It can be amount tolerance or percentage tolerance or both.
✔ It can be debit amount or credit amount.
✔ For eg.
Tolerance Group Amount Percentage
A 100
B 5%
C 100 5%
D 0
Steps:
⮚ Create tolerance group with amount or percentage or both and assign in

general ledger account.
⮚ Create G/L account as outstanding expenses account.
⮚ At the time of payment posting system ask we are making the payments
against which providence.
⮚ (Outstanding expenses - Salary account Rs. 100000, Wages account Rs.
50000, bank commission account Rs. 2001)
⮚ If the tolerance group is not there the system will show Re. 1 as open item
(outstanding amount)
⮚ If the tolerance group is assigned the difference amount if Re. 1 is within
tolerance group amount that is Rs. 100 system transfers Re. 1 to sundry
balances return of account and clear the transactions automatically.
Disadvantage
⮚ Tolerance group is given at account level and not at transactional level

---- do not have the flexibility
⮚ There is no flexibility.
⮚ If the difference amount is within the tolerance group amount, system
transfers the difference amount to sundry balance return of the account
and clears the transactions without asking us.
⮚ It shall ask us then we have to decide.
⮚ Suppose if we specify in outstanding expenses account, as tolerance
group D i.e.., 0
⮚ The system checks commission providence as Rs. 20001, Payment Rs.
20, difference amount is Re. 1.
⮚ The system cannot clear automatically it stops there we will decide
whether the difference amount is should go to payable account or non
payable account.
Conclusion
✔ When we create the accounts we keep tolerance group blank system

expects we have blank tolerance group and already assigned.
PATH
⮚ Log In
⮚ Business Transactions
⮚ Open Item Clearing
⮚ Clearing differences
⮚ Define tolerance groups for G/L accounts.
Then
⮚ Select new entries

⮚ Enter company code to avoid confusion and give a description for it and
if you want set a tolerance limit for it.

THUS TOLERANCE GROUP FOR G/L ACCOUNTS IS DEFINED.
CASH DISCOUNT HAS TO BE DISCUSSED

DEFINE TOLERANCE GROUPS FOR EMPLOYEES
To define tolerance group for employees’ accounts we use a T-Code OBA4
⮚ Determines the maximum document amount the employees are

authorized to post.
⮚ A tolerance group is created and assigned to the employees.
⮚ It also controls the payment difference in the open item clearance.
⮚ Tolerance group is setting a group at a respective G/L acc or vendor or
customer or respective user ID to control the posting.
PATH
⮚ Log In
⮚ Define Tolerance group for employees
Then

⮚ Enter company code
⮚ Currency will be pulled automatically
⮚ Then upper limits for posting procedures
⮚ Amount per document
⮚ Amount per open item account item
⮚ Cash discount per line item
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.
Permitted Payment Differences
⮚ This permitted payment difference applies to the open item managed G/L
clearing account and during Customer/Vendor payment clearing.
⮚ During clearing process system considers whichever 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.
01 – 1000 – cleared item
02- 1000
03 -1000
05 – 1000(980) cleared item

THUS TOLERANCE GROUP FOR USERS IS DEFINED.

ASSIGN USERS TO TOLERANCE GROUPS
To define tolerance group for users’ accounts we use a T-Code OB57
PATH
⮚ Log In
⮚ Assign users to tolerance groups
Then
NOT TAKEN
COMPANY CODE GLOBAL PARAMETERS
To define company code global parameters we use a T-Code OBY6
⮚ If the assignment section is not done we can do it here.

⮚ Global parameters control how a company code behaves in the SAP
system, these parameters influence the way system process the business
transactions.
⮚ Global parameters are divided in to two categories.

✔ Accounting organization
✔ Procession parameters.
PATH
⮚ Log In
⮚ Company Code
⮚ Enter Global Parameters.
Then
Then
⮚ Select your company code and hit the display button

⮚ Already all the details will be entered.
Check the boxes
✔ Check Negative posting permitted

● Is used to reverse the entries - It will exchange the posting keys from
debit (40 keys) it credit (50 keys).
● Entries keys will be posted. It will reduce the entries with the reversal
part.
✔ Define default value date
✔ Propose fiscal year
In it additional Data field we can
✔ TDS No – Update the Tax deduction source number for filing TDS
returns.
✔ PAN No – Update permanent account number for filing income tax
returns.
✔ GIR No – Update general identification number.

THUS COMPANY CODE GLOBAL PARAMETERS IS DEFINED.
MAINTAIN CONTROLLING AREA

To maintain controlling area we use a T-Code OKKP
⮚ It acts as org unit

⮚ Controlling area is an organizational element which is responsible for
management of costs and profits.
⮚ The relation between controlling area to company code is one too many
relationship, so one or many company codes can be linked to a single
controlling area.
⮚ All CO transactions will be recorded.
⮚ Without Controlling area we cannot do cost objects.
COST OBJECTS - MASTER DATAS
⮚ Profit Centre
⮚ Cost Centre
⮚ Internal Order
COPA
⮚ Controlling for Profitably Analysis

⮚ Highest mod in CO module
⮚ When branches need it can be implemented
Controlling Area
⮚ Can be assigned at company level or at company code level.

⮚ When we have same COA at that time we will assign company code to
company level.
Profit Centre - Line of activity - Area of activity
⮚ Used to capture the revenues

⮚ Related to Sales
⮚ Can also split the cost
⮚ Balance sheet and P&L acc can be pulled
Cost Centre
⮚ Incurs in department wise (Which incurs internally)

⮚ Only P&L account
⮚ Cost of company comes here (Eg. Wages)
⮚ It does not directly generate revenue but incurs additional expenses to
operate.
PS = Project System
✔ If known we can tick.
Controlling Area
| |
Company level Company code level
PATH
⮚ Log In
⮚ Controlling
⮚ General Controlling
⮚ Organisation
⮚ Maintain Controlling Area
Then
In this select Maintain Controlling Area.

⮚ Select the COArea =CCode and enter the company code
⮚ All the details will appear.
⮚ In the Assignment Control CoCd -> Area – Cross-company-code cost
accounting
⮚ Currency Setting – Currency Type default 20 Currency INR
⮚ Other Settings – Chart of Accts Give company code to avoid confusions
⮚ Then the fiscal year Variant
⮚ Then CCtr Std. Hierarchy – KC01_HIRY

THUS CONTROLLING AREA IS CREATED FOR OKKP.
Then
⮚ Go to Activate Component/control indicator.

Select New Entries.
⮚ Fill in the Controlling Area & Fiscal year 2021
⮚ In Activate components for the cost centres choose component active
⮚ Then for order management, Commit. Management choose as component
active.
⮚ Then Profit Centre Acctg, Sales Orders, Cost Objects to be selected.

Then
⮚ Double click and enter into assignment of components

⮚ In it enter the company code and company name.

THUS CONTROLLING AREA IS ASSINGED TO COMPANY CODE.

Then next to it we have to define Controlling Area T-Code 0KE5.

THUS CONTROLLING AREA IS CREATED FOR 0KE5.

Then select next T-Code KANK
By seeing the above window clicks the GROUPS icon.

Click Create
Enter 10 digits only (Range)
Click OK
Click on COIN
Click on element group
In the next window double click on the number Range you created.
The COIN will disappear.

THUS CONTROLLING AREA IS CREATED FOR KANK.
Then to check
Select Interval
Thus created.
Then select next T-Code OKEQ.
Select 0.
Select setting for each Fiscal Year
This screen disappears.
⮚ In the above window the Copying allowed all the fields to be ticked.
⮚ There should be 4 years in it.

THUS CONTROLLING AREA IS CREATED FOR OKEQ.

GENERAL LEDGER MASTER
To create a General Ledger Centrally we use a T-Code FS00
To create a General Ledger at COA level we use a T-Code FSP0
To create a General Ledger at Company Code level we use a T-Code FSS0
⮚ A general ledger is a set of numbered accounts a business uses - to keep

track of its financial transactions and to prepare financial reports.
⮚ They are posted on a real time basis either directly or through integration
from other SAP modules.
⮚ General Ledger control accounts (recon) always equal to sub ledgers.
⮚ Balance Sheet and Profit & Loss Account are generated here.
⮚ IN ECC WE CAN POST 999 LINE ITEMS.
⮚ IN HANA WE CAN POST 9999 LINE ITEMS.
⮚ If G/L is created at COA level the G/L will be created in all the company
codes which are using the same COA.
⮚ Usually the G/L is created centrally
RECONCILIATION ACCOUNT
⮚ The outstanding things will be shown in the balance sheet.

⮚ It will be shown under Sundry Creditors (Vendors) and Sundry Debtors
(Customers).
General Master
| |
Chart of Accounts (COA) Company Code (COCD)
⮚ Defined at client level

⮚ Assigned to each Company code.
⮚ List of G/L accounts master data that fall under different account groups
of a company code.
Company Code (COCD)
❖ You are a client. Multiple company codes are created. Eg.5 For all
same COA will be used. You will create G/L at COA level. The G/L
will be seen at company code level. With G/L account at COA it can
be used or seen at company code level.
❖ At company code level the G/L account is restricted to that particular
level.
WHY?
❖ Each company have different business scenarios/ process.

❖ Eg. 3 companies
❖ In all 3 have physical access if they buy furniture? All three will
show the subset is with them.
❖ The tax part will be shown on the 1st company other 2 no needs to
do it.
❖ Thus this flexibility we can have in COCD Level.
PATH
⮚ Log In
⮚ Accounting
⮚ Finance Accounting
⮚ General Ledger
⮚ Master Records
⮚ G/L accounts
⮚ Individual Processing
⮚ Centrally
⮚ Binocular Icon Find
⮚ Create
⮚ Display
⮚ Change
⮚ Copy
⮚ Block
⮚ Set for Deletion
⮚ Change Company Code
⮚ Update
⮚ Print View
To open enter your company code.
⮚ Enter your assigned G/L values which are in nos.

⮚ Asset Expenses Income Liability
⮚ Under it the 1st one is Type/Description part.
Then under CONTROL IN CHART OF ACCOUNTS
⮚ Select Account group like asset or liabilities or Income or Expense.

⮚ Then select P&L account or Balance Sheet account.
Then give DESCRIPTION
⮚ Short and Long Text (the account which you create name)
Then the next tab CONTROL DATA
⮚ Account Currency INR

⮚ Select the Only Balances In Local Currency
Then in ACCOUNT MANAGEMENT IN COMPANY CODE
⮚ Open Item Management

It’s a complete or unfinished transaction enables you to check which
receivables and payables are outstanding.
⮚ Line Item
Component of a Doc
It shows a list of line items that have entered in G/L account irrespective
of vendors/customers/G/L.
⮚ Sort Key
It is used to populate the assignment number field in the line item of
customer/vendors or G/L account.
Eg. 001 – Posting.
Then next tab CREATE/BANK/INTEREST
Then under CONTROL F DOCUMENT CREATION IN COMPANY CODE
⮚ Field Status group

⮚ 3 radio buttons
⮚ We will select one - G001 (GENERAL)

THUS GENERAL LEDGER IS CREATED AT CENTRAL LEVEL.

TABLES
In SAP there are 3 types of tables.
TRANSPARENT
⮚ Transparent tables store the data directly and its exists same structure in
database and dictionary with same data & fields.
⮚ We can read tables directly from database.
POOL
⮚ It is a special table in SAP ABAP dictionary.
CLUSTER
⮚ Cluster tables helps to control the data, store as temporary data, texts, etc
⮚ These tables are not directly maintained by the database tools.
TABLE IN G/L
⮚ Used to store the data when you enter some data in a screen.
⮚ G/L account table is a data base table that stores GL master data.
⮚ Tables are database objects that contain all the data’s in database.
SKA1 COA level
⮚ SKA1 is a standard Financial Accounting Transparent Table in SAP FI

application, which stores G/L Account Master (Chart of Accounts) data.
SKB1 COCD level
⮚ SKB1 is a standard Basic Functions Transparent Table in SAP FI

application, which stores G/L account master (company code) data.
✔ Transaction code SE16 to view the data in this table, and SE11 T-Code
for the table structure and definition.
PARK ITEM
✔ A parked document in SAP is a document saved but not yet posted to

general ledger accounts.
POSTING OF GENERAL LEDGER TRANSACTIONS
To create a General Ledger Centrally we use a T-Code F-02
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Document Entry
⮚ General Posting
Before it create a Number Ranges.
The T-Code for Number Ranges FBN1

Click OK.
Then again select F-02

⮚ In the above picture, enter the Document Date, Doc Type that is the thing
we defined before.
⮚ Give Company Code and Currency and Reference.
⮚ Then
⮚ Enter the post key which 40 for debit and the Net reimbursement account.
Then give enter

⮚ Then next to it give the amount and the Text for this.
⮚ As I defined Cost Center Given here.
⮚ Then
⮚ Next give 50 for credit and cash acc 200000
⮚ Then give + for amount and * Text and give Enter
⮚ Then Document
⮚ Simulate
⮚ The below window appears
⮚ It should show 0 balances.

THUS GENERAL LEDGER IS POSTED.

TO DISPLAY GENERAL LEDGER
To create a General Ledger Centrally we use a T-Code FBL3N
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Account
● FBL3N – Display/Change Line Items
By entering into it
The next window appears.

Give Company Code
And Hit Execute.
Thus this can be viewed.

Sample Document
To create a Sample Document we use a T-Code F-01
⮚ It is a doc which a user will create a template to post the month end
provisional entries.
⮚ This is called as Sample doc in SAP.
⮚ Every month we finance it or the acc it need to post some provisional
entries as per the business requirement.
⮚ The user will create the sample doc template.
⮚ In this template every month we can change the amount as per the
requirement and post the document.
NOTE:
● In SAP when we create a template the acc entries is not generated.

● The acc entries will be generated when we post the actual document.
● Eg. If we want to post provisional entries like
● Salary Acc Debit
● Wages Acc Debit
● Rent Acc Debit
● Bonus Acc Debit
● To Outstanding Expenses Acc
ADVANTAGES OF SAMPLE DOC
⮚ It will save the time of the users

⮚ The user will not forget any provisions that need to be posted for the
month end.
STEPS TO CREATE SAMPLE DOC
STEP1: Define Number range Interval
FBN1 T-Code for No. range
X2 2021 200000 to 299999
Default for Sample creation
Save
STEP2: Creation of G/L
Also create Outstanding Expenses under liability
STEP3: Creation of Sample Document Template
T-code F-01
Type AB is used for Reversal Change it to SA G/L acc
Doc Dt
Post Dt
Reff SAMPLE DOC 1
pstkey 40
Acc Salary Acc
Amt
Again 40 Rent Provisional Acc
Again 40 Off Exp Provisional Acc
Pstkey 50 To Out Exp Acc
Text Month End Provision
Save
FBL3N
If you check there - No line items ll be displayed
It is just stored not posted.
STEP4: Display of Sample Document Template
To display T-Code FBM3
F.57 Deleting
FBM4 Display Changes.

PATH
⮚ Log In
⮚ Accounting
⮚ Accounts Receivable
⮚ Document Entry
⮚ Reference Document
● Sample Document – F-01 – To Create
● To Display - FBM3
● TO Delete – F.57
When you select it, it displays like
Before entering into it, Create number ranges for this T-Code FBN1.
Click OK to Save.
Then
Give Reference as Sample Doc for clarification

THUS SAMPLE DOCUMENT IS CREATED.

DISPLAY SAMPLE DOCUMENT
To display a Sample Document we use a T-Code F-01
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Document
⮚ Reference Documents
⮚ Sample Documents
⮚ Display
The above screen displays as only one Sample doc is created the doc header
number is shown.
Hit Enter
Thus Sample Document is displayed.

RECURRING DOCUMENT
To create a Recurring Document we use a T-Code FBD1
⮚ Recurring entries are business transactions that are repeated regularly,

such as rent or insurance payments.
⮚ They are posted by the recurring entries program based on recurring entry
documents.
⮚ The following data never changes in recurring entries
❖ Posting key
❖ Account
❖ Amounts
(The amount will be constant. The date and month can be changed).
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Document
⮚ Reference Documents
✔ To Create - FBD1
✔ To Change - FBD2
✔ To Display - FBD3
✔ To Display Changes - FBD4
✔ To Delete - F.56
PARK DOCUMENT
To create a Park Document we use a T-Code F-65
⮚ A document saved but not yet posted to general ledger accounts.

⮚ Parking allows dual control of the document hence dual principle can be
applied.
⮚ Parking Document is used when we need to get clarification regarding
any account. We can temporarily park or store this document till we get it
cleared or approved.
⮚ Once approved, the document is posted in the G/L accounts.
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Document Entry
⮚ F-65 – General Document Parking
Open it.
Enter the document date, type, Company Code, Posting Key, and Currency.
Then the Pstky and Account.

Then fill the Amount and Text.
Then select Document – Park Document
Then select FBV0
HIT ENTER

THUS PARK DOCUMENT IS CREATED.

HOLD DOCUMENT
To hold Document we use a T-Code SE38
⮚ One of the required and regular functionality while processing the day to
day operations.
⮚ It will help to temporarily suspend the work without losing the data
which already entered.
⮚ The requisite condition is assigning the temporary number to hold the
document.
⮚ Hold Document is temporary document carrying a document number
which should be assigned while creating the hold document.
⮚ This is used for adjustment purpose when the transaction is uncertain i.e
we do not know either debit or credit.
⮚ This document can be deleted.
⮚ Hold Document does not update records.
⮚ Document data is not available for evaluation.
What is the difference between parked document and hold document?
✔ Hold document is to hold the document before posting if you require any
clarifications.
✔ For this not all required.
❖ Park document is mainly requires Approval levels.

❖ For Eg. If the user is eligible to post the document with amt $10000 and
the document is for $15000 then the document is parked for approval for
the next level to post. All data’s will be entered.
❖ FB50 both the park option and hold option will be seen.
CASH JOURNAL
⮚ Cash general means recording of cash transaction related to the business

or the branch with respect to making payment and receiving payment.
⮚ It is also called a petty cash transaction.
⮚ To record the record transaction we require a invoice and a invoice can be
internal or external.
⮚ In a company they take daily cash statement showing opening cash
balance, receipts for payments, and payment for the day and closing cash
balance.
⮚ This type of transaction is shown in cash journal by providing the
statement.
STEP 1: Creation of G/L T code FS00
Create Cash A/C.
STEP 2: Define No. Range Interval for Cash Journal. T code FBCJC1.
Enter company code and hit the Pencil Interval button.
SAVE.
STEP 3: SET UP CASH JOURNAL T code FBCJC0
Copy 1 and Enter company Code, Cash Journal, G/L Doc Type and Cash
Journal Name.
SAVE.
STEP 4: Maintain View for Cash Journal Transaction Names. T Code FBCJC2
Enter Company Code and G/L acc and Short text for it and tick Acc Mode.
● C Receipt from Bank
● B Payment to Bank
● R Revenue
● E Expenses
● D Customer posting
● K Vendor Posting
SAVE.
STEP 5: Set up print parameter for cash journal T Code FBCJC3
Hit New Entries.
This is the normal format.
SAVE.
Done with configuration....

POST CASH JOURNAL
T code FBCJ
Enter CoCd and Cash Journal.
Red Enter recorded not saved
Yellow Entry saved in cash journal
Green Posted COMPLETE DOC

SAVE.
CREATION OF PROFIT CENTRE GROUP
To create a Profit Centre we use a T-Code KCH1
PATH
⮚ Log In
⮚ Accounting
⮚ Controlling
⮚ Profit Center Accounting
⮚ Master Data
⮚ Profit Center Group
● KCH1 – Create
● KCH2 – Change
● KCH3 – Display
Then
Enter the Profit Center Group and Controlling area
Give enter
In the next screen give a short description for it.


THUS PROFIT CENTER GROUP IS CREATED.

CREATION OF PROFIT CENTER
To create a Profit Center we use a T-Code KE51
⮚ Organizational unit in accounting that reflects the management steps of

an organisation for the purpose of internal control.
⮚ Generates both revenue and expenses.
PATH
⮚ Log In
⮚ Accounting
⮚ Controlling
⮚ Profit Center Accounting
⮚ Master Data
⮚ Profit Center
● KE51 – Create
● KE52 – Change
● KE53 – Display
● KE54 – Delete
● 6KEA – Display Changes
Then
Then give enter the next page will open but will be unable to create.
Then

THUS PROFIT CENTER IS CREATED.

HAVE TO BE CONFIRMED.
Before this cost element should be created.
What is the cost element in SAP?
⮚ Cost elements classify an organization's valued consumption of

production factors within a controlling area.
⮚ They provide information concerning the value flow and value
consumption within the organization.
⮚ A cost element corresponds to a cost-relevant item in the chart of
accounts.
✔ Cost elements as a concept range from ledger accounts to all cost-relevant
resources.
✔ Currently, Cost accounting supports ledger accounts.
In this select
● Edit Cost Element

Enter valid from date and hit enter.
In this select the CElem category and enter 1.


THUS COST ELEMENT HAS BEEN CREATED.

CREATION OF COST CENTRE
To create a Profit Center we use a T-Code KS01
PATH
⮚ Log In
⮚ Accounting
⮚ Controlling
⮚ Cost Center Accounting
⮚ Master Data
⮚ Cost Center
● KS01 – Create
● KS02 – Change
● KS03 – Display
● KS04 – Delete
● KS05 – Display Changes
Then
In the above enter the Controlling Area and the cost center and valid from.
Hit Enter.
In this enter name, Description.
Basic Data
Person Responsible, Hierarchy Area, Profit Center, INR.

THUS COST CENTER HAS BEEN CREATED.

CREATION OF COST CENTRE GROUP
To create a Profit Center we use a T-Code KSH1
PATH
⮚ Log In
⮚ Accounting
⮚ Controlling
⮚ Cost Center Accounting
⮚ Master Data
⮚ Cost Center Group
● KSH1 – Create
● KSH2 – Change
● KSH3 - Display
Then
Enter the controlling Area to get in.
Then
Enter the Cost Center Group (any name)
Hit Enter
To give the sub divisions select same level and the lower level if needed.

THUS COST CENTER GROUP HAS BEEN CREATED.

REVERSAL PROCESS
When we post a wrong entry in SAP, under such circumstance we have to go

for reversal of the document or pass rectification entry.
Individual Reversal
Under this type of reversal, we can reverse one document at a time. We have to
give reversal reason at the time of reversing document.
To create a Profit Center we use a T-Code FB08
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Document
⮚ Reverse
⮚ Individual Reversal
Reversal of Reversal
Mass Reversal
To mass reverse documents we use a T-Code F.80
⮚ To reverse more than one document at a time we use mass reversal.

⮚ The documents to be reversed can be continuous numbers or random
numbers.
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Document
⮚ Reverse
⮚ Mass Reversal
CLEARED ITEMS REVERSAL
To clear the items which is reversed we use a T-Code FBRA
⮚ Under this Reversal, we must remember the cleared document number

than reverse it and find it back in open item.
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Document
⮚ Reset Clear Items
ACCOUNTS PAYABLE
CREATING A VENDOR
To create a vendor we use a T-Code OBD3
⮚ It handles vendor invoices, approvals, payments and other allied

activities.
⮚ Any postings made in Accounts Payable are updated in General Ledger
as well.
⮚ The Accounts Payable sub module has tons of reports and forecasting to
features to track vendor outstanding and payments.
PATH
⮚ Log In
⮚ Accounts Receivable and Accounts Payable
⮚ Vendor Accounts
⮚ Master Data
⮚ Preparation for Creating Vendor Master Data
⮚ Define the Account Groups with Screen layout (Vendors)
Select New Entries
Fill in Account Group and Meaning
Then select Company Code Data.
Then double click on the Account Management.

Reconciliation account select required entry radio button
Cash management group select suppress radio button.

THUS VENDOR ACCOUNT GROUPS HAS BEEN CREATED.

Then
Again hit the next entry button (If you wish to create another)
CREATE NUMBER RANGE FOR VENDOR ACCOUNTS
To create a number range for vendor accounts we use a T-Code XKN1
PATH
⮚ Log In
⮚ Vendor Accounts
⮚ Master Data
⮚ Create Number Range for Vendor Accounts
Select Interval from the above window (with pencil icon)
Then select
✔ Interval
✔ Free Intervals
The ranges which don’t have any entries will be displayed here.
Give a No. For it and make yours.

Then
❖ Select TICK.
THUS NUMBER RANGE FOR VENDOR ACCOUNT IS CREATED.

ASSIGN NUMBER RANGE TO VENDOR ACCOUNT GROUPS
To assign number ranges to vendor account groups we use a T-Code OBAS
PATH
⮚ Log In
⮚ Vendor Accounts
⮚ Master Data
⮚ Assign Number Ranges To Vendor Account Groups
From Position
Give your Account Group KC01
And enter the Number Range KC Near to it.

THUS ASSIGNED NUMBER RANGES FOR VENDOR ACCOUNT

GROUPS.
DEFINE TOLERANCE GROUP FOR VENDOR
To create a tolerance group for vendors we use a T-Code OBA3
PATH
⮚ Log In
⮚ Outgoing Payments
⮚ Manual Outgoing Payments
⮚ Define Tolerances (Vendors)
Select New Entries
Give your Company Code and Tolerance Group.

THUS TOLERANCE GROUP FOR VENDOR IS CREATED.

G/L ACCOUNT FOR VENDOR MASTER RECORD
To create a General Ledger account centrally for vendors’ master record we use
a T-Code FS00
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Master Records
⮚ G/L accounts
⮚ Centrally
In that create Sundry Debtors and Sundry Creditors

In this fill in the details and unselect only balance in local currency
And In Recon. Account for acc type selects VENDOR.
After it Hit Save.

THUS G/L ACCOUNT FOR MASTER VENDOR IS CREATED.

CREATION OF VENDOR MASTER
To create a vendor master we use a T-Code FK01
PATH
⮚ Log In
⮚ Accounting
⮚ Accounts Payable
⮚ Master Records
⮚ Maintain Centrally
⮚ Create
● FK01 – Create
● FK02 – Change
● FK03 – Display
● FK05 – Block/Unblock
● FK06 – Set Deletion Indicator
Enter company code and account group and give enter then enter the vendor
name from the next screen.
Enter Company Code and Account Group.
Hit Enter.
Give a Title and Name for your Company.
Then give the short term ½ also.
Then type Address, Language and Telephone.
Hit Enter or go to next screen.

Next Screen
Next Screen
Next Screen
In this give the Recon Account and Sort Key 012.
Give the payment Terms and check the double invoice.
Next Screen
Next Screen
Click YES
Click TICK
Click TICK
Click TICK
Click TICK
Create Multiple Entries with different payment terms.
1. ORANGE
2. APPLE
3. KIWI
4. MANGO
5. WATER MELON
DOCUMENT TYPES AND NUMBER RANGES FOR VENDORS
To create a document type and number ranges for vendors we use a T-Code
OBA7
Document Types and Number Ranges
KR - Vendor Invoice
KZ - Vendor Payment
KA - Vendor Document
⮚ Log In
⮚ Document
In the above screen select POSITION
Click TICK
Double Click and get into it.
Then
Select Number Range Information

Define your own Number Range.
Click TICK on above screen.
THUS DOCUMENT TYPE AND NUMBER RANGE IS CREATED.

VENDOR INVOICE POSTING
To post vendor Invoice we use a T-Code FB60 or F-43
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
● FB60 – Invoice (automatic)
● F-43 – Invoice General (manual)
In the above screen fill the details in the Basic data
300005 – Purchase a/c
Vendor
Invoice date
Amount
Text
Reference
Then in the below table enter the G/L account, Amount, Value date, Text.
When you click SAVE this message pops up.

Go for another 1 also.
Select the next tab Payment
OVER DUE.
Click SAVE
THUS VENDOR INVOICE IS POSTED.

TO DISPLAY THE VENDOR INVOICE
To display the vendor Invoice we use a T-Code FBL1N
PATH
⮚ Log In
⮚ Accounting
⮚ Account
Enter your Company Code
In Status you can give

Open Items or Cleared Items or All Items.
And Hit Execute (Clock).

In this double click on the Assignment number.
1. Change Display or Change Mode
2. Display Another Document
3. Call up Document Overview
4. Next item in list

5. Previous Item in list
6. Display Document Header
OUT GOING PAYMENT, PARTIAL PAYMENT AND
RESIDUAL PAYMENT
OUT GOING PAYMENT
To create an outgoing payment we use a T-Code F-53
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
⮚ Outgoing Payment
● F-53
Double click on it and enter to the next screen.
Enter the Document date, Reference, Doc Header Text, and Account in Bank
Data, Amount and Account in Open Item Selection.
Hit Enter.
In the Standard tab process...
Again to display in it FBL1N
Select Cleared item.

PARTIAL PAYMENT
To create a Partial Payment we use a T-Code F-53
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
● F-53
Hit Enter
In invoice it should not been seen like debit and credit so we are clearing the
partial payment.
CLEARING OF VENDOR ITEMS
To clear a vendor item we use a T-Code F-44
PATH
⮚ Log In
⮚ Accounting
⮚ Account
● F-44
Give enter
Select Partial Payment
Uncheck other line items and select the partial item which is paid now.
Select the mountain like symbol and check for it.

Again give Process Open Items.
SAVE or Select POST.

RESIDUAL PAYMENT
To residual payment we use a T-Code F-53
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
● F-53
Enter the balance amount of the off screen and give minus sign after it.
Select the mountain symbol icon.
Select Process open Item.
Hit POST.
Click the 2nd entry
SAVE
ADVANCE TO VENDOR
To advance payment process we use a T-Code F
First create G/L Master Advance to Vendors T-Code FS00

SAVE
TO LINK SUNDRY CREDITORS & ADVANCE TO VENDORS
To link sundry creditors and advance to vendors we use a T-Code OBYR
PATH
⮚ Log In
⮚ Down Payment Made
⮚ Define Alternative Reconciliation Account for Down Payments
Double click and get on Down Payments, Current Assets.
Enter your company code

Enter your Sundry creditors and Vendor Down Payment Account G/L nos.

THUS LINKED SUNDRY CREDITORS AND ADVANCE TO

VENDORS.
.
ADVANCE PAYMENT POSTING
To advance payment posting we use a T-Code F-48
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
⮚ Down Payment
⮚ Down Payment
Enter into it.
Fill in all the details.
Give special G/L indicator also “A”
Hit Enter
Document
|
Simulate
HIT SAVE or POST
INVOICE POSTING
To invoice posting we use a T-Code F-43
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
● F-43
Fill in all the details
HIT ENTER
Give * for amount and + for text
Hit Enter.
Document
|
Simulate
HIT SAVE
View in FBL1N
DOWN PAYMENT CLEARING
To down payment clearing we use a T-Code F-54
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
⮚ Down Payment
● F-54 Clearing
Enter all the details
Before it create number range for the doc type OBA7

In position give KA
Double click and enter to it.
Select Number Range Information from the above screen.
Give Company Code and Hit Intervals with pencil icon.
Hit SAVE.
Back to clear vendor Down Payment
Double click on transfer posting.
Document
|
Simulate
HIT SAVE.
In FBL1N – It is shown in DUE

CLEARING OF LINE ITEM
To clear line item we use a T-Code F-44
PATH
⮚ Log In
⮚ Accounting
⮚ Account
● F-44 Clear
After filling all the details Hit Process Open Items.
Unselect all the others and select the 2000 field which is held twice.
Then Hit.
Document
|
Simulate
SAVE
TO view again go to FBL1N

Thus the item is cleared.
AUTOMATIC PAYMENT PROGRAM (APP)
⮚ APP is used in a company where large invoice payments are processed.

By running the APP we can save the time. (Posting and entering the
invoices).
⮚ When we run the Automatic Payment Program in SAP system, the
system verify the due dates with respect to vendors or customers.
⮚ The system when issuing check with respect to the payment date towards
the invoices.
⮚ When we run APP the system pass an entry towards the vendor or
customer and clear the account.
⮚ The system generates the payment advisory and we can take a printout of
the advisory and we can send it across the respective vendors or the
customers.
⮚ It also updates the check registration.
Note:
Before run we have to configure the banks used by the business with respect to
ranking orders of the bank based on the ______
Eg.
________
⮚ When we run APP the system issue check up to X amount from X bank
and it goes to next bank to issue the check after the limits.
⮚ When we run the APP the system generates a proposal, in these proposal
the user can various type o which party for which been and for which
bank system is going to issue the check. (INTERVIEW QUESTION)
⮚ Who can be blocked the vendor payment or in which are all the levels the
block the payments?
⮚ We can block the invoice at company code level i.e., when we post a
invoice towards a vendor to that invoice we can put a glove indicator.
⮚ We can block the payment of a vendor at master data level.
⮚ When we run the APP at that level also we can block the vendor
payment.
⮚ _____We need to double click on the line item, the system will pop up a
screen in the initial screen we will have a option block.
NOTE2:
While running the app
To create an APP we use a T-Code FBZP
If we configure Tolerance days for payable for eg.10 days.

When we run the APP on 24/12/2021 the system will ___ next run where we set
up parameter the next step.
CREDIT MEMO POSTING
Purchased goods from vendors but material quality not satisfied.

We can issue a debit note.
To create a vendor credit memo posting we use a T-Code F-41
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
⮚ Credit Memo General
● FB65 (Can use directly)
● F-41 Credit Memo – General
DISPLAY ITEM
To display line item we use a T-Code FBL1N
PATH
⮚ Log In
⮚ Accounting
⮚ Account
CLEAR ITEM
To display line item we use a T-Code F-44
PATH
⮚ Log In
⮚ Accounting
⮚ Account
● F-44 – Clear
ACCOUNTS RECEIVABLES
CUSTOMER ACCOUNT GROUP CREATION
To create a customer Account Group we use a T-Code OBD2
PATH
⮚ Log In
⮚ Customer Accounts
⮚ Master Data
⮚ Preparation for Creating Customer Master Data
⮚ Define Account Groups with Screen Layout (Customers)
Hit New Entries from the below screen
Enter the Account Group and the Meaning
Then Select Company Code Data.

Select Account Management
Make Reconciliation Account Required Entry.

THUS CUSTOMER ACCOUNT GROUP IS CREATED.

CREATE NUMBER RANGES FOR CUSTOMER ACCOUNTS
To create a Number Ranges for Customer Account Group we use a T-Code

XDN1
PATH
⮚ Log In
⮚ Master Data
⮚ Preparation for Creating Customer Master Data
⮚ Create Number Ranges for Customers Accounts (Customers)
In the below screen check the Intervals with a pencil.
In the above select the Intervals – Free Intervals
Give a unique No. For your Intervals.

Hit Ok.
ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT
GROUPS
To assign Number Ranges to Customer Account Group we use a T-Code OBAS
PATH
⮚ Log In
⮚ Master Data
⮚ Assign Number Ranges to Customer Account Groups
From Position select your Account Group and enter the Number Range
which you have created.

THUS ASSIGNED NUMBER RANGES TO CUSTOMER ACCOUNT

GROUP.
TOLERANCE GROUP FOR CUSTOMERS
To assign Number Ranges to Customer Account Group we use a T-Code OBA3
PATH
⮚ Log In
⮚ Incoming Payments
⮚ Manual Incoming Payments
⮚ Define Tolerances (Customers)
Select New Entries
Give the Company Code and Tolerance Group.
“ALREADY DONE FOR VENDOR ACCOUNT”

G/L ACCOUNT FOR CUSTOMER MASTER CREATION
To create G/L account for Customer Master we use a T-Code FS00
PATH
⮚ Log In
⮚ Accounting
⮚ General Ledger
⮚ Master Records
⮚ G/L accounts
⮚ Centrally
In this fill in the details and unselect only balance in local currency
And In Recon. Account for acc type selects CUSTOMERS.
After it Hit Save.

THUS G/L ACCOUNT FOR MASTER CUSTOMERS IS CREATED.

DOCUMENT TYPES AND NUMBER RANGES
To create G/L account for Customer Master we use a T-Code OBA7
⮚ Log In
⮚ Document
Select Number Range Information
Enter the company code and enter to the next screen

Give a number range.
SAVE.
In position enter DZ and click TICK.
Enter Company code
SAVE.
Next DA...
Next...
SAVE...
CREATION OF CUSTOMER MASTER
To create customer master we use a T-Code XD01
PATH
⮚ Log In
⮚ Accounting
⮚ Master Records
⮚ Maintain Centrally
⮚ Create
● XD01 – Create
Hit Enter...
Enter all the details...
Nothing here...
Nothing here too...
Nothing here...
Nothing here...
Nothing here...
Enter the recon and the sort key..
Hit TICK.
Hit TICK.
Hit TICK.
Hit TICK.
SALES INVOICE POSTING
To post sales Invoice we use a T-Code F-22
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
● FB70 - Invoice
Enter the customer Invoice dt, Amount and Referrecne and Text.
Then enter the G/L account as Sales and amount and value dt then a sharot text
and Hit save.
PAYMENTS
INCOMING PAYMENTS
To create customer master we use a T-Code F-28
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
● F-28 Incoming Payments
Enter amount as 10000
SAVE
PARTIAL PAYMENTS
To create customer master we use a T-Code F-28
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
CLEAR ITEMS
To clear items we use a T-Code F-32
PATH
⮚ Log In
⮚ Accounting
⮚ Account
● F-32 - Clear
RESIDUAL PAYMENTS
To create residual payments we use a T-Code F-28
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
CUSTOMER CREDIT MEMO
To create customer credit memo we use a T-Code F-27 or B75
PATH
⮚ Log In
⮚ Accounting
⮚ Document Entry
● FB75 – Credit Memo
● F-27 Credit Memo General
Fill in all the details...
HOUSE BANK CREATION
To residual payment we use a T-Code FI12
Create G/L FS00 for Bank
PATH
⮚ Log In
⮚ Bank Accounting
⮚ Bank Accounts
⮚ Define House Bank
Enter Company Code.
Hit new entries.

Fill in all the details and hit Create.
Fill in the details.

Select Bank Account.
New Entries.
Enter all the other details.
SAVE.

THUS HOUSE BANK IS CREATED.

STATUTORY PROCESS
Creation of Profit Center – KE51
3 Profit Centers were created.
KC01_12TN
KC01_12KL
KC01_12AP
Fill in all the required details and make it active by selecting the .
Next in the SPRO screen under cross Application Components select Business
Place.
Activate Business Place and then define it.
PATH
⮚ Log In
⮚ Cross-Application Components
⮚ General Application Functions
⮚ Business Place
⮚ Activate Business Place
⮚ Define Business Places.
It is already in activated status.

Next define
Select New Entries

Then select address and give company address
Click SAVE
Do it for the other 2 Profit Center also.

Business Place
KCAP
KCKL
KCTN
Next in FS00
Create Tax G/Ls

Then enter the Tax category and the Sort Key.
Create CGST, SGST, IGST for KC01 – KCTN, KCKL and KCAP.
SAVE.
Create CGST, SGST, IGST for KC01 – KCTN, KCKL and KCAP.
Create SAVE.
TAX ACCOUNT KEY
To tax account key we use a T-Code OBCN
PATH
⮚ Log In
⮚ Tax on Sales/Purchases
⮚ Basic Settings
⮚ Check and change Settings for Tax processing
Already configured.
CONDITION RECORD
To condition record we use a T-Code OBYZ
PATH
⮚ Log In
⮚ Basic Settings
⮚ Check Calculation Procedure
Select Procedure.
Select Condition Type
Next select Access Sequence
Assign Country to Calculation Procedure
To assign country to calculation procedure we use a T-Code OBBG
PATH
⮚ Log In
⮚ Basic Settings
⮚ Assign Country to Calculation Procedure
In Position enter Country IN
DEFINE TAX CODE FOR SALES AND PURCHASE
To define Tax Code for Sales and Purchases we use a T-Code FTXP
PATH
⮚ Log In
⮚ Basic Settings
⮚ Define Tax Code for Sales and Purchase

THUS DEFINED TAX CODE FOR SALES AND PURCHASES.

CREDIT CONDITION TYPE
To create credit condition type we use a T-Code FV11
Change FV12
Display FV13
PATH
⮚ Log In
JICG
JISG

THUS CREDIT CONTROL TYPE IS DEFINED.
Next create G/L in FS00.
Already created previously.

CONFIGURATION ACCOUNTING DISPLAY: AUTOMATIC
POSTS - PROCEDURES
To configure accounting display: Automatic posts - Procedures we use a T-

Code OB40
PATH
⮚ Log In
⮚
Double click on Central GST
Enter COA.
Enter the Tax code and G/L for central GST (any 1 branch)
Will be accepted.
Table Level
SM30
Table Level
SE16N

THUS CREDIT CONTROL TYPE IS DEFINED.

WITHHOLDING TAXATION
⮚ Withholding tax is a direct tax which is selected from the central Govt.
On the basis of the service or received from the vendor or the customers.
⮚ In withholding tax we have 2 types.
● TDS
● TCS
⮚ TDS stands for Tax deducted at source.
⮚ This is used for vendor survey transaction.
⮚ Eg. Legal & professional charges etc.
⮚ TCS stands for Tax collected at source.
⮚ This is used for customer scrap sales or waste sales.
● TIN is a package of withholding and other taxes.
● We use extended withholding tax. Earlier we used classical tax.
CLASSICAL -
⮚ SAP was released in INDIA in 1995. It’s the first year SAP was
implemented.
⮚ Finance budget charges were released in 1996 as a tax.
⮚ Updated 1997 Till 1999 with respect to Finance Budget charges.
EXTENDED
⮚ (Included all things and made it as a single program).

⮚ In year 2000 SAP released extended with tax.
⮚ This is modified existing SAP program by including all the charges from
1996 to 1999.
⮚ After year 2000 they introduced surcharges education and secondary
education.
HOW TDS IS FILED?
⮚ TDS is collected and paid to Government.

⮚ Took service from vendors. There is affixed withholding tax when we
pay it we deduct a part and pay to vendors.
⮚ Then TDS certificate will be filed by the vendor and reclaim it.
⮚ Deducted 2% of the tax that will deposit in the bank within 7 days.
⮚ File every quarterly.
⮚ STATUS OF THE CONTRACTOR
● Contractor may be an individual or partnership firms or company of HUF
(Hindu Undivided Family)
⮚ TDS RATE
● Individual or UFO the TDS rate will be 1% of company or partnership
firms the TDS rate is 2%.
⮚ Tax is to be deducted at the time of invoice posting r advance
payment posting whichever is earlier.
⮚ If the bill and is less than 30000 and the earlier contract with same
contract is less than 75 then no need to deduct TDS.
⮚ Contractor does not have taxable income we can apply it dept for
lower rate or deduction or nil rate of deductions. it dept issue
exemption certificate for each year. in that case or company has to
deduct at the lower rate or nil rate.
⮚ The TDS deducted amount should be deposited with 7 days from the
month end. in case march deductions is to be deposited within 30
days from the year end.
⮚ If 7th day comes on holiday we can chose to make payment one before
or after.
⮚ issuing of tds cert in form of 16a quarterly.
⮚ pointing of tds return quarterly in the form of 26q.
⮚ we require pan for all tax actions.
⮚ company code level can be seen pan level.
⮚ To open pan no. we can get it cocd level deductions at source pan or
tds no. can be obtained cocd level or settlement level or profit centre
level. for these purpose sap has given business place (when we are
doing the withholding tax then p and section code).
⮚ For business place and section code we should use some code.
Section code – Legal office or jurisdiction section when we deduct withholding

tax.
MAINTAIN CALENDAR
To maintain calendar we use a T-Code OY05
PATH
⮚ Log In
⮚ SAP NetWeaver
⮚ General Settings
⮚ Maintain Calendar
Select Pencil.
Click create.
Click YES
Holiday Calendar.
Select Assign public holiday.

THUS MAINTAIN CALENDAR IS CREATED


THUS MAINTAIN CALENDAR IS CREATED

CHECK WITHHOLDING TAX COUNTRIES
PATH
⮚ Log In
⮚ Financial Accounting (New)
⮚ Withholding Tax
⮚ Check Withholding Tax Countries
DEFINE WITHHOLDING TAX KEYS
PATH
⮚ Log In
⮚ Financial Accounting Global Setting (New)
⮚ Withholding Tax
⮚ Define Withholding Tax Keys
DEFINE BUSINESS PLACE.
Business Place – Already created.
● KCAP
● KCKL
● KCTN

THUS BUSINESS PLACE IS CREATED

DEFINE SECTION CODE
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Extended Withholding Tax
⮚ Basic Settings
⮚ India
⮚ Define Section Codes
New Entries
SAVE.
Give brief for all.

THUS SECTION CODE IS DEFINED.
THUS SECTION CODE IS ASSIGNED FOR BUSINESS PLACE.
ASSIGN FACTORY CALENDAR TO BUSINESS PLACE

PATH
⮚ Log In
⮚ Withholding Tax
⮚ Basic Settings
⮚ India
⮚ Assign Factory Calendar to Business Place
Give new entries.
Check for above screenshot.

THUS ASSIGNED FACTORY CALENDAR TO BUSINESS PLACE.
ASSIGN FACTORY CALENDAR TO SECTION CODE

PATH
⮚ Log In
⮚ Withholding Tax
⮚ Basic Settings
⮚ India
⮚ Assign Factory Calendar to section code

THUS ASSIGNED FACTORY CALENDAR TO SECTION CODE.

DEFINE WITHHOLDING TAX FOR INVOICE POSTING
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Withholding Tax Type
⮚ Define Withholding Tax Type for Invoice Posting
Select New entries and for reference check on the above screen shot.

THUS WITHHOLDING TAX FOR INVOICE IS POSTED.

DEFINE WITHHOLDING TAX FOR PAYMENT POSTING
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Calculation
⮚ Withholding Tax Type
⮚ Define Withholding tax for payment Posting
Hit New entries.

THUS WITHHOLDING TAX FOR PAYMENT IS POSTED.

DEFINE WITHHOLDING TAX CODE
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Calculation
⮚ Withholding Tax Code
⮚ Define Withholding tax code
Select New Entries.

THUS WITHHOLDING TAX CODE IS DEFINED.

DEFINE RECIPIENT TYPE
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Basic Settings
⮚ Check Recipient Type
Give Country Key.
Hit New Entries

Enter Company and other for it.

THUS RECIPIENT TYPE IS CREATED.

MAINTAIN TAX DUE DATES
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Basic Settings
⮚ INDIA
⮚ Maintain Tax Due Dates
Everything is predefined here.
ASSING WITHHOLDING TAX TYPES TO COMPANY CODE
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Company Code
⮚ Assign Withholding Tax Types to Company Code

THUS ASSINGED WITHHOLDING TAX TYPES TO COMPANY

CODE.
ACTIVATE EXTENDED WITHOLDING TAX
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Company Code
⮚ Activate Extended Withholding Tax

THUS ACTIVATED EXTENDED WITHHOLDING TAX.

G/L ACCOUNT FOR CUSTOMER MASTER DATA
In FS00 create Conversion Charges Account under Expenses.

SAVE.
Next under liability create TDS Account.

SAVE.
DEFINE ACCOUNTS FOR WITHHOLDING TAX TO BE PAID
OVER
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ Define Accounts for Withholding tax to be paid over
Enter Chart of Accounts
Tick the 3.
Hit Save.
Give the withholding tax type and Debit and credit as Liability TDS
(100008).
SAVE.
At the time of TDS payment
1Contractor 2 Other.
At the time of payment we give receipt type only Company contractors

deductions will appear.
The entry
TDS on Contractor A/C Dr.
To Bank A/C
__________________________________
SPECIFY DOCUMENT TYPE (ACCOUNT PAYABLE)
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ India
⮚ Remittance Challans
⮚ Document Types
⮚ Specify Document Type (Accounts Payable)
Hit New Entries
Enter Company Code and Doc Type.
SAVE.
MAINTAIN NUMBER GROUP
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ India
⮚ Document Types
⮚ Maintain Number Groups
Give Interval as 07.
SAVE.
ASSIGN NUMBER RANGES TO NUMBER GROUP
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ India
⮚ Document Types
⮚ Assign Number Range to Number Groups
Hit New Entries.
Hit Save.
MAINTAIN NUMBER RANGES
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ India
⮚ Document Types
⮚ Maintain Number Range
Select Group (pencil)
Hit 07.
SAVE.
ASSGIN NUMBER RANGE TO BUSINESS PLACE
/nsm30
Enter J_1IEWTNUMGR
Hit Maintain.
Hit New Entries.

SAVE.
MAINTAIN NUMBER GROUP FOR SCRIPT FORMS
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ India
⮚ Withholding Tax Certificates for Vendors and Customers
⮚ Maintain Number Groups and SAPscript Forms
Hit New Entries.
SAVE.
MAINTAIN NUMBER RANGE
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ India
⮚ Maintain Number Ranges
Select Interval
ASSIGN NUMBER RANGE TO NUMBER GROUP
PATH
⮚ Log In
⮚ Withholding Tax
⮚ Posting
⮚ India
⮚ Assign Number Ranges to Number Groups
Hit New Entries
SAVE.
MAINTAIN COMPANY CODE SETTING - LOGISTIC
GENERAL
PATH
⮚ Log In
⮚ Logistics – General
⮚ Tax on Goods Movements
⮚ India
⮚ Maintain Company Code Settings
SAVE.
CIN ACTIVATION IN VENDOR EXCISE DUTY
PATH
⮚ Log In
⮚ Logistics – General
⮚ Tax on Goods Movements
⮚ India
⮚ Master Data
⮚ Assign Users To Material Master Screen Sequence for Excise Duty
Select user screen Reference.
Hit New Entries.

SAVE.
VENDOR MASTER WITHHOLDING TAX CODE & PAN
NUMBER UPDATE
Hit CIN Detail.
SAVE.
Vendor Invoice FB60
ASSET ACCOUNTING
⮚ Asset accounting is a subsidiary ledger account because each account has

to be treated as recon account.
⮚ Asset Accounting is processed as business transaction related to assets.
⮚ Assets (Fixed Asset) account is used for calculation of depreciation and
balance sheet account.
⮚ Balance sheet account is nothing but our recon account.
⮚ In SAP we treat asset accounting as a subsidiary ledger.
Acquisition is a date when a purchase of an asset and it comes to your plant.
Capitalisation date is when we start to use the asset.
Chart of Depreciation it is related to a country the entire asset accounting

customisation steps will be made under Chart of depreciation and this COD is
assigned to Company Code. We cannot create a COD directly (as it is related to
country). We have to copy existing Chart of Accounts and we have to create
COD related to country.
Depreciation area is a legal entity where an all the asset transaction will be
recorded. Without depreciation area we can’t post depreciation and any other
transaction. Depreciation area is used for different purpose.
⮚ Fixed Asset Calculation

⮚ Fixed Asset Depreciation Calculation
Are called as book depreciation.
Depreciation Tax purpose management for internal reporting purposes.
In Depreciation methods we have
⮚ Written down value method

⮚ Straight Line Depreciation.
Eg.
Depreciation Key is a key in SAP where we use to maintain the percentage of

depreciation. We are using the method of deprecation.
Posting Keys In SAP we use 70 posting key for Debit 75 for credit asset
posting.
Transaction Type In SAP we use transaction type to post the asset transaction
like acquisition of asset external and internal. Asset transaction types identify
individual business transactions. Eg. Retirement or scrapping of asset.
100 is the transaction type which is used for posting the external asset
acquisition (outside purchase of fixed asset)
110 is the transaction type used for in house production of fixed asset.
330 is the transaction type used for internal unit transfer (fixed asset from one
unit to another of same CoCd).
210 is the transaction type which is used for retirement of asset with revenue or
scrap.
250 is the transaction type which is used for retirement of asset without revenue
or scrapping of asset without consideration. (Loss of asset)
We have debited and fixed it can due to outstanding of purchase in invoice

production, internal company transfer by seeing the transaction type identifies
the debit of asset have been done.
The debit and credit transaction can be identified in the transaction type.
Asset Accounting Rules
⮚ We create from asset concept with reference of main asset master.

⮚ For Eg. 1000 – 0 (Main Asset) 1000 – 1 (Sub Asset).
⮚ Main Asset Master is to be created with respect of asset class. (With the
asset class only master will be generated).
⮚ Account determination is assigned in the asset class. (The keys that are
used to link the asset classes or mater record to the general ledger (G/L)
accounts based on the nature of transaction).
⮚ In Account determination we can assign G/Las per the nature of the
account.
Asset Accounting Flow
✔ Fixed Asset
✔ Sales
✔ Profit on Sale
✔ Loss on Sale
✔ Loss due to scrapping
✔ Depreciation
✔ Accumulation Depreciation
⮚ To indentify the sub asset and main asset 1000-0 is your main asset.
1000-1 is your sub asset.
Type of Depreciation
Ordinary Depreciation This is a depreciation used for to run book depreciation

or plan deprecation.
Special Depreciation This is a depreciation used for tax purpose.
Unplanned Depreciation This is a depreciation used for uncertain damage by

natural disorder. For this we need to post manually.
Repeats Depreciation This is a depreciation used for repeat.
Asset Class
Asset class is asset group in SAP. We have account group like vendor account
group and customer account group.
Asset class is classified asset of the company accounting to the management.
Eg. Man, Plant, Building, Vehicle etc.
Asset under construction or capital working progress
Asset class are used for default value of asset master record depreciation is
calculated based on the asset under calculation the respective classes.
Account Determination is the key to identify the asset class and the default
G/L a/c for the asset posting transaction.
This account determination helps to know the main asset.
Screen layout Rules In SAP we have a group of settings that specify the field
that should be maintained in the Asset master record whether the fields are the
required field, surplus, optional and display.
When we creating a asset class
Eg. Land, building, plant & machinery we need to click on the field to make the
required field, surplus, and optional and display will be done in the screen
layout also.
Multilevel method It is a level in SAP where we use different combination

depreciation methods and rates for different stages of depreciation. Calculation
except for useful life of the asset. This multi level method
Eg. Plant useful for 7 years the client wants to run depreciation for this asset
Straight line method and remaining months for diminishing or written down
value method. This wants to configure in multi level method.
Maintain Period Control method These are the keys which control time frame
which the depreciation is calculated in the keys of acquisition of addition
retirement of asset. In the period control method, we define controlling method.
(Expiry date)
Maintains Depreciation Key These are the key which contains all the
necessary parameters to calculate the depreciation. In every depreciation key
assign the multi level period control based on the depreciation area. Every asset
master whom we created will be assigned with the depreciation key. Then the
system calculates depreciation according to the value define the deprecation
key. We can assign one deprecation key to n number of master records.
NOTE: Every depreciation key needs to be activated. If it is not activated the

depreciation key can’t post any transaction or can’t run the depreciation asset
account.
Determination or Depreciation Area in Asset class Activate and deactivate

keys will be done here.
Specifies Interval for posting rule This will define on basis of depreciation
calculated whether one month or quarterly or half yearly.
The asset of sales transfer and scrap that is depreciated calculated by the asset in
the case of sale of asset or scale of asset of scrapping of asset that is calculated
till the asset value date.
ASSIGN TAX CODE FOR NON-TAXABLE TRANSACTIONS
⮚ Every country has business and/or government transactions for which no

input or output tax should apply.
⮚ Transaction you should assign tax codes which will be used for non-
taxable transactions.
⮚ We are making it NIL.
To maintain tax code for non taxable transactions we use a T-Code OBCL
PATH
⮚ Log In
⮚ Posting
⮚ Assign Tax Code for Non Taxable Transactions
In position enter the company code
And for your company code give V0 and S0.
SAVE.
SAVE.
Go back.
COPY REFERENCE CHART OF DEPRECIATION AREAS
To copy reference chart of depreciation areas we use a T-Code OAP1
PATH
⮚ Log In
⮚ Asset Accounting
⮚ Organisational Structure
⮚ Copy Reference Chart of Depreciation/Depreciation Areas.
Select 1st.
Then
2nd
Through position select your Company Code and enter the Description for it
and SAVE.
Next 3rd.
Delete the selected items.
Hit SAVE.
SAVE.
ASSIGN CHART OF DEPRECIATION TO COMPANY CODE
To assign chart of depreciation to company code areas we use a T-Code OAB1
PATH
⮚ Log In
⮚ Assign Chart of depreciation to company code
In position enter your company code and enter the chart of Depreciation.
Hit Save.
SPECIFY ACCOUNT DETERMINATION
To specify account determination we use a T-Code ORG2
PATH
⮚ Log In
⮚ Asset Classes
⮚ Specify Account Determination
Hit New Entries.
This order to be followed.
Do not change.
SAVE.
CREATE SCREEN LAYOUT RULES
To create screen layout rules we use a T-Code FBAU
PATH
⮚ Log In
⮚ Asset Classes
⮚ Create Screen Layout Rules
Enter a familiar company code in Position and select all give copy.
Only copy unable to create.
Hit Save.
DEFINE NUMBER RANGE INTERVAL
To define number range interval we use a T-Code AS08
PATH
⮚ Log In
⮚ Asset Classes
⮚ Define Number Range Interval
SAVE.
DEFINE ASSET CLASS
To define asset class we use a T-Code OAOA
PATH
⮚ Log In
⮚ Asset Classes
⮚ Define Asset Classes
Hit New Entries.
Hit Save.
Hit Save.
Hit SAVE.
Hit SAVE.
Hit SAVE.
Hit SAVE.
DEFINE SCREEN LAYOUT FOR ASSET MASTER DATA
To define screen layout for asset master data we use a T-Code OA77
PATH
⮚ Log In
⮚ Master Data
⮚ Screen Layout
⮚ Define Screen Layout for Asset Master Data

Wa0000.

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Wa0000.

Uploaded by

Copyright:

Available Formats

SAP

SAP - Systems Applications & Products in Data Processing

⮚ Production of financial information

⮚ A record or statement of financial expenditure and receipts relating to a

GOLDEN RULES OF ACCOUNTING

⮚ Debit what comes into the business

⮚ Debit the receiver

⮚ Debit the expenses or loss of the business

Based on Double Entry System

ASSETS = LIABILITES + OWNERS EQUITY.

Assets + Expenses + Drawings = Liabilities + Revenue + Owners Equity.

⮚ Resources that help generate profit in your business.

⮚ In common known as Debt or credit.

⮚ Income generated by the sale of goods or services.

⮚ Money withdrawn by business owners.

⮚ Money given to buy something.

⮚ Payment for something (Expenses).

⮚ We enter the basic transactions made.

⮚ An amount of money lost by a business or organization.

⮚ A reduction in the value of an asset over time.

⮚ Recording the business transactions.

⮚ Shows the company debit and credit balances.

WHAT IS ADJUSTING JOURNAL ENTRY?

- Usually made at the end of an accounting period to recognize an income

⮚ Preparing the ledger with the help of journal entries.

⮚ Adjustments that need to be made on some accounts at the end of the

DOUBLE ENTRY SYSTEM

⮚ Recording the transaction in the terms of debit and credit

WHY IT IS CALLED TRIAL BALANCE?

PROFIT & LOSS ACCOUNT

⮚ Shows a company's revenue and expenses over a particular period of

⮚ A financial statement that reports a company's assets, liabilities and

HOW DOES APPLICATION WORK?

⮚ Computer software package that performs a specific function directly for

⮚ Resource Planning Software. i.e., According to the need of the resource

WHAT IS SAP AND ORIGINATIONS OF SAP?

⮚ SAP Software is a European multinational, founded in 1972 by Claus

HOW DOES SAP APPLICATION WORK?

⮚ It connects all the departments in the organisation.

WHAT ARE THE SAP BUSINESSES UNDER IT?

⮚ Finance, Sales, Purchasing, Inventory, Production, Human Resource.

WHEN WAS SAP INVENTED?

⮚ 1 April 1972, Weinheim, Germany.

⮚ SAP facilitates effective data processing and information flow across

WHAT ARE THE BENEFITS OF SAP?

⮚ Financial Accounting (FI)

BASED ON THE DATA EXCHANGE THIS IS CLASSIFIED INTO 2

FUNCTIONAL SAP ERP MODULES

⮚ Human Resource Management (SAP HRM), also known as Human

TECHNICAL SAP ERP MODULES

DIFFERENCE BETWEEN SAP AND ORACLE.

⮚ It is software which helps unlock critical processes.

Enterprise Resource Planning

Organisation /Company Money Man Material Machinery 4M to gain profit

⮚ Enterprise Resource Planning

HOW DOES IT WORK?

⮚ Automate and support a range of administrative and operational (ready

⮚ To create accurate and efficient process.

⮚ Storing and accessing the data’s in internet.

I work on VPN connection

So our data’s are safe and we save everything in a share point.

- First to answer this we should know

⮚ Data is nothing whatever is considered as information.