SAP FICO-Material

SAP FINANCIALS
What is ERP?
ERP stands for Enterprise Resource Planning. ERP is a way to
integrate the data and processes of an organization into one single
system.
What is SAP ERP?

The ERP software application from SAP helps to improve operational
efficiency and productivity of business processes of the enterprise.
SAP ERP is a world-class, fully integrated application that fulfills the

core business needs of midsize companies and large organizations
across all industries and market sectors. It helps enterprises like
yours perform financials, human capital management, procurement
and logistics, product development and manufacturing, and sales and
service, supported by functionality for analytics, corporate services,
and end-user service delivery.
What is SAP ?SAP stands for Systems Applications and

Products in Data Processing. SAP application provides the capability
to manage financial, asset, and cost accounting, production
operations and materials, personnel, plants, and archived documents.
This unit deal with the navigation of SAP and helps you through the
SAP interface.
SAP NAVIGATION COMPONENTS
An SAP screen can contain the following simple screen
elements:
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Command field: You can start applications directly by entering
their Transaction Code in the command field (this is hidden as
default). You can find the transaction code for an application
eitherin the overview menu on the SAP Easy Access screen, in the
status bar (see below).
Menu bar:The menu bar is the top line of any primary window in
the SAP system. The menus shown here depend on which
application you are in. These menus may also contain cascading
menus.
Standard toolbar:The pushbuttons in the standard toolbar are

shown on every SAP screen. If they are not available in an
application, push buttons that you cannot use on that screen are
deactivated. If you place the cursor over a pushbutton for a short
time, the system displays a flag with the name or function of the
pushbutton. If appropriate, the corresponding function key setting is
also displayed.
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Title bar: The title bar names the function that you are currently in.
Application toolbar: This shows the pushbuttons available in the

application that you are currently in.
Checkboxes: Checkboxes allow you to select several options from a

group of fields.
Radio buttons: You can only select one option.
Tab: This allows you to organize several screen areas to improve the
clarity.
Status bar: The status bar displays information on the current system
status such as warnings and errors. You can also change the
display variant to show, for example, the transaction code of the
transaction you are currently in.
Other elements include, for example, input fields and pushbuttons.
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CONFIGURATION MANUAL
In SAP, Two menus; 1. SAP Menu 2. SAP IMG Menu
SAP Menu: This will be used by SAP Customer for SAP End user operation
(Production Client).
SAP IMG Menu: This menu will be used by Consultants for customization.
IMG means Implementation Guide.
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BASIC SETTINGS FOR THE FORMATION OF THE COMPANY
1) DEFINE COMPANY : /NOX15
(TransactionCodecanbeenteredinCommand Fieldwith prefix of /N for all Transaction

Codes. Here prefix /N will close the current session and go to next session. In case
of /O the existing session (screen) will be minimized and can go to next session. We
can open maximum 6 sessions in /O mode.)
The Organizational Structure is defined within the Corporate Structuresegmentof the

IMG.Organizational Units can be created directly or by copying and, if
necessary,modifying existing Organizational Structures.Establishing the
Organizational Structure in the system tends to be the responsibilityof the FI/CO
team on implementations. It must be created before other modules begin their work
because they are dependent on the Company Code definition.
InSAP, defining Company is optional.But defining Company Code is compulsory.

HereCompany means, in SAP Language we call it as Internal Trading Partner. After
definingCompany Codes (branches of the Company), we assign all Company Codes
to Main Company for Consolidation purpose.
Path:SPRO (IMG)>Enterprise Structure>Definition>Financial

Accounting>Define Company
Select ‘New Entries’
Company HALDL (Alphanumeric Character limits:6)
Company Name Hindusthan Aeronautics Limited
(Fillup all other details if available)
City New Delhi
Country IN
Language EN
Currency INR
SAVE
2) DEFINE COMPANY CODE:-/NOX02
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ACompany Codeisan independentaccounting entity in R/3, for example, a
company within a corporate group. It is designated with a four-digitalphanumeric key.
Balance sheetand profit&loss statements required by law are created at the
company code level.
Company Code is important in SAP FICO Configuration. For example BHEL is

Company Code for Bharath Heavy Electricals Ltd., In every step of configuration
SAP asks for Company Code. Normally Company codes will be defined numerically.
(2210, 5510, 2000, 3000 and the like) Here we have referred 2500 as Company
code for HAL International Ltd.,
Path:SPRO>Enterprise Structure> Definition>Financial Accounting>Define Copy,

Delete, Company Code. Double Click on ‘Edit Company Code Data’
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Steps :- Select New Entries
Company Code 2500
Description HAL International ltd.
City Bangalore
Country IN
Currency INR
Language EN
Save
In big screen, enter company name and address
Enter CountryIN ( it is an mandatory entry )
Enter
2) Edit Copy Delete Check Company Code (TC: /NEC01)
Same path as above.

We go to this option only in the following cases. 1) To copy foreign company
Ledgers. (Pre-defined in SAP). 2) To copy one Company Code to another company
code (We have done configuration of Bangalore Co. Code and same configurations
want to copy to Hyderabad company code.) 3) To delete Company Code.
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3) Assign Company Codes to Company /NOX16
Select ‘Position’
Type ‘Company Code(s)’
Assign Company (HALDL) to all Company Code(s). And SAVE.
Business Area
Business Area will be defined to get segment wise reports of Company activities.
These Business Areas and Profit Centre Accounting are meant only for company
internal reporting purposes. End-user has to define Business Area for each
transaction, while making entries. Business Area is optional for any Company, may
be Product-wise (Soap, Detergents etc.,) or Region-wise (Bangalore, Hyderabad,
etc.,). Business Area is independent. Once defined can be used by any number of
company codes. Business area and Profit Centre Accounting both are meant for
internal reporting purpose.
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If company has undertaken some diversified small business, example Real Estate.
Company can use Real Estate as Business area.
3) Define Business AreaT C:/NOX03

Path :- SPRO> Enterprise Structure > Definition >Financial A/cing>
Define Business Area
Select New Entries
Business Area Description

1100 North Bus Area
1120 South Bus Area
TURB Turbine Bus Area
SOAP Soap Bus Area SAVE
Fiscal Year Variant
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Fiscal Year Variant: V3 is system defined Accounting year stands for Apr to March +
4 Special Periods.(suits Indian type industries). 4 Special Periods is meant for
making entries like posting audit, any adjustment entries, Closure entries, and the
like. After March (12th period), system will not allow to make entries for the month of
March as system gets locked. But end-user has to make entries related to March by
mentioning in period field 13/14/15/ or 16. All these entries will go to March Period
only. K4 Stands for Jan to Dec Accounting Year with 4 Special Periods, and most of
the foreign countries refer K4.
(If you want to create your own Accounting Year and assign to Company Code,
TC: /NOB29. Select New Entries and define any 2 characters, select year-
dependent, in no. of posting periods mention 12 and Spl. Posting periods as 4
and Save. Now select your Variant (2 Characters), and click on ‘periods’, left side.
Select “New Entries”. Now fill up month, no. of days, period and year shiftment
(here you have to define -1 for periods after December which indicates data belongs
to previous year) and Save. To assign Fiscal Year Variant to Company Code
TC:/NOB37.)
4) Assign Fiscal Year Variant to company code T C: /NOB37

Path :- SPRO >Financial A/cing> Financial A/cing Global Settings>Ledgers>Fiscal
year & posting period>assign company code to fiscal year Variant
.
Select Position
Company Code 2500
Enter V3
Save
Chart Of Accounts:
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 Operating chart of accounts
The operating chart of accounts contains the G/L accounts that
you use for posting in your company code during daily
activities. Financial Accounting and Controlling both use this
chart of accounts.
You have to assign an operating chart of accounts to a
company code.
 Group chart of accounts
The group chart of accounts contains the G/L accounts that are
used by the entire corporate group. This allows the company to
provide reports for the entire corporate group.
The assigning of an corporate group chart of accounts to a
company code is optional.
 Country-specific chart of accounts
The country-specific chart of accounts contains the G/L
accounts needed to meet the country's legal requirements. This
allows you to provide statements for the country's legal
requirements.
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The assigning of an country-specific chart of accounts to a
company code is optional.
5) Edit Chart of AccountsT C:/NOB13
Path :- SPRO > Financial A/cing> G/L A/cing> G/L A/c Master A/c
Preparations > Edit Chart A/c List
(Chart of Accounts: means list of ledgers created.)
Select New Entries

Chart of Accounts 2500
Description Chart of A/c for 2500
Maintain language English
Length of G/L A/c no. 6
(6 stands for No. of digits assigned for ledger
creations. Maximum 10 digits can be defined in SAP.)
Controlling Integration Manual creation of cost element

Save
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6) Assign Chart of A/c to company codeT C :/NOB62
Path: - same as above
Select Position
Type company code 2500

Enter
Type company code (2500) in the first column chart/a/c.
Save
YOU CAN ASSIGN SAME CHART OF ACCOUNTS TO DIFFERENT

COMPANY CODES, BUT THE TARGET COMPANY CODES SHOULD
HAVE THE SAME ACCOUNTING YEAR.
Define Account Group
7) Define Account Group
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Path: - same as above T C: /NOBD4
Select New Entries
Chart of A/c Name From A/c No To A/c No

A/c Group
2500 SCPL Share Capital A/c 100000 100099
2500 RSPL Reserves & Surplus 100100 100199
2500 SCLN Secured Loans 100300 100399
2500 UNSL Unsecured Loans 100400 100499
2500 CLPR Liabilities & Provision 100500 100599
2500 FAST Fixed Assets 200000 200099
2500 CAST Assets Loans & Advance 200100 200199
2500 ACDN Accumulated Depreciation 200200 200299
2500 SALE Sales 300000 300099
2500 OTHR Other Income 300100 300199
2500 INCR Incr/Decrin Stock 300200 300299
2500 RMCN Raw material consumption 400000 400099
2500 PRSN Personnel staff cost 400100 400199
2500 MERG Manufacturing Expenses 400200 400299
2500 ADMN Administrative Expenses 400300 400399
2500 INTR Interest 400400 400499
2500 DEPR Depreciation 400500 400599
Save
While assigning From & To numbers for Account group, starting number
1=Liabilities, 2=Assets, 3=Income and 4=Expenses category. This Account Group
represents P&L Account & Balance Sheet.
TO COPY ACCOUNTS GROUP: /NOBD4

1. Identify the Chart of Accounts which you want to copy. Say, for example 2500
2. Select Position
3. Type in Chart of Accounts “2500”, Ignore Accounts Group
4. “2500” Accounts Group will be displayed in proper manner.
5. Select all Accounts Group one by one by clicking (by Mouse) which you want
to copy on 1st column (the square box before Chart of Accounts column).
6. Now, press F6
7. Now it is copied to screen. Replace the existing Chart of Accounts column
(“2500”) by your Company Code, very carefully.
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8. After all replacing, now hit Enter key.
9. Now Save the Data.
RETAINED EARNINGS ACCOUNT:
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Profit & Loss Account
Dr. Cr.
To By
Expenses Ledgers Income Ledgers

Total 8,00,000 Total 10,00,000
Balancing Amount 2,00,000

(Net Profit)
This Net Profit should be transferred to

Balance Sheet Ledger: Retained Earnings
A/c.
This transfer function will done by Key “X”
Balance Sheet
Liabilities Assets
Retained Earnings A/c 2,00,000
8) Define Retained Earnings A/c

Path: - Same path as above T C: /NOB53
Chart of A/c Company Code 2500
P&L A/c A/c No.
X 100100
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Save,(message: “Account 100100 is not created”, this means simply we are
assigning Retained Earnings Ledger Number and we have not created any
Ledger. Once we start creating General Ledger, first create this Retained Earnings
Account as it is SAP Processing Ledger.) Now, ignore the message and enter
Here we have defined Account No. 100100, because this Retained Earnings A/c
ledger falls under Reserves and Surplus Account Group, hence we have defined first
Ledger Number of Accounts Group.
Here, ‘X’ is SAP delivered key. It activates carry forwards of Profit to Balance Sheet
and it also activates to create P&L Ledgers.
9) Define Posting Period Variant(Here we are going to activate Accounting

Periods for postings) T C:/NOBBO
Path: - SPRO>Financial A/cing>Financial A/cing Global Setting>Ledger>fiscal
year &Posting Period>Posting period>Define variant for Open Posting
Period
Select New Entries
Variant Name
2500 Variant for 2500
Save
Open & Close Posting Periods
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10. Open & Close Posting Periods
Path: - Same as above T C :/NOB52
Select New Entries
Variant A From To Per Year Per Year Per Year Per Year
2500 + 1 2015 12 2015 13 2015 16 2015
Save
Maintaining Posting Periods
For technical reasons, for each posting period variant you need an entry.+.
that is valid for all account types. The columns for the account numberinterval
must be empty.
The period intervals defined for the .+. entry specify the periods thatcan
beposted to in a variant.When you enter the posting date in the document
header, the system usesthe entry for the account type .+. to check whether
the period determinedcan be posted to. If all account types are to be open at
the same time, theminimum entry .+. is sufficient.
(Practically this posting periods will be open by each month-wise. In the
period 1 column define Current Month and Current Year and period 2 define
Current Month and Current Year with ‘+’ mark in Account Type and Save.
Now End user can make entries only in that Current Month and not permitted
to post in the previous/next month. And for special posting periods there will
be no such restrictions.)Open Posting Period for Current Month only:
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Assign posting period variant to company code
Different Company Codes can be assigned with same posting period variant
provided, all Company Codes uses the same Accounting year.
11) Assign posting period variant to company code

Path: - Same as above T C: /NOBBP
Select Position
Company code 2500
Enter
Type Company code 2500
Save
Document Type:
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11a) Define Document Type: (TC:/NOBA7) These Document Types are system
defined. If required, we can define our own Document Type. In Accounts
language, we call types of Vouchers. For ex: Purchase Voucher, Sales voucher,
Debit Memo Voucher, Credit Memo Voucher and the like. Once we receive the
Vouchers, we mark manually the Voucher numbers and then we make entries in
computer. In SAP Language we call Vouchers as Document Type. And these
Document Types should be assigned with No. Ranges (Without this No. Range,
the system will not allow you to make any entries.) Purpose of No. range is, the
system will do automatic numbering for all the entries. But while defining number
ranges for each document type, we have to define respective document type
number while defining number ranges in number column. These Document
Types we are going to treat in A/cs Payables, A/cs Receivables and Asset
Accounting.
2) Define Tolerance Group for G/L A/cT C :/NOBA0

Path: - SPRO>Financial A/cing>G/L A/cing>Business Transaction>
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Open Item Clearing>Clearing Differences>Define Tolerance Group for
G/L A/c
(Purpose of this G L Tolerance is, if there is any payment differences
(under-payment or over-payment) in ledgers, this configuration will
account automatically the difference amount.)
Select New Entries

Co.Code Group Description Debit Credit % Dr % Cr
2500 Tolerance 100 100 1 1
group for
2500
Save
Define Tolerance Group for Employees:
12a). Define Tolerance Group for Employees. TC:/NOBA4

(This configuration depicts permitted postings for Endusers)
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Select New Entries
Enter Company Code
Ignore Tol Group
In per document column enter 9999999999
In item document column enter 99999999
In percentage column enter 5%
Now Save data.
This configuration enables end-users to make entries.(Employees means here SAP-

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

(Transaction Code:/NOB57), the tolerances by defining tolerance group will
be assigned to respective category. For example: Tolerance group ABC1 and
configure the following tolerances:
(We do this authorization of SAP End user postings at the time of Go-Live.)
Accounting clerks:
500,000 units of local currency per document
100,000 units of local currency per open item
5% cash discount
We can define tolerance group ABC2 and assign following tolerances:
Accounting manager:
1,000,000 units of local currency per document
500,000 units of local currency per open item
10% cash discount
Field Status Variant::
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Field Status Variant: Here we copy all voucher fields from SAP source, for end-user
operation purpose (to make Voucher entries),this is more concerned with Document
type where all voucher formats will be copied to our Company code. Here we can
make fields as Suppress (fields will not be displayed), required (mandatory fields) or
Optional, as per company policy/reporting option.
13) Maintain Field Status Variant T C: /NOBC4
Select 0001 (Select means you have to click before 0001 column) and then
Press F6
Delete 0001, and type2500(Company Code)Enter
Click on Copy All Enter & Save

Select Position Type 2500 (Company Code )
Select 2500(Company Code )
Double click on “Field Status Group” (left side)
Double click on “ General Text (G001)”
Double click on ‘General Data’(Blue Line)
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Select Required Entry Radio Button for Text
Select next group icon (to the left top)
Select Required Entry forBusiness Area
Save
Do the same procedure for G005 also.
14) Assign Field Status Variant for Company Code T C:/NOBC5

Select Position
Type 2500 (Company Code)
In Field Status Variant column Type 2500 (Company Code)
Save.
15) Defining No. Ranges for Document Types:

TC:/NFBN1/NOBA7
01 (system defined) and Document Type SA, both are same, stands for G L Entries.
X1 stands for Recurring Entries (means End-user use this option to make entries
which will occur every month, like Rent payments, loan Payments, where the End
users store ready-made journal entries in SAP, and while making entries, just they
will change Date and post it.)
X2 stands for Sample Document entries.(This option will be used by End-user for
storing Provisional Entries).
Go to document type (/NOBA7), type Doc. Type SA, Enter. Select SA, click on 2 nd
icon (Details icon). Remember No. Range (system define), now click on No. range
information.
Enter Co. Code: 2500 (if you know particular document type no. start from here by
using T-Code:/NFBN1)
Select 2nd Interval (Change Interval button)
Select Interval Button (Insert Interval button)
In No. column type 01 (G L Entries))
Year: 2013
From No. (keep cursor in this column and press F4. You will find Intervals starting
with No.1, just hit Enter key.) Now move the cursor to To No. column. Delete
99999999 and type 1000 or any increasing No. In the next column, don’t type
anything (in 0 column). This 0 column gives the status of entries. (i.e. number of
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entries made.) Just move the cursor from box. Now hit Enter key and Save. Ignore
messages and hit Enter.
(Same way you can define for X1 and X2 also. 01(SA) is compulsory for any
company, whereas X1 & X2 is optional.)
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GENERAL LEDGERS CREATION: /NFS00
General Ledger contains two segments:
1. Chart of Account Segment
2. Company Code Segment.
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To create General ledgers, type Transaction Code /NFS00 in Command Field. You
have to enter first G L Account No. to create and type Company Code and then
Select to the right 3rd icon (create).
Then you have to select icon in Accounts group field by clicking on it. Select right
Accounts Group for each Ledger. For example to create Cash Account Ledger,
Select Current Assets group. And then in Short Text (mandatory) type Ledger Name:
Cash Account. The long text can be used if Ledger name is too long. Then click on
Control Data Tag, Select Local Currency Check Boxes for all Clearing Accounts,
(When you are selecting Open Item Management Check Box, select this local
currency check box also.). Define sort key as the case may be and select Line Item
display Check Box for all types of ledgers. Click on Create/Bank/interest Tag, Enter
in Field Status Group Field G001/G005/G067 as the case may be, depending on
nature of ledgers. Now, Save.(While configuring Ledgers, carefully read Page No.
29).
15) Creation of General Ledger A/cs T C:/NFS00
G/L A/c Ledger Name Sort Fld,Sts, Select Check

No Key Group Box
100100 Retained Earnings A/c 001 G001
100000 Equity Share Capital 001 G001
200100 Cash A/c 001 G005 Relevant cash
flow
400100 Salaries A/c 001 G001
400300 Rent A/c 001 G001
100500 O/S Exp 001 G001 Op.ItemMgt
100300 IDBI loan A/c 001 G005 Relevant to
Cash Flow
400400 Interest A/c 001 G001
100505 TDS Tax Payable A/c 001 G001 Op.ItemMgt
100506 Surcharge Tax Payable 001 G001 Op.ItemMgt
100507 EdnCess Payable A/c 001 G001 Op.ItemMgt
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G/L A/c Ledger Name Sort Field Reconciliation
No Key Status A/c Type
Group
100501 Sundry Creditors A/c 012 G067 Vendor
200120 Inv. Raw Material A/c 001 G006
200101 ICICI Bank A/c 001 G005 Relevant
cash flow
200150 Adv to Vendors A/c 012 G067 Vendor
300101 Cash Discount Received 001 G001
A/c
200111 Sundry Debtors A/c 031 G067 Customer
300000 Sales A/c 001 G029
100502 Adv From Customer A/c 031 G067 Customer
100503 Output Vat A/c 001 G001
200125 Input Vat A/c 001 G001
200010 Land A/c 018 G007 Asset
200011 Building A/c 018 G067 Asset
200012 Plant & Machinery A/c 018 G067 Asset
200013 Furniture & Fixtures A/c 018 G067 Asset
200014 Vehicle A/c 018 G067 Asset
200015 Capital Work in Progress 018 G007 Asset
A/c
200211 AccDepnBuilding 018 G067 Asset
200212 AccDepn Plant & M 018 G067 Asset
200213 AccDepn Furniture 018 G067 Asset
200214 AccDepn Vehicle 018 G067 Asset
300100 Asset Sale 018 G052
300110 Clearing A/c-Rev 018 G052
300111 Profit on Asset Sale 018 G052
400310 Loss on Asset Sale 018 G001
400311 Loss Due to Scrapping 018 G001
400500 Depreciation A/c 018 G001
200160 Sundry Debtors Bill of 031 G067 Customer
Exchange A/c
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GENERAL LEDGERS CONFIGURATION:
1. Balances in Local Currency: Select this checkbox for all Balance Sheet
Ledgers except Sundry Creditors, Sundry Debtors and related ledgers (where foreign
exchange is involved). This selection is optional for other Ledgers. If you are selecting
Open Item Management Checkbox, select this Balances in Local Currency checkbox also.
2. Tax Category Checkbox: Define * (star) here to activate VAT for Sales and
Purchases Ledgers. This should be done after configuring VAT.
3. Reconciliation Account Type: Select this checkbox only in case of

Reconciliation Accounts. i.e., for Sundry Creditors Ledgers select Vendors, for Sundry
Debtors Ledgers select Customers and for Assets Ledgers select Assets. Select in Field
Status Group G067 for all Reconciliation Accounts.
4. Open Item Management Checkbox: Select this Checkbox only

forLedgers “to be cleared”. For example, ledgers like Payables, Outstanding Expenses,
GR/IR Accounts and Clearing Accounts. Ledgers to be cleared in a short while- like
Auditors Fees Payable, Bonus Payable, Rent Payable and the like select this Open Item
Management Check Box.
GR/IR Account (under MM Module): Goods Receipt and Invoice Receipt Account. Once
we receive materials, we check with Invoice & Quotation whether materials supplied as per
Invoice, i.e., quantity, quality, etc., at this stage, we make part payment to Vendor. Any
shortage or low quality in materials supplied, we hold the payment. Once it is cleared from
Vendor, we make balance payment.
GR/IR Account is the best example for ‘Open Item Management’. It is a temporary
Account.
5. Line Item Display Check box: Select this Checkbox for all types of Ledgers,
as it gives Date-wise Ledger printout, which is must for Reconciliation/Date-wise
Verification of Accounting entries.
6. Sort Key: System defined. Select 001 for all general types of Ledgers. 012 for Sundry
Creditors Ledgers, 031 for Sundry Debtors Ledgers and 018 for Assets type ledgers. This
Sort Key indicates how we want report.
7. Field Status Group: Types of ledgers:
- for Cash/Bank type Ledgers select G005 and Relevant to Cash Flow check
box
- Reconciliation Accounts: Select G067 (or G012) for Sundry Creditors, Sundry
Debtors and Assets Ledgers.
- Any other types Ledgers select G001.
- For Assets having no depreciation G007
- For Sales/Revenue type of Ledgers select G029.
8. Interest Indicator Checkbox: Define Interest ID here after configuring
Interest Calculation.
HOUSE BANKS AND BANK ACCOUNTS
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Each of the Bank Accounts created within a House Bank must be assigned a
unique freely definable five-character Account ID.
• The Account ID is used for the Payment Program specifications and in the
account master records to make a reference to the bank account.
• A G/L Account master record must be created for each Bank Account. The
House Bank and Account ID must be entered in the G/L Account master
record to ensure that accounting transactions involving the Bank Account will
be reflected in the General Ledger.
House Bank Configuration:

CreateICICI Bank Current A/c in G/L A/c No.200101 TC:/NFS00
(If Company have 5 Bank Current A/cs, create 5 General Ledgers then define
House Banks respectively.)
Creation of House Banking & Assigning of G/L A/c No. in House Banking
TC:/NFI12
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Enter
Select New Entries button
House Bank ICICI
Bank Country IN
Bank Key 1478 (Branch Code)
Select Create button
Bank Name ICICI Bank A/c
Street M G Road
City Bangalore
Branch Main Branch Enter & Save
Double Click on Bank A/c (Left side)
Select New Entries
Give A/c ID IC25
Description ICICI Bank A/c
Bank A/c No. 250056
Give G/L A/c No. 200101
Currency INR
Save
9.
10. Now, go to /NFS00, edit GL A/c No. 200101. In 3 rd Tab (Create/bank/interest),
in House Bank and Account ID assign the same.
POSTINGS :
Generally in SAP We are having 4 types of postings;
1. Accounts Receivables Postings :

Eg : Sales Invoice : Customers A/c Dr
To Sales A/c
Sales Returns: Sales A/c Dr
To Customer A/c
2. Accounts Payable Postings :
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Eg : Purchase Invoice : Puchase A/c Dr
To Vendor A/c
Purchase Returns : Vendor A/c Dr
To Purchase A/c.
3. Asset Account Posting :

Eg : Purchase of Assets : Asset A/c Dr
To Vendor A/c
Sale of Asset : Customer A/c Dr
To Asset A/c
4. General Ledger Posting : Rent A/c Dr
To Bank or cash A/c
General Ledger Postings :

1. Park, Hold & Post the General Ledger Document : FB50
Path : Easy Access -> Accounting -> Financial Accounting -> General Ledger-
> Posting -> FB50
Company Code enter
Document date 25.06.2015

Posting date 25.06.2015
Reference :
Document Header Text : Being Rent Paid
Select the GL
1. 400300 Rent A/c Debit 20000
2. 200101 HDFC Bank Credit 20000
Enter & save the Document
Park the GL Document : FV50

Document Date 25.06.2015
Posting date : 25.06.2015
Reference : Invoice number
Document Header Text : Being Rent Paid
1. 400300 Rent A/c Debit 15000
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2. 200101 HDFC Bank Credit 15000
Enter and Park the document (Do not save the document)
Difference between Hold and Park
While holding the document, System will not generate the document number, we
need to give the document number externally.
Where as, while parking the document system will generate the document number.
Difference between Park & Post :

Parked documents can be delete and modify afterwards,
Where as posted documents are not able modify or delete, where we can reverse
the document.
Post the Parked Document – FBV0
Company Code : 2500

Document No : 02
Fiscal Year : 2015
Enter and Click on post
General or Direct Posting – F-02
Document date : 25.06.2015 Type : SA Comp code : 2500

Posting date : 25.06.2015 Period : 12 Currency : INR
Reference No : Invoice number
Document Header Text : Being Rent Paid.
Posting Key : 40 (debit) Account 400300 (Rent A/c)

Press enter (It will come to next screen)
Amount : 25000
Value Date : 25.06.2015
Text : Being Rent Paid
Posting Key : 50 (Credit) Account : 200101 (HDFC Bank)

Again press enter (It will come to next screen)
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Amount : * (it will next the amount)
Value Date : 25.06.2015
Text : + (it will next the amount)
Hit enter and click document in menu bar and select simulate, analyze and save the
document.
Reverse the posted document – FB08

Document No : 2
Company Code : 2500
Fiscal Year : 2015
Reversal Reason : 01 (Reverse in current period)

Click on display before reversal
Come back and post or save.
GL Account Line Item display : FBL3N
GL A/c : 400300 ( for multiple GLs click on arrow)

Comp Code : 2500
Select : normal item

Noted item
Parked item
Click on execute or press F8
GL Account Balance display – FS10N
GL A/c : 400300
Comp Code : 2500
Fiscal year : 2015
Click on execute or F8.
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ACCOUNTS RECEIVABLE
All postings in FI-AR are also recorded simultaneously in FI-GL.

• The components of FI-AR are closely integrated with components of SD andMM
which, when properly configured, support an automated Sales Cycle.
• The FI-AR sub-module contains the following features:
– A component to control customer credit exposure (Credit Management)
– A reporting function to monitor customer activity
– Incoming Payment processing (electronic or manual)
– A component to monitor past due customer invoices (Dunning)
1) Creation of Customer A/c group

Path : IMG>Financial A/cing> Account Receivable & Payable> Customer Account>
Master Data > Preparation for Creating Customer Master Data > Define A/c Group
TC:/NOBD2
Select New Entries
Account Group B1
Description FI Customers for 2500
Double click on Company Code Data
Double click on Account Management
Reconciliation A/c Make a required entry Save
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Select next screen button
Account Group B2
Description SD Customers for 2500
Reconciliation A/c Make asRequired entry Save
2) Define Screen Layout for Company Code ( customer )

Path : IMG>Financial A/cing> Account Receivable & Payable > Customer Account >
Master Data > Preparation for Creating Customer Master Data >Define screen lay
out for company code ( customer )
Company Code 2500 Save
3) Creation of number ranges for customer A/c

Path : IMG>Financial A/cing> Account Receivable & Payable > Customer Account >
Master Data > Preparation for Creating Customer Master Data >
Creation of number range for customer A/c TC:/NXDN1
Select Create Interval button

Select Insert Interval button
Give the number10 (or any Number)
Press F4 From No.001 To No.1000
Enter
Again select Interval button
Give the number02
Press F4 From No 1001 To No. 2000
Enter
[ Any number can be assigned ]
4) Assign No. ranges to Customer A/c Groups

Path : IMG>Financial A/c>A/c Receivable & Payable>Customer A/c >Master Data>
Assign No. range to Customer A/c Groups T C : /NOBAR
Select Position
Give the A/c Group No. B1 Enter
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FI Customer for 2500 10
MM Customer for 2500 02 Save
5) Creation of two G/L A/cs TC FS00

a) Sundry Debtors (No. 200111) under Current Assets
b) Sales A/c (No. 300000) under Sales
Note : Do not select Balance only in local currency
for Reconciliation A/c { for Sundry Creditors & Sundry Debtors }
6) Creation of Customer Master

Path : SAP Easy Access> Accounting > Financial Accounting > Account Receivable
> Master Records > Creation of customer master TC:/NXD01
Account Group FI customer for 2500

Company Code 2500 Enter
Give the title Company
Name Sriram ram chit funds
Type the necessary information
Country IN
Select Company Code Data button

Give Reconciliation A/c 200111
Sort Key 031 Save
(Whenever you are configuring at OBA7-Document Types, the Numbers defined 14

to 19, (for KR, KA, KZ, DR, DA and DZ) are system defined and the same numbers
you should define while creating number ranges.)
7) Define Document Type T C:/NOBA7
Select Position
Enter Document Type DR Enter
Select DR Select details button from icon
Select No. Range Information button
Type Company Code 2500
Select change Interval button
Select Interval button
Type No. 18 ( it is system define )
Year 2012 From No.--------------- To No.--------- Enter & Save
Select Back arrow three times
Deselect DR& Select DZ Select details button
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Type No. 14( it is system define )
Deselect DZ&Select DA Select details button
Type No. 16 ( it is system define )
8). Sales invoice posting –FB70

Path : Sap Easy Access > Accounting > Financial Accounting > Document Entry >
FB70-Invoice.
Invoice Date : 25.06.2015
Posting Date : 25.06.2015
Amount : 100000
Customer : 202011
Text : Sales Invoice Postings.
SL GL A/c No D/C Amount

1 300000 (sales A/c) Credit 100000
(Like this post Invoices under each customer a/c) .
9)Sales Returns TC-FB75

FB75-Credit Memo.
Amount : 10000
Customer : 202011

1 300000 (sales A/c) Debit 10000
Enter & Save.
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10) Sales invoice postingTC-F-22
Document Date ( Current Date ) Document Type DR
Posting Date ( as above ) Company Code 2500
Currency IN
Posting Key 01 ( Customer Debit )
Account No.-------------- ( Sriram chit fund A/c )

Enter
Amount 100000
Business Area ( as your selection it should be the same for the
transaction )
Text ( narration ) Sales invoice posting .
Posting Key 50 ( G/L Sales Credit A/c)

Account No. 300000 ( Sales A/c ) Enter
Amount *
transaction )
Text + Enter
From Menu Select Document-Simulate-Save
11) Check the customer line item display TC-FBL5N

Give the customer A/c no.---------
Select open item radio button Execute
12) Posting of incoming payment or Partial payment TC-F-28

Document Date ( Current Date ) Document Type DZ
Currency IN
Account No 200101 ( Bank A/c )
Enter
Amount 45000
transaction )
Text ( narration ) Incoming payment from sriram chit funds
Under Open Item Selection
Account No. Customer A/c No.
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Select Process Open Item
From the menu Select Document – Simulate - Save
13) Full or Clear Payment – TC-F-32

Document Date 25.06.2015 Document Type DZ
Posting Date 25.06.2015 Company Code 2500
Currency IN
Enter
Select the line item which you want to clear and double click on it and click on
“charge of difference” tab & update as follows;
Post key 40 (debit) Account No 200101 (HDFC Bank A/c)
Enter
Amount : 45000
Text : Balance amount cleared.
Enter, Click Document in menu and select simulate, analyze and save.
14) Check the customer open item TC-FBL5N

Customer Account No.
Select Cleared items radio button
Enter clearing date Execute
Terms of Payment
1.Define Terms of payments TC-OBB8

Path : IMG > Financial Accounting > Accounts Receivables and Accounts Payable >
Business Transaction > Outgoing Invoice and credit memo > Maintain Terms of
Payment
Select New enteries
Payment Terms 25T2 own explanation : 2% 30 days, 60 days due
Select Vendor
Select Customer Select document date
Term Percentabe No of days

1 2 30
2 60
Enter & save.
Like this, can create other terms as follows;

Select New enteries
Payment Terms 25T3 own explanation : 5% 30 days, 2% 45 days 60 days due
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Select Vendor
Term Percentabe No of days

1 5 30
2 2 45
3 60
Enter & save.
Assign Terms of payment to customer master record – TC-FD02

Path : Easy Access > Accounting > Financial Accounting > Account Receivables >
Master Record > FD02-Modify/.Edit
Customer Number : 202011

Company Code : 2500
Enter
Click on company Code data tab
Click on payment transaction tab
Enter the terms of payment “25T3 or 25T2.
Save.
Installment payment - TC-OBB8

Business Transaction > Outgoing Invoice and credit memo > Maintain Terms of
Payment
Select New Entries
Payment Terms 25IP own explanation : 20% Immediate, 40% 30 days, 40%
60 days
Select Vendor
Select Installment payment
Save and click on back button or F3.
New entries
Payment Terms 25I1 own explanation : 20% Due Immediately
Select Vendor
Save and click on next entry button
New entries
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Payment Terms 25I2 own explanation : 40% Due in 30 days
Select Vendor
Save and click on next entry button
Payment Terms 25I3 own explanation : 40% Due in 60 days

Select Vendor
Save
Define Terms of payment for installation payment – TC-OBB9

Business Transaction > Outgoing Invoice and credit memo > Define terms of
payment for installment payment
Select new entries

Terms of payment Installment % age Payment terms
25IP 1 20 25I1
25IP 2 40 25I2
25IP 3 40 25I3
Enter & save
Assign Terms of payment to customer master record – TC-FD02
Path : Easy Access > Accounting > Financial Accounting > Account Receivables >
Master Record > FD02-Modify/.Edit
Customer Number : 202011

Company Code : 2500
Enter
Click on company Code data tab
Click on payment transaction tab
Enter the terms of payment 25IP
Save.
Post Sales Invoice – TC- FB70
FB70-Invoice.
Amount : 100000
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Customer : 202011

1 300000 (sales A/c) Credit 100000
DUNNING
(Dunning means Sending reminders to the Debtors for recovery of Overdue
Payments.)
Dunning - The process of notifying customers that an unpaid obligation hasbecome

past due.
• Dunning Area - An optional unit in the Organizational Structure usedto group
Customers / Vendors for dunning and each could representdifferent dunning policies
or Organizational Units responsible for dunning.
• Dunning Procedure - A four-character alphanumeric code that contains
theconfiguration of a Dunning Program and can be tied to Dunning Areas or to
aCustomer / Vendor master record.
• Grace period - The number of days that a line item is in arrears (is past due),which,
if not exceeded, will prevent it from being taken into consideration as duefor dunning.
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• Dunning Level - Defines what type of dunning will be carried out by a
certainDunning Procedure and which conditions will result in using that
DunningProcedure.
• Minimum Amount - A user-defined overdue threshold of the total AccountBalance
which must be exceeded to reach a Dunning Level.
• Dunning Charge - The amount to be charged a customer for the expense incurred
in dunning. They are not posted to the General ledger.
Dunning Letters - The document sent to a customer / vendor that results from
aDunning Run. It contains a header, footer, main body (which contains text),
lineitems, totals, and basic information.
• Dunning Program - Examines the open items of a Customer / Vendor Accountand,
if overdue items exist, produces the appropriate notice.
• Dunning Block Reasons - Used to block a Customer / Vendor or an item frombeing
dunned.
• Dunning Keys - Used to mark items that should not trigger a higherDunning Level.
Dunning Configuration:
1. Define Dunning Procedure TC: /NFBMP

Select ‘New Procedure’
Dun Procedure: 2500
Description: Dunning Procedure for 2500
Dunning Intervals in Days : 5 (Indicates gap between Reminders.)
No. of levels : 4 ( Max 9)
Line items grace periods: 3
Interest Indicator : 01
Select std. Transaction dun check box.
Ref dun procedure for texts : 0001
Click on Dunning level tab:
Days in arrears 2 7 12 17
Calculate Interest √ √
Print Parameter
Always dun √ √ √ √
Print all item
√ always dun in legal procedure
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Click on Charges Tab
Input currency INR and enter
Dunn level From Dun Amount Dunning charges
1 1000 1
2 1000 1
3 1000 2
4 1000 2
Click on Minimum amount tab
Input currency INR and enter
Dun Min Amount Min amount for Interest
1 2000 1000
2 2000 1000
3 2000 1000
4 2000 1000
Select ‘DunningText’ Tab

New company code.
System displays ‘Co. Code’: type Co. Code 2500, Enter.
(In case, now system displays ‘New Company Code’ at this stage, click
on ‘New Co.Code’, by default system displays ‘Co.Code’, just Enter. Now
select ‘Dun levels’ check box and SAVE and Enter. Again Now click on
‘Dunning Text” button, displays Co. Code, just hit Enter.)
No. FORM
1. F150_DUNN_01
2. F150_DUNN_01
3. F150_DUNN_01
4. F150_DUNN_01
Select ‘Dunning Level’ Button.

Now, under ‘Always Dun?’ Select all 4 check boxes.
Select ‘Charges’
Enter ‘INR’, Enter.
Now, select Back Arrow.
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-SAVE- Ignore messages, hit Enter until Procedure is saved.
Come back to main screen of dunning and Select Environment in menu
bar, Select company code data,
New entries
By Dunner By Dun Ref Co code Sort MHNK MHND Dun code
√ √ 1000 K1 P1 2500
Save.
2. Assign Dunning Procedure in Customer Master Data. TC:/NXD02

Select ‘Customer’
Select ‘Company Code Data’ Button.
Select ‘Correspondence’ Tag.
In Dun Procedure: 2500 –SAVE-
3. Make one Sales Entry (F-22) with 2 months back date.

4. Dunning Run TC:/NF150
Run Date: Current Date
Identification: abc
Select ‘Parameter’ Tag
Dun Date: Current Date
Posted : Current Date
Co. Code : 2500
Customer : select Customer
Click on ‘Individual Dunning Notice’ Button.
Co. Code : 2500

Output Device : LP01
Select ‘Sample Printout’ Button.
Select Continue Button.
Select ‘Print Preview’ check box.
Click on ‘Sample Printout’ Button.
Now, in Toolbar, Select Goto-List Display- Click
Now, in Toolbar, Select System-List-Save-Local File
Select Unconverted Radio Buton and Continue.
Give File Name: 5Dunn.doc
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Select ‘Generate’ Button.
Close SAP System and search in My Documents ‘5Dunn.doc’.
Special GL Transaction :
Special GL transaction which we will show separately in the Sub-ledger (Customers

& Vendors) and in general ledger (balance sheet)
Eq : Down Payment
1. Down payment received from the customer – Current liabilities

2. Down payment made or paid to vendor – Current assets
Down payment procedure:
1. Down payment request – F-37

2. Down payment received – F-29
3. Down payment cleared - F-39
ADVANCE PAYMENT FROM CUSTOMER OR DOWN PAYMENT
1) Creation of General Ledger: Advance from customer or Down payment

received (G L A/c No. 100502 or 100510) TC:/NFS00
2) Define Reconciliation A/c for customer Down Payment TC-OBXR

Path : IMG > Financial Accounting > ARAP > Business Transaction >DP Received >
Define Reconciliation a/c for DP
Double click on “A” under Spl GL Indicators

Type the chart of A/c no. 2500 Enter
Type the Reconciliation A/c no.
Reconciliation Account 200111 (Sundry Debtors)
Special G/L A/c no. 100502 Save
4) Down Payment Request – TC-F-37

Path Easy Access > Accounting > Financial Accounting > A/c Receivables >
Document entry > Down payment > F-37
Document date : 25.06.2015
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Doc header text Down payment request

Customer : 202011
Spl GL indicator : A
Click on new item tab
Amount : 40000
Due on : 25.06.2015
Text : Down Payment request
Save.
4) Down Payment or Advance Receipt Posting TC:/NF-29

Date --------------------- Posting date --------------

Customer A/c no. ------------- Spl G/L indicator A
Bank A/c No. 200101 Business Area ----------------
Amount 40000 Value date----------------------
Text Advance payment receipt Enter
Amount * Business area--------------
Text +
Document – Simulate Save
5) Down Payment Cleared : TC-F-39


Doc header text Down payment cleared.

Customer : 202011.
Remove invoice number
Text Down payment cleared
Click on process down payment tab
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Double click the line item and save.
6) Check part account customer line item display TC:/NFBL5N

Customer No.----------
Company code 2500
Select Open item radio button
Select Special general ledger transaction Execute
7) Sales invoice posting TC:/NF-22

Currency IN
Enter
Amount 100000
Business Area ( as your selection should be the same for the
transaction )
Account No. 300000 ( Sales A/c )
Amount * Business area--------------
Text + (Enter) Save
6) Check part account customer open item display TC_FBL5N

Company code 2500
Open item key date ----------
Select Normal item check box
( if you want to view the down payment also select both Normal item and Special
general ledger transaction check box at bottom.)
Execute

Company code 2500
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Select Normal item check box
Execute

Company code 2500
Select Normal item check
Execute
Now pass Normal Incoming Payment for balance amount TC:/NF-28.
11) To check Customer Balance TC-FD10N

Company code 2500
ACCOUNTS PAYABLE
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K=stands for Vendor A= stands for Document
R=stands for Invoice Z=stands for Payment
KR=stands for Vendor Invoice (Purchase entry)
KA=stands for Vendor Document (Down payment)
KZ=stands for Vendor Payment (Outgoing payment)
(Accounts Payable & Accounts Receivable is Sub-Ledgers. For these Sub-Ledgers,

main General Ledgers are Sundry Creditors and Sundry Debtors respectively.)
Determination of requirements: The user department responsible can manually pass

a requirement for materials to the Purchasing department via a purchase requisition.
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If you have set a MRP procedure for a material in the material master, the R/3
System automatically generates a purchase requisition.
Determination of the source of supply: The R/3 System helps the buyer determine
possible sources of supply. You can use determination of the source of supply to
create requests for quotation (RFQs) and then enter the quotations. You can also
access existing purchase orders and conditions in the system.
Vendor selection: The system simplifies the selection of vendors by making price
comparisons between the various quotations. It automatically sends rejection letters.
Purchase order processing: The system facilitates data entry by providing entry
aids when you are entering purchase orders.
Purchase order monitoring: The buyer can monitor the processing status of the
purchase order online at any time and can determine whether goods or an invoice
have been received for the relevant purchase order item. The system also supports
reminder procedures.
Goods receipt: The system compares the goods receipt quantity with the purchase
order quantity.
Invoice verification: Vendor invoices are checked for accuracy of prices

andcontents.
Payment Processing: Financial Accounting normally deals with Vendor Payments.
Vendor Master Data Creation:

Here we have to define types of Vendors by creating Account Groups. This will help
in controlling and copying Vendors. For example for computer suppliers, we can
create one group, for materials suppliers, one group and the like.
1) Creation of Vendor A/c Groups TC : /NOBD3
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TheAccount Group:
- Controls the numbering for the Customer/Vendor Master Record. A NumberRange

isassigned to an Account Group. NumberRangescan be defined that eitherallow the
system to automatically assign a number to a master record orallow the user to
manually assign a number to a master record. Number
- Determines which fields will appear on data entry screens along with theirdata entry
status.
- Is used to designate one-time accounts.
- You can define several Account Groups for Customer master records.
- Each Customer master record can be assigned to ONLY ONEAccount Group.
Select New Entries

Type Account Group CMP ( any alpha numeric character )
Description ComputerVendors for 2500
Make Reconciliation A/c Required Entry
Make Cash Management Suppress Save
Select Next Entry button
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Give Account Group MAT ( any alpha numeric character )
Description MM Vendors for 2500
Make Reconciliation A/c Required Entry
Make Cash Management Suppress Save
2) Define Screen Layout for the Company Code

Path : IMG>Financial A/c>A/c Receivable & Payable>Vendor A/c >Master
Data>Preparation for creating Vendor Master Data>Define Screen Layout for the
Company Code
Select New Entries
Type 2500 (Company Code ) Save
3) Create No. Range for Vendor Account Group TC: /NXKN1

Path : IMG>Financial A/cing>A/c Receivable & Payable>Vendor A/c>Master Data>
Create No. Range for Vendor A/c group
Select Change Interval button (second Interval button)

In No. column enter (for ex: 10) any free numbers (Refer already created No.
Ranges list and identify the No. which is not defined. You have to define new No. in
No. column.) After entering No., in From Number column Press F4 Select any free
interval and enter. In To Number column delete all 9s and type any increasing
number (for ex: 1 to 1000). Don’t type anything in current (0) column as this column
gives status of entries made. Move the cursor out of box and Enter and then Save.
Ignore messages and Enter.(Wherever you come across creation of No. Ranges,
same procedure you have to follow.)
Again select Interval button
Type the number 11in No. column,(or any free number). In From column, press F4
and hit Enter. Now move the cursor to To column, delete all 9s and type any
increasing number and move cursor from Box and hit Enter and Save. Ignore
message andhitEnter.
Follow the above procedure for creation of No. Ranges depending on No. of
Vendor Groups created. (If you have created 3 Vendor Groups, create 3 No. Ranges
and assign No. Ranges to Vendor Groups.)
4) Assign No. range to Vendor A/c Groups

Path: IMG>Financial A/cing>A/c Receivable & Payable>Vendor A/c >Master Data>
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Assign No. range to Vendor A/c Groups T C: /NOBAS
Select Position
Type the A/c Group No. MAT Enter
FI Vendors for 2500 (Assign 1 No. created in No. Ranges column)(for ex:
st
10) Save
Select Position type A/c Group CMP
MM Vendors for 2500 (Assign 2nd No. created in No. Ranges column)(for ex:
11) Save
5) Define Tolerance for Vendor A/c TC : OBA3

Select New Entries
Type in Company Code field 2500
Ignore Tolerance Group, Save
6) Creation of two G/L A/cs TC FS00

a) Sundry Creditors (No. 100501) under Current Liabilities
b) Inventory Raw Material A/c (200120) under Current Assets
Note : Do not select Balance only in local currency Check Box

for the ledgers, (Reconciliation A/cs) { for Sundry Creditors & Sundry Debtors }
RECONCILIATION ACCOUNT:
7) Creation of Vendor Master Data T C:/NXK01
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Vendor Blank (Don’t type anything here.)
Company Code 2500
Account Group MAT- Enter
Title Company
Name Payal Solutions
Country IN
Select Next screen button (or hit Enter until you get Reconcln A/c
Field)
Reconciliation A/c 100501 ( Sundry Creditors )
Sort Key 012
Select Next screen button or hit Enter
Payment terms 0001 (Payable immediately due net)
Select Check double invoice check box Save
Contents of Customer/Vendor Master Data:
We can create only Financial Vendors through /NFK01. (Auditors, Insurance, etc.,).
These Vendors will not be accessed to other Modules.
Define Document TypeTC:/NOBA7

Select Position
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Enter Document Type KR Enter
Select KR Select Details button Icon (2 Icon )
nd

Type No. 19 ( it is system defined )
Year 2013 From No.& To No.
Deselect KR& Select KZ Select details button
Type No. 15 ( it is system defined )
Deselect KZ&Select KA(Do the same operation for Document type KA No. 17 )
Create Purchase Invoice – TC-FB60

Path : Easy Access > Accounting > Financial Accounting > Account Payable >
Document entry > FB60-Invoice

Document header text : Purchase invoice postings
SL NO GL A/c D/C Amount

1 200120 D 100000
Save
Purchase Returns – TC-FB65

Path : Easy Access > Accounting > Financial Accounting > Account Payable >
Document entry > FB65.

Document header text : Purchase returns
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SL NO GL A/c D/C Amount
1 200120 C 10000
Save
Purchase Invoice Posting T C:/NF-43

Document Date ( Current Date ) Document Type KR
Currency INR
Posting Key 31 A/c No. ( Vendor A/c ) Press F4 & select Vendor
Enter
Amount 100000
transaction )
Text ( narration ) Purchase Invoice Posting Payal Solutions.
Posting Key 40 ( G/L debit Purchase A/c)
Account No. 200120 ( Inventory Raw Material ) Enter
Amount *
transaction )
Text + Enter
From Menu Select Document>Simulate-Save
Vendor A/c Line Item Display T C:/NFBL1N

Vendor A/c No. (Press F4 & select Vendor )
Company Code 2500
Select All items radio Button
Execute
Outgoing Payment/Partial Payment : TC F-53

Document Date ( Current Date ) Document Type KZ
Currency INR
Under Bank Data
Account 200101
Business Area ( as your selection it should be the same for the transaction )
Amount 100000
Value Date Current Date
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Text (Outgoing Payment for Payal Solution)
Under Open Item Solution
Account No. (Press F4 & SelectPayal Solution)
Select Process Item button
Note down the Document No. (For manual cheque update)
Vendor Full or clear Payment – TC-F-44
Vendor A/c No : Clearing date period : 25.06.2015

Company Code : 2500 Currency : INR
Enter
Select the line item which you want to clear & click on “charge of difference” tab
Post key 50 Account 200101 (HDFC Bank A/c)-enter
Amount : enter balance amount
Text : Balance amount cleared
Click on document in menu bar and select simulate, analyze and save.
Go to TC FBL1N & check the cleared items

Vendor A/c No.
Company Code 2500
Select Cleared Item Clearing date (current date)
Select Normal Item check box
Execute
Eq : Down Payment
3. Down payment received from the customer – Current liabilities

4. Down payment made or paid to vendor – Current assets
Down payment procedure:
1. Down payment request – F-47

2. Down payment received – F-48
3. Down payment cleared - F-54
ADVANCE PAYMENT FROM CUSTOMER OR DOWN PAYMENT
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1) Creation of General Ledger: Advance to vendor or Down payment paid (G L
A/c No. 200120) TC:/NFS00
2) Define Reconciliation A/c for customer Down Payment TC-OBYR

Path : IMG > Financial Accounting > ARAP > Business Transaction >DP made >
Define Reconciliation a/c for DP
Double click on “A” under Spl GL Indicators

Type the chart of A/c no. 2500 Enter
Type the Reconciliation A/c no.
Reconciliation Account 100501 (Sundry Creditors)
Special G/L A/c no. 200120 Save
6) Down Payment Request – TC-F-47

Path Easy Access > Accounting > Financial Accounting > A/c payable >

Doc header text : Down payment request

Vendor : 10201
Spl GL indicator : A
Click on new item tab
Amount : 40000
Due on : 25.06.2015
Text : Down Payment request
Save.
4) Down Payment paid TC:/NF-48

Path Easy Access > Accounting > Financial Accounting > A/c payable>
Date 25.06.2015 Posting date 25.06.2015

Vendor A/c no.10201 Spl G/L indicator A
Bank A/c No. 200101
Amount 40000 Value date----------------------
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Text Down payment paid Enter
Amount *
Text +
Document – Simulate Save
7) Down Payment Cleared : TC-F-54

Path Easy Access > Accounting > Financial Accounting > A/c payables>

Doc header text Down payment cleared.

Vendor : 10201.
Remove invoice number
Text Down payment cleared
Click on process down payment tab
Double click the line item and save.
With holding Tax (TDS)

EXTENDED WITHHOLDING TAX (TDS)
Withholding tax is applicable in few countries. Some of the countries having

withholding tax are United Kingdom, Slovakia, Turkey, Argentina,
Brazil,Chile, Colombia, Mexico, India, Philippines, Thailand and South Korea.
SAPhas given an excellent solution to map the withholding tax scenario.
What is Withholding Tax?
Withholding tax is an Income tax which is deducted at the source of

therevenue. The party is subject to tax does not remit the withholding tax tothe
tax authorities himself.
In any business transaction there are 2 parties involved. One is
Customerand another is Vendor. A Customer is authorized to deduct withholding
tax forservice rendered by the Vendor. When the Vendor raises the invoice
onthe Customer, the Customer deducts the withholding tax as per the
ratesspecified by the tax authorities and pays the balance money to the Vendor.
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Tax deducted by the Customer is remitted to the tax authorities on
specifieddue dates. The Customer gives a Withholding tax certificate to the
Vendor forthe withholding tax deducted.
The Vendor can claim this withholding tax (as advance income tax paid)
inhis annual returns to Income tax authorities.
When the Vendor submits an Invoice, the Customer is now required to

deducttax on the Invoice amount
If we are making down payment, deduct TDS at this level and once you receive
Invoice, calculate TDS for amount at invoice level only.
To calculate pay and report the withholding tax, the SAP system provides
twofunctions:-
Classic Withholding tax

Extended Withholding tax
Extended Withholding taxincludes all the functions of classic withholding

tax; SAP therefore recommendsthe use of extended withholding tax.
Here we are configuring Payment to Professional and Technical Services U/s

194J. of Income Tax Act. This Tax Structure will change from year to year.
Tax Structure: UptoRs. 20000 no TDS. (Base Amount)

Above Rs. 20000/- TDS at the rate of 10.3% on gross amount
Surcharge is 1% on TDS
1) Check Withholding tax countries.

Path : IMG>Financial Accounting> Financial Accounting Global Settings>
Withholding Tax> Extended Withholding Tax >Basic Settings> Check
Withholding Tax Countries
Click on New Entries

(In this withholding country column, you can define any name, but you should
remember as you have to assign to Vendor Masters)
Country Withholding country Description

IN IBM Withholding tax for India
Save
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2) Define Withholding tax for Invoice Posting
Withholding Tax > Extended Withholding Tax> Calculation> Withholding Tax
Type> Define Withholding tax for Invoice Posting
(Here we have defined tax types for ex: IT,IS, and AT,AS,. Here second letters T
stands for TDS, S stands for Surcharge While practicing you can change 1 st
letters, instead of I & A, you can define any alphabetic (D & E, M and N, or any
letters, but second letters should be T and S only, for identification purpose to
define Tax Rate.)
Country IN Enter
Click on New Entries button
a) withholding tax type IT

Description 10.3% TDS on P&T Services invoice posting
Select Gross Amount check box

Deselect manual withholding tax check box and SAVE.
Select Next Entry Button

b) withholding tax type IS
Description 1% Surcharge- invoice posting
Select Tax Amount check box, Deselect Manual w/holding Tax.
SAVE.
3) Define Withholding tax for Payment Posting

Withholding Tax > Extended Withholding Tax> Calculation >Withholding Tax
Type > Define Withholding tax for Payment Posting
Country IN Enter
a) withholding tax type AT
Description 10.3% TDS on P&T Services- payment posting
Select Gross Amount check box, Deselect manual withholding tax.

SAVE.
Select Next Entry Button
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b) withholding tax type AS
Description 1% Surcharge on TDS - payment posting
And the same above procedure select Tax Amount and deselect manual
withholding tax. SAVE.
4) Define withholding tax codes

Withholding Tax> Extended Withholding Tax> Calculation> Withholding Tax
Codes> Define Withholding tax codes
(This Tax Codes is to identify Tax Types, you just reverse the Tax Types. While
defining Tax Rates, instead of point (.), you have to define Comma (,) only) for
ex: Rate is 2.2, define 2,2) (Tax Rate T=10.3 and S=0.103)
Country IN Enter

a) withholding tax type IT
Code TI
Description 10.3% TDS on invoice posting
Percentage subject to tax 100
Posting Indicator 1
Withholding tax rate 10.3
Select Next Entries button
b) withholding tax type IS

Code SI
Description 1%Surcharge on TDS - invoice posting
Posting Indicator 1
Withholding tax rate 0.103 SAVE.

d) withholding tax type AT
Code TA
Description 10.3% TDS on - payment posting
Posting Indicator 1
Withholding tax rate 10.3
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e) withholding tax type AS
Code SA
Description 1%Surcharge on TDS on payment posting
Posting Indicator 1
Withholding tax rate 0.103 SAVE.
6) Assign withholding tax type to the company codes

Path : IMG>Financial Accounting >Financial Accounting Global Settings>
Withholding Tax> Extended Withholding Tax > Company Code > Assign
withholding tax type to the company codes
Select New Entries button Company code 2500
Withholding tax type IT
Select withholding tax Agent Check box
withholding tax obligation from 01.04.2013

Obligated to withholding tax 31.03.2014
Select Next screen button
Enter Company code 2500
withholding tax type IS
SAVE.

withholding tax type AT

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withholding tax type AS
Save
7) Activate Extended Withholding tax
Click onPosition Type Company Code 2500

Select Extended Withholding tax check box and Save
Ignore the message and Enter to save the data
8) Creation of General Ledger A/cs TC FS00

TDS Payable under current liabilities A/c No.100505
Surcharges payable under current liabilities A/c No.100506
( At the beginning stage there is a chart of G/L A/c list in that you can find the
procedure of creation General Ledgers with a/c nos. )
9. Assignment of A/c for Automatic Postings
Path : IMG>Financial Accounting> Financial Accounting Global Settings >

Withholding Tax> Extended Withholding Tax> Accounts for withholding tax>
Define Accounts for withholding tax to be paid over
TC:/NOBWW
Enter Chart of Accounts 2500 Enter
Select Withholding tax type check box

Select Withholding tax codescheck box Save
Withholding tax type Withholding tax code Account No.

IT TI 100505
IS SI 100506
AT TA 100505
AS SA 100506
Save
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10)Assign withholding tax types & codes to Vendor Masters(TDS Activation)
TC:/NXK02
Vendor A/c No. (Auditor Company)

Select withholding check box Enter
Withholding tax country IBM
Withholding tax type Withholding tax code Liable

IT TI Select
IS SI Select
AT TA Select
AS SA Select
Save
( Ignore the messages and hit Enter till you get message “saved” )
11.Cross Check : TC-F-43 or FB60.

Post purchase invoice and select calculate Tax check box.
TAX ON PURCHASE AND SALES (VAT) :
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The tax on sales and purchases is the balance of the output tax and theinput tax.
Theoutput tax is levied on the net value of the goods and is billed tothe Customer. It
is a liability of the company to the tax authorities.
Input tax is levied on the net invoice amount and is billed by thevendor. The input tax
is a receivable which the company claims fromthe tax authority.
Under certain circumstances, a company can deduct input tax that it haspaid from its
tax liability to the tax authorities: Only taxes that havebeen levied on the added
value of goods have to be paid over to the taxauthorities. The tax liability minus
deductible input tax is the tax payable.
Input Vat and Output Vat:
Tax authorities can define that part of the input tax is not deductible.
This tax amount can be posted to a separate expense account, or it can
bedistributed to the G/L account and assets line items.
A = Stands for Out put vat

V = Stands for input vat
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Input Vat is charged on Purchase
Out put Vat is charged on Sales
Output vat-Input vat = output Vat Payable (to Govt.)
1) Define Check Calculation Procedure TC:/NOBQ3
Tax Procedure - A country-specific template containing all of the processing logic

and algorithms thatsupport the tax amount computations. It contains the following
fields:
• Steps - Determine the sequence of lines within the procedure (note it is
recommended that at least a 10 digit space between the numbers exist)
• Condition Types
• Reference Steps - Where the system obtains the amount/value it uses in its
calculation.
• Account Keys - Provide the link between the tax procedure and the GL accounts to
which tax data is posted.
Path:IMG> Financial Accounting > Financial Accounting Global Settings > Tax on
Purchase and Sales > Basic Settings > Check Calculation Procedure.
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Double click on Define Procedure
Select New Entries
Give the Procedure 250TAX (here u can define any name)
Description Tax Procedure for 2500 Save
Select Procedure : 250TAX
Double click on Control data
Select New Entries
Steps Condition Type Description From To A/c Key

1 BASB Base Amount
2 MWVS Input Tax 1 1 VST
3 MWAS Out put Tax 1 1 MWS
Save
2) Assign Country to Calculation Procedure TC:/NOBBG
Path – IMG>Financial Accounting > Financial Accounting Global Settings > Tax on
Purchase and Sales > Basic Settings > Assign Country to Calculation Procedure.
Select Position
Country IN Enter
Procedure 250TAX Save
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3) Define Tax Codes for Sales and Purchase TC:/NFTXP
Tax Codes can be created in any alphanumeric character. But while configuring,
define whether the respective Tax Code is Input Vat or Output Vat and define Tax
rate which is most important for calculation purpose. These Tax Codes will be used
by End-users for respective tax calculation.
The tax code is the main link to the tax calculation. It is assigned to a taxprocedure
and is entered in the G/L master record and accessed when the G/Laccount is used
in a document (e.g., Sales Order, Invoice). Like the taxprocedure, tax codes are
country specific.
• Each country has a Tax Code template (procedure) already set up in the
systemthat is used to define various specific codes. In addition, a number of
TaxCodes are predefined in the system.
• Within the system, Tax Codes are used for the following reasons:
– verify the amount of tax.
– calculate the amount of tax.
– calculate additional tax portion
– verify the tax type
– determine the G/L account
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– show tax correctly on tax forms
Configuration:
Purchase and Sales > Calculation > Define Tax Codes for Sales and Purchase.
Country IN Enter
Type the tax code V0 ( zero % input tax ) Enter
Description Zero % input tax
Tax Type V Enter
Keep the cursor on Output tax % rate column

Select D-Active button(on top) Save
Type the tax code V5 ( 5 % input tax ) Enter
Tax Type V Enter
Type the Input tax 5
Keep the cursor on Output tax % rate
Select D-Active button Save
Type the tax code A0( zero % output tax ) Enter

Description Zero % output tax
Tax Type A Enter
Keep the cursor on input tax % rate

Type the tax code A5( 5 % output tax ) Enter
Tax Type A Enter
Type the Output tax 5
Keep the cursor on Input tax % rate column
4) Assign Zero % tax code for non taxable transactions TC:/NOBCL

Purchase and Sales > Postings > Assign Zero % tax code for non taxable
transactions.
(Without assignment of this A0 and V0 to company code, SAP will not allow to
configure Asset Accounting.)
Select Position
Company Code 2500
Input Tax Code V0
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Output Tax Code A0
Save
5) Creation of Output Vat A/c no.100520

Input Vat Paid A/c No.200125
6) Define Tax Accounts TC:/NOB40

Purchase and Sales >Posting> Define Tax Accounts
Double Click on MWS ( output tax )

Type the chart of A/c 2500 Enter
Select Tax Codes check box Save
Type Tax Code A5
G/L A/c No. 100520 ( Output Vat ) Save
Double click on VST ( input tax )

Select the tax code check box Save
Type the tax code V5

G/L A/c No. 200125 ( Input Vat paid ) Save
7) Assign tax category to the Sales a/c no.300000 TC:/NFS00

( Select Edit (Pencil Mark), in tax category (under Control Data)define* (Star) for both
Sales A/c and Inventory Raw Material (Purchase A/c), for all types of tax allowed )
8) Sales invoice posting TC-F-22

Currency IN
Enter
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Amount 2100
Select Calculate tax check box

transaction )
Account No. 300000 ( Sales A/c )
Amount *
Tax Code Press F4 ( Select A5 )
Business area--------------
Text +
Go to Menu – Document – Simulate
Double click on blue font line item
type Output Vat Save
8) To view go to TC-FS10N
G/L A/c no. 100520 Execute
9) Purchase Invoice Posting T C F-43

Currency INR
Posting Key 31 A/c No. ( Vendor A/c ) Enter
Amount 1050
Select CalculateTax check box

transaction )
Posting Key 40 ( G/L debit Purchase A/c)
Amount *
Tax Codes Press F4 ( Select V5 )
transaction )
Text + Enter
From Menu Select Document-Simulate-
Double click on blue font line item
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Type the Text Input vat paid Save
9) To view go to TC-FS10N
G/L A/c no. 200125 Execute
Asset Accounting :
All postings such as asset acquisitions, transfers and retirements are also recorded
simultaneously in FI-GL. Depreciation expenses, interest and replacement values
are posted using a bath.
FI-AA supports accounting of traditional assets, Assets under construction (AuC),
Leased assets and real estate assets.
As a result of the integration in the R/3 system, FI-AA transfers data directly to and
from other system.
The Material Management (MM) or Production Planning (PP) components can post
directly to FI-AA. When an asset is purchased or produced in house, you can directly
post the invoice receipt, and/or the withdrawals from the warehouse to FI-AA.
FI-AA or FI-AR can post directly to an asset and a customer account if an asset is
sold.
FI-AA or FI-AP can post directly to an asset and vendor account if the vendor invoice
is not posted using Material Management (MM).
You can pass on depreciation and interest to cost accounting (CO) in order to track
expenses by cost center and profit center, internal orders, within CO, can also be
used to collect and control capital expenditures.
The Plant Maintenance (PM) component can settle maintenance activities that
require capitalization to assets.
1) Copy reference Charts of Depreciation/Depreciation Area –TC-EC8

Path : IMG > Financial Accounting > Asset Accounting >Orgn Structure > Copy
reference charts of depreciation/depreciation area
Double click on copy reference chart of depreciation
Select copy organizational objects icon (2nd ICON)
From chart of depreciation : 1IN

To chart of depreciation : 25CD
Enter & click on back button
Double click on “specify depreciation of chart of depreciation.
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Select position, Charts of depreciation : 25CD
Description : Charts of depreciation for 2500.
Click on back arrow
Double click on copy/depreciation Area
Chart of depreciation – enter
Select Depreciation area Retain 1,20,30
Delete remaining, enter and save.
2) Assign tax code for non-taxable transactions : TC-OBCL

Path : IMG > Financial Accounting > Asset Accounting >Orgn Structure > Assign
tax codes for non-taxable transactions.
Select position
Company code : 2500
Input tax code : V0
Output tax code : A0
Save.
3) Assign Chart of Depreciation to Company Code – TC-OA0B

Path : IMG > Financial Accounting > Asset Accounting >Orgn Structure >
Assign Charts of depreciation to company code.
Select postion
Company code : 2500
Chart of Depreciation : 25CD
Save.
4) Specify Account Determination

Path : IMG > Financial Accounting > Asset Accounting >Orgn structure >
asset class > specify account determination.
(The purpose of account determination number is to identify the types of
assets and the account determination numbers mentioned is not the standard
numbers. You can define any numbers.)
Select new enetries.
Account Determination Name of Asset Class
10000 Land
11000 Building
20000 Plant & Machinery
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30000 Furniture & Fixture
31000 Vehicle
40000 Capital work in progress
(if you want to create new account determination for computers category : go
to New entries, type any number which is not already defined in the system,
for eg: 12000 and type in name of asset classes computers and save).
5) Create Screen layout rules

asset class > Create screen layout rules.
Screen Layout Name of Asset class

1000 Land
1100 Building
2000 Plant & Machinery
3000 Furniture & Fixture
3100 Vehicle
4000 Capital Work in progress
( To create new screen layout for computers, select any existing screen
layout and press F6, then delete existing screen layout no and type 1200 and
in name column type computers and press enter and save.)
6) Define number ranges intervals - TC-AS08

asset class > Define number ranges intervals.
Click on change interval (pencil marked button)

Click on insert interval
Number From Number To Number
10 1 100
11 101 200
20 201 300
30 301 400
31 401 500
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40 501 600
Enter and save.
7) Define Asset class TC-OAOA

asset class > Define asset class.
Select new entries
Asset Class : FA10002
Description : Land
Short text : Land
A/c Determination : 10000
Screen Layout : 1000
Number ranges : 10
Select No AuC or Summary management of AuC
Save
(Select include Assets check box for Assets having depreciation. If no
depreciation, do not select Assets check box. In this case, Land and work-in-
progress.)
Select new entries

Description : Building
Short text : Building
Number ranges : 11
Select Include asset under inventory data
Save.
Select new entries

Description : Plant & Machinery
Short text : Plant & Machinery
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Number ranges : 20
Save.
Select new entries

Description : Furniture & Fixtures
Short text : Furniture & Fixtures
Number ranges : 30
Save.
Select new entries

Description : Vehicle
Short text : Vehicle
Number ranges : 31
Save.
Select new entries

Description : Capital Work in progress
Short text : Capital Work in progress
Number ranges : 40
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Save.
8) Determine Depreciation Areas in Asset Classes –TC-OAYZ

Path : IMG > Financial Accounting> Asset Accounting > Valuation >
Determine Depreciation Areas in Asset Classes.
Select position
In Asset Class type FA10002(Land)
Select 10002 (Row)
Double click on depreciation areas
Depreciation Areas Deactivate Depn key screen layout

Book Depreciaton DG20 2000
Spl Tax depreication √ 2000
Cost Accounting √ 2000
Save
(Like this do the same procedures have to follow for other types of assets, like
Building, Plant & Machinery, Furniture & Fixtures, Vehicle and Capital Work in
progress.)
9) Specify Intervals and posting Rules – TC – OAYR (optional)

Path : IMG > Financial Accounting > Asset Accounting > Integration with GL >
post depn to GL >specify intervals and posting rules.
Click on postion
Enter comp code 2500
Select 2500 (row)
Double click on posting rules
Double click on 01 Book Depreciation
Select monthly posting
Save
10)Define Screen Layout for Asset Master Data

Path : IMG > Financial Accounting > Asset Accounting > Master Data >
Screen Layout > Define Screen Layout for Asset Master Data.
Double click on screen Layout for Asset Master Data
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Select position
Screen Layout 1000
Enter
Select 1000 (Row )
Double click on logical field groups
Select 2 posting information
Double click on field group rules
Capitalization date, select as required Entry
Select main number, sub-number & copy check boxes
Save and come back
Select 3 Time dependent data
Double click on Field group rules
Business Area, select as required entry.
Select main number, sub number & copy check boxes.
Save
(Do the same procedure for all other Assets screen Layout.)
11)Specify Rounding up Net Book Value and/or Depn – TC-OAYO

Path : IMG > Fin A/c > Asset Accounting > Valuation >Amt Specification >
Specify Rounding up Net Book Value and/or Depn
Select Comp code 2500
Double click on Rounding specifications
Double click on Book Depn
Select Automatically Calculated Depn Radio Button
Select Round to nearest Radio button.
Save
(below mentioned Define Base Method & Declining Balance Method are
System defined and not compulsory. You can skip these steps).
12) Define Base Methods :

Path : IMG > Fin A/cing> Depreciation > Valuation Method > Depreciation
Key > Calculation Method > Define base Methods.
13)Define Declining Balance Method TC- AFAMD
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Key > Calculation Method > Define Declining balance Methods.
14)Define Multi Level Methods TC- AFAMS

Key > Calculation Method > Define multi level Methods.
Select new entries
Multilevel method : V1
Description : 5% Straight line method
Validity : Start from orddepn start date.
Save.
Double click on levels

Select new entry
Acqn year Period Base value %age
9999 99 12 01 5
Here 01 stands for (system defined) Acquisition value.
Save
Click back arrow
Select next entry button
Description : 5% Written down value method
Validity : Start date from orddepn start date.
Save
Double click on levels
Select new entry
Acqn year Period Base value %age
9999 99 12 24 5
save
Here 24 (system defined) stands for Net Book Value.
15)Maintain period control Methods : TC-AMAMP

Key > Calculation Method > maintain period control methods
Select new entries.
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Period cont method Description Acqn Add Retmnt Trns
006 01/06/06/06 01 06 06 06
Save
(01= acquisition date, 06=start of the accounting year, 07=mid of the year for
calculation of depreciation)
16)Maintain Depreciation Key – TC-AFAMA

Key > Calculation Method > maintain depreciation key.
Select new entries
Depn Key : FA1(here we can define any name just for
identifying types of depreciation key)
Description : 5% Straight Line method
Select period control according fiscal year
Save
Double click on assignment of calculation methods
Select new entries
Depn type : OrdDepn
Phase : from start date of depn
Base Method : 0014
Declining Bal method : 006
Class : Straight line method
Save
Select back arrow 4 times
Select FA (Row)
Click on activate button in top
Save
Select new entries

Depn Key : FA2
Description : 5% Written down value method
Select period control according fiscal year
Save
Double click on assignment of calculation methods
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Select new entries
Depn type : OrdDepn
Phase : from start date of depn
Base Method : 0014
Declining Bal method : 006
Class : Written down value method
Save
Select back arrow 4 times
Select FA (Row)
Click on activate button in top
Save
(For Assets having no depreciation create depreciation key with 0% rate)
17)Creation of Asset Masters - TC-AS01

First type Comp code : 2500
Enter the Asset Class : FA11002 (Building)
Click on master data
Description : Building
Capitalization date : 01.04.2014
Select time dependent tab
Enter Business area
Select Depreciation Area tab
Depreciation Key : FA1
Useful Life : 15
Period : 6
OrdDepn Date : 01.04.2014
(like this Create Asset master for each Assets like : FA20002-Plant
Machinery, FA30002- Furniture & Fixtures, FA31002-Vehicle)
18)Asset Retirement – TC-AO90

Create GL Accounts for fixed Assets
Ledger No Name Recon A/c Sort key FSG
200011 Building A/c Asset 018 G067
200211 AccDepn-Building Asset 018 G067
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300100 Asset Sale A/c 018 G052
300111 Profit on sale Asset 018 G052
300110 Clearing A/c-Revenue 018 G052
400310 Loss-Asset Sale A/c 018 G001
400311 Loss-Scrapping 018 G001
400500 Deprecation A/c 018 G001
Path : IMG > Fin A/c > Asset Accounting > integration with GL> Assign GL
Accounts
Chart of accounts : 25CA
Select chart of accounts : 25CA (Row)
Double click on “Account Determination”
Select 11000(building)
Double click on “balance sheet account”
Acquisition & product costs : 200011
Loss made on Asset Retirment : 400311

Clearing Account Revenue : 300110
Gain from Asset sale : 300111
Loss from Asset sale : 400310
Save
Come back and double click on “Depreciation”
Select 01 Book Depreciation- double click
AccDepn A/c for orddepn : 200211
Exp A/c for orddepn : 400500
Save
(do the same procedure for all types of assets classes).
19)Purchase of Asset TC-F-90

Text : Purchase of Assets
Post key 31 (vendor cr invoice) A/c 10206
Enter
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Amount : 1000000
Business Area : 2500
Post key 70(debit asset) Asset number 101-0 TType 100
Enter
Amount : *
Text : +
Select document in menu bar and select simulate, analyze and save
20)Partial Retirement of Asset –TC-ABAVN

Assignment date : 25.06.2015
Text : Partial Retirement
Click on partial retirement tab
Amount post : 300000
√ from current year acquisition
Save
21)Sale of Assets - TC-F-92

Text : Sale of Assets
Post key 01 (Customer dr) A/c 202016
Enter
Amount : 500000
Business Area : 2500
Post key 75(debit asset) Asset number 101-0 TType 020
Enter
Amount : *
Text : +
Select document in menu bar and select simulate, analyze and save.
22)Depreciation Explorer – TC-AW01N
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AUTOMATIC PAYMENT PROGRAMTC:/NFBZP
Outgoing Payment Program - An automatic process that reviews all Open Itemsof
selected Vendors, ranks these Open Items based upon Payment Terms andDays
Outstanding; creates a Proposal Run; and runs the Print Program.
• Payment Method - A field that specifies the acceptable types of payment such asa
check, bill of exchange or wire transfer.
• Payment Block - Functionality within the system that prevents an Open Item
frombeing paid.
• Paying Company Code - The company which physically pays for the Open Itemsor
from where the money is drawn.
(This automatic payment program will be used to make payment to large number of
Vendors. To run this program, you should have Vendor Masters, purchase entry, you
should have defined House Bank with check Lot and cheque Numbers.)
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TC: /NFBZP
1) Set up payment method in country for payment transactions

Path : IMG>FI>A/c Receivables & Payables>Business Transaction>Outgoing
Payment>Automatic Outgoing Payment>Payment Method / Bank Selection for
payment program>Set up payment method per country for payment transactions
Select New Entries Country IN

Payment Method 5 ( for cheque payment ) (or any single character: 2, 6
like)
(This payment method, you can define any single character for payment method
identification. For example you have defined Y as payment method, once all the
configuration of APP is over, You have to assign this payment method Y in all
Vendor Masters, (for those Vendors you want to make payment) for payment
program execution.)
Select Outgoing payment area button

Select Check
Posting Details
Document type for payment KZ
Clearing Document type KZ
Payment Medium Program RFFOUS_C
Name of Print data NLIST1 Save
2) Set up payment method in Company Code for payment transactions

Path : Same as above
Select New Entries
Country : IN
Paying Company Code : 2500
Payment Method : 5( for cheque payment )
Minimum Amount : 100
Maximum Amount : 9999999999
Select Payment due date check box
Select Form Data button
Form for payment transfer medium F110_PRENUM_CHCK(system defined)
Drawer on the form HAL International ltd.
Save
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3) Set up paying company code for payment transactions
Path : Same as above

Paying Company Code 2500
Minimum Amount for Incoming payment 1000
Minimum Amount for Outgoing payment 1000
Select No Exchange Rate differences Check Box
Select Payment for each reference Check Box
Select Forms button
Form for the payment advice F110_D_AVIS
Select Sender Details button
Tax ID ST ( standard text ) (or ADRS)
Text Elements
Letter Header F-0001-Header
Letter Footer F-0001-Footer
Signature Text F-0001-Signature
Sender F-0001-Sender Save
4) Set up all Company Codes for payment transactions

Path : same as above
Select Separate Payment for business area Check Box
In “Outgoing payment with Cash Discount from” type 1 Save
(This will allow automatic discount deduction and posting)
8) Set up Bank determination for payment transactions

Path : IMG>FI>A/cReceivables & Payables>Business Transaction>Outgoing
Payment>Automatic Outgoing Payment>Payment Method / Bank Selection for
payment program> Set up Bank determination for payment transactions
Select Position button

Company Code 2500
Enter
Select 2500
Double click on Ranking Order
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Select New Entries
Payment Method 5
Currency INR
Rank Order 1
House Bank ICICI
Save
Double click on Bank A/c

House Bank Payment Method Currency Account ID Bank A/c No.
ICICI 5 INR IC25 200101
Save
Double click on Available Amount

Select New Entries
House Bank Account ID Days available for Outgoing Payment
ICICI IC25 999 2500000
Save
9) Assign payment method in Vendor A/c TC:/NXK02
Vendor A/c No.

Company Code 2500
Select Payment Transaction – Under Company Code Data group Enter
Under Payment Methods 5 Save
10) Purchase Invoice posting TC F-43

Currency INR
Posting Key 31 A/c No. ( Vendor A/c ) Enter

Amount 100000

transaction )

Posting Key 40
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Amount *
transaction )
Text + Enter
11) Automatic Payment Program Run TC:/NF110

Run Date -----/-----/-------(enter current date)
Identification ABC ( any name )
Select Parameter tab
Company Code 2500
Payment Method 5
Next posting date ( there should be gap between the run date and next
posting date, i.e. type next day date )
Vendor A/c No. -----------(here you have to mention Vendor Account Nos.
From and To.)
(Now check /NSM12 and any lock, delete.)
Select Additional Log tab

Select Due Date check box
Select Payment Method selection in all check box
Vendor A/c No. -----------
Save
Select Back Arrow
Select Schedule Proposal button
Select Start Immediately check box
Enter
(Press Enter till you get payment proposal has been created)
(If you are getting here “Proposal running”, then in command field, type /N and
/NF110, enter.)
Select Payment Run button

Select Start immediately check box
Enter&
click on “Status” Button
(you will get payment run has been carried out & created /schedule and generated)
Select Printout / Data Medium tab

RFFOUS_C (TypeIdentification) “ABC”
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Select Maintain Variant button
Select Check box below “Created” , select Continue button
Program Run date -----------------(CURRENT DATE)
Identification ABC
Business Area --------------------
House Bank ICICI
Account ID IC25
Cheque lot no.--------------- Currency INR
Select Print Check
Printer LP01
Select Print Immediately
Select Print Payment Advice Notes
Printer LP01
Select Print Immediately
Select Print Payment Summary
Printer LP01
Select Print Immediately sample
Select Do not void any check box

Select Attribute button(Top left)
Description Cheque Printing Save
Select back arrow Save
Select back arrow

Select Printout button
Enter job name F110-20131012-ABC-?
( in place of? you have to type Identification ( ABC. You have to note down this Job
Name or copy)
Enter
Here F110-stands for APP
2013-stands for fiscal year
10-stands for month
12-stands for day
ABC-Identification
ABC-identification for current run
Now, in Tool Bar Select System-Service-Jobs-Job overview or /NSM37
Job name F110-20131012-ABC-ABC Execute
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System will display status of payment. (Finished)
Goto FBL1N and check the status.
Select Vendor No.
Select Cleared Items radio Button
Execute.
Now, to check the Check Register TC:/NFCHN
Enter Co. Code, House Bank and Account ID and Execute.
Go to /NFS10N, check House Bank Ledger.
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INTEGRATION :
INTEGRATION WITH OTHER MODULES : MM & SD
Customer and vendor master records also contains segments that are
created and maintained in the SALES & DISTRIBUTION (SD) & MATERIAL
MANAGEMENT (MM) module respectively.
The organization implementing the system determines whether to restrict
access to customer and vendor master records by department
(sales/purchasing accounting) or to allow all department to have access
centrally via a single transaction.
INTEGRATION WITH MM :
Any transaction in MM with the respect to material movements happens with

a movement types. Each material such as goods receipts against purchase
order, goods issue to production order, scrapping of goods, transfer of goods,
goods issue for sale, initial stock upload has a movement type defined in the
system.
Thus the various account assignments (transaction keys) are linked to an MM
movement type.
In the Material master we have various views such as the Basic View,
Purchasing View, Sales View, MRP View, Quality View, the Accounting View
and the costing view.
In the Accounting view of the Material master we update the Valuation Class.
Each Material type will have a certain valuation classes, the valuation classes
will be determines the GL codes for the stock posting.
1.Movement Types :
Used to enable the system to find the predefined postings rules determining
how the accounts of financial accounting systems are to be posted & to
update the stock fields in the material master data (Goods Receipt, Goods
Issue..etc)
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2 Valuation Class :
Assignment of Material to group of GL Accounts used to determine the GL
accounts that are updated as a result of goods movement.
3 Material Type :
Each material should assign material type in material master record used to
update whether changes made in quantity are updated in material master
record & change in value also updated in stock account.
4 Transaction/Event Key :
Used to control the storage or filling of documents & assignment of
documents. Used to differentiate between various transaction such as goods
movement that occurs in inventory.
AUA : For order settlement
AUF : for goods receipts for orders (without account assignment) and for
order settlement in AUA is not maintained.
AUI : Subsequent adjustment of actual price from cost center directly to

material (with account assignment)
BSA : for initial entry of stock balance

INV : for expenditure/income from inventory difference.
Configuration :
Create GL A/c for
GL Name A/c number Sort key FSG
Raw Material -1 400000 001 G006
Raw Material -2 400001 001 G006
Spare Parts 400002 001 G006
Integration Finance with MM – TC-OBYC
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Path : IMG > Material Management > Valuation >Account determination > A/c
determination without wizard > Configure Automatic posting.
Double click on transaction ‘BSX’
Chart of Accounts : 22CA
√ Valuation class- save
Valuation GL A/c
3000 400000
3001 400001
3040 400002
Save.
Integration with Sales and Distribution

All Billing document s happening in the sales & Distribution module will trigger
FI postings.
In this step, you allocate the G/L accounts for the revenue account
determination. You make the allocation for each of the access sequences.
In this case, you specify a GL A/c depending on the following terms ;
1. Application (key for the SD)
2. Account Determination Type
3. Chart of Accounts (from the FI System)
4. Customer A/c Assignment group
5. Material A/c Assignment group
6. Account Key
The allocated accounts are used to post revenues, surcharges and discounts
automatically.
Create Sales Organization

Path : IMG > Enterprises Structure > Definition > SD > Define copy, delete,
check Sales Organization
Double click on Define sales organization
New entries
Sales orgn : ABC
Stat Curr : INR
Save
Input the details of Sales Organization and save.
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Assign Company code to sales organization
Create GL A/c –TC-FS00
GL A/c No Name FSG A/c Group

300115 Freight Revenue G029 Other Income
300116 Revenue G029 Other Income
300210 Sales Deduction G001 Incr/Decr in stocks
400601 Output VAT G001 Duties & Taxes
Integration With SD – TC-VKOA

Path : IMG > Fin A/c > GL A/c > Business Transaction > Integration > SD >
Prepare Revenue A/c determination
APP Cn type COA S org AAG AAG A/c Key GL A/c

V KOFI 22CA ABC 01 03 ERF 300115
V KOFI 22CA ABC 01 03 ERL 300116
V KOFI 22CA ABC 01 03 ERS 300210
V KOFI 22CA ABC 01 03 MWS 400601
Save.
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INTEREST CALCULATION
Create GL A/c for “Interest on Arrears” A/c No. 400401.
1. Define Interest Calculation Indicators – TC- OB46

Path : IMG > Fin A/c > ARAP > Business Transaction > Interest
Calculation > Interest Calculation Global setting > Define Interest Calc
type.
New entries
INT Indicator Name Intcalc Type

P1 10% Item Interest P
Save
2). Make the Interest Indicator Available to Interest Run Program – TC-
OB82
Calculation > Interest Calculation Global setting >
Click on Prepare interest on arrears calculation
New entries
Interest Calculation Indicator P1
Calendar Type G
Transfer day 1
Tolerance Days 2
√ only calculate Interest on Debit Item
Terms of Payments 0001
Save
3). Create Reference Interest Rate - TC-OBAC

Calculation >Define interest rate.
New entries
Reference Interest rate P1
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Define Reference Interest Rate
Long Text : 10% Item Interest
Description : 10% Item Interest
Date from : 01.04.2015
Currency : INR
Save
4). Define Time based Terms – TC-OB81

Calculation > Define Time based Terms
New entries
Interest Calculation Indicator : P1
Currency : INR
Interest Calc from : 01.04.2015
Sequential No : 1
Term : Debit interest arrears IntCalc
Ref Interest Rate : P1
Save
Come back
New Entries
Interest Calculation Indicator : P2
Currency : INR
Interest Calc from : 01.04.2015
Sequential No : 1
Term : Credit interest arrears IntCalc
Ref Interest Rate : P1
Save
5). Enter Interest Values – TC-OB83

Calculation > Enter Interest Values
New entries
Reference Valid from Interest Rate
P1 01.04.2015 10%
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Save.
6). Assign Forms for Interest Indicator – TC-OB84

Path : IMG > Fin A/c > ARAP > Business Transaction >IntCalc> Print
Int Indicator Comp code form type Form Name

P1 2500 SAPSCRIPT F_DUZI_01
Save.
7). Interest Calculation Account Assignment – TC-OBV1

Path : IMG > Fin A/c > ARAP > Business Transaction >IntCalc>Interest
Posting
Click on A/R calc of Interest on Arrears
Select Account
Chart of Account 25CA
A/c System Currency GL A/c

0001 INR 400401
0002 INR 400401
1000 INR 200111
Save
Come back again click on A/R calc of Interest on Arrears
Click on Create Icon
Business Transaction : 2000
Company Code : 2500
Interest Indicator : P1
Business Area : +
Enter
Debit
Post Key : 40
A/c Symbol : 0002
Credit : 16
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A/c Symbol : 1000
8). Assign Interest Indicator to Customer Master Record –TC-FD02

9). Post Sales Invoice – TC-FB70
10). Run Interest Calculation – TC-F.2C

Path : Easy Access > A/c > Fin A/c > A/c Receivable > Periodic
Processing > Interest Calc> Arrears Interest > F.2C
Customer Number From 100000 to 200000

Company code 2500
Calculation period from 01.04.2015 to 31.03.2016
Interest Indicator P1
Recon A/c 200111
Form printer LP01
Execute or F8
11). Post the Interests –TC-FINT
Customer A/c from 100000 to 300000

Company code 2500
Interest Indicator P1
Execute or F8
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DEFINING FINANCIAL STATEMENT VERSION
___________________________________________________________________
Balance Sheet: a statement that shows the company’s financial condition for
aspecific period of time, usually at the end of a reporting period.
• Profit & Loss (Income) Statement: a statement that compares revenues

andexpenses within a certain period of time with the purpose of establishing the
profitmade by the organization.
• Period Accounting - An accounting method that reports on transactions thatoccur

during a specified period of time
• Cost-of-Sales Accounting - An accounting method that matches revenues

withassociated expenses.
• Financial Statement Version- the structure of the organization’s

financialStatements and planning layouts.
• The following components must be entered to create a financial statement version
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– Financial statement version
– Name (text to explain what the version is)
– Maintenance language
• Optional components:
– Chart of Accounts - If specified, the financial statement version is available onlyfor
that chart of accounts. If left blank, a financial statement version mayreference
multiple charts of accounts at the line item level
– Item Key auto - Identifies whether the system should automatically create theitem
keys (i.e., unique numeric identifiers) for each node within the financialstatement, or
whether they will be manually assigned during the creation ofeach node.
– Group Account Number - Tells the system that group accounts should bedefined in
the financial statement version, instead of the standard G/L accountnumber. This
setting is used for producing a consolidated financial statement.
– Functional Area Permitted - Allows for functional areas to be assigned tonodes
within the financial statement version.
• This setting is used for Cost of Sales Accounting statements. IfFunctional Areas are
used then each G/L account must be assigned to aFunctional Area, which is then
assigned to the Financial StatementVersion.
• Nodes are mutually exclusive with respect to accounts and functionalarea
assignments.
.
Configuration of Financial Statement Version:
Transaction Code: /NOB58
Select ‘New Entries”

Fin St Version 2500
Name: Fin St Version for 2500
Maint Language EN
Item Key Auto Select check box
Chart of Accounts 2500
SAVE
In top select ‘Fin St Items’

Cursor on ‘2500’
Select in top ‘ Create’
Income, Enter
Expenditure, Enter
Double click on ‘No texts exists Assets’
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Item ‘Assets’, Enter
Double click on ‘No texts existsLiab+Equity’
Item ‘Liabilities’
Cursor on ‘Liabilities’
Select top right ‘-/select-f9 ’ Icon
Select ‘Income’
Select ‘Reassign’ Icon – select ‘same level ‘ Radio Button, Enter
Select ‘Assets’
Select top right ‘-/select-f9 ’ Icon
Select ‘Expenditure’
Select ‘Reassign’ Icon – select ‘same level ‘ Radio Button, Enter
SAVE
Cursor on ‘Liabilities’
In Top select ‘Create Items’
Liabilities –
- Share Capital
- Reserves and Surplus
-
- Secured Loan
- Unsecured Loan
- Current Liabilities and Provision
Enter.
Cursor on ‘Assets’
Assets –
- Fixed Assets
- Current Assets and Provisions
- Accumulated Depreciation
Enter.
Cursor on ‘Income’
Income –
- Sales
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- Other Income
- Increase or Decrease in Stock
Enter.
Cursor on ‘Expenditure’
Expenditure –
- Raw Material Consumption
- Personnel Staff Cost
- Manufacturing Expenses
- Administrative Expenses
- Interest
- Depreciation
Enter.
SAVE
ASSIGNING ACCOUNTS:
Cursor on ‘ Share Capital ‘

Select ‘Assign Accounts’ Buton
(Assign Accounts for all types of Accounts Group)
From To D C
100000 100099 (Select) (Select)
Enter andSave.
Share Capital A/c 100000 100099

Reserves & Surplus 100100 100199
Accumulated Depreciation 200200 200299
Secured Loans 100300 100399
Unsecured Loans 100400 100499
Liabilities & Provision 100500 100599
Fixed Assets 200000 200099
Assets Loans & Advance 200100 200199
Sales 300000 300099
Other Income 300100 300199
Incr/Decr in Stock 300200 300299
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Raw material consumption 400000 400099
Personnel staff cost 400100 400199
Manufacturing Expenses 400200 400299
Administrative Expenses 400300 400399
Interest 400400 400499
Depreciation 400500 400599
Duties and Taxes 400600 400699
TO CHECK ACCOUNT ASSIGNMENTS:
In Top Select ‘ Check ‘ Button

Select ‘ Incorrectly Assigned Accounts’
Enter.
TO VIEW BALANCE SHEET:
TC: /NS_ALR_87012284. Or /NF.01
In Fin St Version 2500

In Bottom, select ‘ ALV Tree Control’ Radio Button.
Select ‘Execute’ Icon in top left.
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C O N T R O L L I N G
INTRODUCTION
Organizational unit in an organization that represents a closed system used for cost
accountingpurposes. A controlling area may contain one or more company
codes,which can operate indifferent currencies, if required. The company codes
within acontrolling area must all use thesame operational chart of accounts.All
internalallocation transactions refer only to objects from the same controlling area.
Use
Internal business transactions are portrayed in the controlling area. Primary costs
are transferredfrom external accounting and classified according to managerial
accounting perspectives. If theprimary costs are direct costs, then they are assigned
to cost objects. If they are overhead costs,then they are assigned to cost centers or
overhead cost orders. The system then allocates themusing internal allocation
techniques, according to their source.When you create master data, the system
always assigns the Controlling objects to a controllingarea anda company code.The
level of detail provided by the Controlling component enables you to track
specificinformation for cost monitoring, business decisions and sales control. For
example, theControlling component contains subdivisions such as cost centers and
internal orders in additionto accounts.
The SAP CO (Controlling) Module provides supporting information to Management

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

The external viewpoints is represented by Financial Accounting (FI) component
and Controlling (CO) represents the internal accounting viewpoint. CO component of
SAP system offers a broad selection of functional tools that can be used to
provide management accountinginformation that are useful for
managementdecision making. Do remember that Financial
Accounting and Controlling are independent components of the SAP system. The
data flow from the CO component to FI component takes on a regular basis.
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DIFFERENCE BETWEEN COMPANY CODE AND CONTROLLING AREA
Company Code
It is the smallest organizational unit in FINANCIAL ACCOUNTING (FI) for which a
complete set of accounts can be created. It is the central organizational unit of
external accounting within the SAP system. Normally, a company code is created for
each company (legal entity). It is a mandatory and pre-requisite that at least one
company code must be defined before implementing the Financial Accounting
component. All business transactions relevant for Financial Accounting are entered,
saved and evaluated at company code level. Therefore, it is at company code level
wherein a complete set of financial statements (Balance Sheet, Income Statement,
and Statement of Cash Flows) can be created.
Controlling Area
Controlling Area in SAP is an organization that represents a closed system used for
cost accounting purposes. It is an organizational unit in the Controlling (Management
Accounting) separate and has different functions with that of the Company Code.
One ore more Company Codes can be assigned to a Controlling Area.
PRIMARY COST AND SECONDARY COST
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There are two types of cost elements in Controlling, namely; primary and secondary
cost element. Primary cost elements are use to transfer P&L account postings in
Financial (FI) to Controlling (CO). It is a requirement that all P&L accounts should
have a primary cost elements; otherwise, transactions can not be posted involving
P&L accounts in FI. On the other hand, secondary cost elements are use only for
allocation and assessment purposes as period-end process.
Example:
Primary Cost& Secondary Cost: SAP FI End User will pass one entry: Rent A/c Dr to
Cash A/c Rs. 1,00,000 with Cost Centre Dept A.
In CO, Rs. 1,00,000 will reflected in Dept A as expenditure. This is Primary Cost.
In CO, Management wants Department-wise reports for controlling expenditures with

Budget. Rs. 1,00,000 will be allocated to other Departments on some basis of
allocation from Dept A. Dept D may get 50,000 and Dept E may get 50,000. This
allocation is Secondary cost.
Allocation can be done a) Manually b) Automatic.
(One Company Code should have only one controlling Area but one controlling Area
can have number of company codes.)
Maintain Controlling Area – TC- OKKP

Path: IMG> Controlling> General controlling> organization> maintaining controlling
area
Double click on Maintain control Area
Select New Entries
Controlling Area : 2500 (controlling area=co. code)
Name : Controlling area for 2500
Co. code to controlling Area : Controlling area same as co. code (select this option
if there is only one Co. Code. If different Co. Codes to be assigned for the same
Controlling Area, select second option.))
Currency type : 10
Currency : INR
Chart of Accounts : 25CA
Fiscal year Variant : V3
Cost Centre Standard Hierarchy : 2500hier
Save.
Select ‘yes’ for the message.
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Enter.
Double click on assignment of Co. Code
Select New Entries
Co.Code: 2500
Save.
Double click on Activate components/control indicators
Select New Entries
Enter Fiscal year 2013
Cost Centers: Component Active (select)
Select AA: Activity type Check box
Order Management: Component Active (Select)
Select Profit Centre Check Box
Save.
Activity Type:
Three types of Activities:

1. Man Hours
2. Machine Hours
3. Units
For example, there is a shortage of manpower in Dept C, one employee from Dept A
will go to Dept C and work in the Dept C for 8 hours. This 8 hours wages will charged
to Dept C. This is man hours. As the same case, one Dept may use other
Department Machine. Machine hours will be charged to the respective department.
Like-wise use of Power.
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Maintain No. Ranges for Controlling Documents:
You need to define number intervals for all business transactions that generate CO
documents. It ispossible to copy document number intervals from one controlling
area to another.
There are two steps to issuing number intervals for documents:
- You group more than one transaction together. If you want to assign a different
number intervalto each transaction, you can create a group for each transaction.
- You assign the group to an internal or external number interval. This enables you to
use onegroup of number intervals for similar transactions.
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-You define number intervals for CO documents independently of fiscal year. The
documentnumbers can be assigned in ascending order.
-SAP recommends that you create different number interval groupsfor actual and
plan transactions.This ensures that reorganization programs that run separately for
actual and planning data also resetthe number intervals separately.
Configuration:
Path: IMG>Controlling> General Controlling> Organization> Maintain No. ranges for

controlling documents.- TC-KANK
Enter in controlling area :2500
Select in Top- Maintain groups Button
From menu, select Groups>Insert
Enter Text: Controlling Area for 2500
From No. (press F4) To No. (define Increasing No.)
Enter
Now double click on
COIN(controlling through postings from FI
RKU3:Repost controlling line items
RKU1Reposts costs
RKP1Planning primary cost
RKIUactual overhead Assessment
Now, go top and select Controlling area for 2500 Check box.
Then, click on Assign Element Group button
Save.
Maintain Versions:
Same path:
Select 0 plan/actual Version
Double click on settings for each fiscal year
Controlling Area:2500
Enter.
Select Fiscal year 2015
Select Details Button
Enter Exchange Rate type “M”
Save.
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COST CENTRE ACCOUNTING
CostCenter Accounting (CCA)
The cost center accounting (CCA) module within CO provides the means for
assigning planned costs and actual costs incurred to areas of cost responsibility
within an organization. If a manager wants to know how much it costs to run his
department for the month of April, this module can be used to provide the answer.
The CCA module contains a variety of methods for allocating costs among cost
centers and from cost centers to other cost objects (e.g., internal orders, production
orders, profitability segments, etc.).
Initially, we have to assign cost element in all FI Expenditure Ledgers.
Creation of cost element in FI area:

Enter TC:/NFS00 in command field.
Enter G L Account No.400100
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Co. Code:2500
Select 3rd icon (create icon )
Select Accounts Group: Personal staff cost
Short Text:Salary Account
In control Data tag, select Line item Display check box
In Sort key:001
In create/bank Tag, enter in Field Status Group:G004
Save.
Now select in top right, Edit Cost Element Button
A/c No. 400100
Valid from:01.04.2013 to 31.03.2014
Enter
Under Basic Data:
Enter Cost Element Category:01(indicates Primary cost)
Save.
In the same manner, define for G L Account No. 400300, Accounts Group:
AdmnExp, short text: Rent A/c, in control data tag, enter sort key:001, In create/bank
tag, in field status group:G004.
Save.
Now in top select Edit Cost Element Button
G L A/c No.400300
Valid from:01.04.2013 to 31.03.2014
Enter.
Under Basic Data:
Cost Element Category:01
Save.
(If you want to convert any FI (Expenditure) ledgers into CO for reporting, go to
Edit option in Ledger creation (NFS00), change field status group as G004, Save
and select Edit cost element button, Assign 01 in cost element category and save.)
Edit Field Status Variant:

TC:OBC4
Select the field Status Variant 2500
Double click on Field status group
Select G004 and double click on Cost accounts
Double click on General Data
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Text field as Required Entry
Select Next group icon in top left
Cost Centre as Required Entry
Business Area as Required entry
Save.
Creation of Secondary Costing for Automatic Allocation:

TC:/NKA06
Type in Cost element :2500cycle (anything you can define)
Valid from:01.04.2013 to 31.03.2014
Enter.
Name:Servicetoprodn
Descpn: service to prodn
In Cost element Category: 42(Assessment)
Save.
Creation of Cost Element Groups:
(To verify GL converted to CO reporting)
TC:/NKAH1
Type in Cost Element Group: TOTALEXPN
Enter
Descpn:TotalExp for 2500
Select Insert Cost Element Group Button
Below TOTALEXPN type:
400000 400599
Save.
You will find list GLs which are all converted to CO reporting.
Automatic Assignment of Cost Element – TC-OKB2

Path : IMG > Controlling > Cost element A/c >Master Data > Automatic assignment
of Cost element > Make default setting.
AccFrom Acc ToCost Elem

300000 300099 11
300100 300199 11
300200 300299 11
400000 400099 1
400100 400199 1
400200 400299 22
400300 400399 1
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400400 400499 1
400500 400599 1
Save
Create Batch Input Session: TC-

of Cost element > Create batch Input
Controlling Area : 2500
Valid from : 01.01.1900
Valid to : 31.12.9999
Session Name : SAPUSER
Batch input user : SAPUSER
Execute or F8
Execute Batch Input Session: TC-SM35

of Cost element > Execute batch Input Session.
Select the session (which we created)
Reconciliation Ledger
1. Activate/Deactivate Reconciliation Ledger – TC-KALA
Path : IMG > Controlling > Cost Element A/c > Reconciliation ledger
2. Define Adjustment Accounts for Reconciliation Postings – TC- OBXN

Path : IMG > Controlling > Cost Element A/c > Reconciliation ledger> define
adjustment a/c for Recon postings.
Account Assignment
400300
Save
3. Specify Document number ranges for reconciliation Ledger – TC-0K13
Path : IMG > Controlling > Cost Element A/c > Reconciliation ledger>Specify
Document number ranges for reconciliation Ledger.
Define Assessment:
TC:/NS_ALR_87005742
Type Cycle: 2500
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Start Date:(01.04.2013)
Enter.
Enter Text: Servicetoprodn
Select Attach Segment Button in top.
Segment Name: Servicetoprodn
Assessment Cost Element 2500cycle
Sender RulesPosted Amount
Sharing %: 100
Receiver Rule:Fixed Percentages
Now select Senders/Receivers Tag
Enter Cost centreDept A (in From Column)
Under Receivers Option
In Cost centre,in group column, enter 2500hierp. (Press F4 & select)
Now, Select Receiver Tracing Factor Button.
You will find allocation of prodndepts..
In percent column, enter 20, 30 and 50(this indicates basis of allocation of expenses
of service Depts to Prodn Depts. The percentage total should come to 100. This is
Absorption of Costing from Service Departments to production Departments)
Save.
FI Expenses posting: (F-02)
Pass journal entry for Salary A/c Dr. to Cash A/c with Cost Centre “ DeptA” and
Save. Note down Document No.
Creation of Cost Centres:
Path: Easy Access>Accounting>Controlling>Cost centre A/cing> Master Data> Cost

Centre>Individual processing> Create.
TC:/NKS01
(Here we are going to define three Service Depts(A B C) and three Production
Depts(D E F) to allocate Service Depts Expenses to Production Depts.)
Enter Cost Centre:Dept A

Valid from:01.04.2013 to 31.03.2014
Enter
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Cost Centre name:Dept A
Descpn:CostcentreDept A
Person Responsible: A
Cost centrecategory:H(service cost centre-system defined)
Hierarchy Area:2500hier
Bus Area:
Currency:INR
Profit Centre: (leave blank)

Save.
Ignore the message, Enter.
Same way you have to define Dept B, Dept C.
To define prodn depts.:
Enter cost centre:Dept D
Valid from:01.04.2013 to 31.03.2014
Enter.
Name:Dept D
Descpn:costcentre for Dept D
Person Responsible:D
Cost centrecategory:F(production cost centre(system defined))
Hierarchy area:2500hier
Currency:INR
Profit centre:(leave blank)
Save.
Ignore the message and Enter.
Same way you have to define Dept E, Dept F.
Creation of Cost Centre Group:

TC:/NKSH1
Enter Cost Centre Group:2500hiers
(Here s indicates service depts.)
Enter.
2500hiers Service cost centre for 2500
In top select Insert Cost Centre Button
2500hiers Service cost centre for 2500
Below this, type:
Dept A
Dept B
Dept C
Save.
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Now select Back Arrow.
Change the 2500hiers into 2500hierp(p Indicates prodn depts.), Enter.
2500hierp Prodn cost centre for 2500
Select Insert cost centre Button
Below 2500hierp, type:
Dept D
Dept E
Dept F Save
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Display Cost Centre-wise Details: (TC:/NKSB1)
Cost Centre=DeptA
Delete 2500hier, Totalexp, etc
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Execute or Press F8.
Repost of CO Line Items: (TC:/NKB61) (Manual allocation)
Document No.
Co.Code :2500
Fiscal Year :2015
Execute.
n Value Transaction Currency, delete existing amount and type,
Value Tr Currency Trans Currency Oty Account

Assignment-1
100000 Inr Ctr * Dept A
Delete 100000 & Inr Ctr Delete Dept A &

type 50000 type DeptD & Enter
Save.
Display Cost Centre-wise details: TC:/NKSB1
Cost Centre= Dept D
Execute.
Automatic Allocation by cycle

TC: /NKSU5
Enter period 1 to 12
In cycle column, press F4. (You will get cycle already defined for allocation)
Now Execute.
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Planning Primary Costs: TC:/NKP06
Version=0
From Period=1
To Period=12
Fiscal Year=2013
Cost Centre=Dept D
Cost Element=400300
Under Entry:
Select “Form Based”
Select “Overview” Icon
Cost Element Plan Fixed Costs Distribution Key
400300 120000 1
400100 60000 1
Distribution Key 1=Equal Distribution.Save.
Now, in tool Bar, select Go To>Period Screen.
Variance Report Analysis: TC: /NS_ALR_87013611
Controlling Area=2500
Fiscal Year=2013
From Period=1
To=12
Cost Centre Dept D
Cost Element 400300
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Execute.
INTERNAL ORDERS
Various events like Trade Fairs, Seminars, Exhibitions, which occur every year in
any Organization.. These trade fairs are organized by the Marketing cost centre of
the Organization. Therefore in this case, Marketing cost centre is responsible for all
the trade fair costs. Hence, these trade fair costs are posted to the marketing cost
centre. Now if management wants an analysis report of the cost incurred for each of
the trade fair organized by the marketing cost centre how would the marketing
manager get these piece of information across to them ? Now this is where Internal
Order steps in. If you go through all cost centre reports, this information is not readily
available since all the costs are posted to cost centre.
(An internal order is used to accumulate costs for a specific project or task in a
specific time-duration. Therefore, an internal order is use for a short period with a
specific deadline.)
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Purpose:
It can be used to group all the costs/expenses that could be incurred to plan and
hold a marketing event, say over a 2 month period. And then the order can be settled
periodically to a cost center.
Two types of Internal Orders: namely; Real and Statistical Order.

The difference between Real and Statistical Order is that, Real Order is required to
be settled to a cost center. When an order is a Real Order, it is where you post a
cost during posting in FI and in other modules. Example; when you prepare a
purchase order for a marketing event and charge it to an order, the cost is post to an
order not to a cost center. And the cost accumulated in the order are required to be
settled to a receiver cost center.
Whereas, a Statistical order can not be settled to a receiver cost center. Being a
statistical is specified during set-up of an order. When you post costs in FI, you post
simultaneously to a cost center and to a Statistical Order. No settlement of costs
accumulated in the Statistical Order at month-end.
Configuration:
Path: IMG> Controlling>Internal Orders>Order Master Data> Define Order Types.
Select New Entries
Enter the order Category:01(Internal order)

Enter.
Enter the order type:123V(Vehicle order type for 2500)
Enter Planning profile:000001
Enter object class: Overhead cost
Select Release immediately check box.
Save.
You will get message ’No. range not processed’
Enter.
In the same screen, Select pencil mark in No. range.(Assign/change interval button)
Now go to bottom of the screen, in ‘Not assigned list’ category, Double click on
2500V.
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Now go to top of the screen, identify heading ‘Motor pool External No. Assignment-
ZZZZZZZ’. / Model Order, Select this check box.
Now, Select ‘Assign Element Group’ Button in top.
Saveand Enter.
Creation of Field Status Group for Cost Centre and Internal Order :
TC:/NOBC4
Select the Field Status Group 2500
Double click on Field Status Groups
Select G004
Press F6.
Change the Field Status Group as G002.
In Text, change ‘cost accounts (CCIO)’
Enter andSave.
Now, select G002
Double click on cost accounts
Double click on AddnlAccntAssgnmnt
Cost Centre Requires Entry
CO/PP Order Requires Entry
Bus Area Required Entry
Save.
Now create one ledger (TC: /NFS00) G L A/c No. 400305 A/c Group:AdmnExp,
Ledger :Petrol Expenses, only change in Field Status Group :G002 and Save. Then
Select Edit Cost element Button, type Cost Element Category:01
Save.
Creation of Internal Orders:
TC:/NKO01
Type the Order Type:123V
Enter.
Enter the Order:KA05 2256
Short text:Staff car for 2500
Enter Co.Code
Enter Bus Area
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Select Control Data button
Select Statistical order check box.
Save.
(Like this, you can create any number of vehicles of the Company)Pass an entry in
F-02 (Petrol Exp A/c Dr. to Cash A/c, with Cost Centre=Dept D and Order=Vehicle
No. and Save.
Planning Internal Orders: TC:/NKPF6
Variables:
Version=0
From Period=1
To Period=12
Fiscal Year=2013
Order=Vehicle No.
Cost Element=400305
Entry:
Select Form Based
Select “Overview” Icon
Cost Element Account Total plan costs Distribution key
400305 Petrol exp a/c 120000 2
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Distribution Key 2=Distribution as before.
Save.
Variance Analysis Report TC/NS_ALR_87012993
Fiscal Year=2013
From Period=1
To=1
Plan version=0
(Order Value(s)=Vehicle No.)
Execute.
PROFIT CENTRE ACCOUNTING
PROFIT CENTRE
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A profit center is a management-oriented organizational unit used for internal
controlling purposes. Dividing your company up into profit centers allows you to
analyze areas of responsibility and to delegate responsibility to decentralized units,
thus treating them as “companies within the company”. Profitability of each profit
center can be monitored closely. Furthermore, a financial statement can be
generated for each profit center.
Revenue and costs postings in Financial Accounting (FI) require an assignment to a

cost object (e.g. overhead controlling, profitability). What transfer the FI posting data
to Controlling are the primary revenue and cost elements. Revenue items generally
require a profit center assignment. Cost items generally require cost center, work
breakdown structure element, network and internal order assginments.
Dummy ProfitCenter: Remember, that an accurate financial statement can be

generated for each profit center. It’s therefore safe to assume that all transaction
postings should have a profit center assignment; all balance sheet and income
statement accounts. During posting of transaction there might be instances a user
may forget to indicate the profit center assignment. In this case, the transaction data
will be automatically assigned to a Dummy profit center. A Dummy profit
center serves as a dumping account/temporary receiver of transactions with no profit
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center assignment. Data accumulated in the Dummy profit center can be reposted to
the correct profit center.
(Whenever you are practicing Controlling, First you have to check whether you are in
your controlling area or not. To check Controlling Area TC:/NOKKS
Type your Controlling Area and then practice.)
Maintain Control Area Settings:

TC:/N0KE5
Std Hierarchy:2500hier
Select Elimination of Internal business check box.
Profit Centre Currency:90
Select Store Transaction Currency check box.

Save.
Create Dummy Profit Centre:

TC:/NKE59
Enter Dummy Profit Centre:2500dummy
Select Basic Data on top.
Name:2500dummy
Descpn:Dummy Profit Centre for 2500
Person Responsible: Dummy
Profit Centre Group:2500hier
Save.
Set Control Parameters for Actual Data:

TC:/N1KEF
Select New Entries
From year 2013
Select line item check box
Select online Transfer check box.
Save.
Maintain Plan Versions:
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Path:IMG>Controlling>Profit Centre A/cing>Basic Settings>Controlling area
setting>Activate direct posting>Plan versions>Maintain plan versions.
Select Version ‘0’(plan/actual version)

Double click on Settings for Profit Centre A/cing
Select New Entries
Year 2013
Select ‘online transfer’
Select line item check box
Type Exchange Rate type:M
Save.
Define No. range for Local Documents:
TC:/NGB02
Select ‘maintain Group ‘ Button in top
Select ‘AO(Actual postings) check box.
From the menu, Select Interval-Maintain
Enter Co.Code. 2500
Enter.
Select Interval Button (Here if you are not finding Interval Button, delete the existing
Intervals by selecting already defined intervals and in menu select Edit-Delete and
Save.)
Year 2013
From: Press F4
To: any increasing No.
Enter
Save.
Now select back Arrow
Select GI (PO), From Menu select Interval-Maintain
Co.Code:2500
Select ‘Interval’ Button
Year 2013
From: Press F4
To: any increasing No.
Enter
Save.
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Creation of Profit Centers:
TC:/NKE51
Profit Centre: Product 1
Enter.
Examn Period: 01.04.2013 to 31.03.2013
Name: Product 1
Long Text:Profit Centre Product 1
Person Responsible: P1
Profit centre Group: 2500hier
Now, in top, Select ‘Activate’ Button
In the same way, you can create for Product 2, Product 3.
Assignment of Profit Centre in Cost Centres:
TC:/NKS02
Cost Centre: Dept D
Enter
Profit Centre: Product 1
Save.
Select ‘yes’ for the message.
Same way define for Dept E – Product 2 and Dept F – Product 3.
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Make Profit centre as Required entry in Field status variant:
In TC:/NOBC4, select 2500 and Doubloe click on Field status group.
Now, select G001 and press F6 to copy.
Rename G001 as G010 and in text “Profit centre ” and Enter and Save.
Now double click on G010 and double click on Additional Account Assignments.
Select Radio Button of Profit centre as RequiredEntry.
Save.
Assign FSG G010 to Sales Account
In FS00, edit G L A/c No. 300000 and change FSG as G010 and save.
Select Edit Cost Element Icon
Cost Element=300000
From=01.04.2013 to 31.03.2014
Select Master Data Icon.
Cost Element Category=11 (Revenue). Save.
Maintain automatic account assignment: TC:/NOKB9
Select “New Entries”
Co. Code Cost B Arln Cost Order Profit Profit

Element Centre Segment Centre
2500 300000 Product 1
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Save.
Revenue Document Posting: TC:/NF-02
Pass entry Cash a/c Dr to Cash Sales A/c, Profit Centre=Product 1 and Save.
(Ignore the messages).
Display Profit Centre-wise details: TC/NKE5Z
Record Type=0
Version=0
Co. Code=2500
Posting Period=1
Fiscal Year=2013
Profit Centre=Product 1
Execute.
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SAP FINANCIALS

What is SAP ERP?

SAP ERP is a world-class, fully integrated application that fulfills the

What is SAP ?SAP stands for Systems Applications and

Standard toolbar:The pushbuttons in the standard toolbar are

Application toolbar: This shows the pushbuttons available in the

Checkboxes: Checkboxes allow you to select several options from a

Radio buttons: You can only select one option.

Other elements include, for example, input fields and pushbuttons.

1) DEFINE COMPANY : /NOX15

(TransactionCodecanbeenteredinCommand Fieldwith prefix of /N for all Transaction

The Organizational Structure is defined within the Corporate Structuresegmentof the

InSAP, defining Company is optional.But defining Company Code is compulsory.

Path:SPRO (IMG)>Enterprise Structure>Definition>Financial

2) DEFINE COMPANY CODE:-/NOX02

Company Code is important in SAP FICO Configuration. For example BHEL is

Path:SPRO>Enterprise Structure> Definition>Financial Accounting>Define Copy,

2) Edit Copy Delete Check Company Code (TC: /NEC01)

Same path as above.

3) Define Business AreaT C:/NOX03

Business Area Description

Fiscal Year Variant

4) Assign Fiscal Year Variant to company code T C: /NOB37

(Chart of Accounts: means list of ledgers created.)

Select New Entries

Controlling Integration Manual creation of cost element

Type company code 2500

YOU CAN ASSIGN SAME CHART OF ACCOUNTS TO DIFFERENT

Define Account Group

7) Define Account Group

Select New Entries

Chart of A/c Name From A/c No To A/c No

TO COPY ACCOUNTS GROUP: /NOBD4

RETAINED EARNINGS ACCOUNT:

Expenses Ledgers Income Ledgers

Balancing Amount 2,00,000

This Net Profit should be transferred to

Retained Earnings A/c 2,00,000

8) Define Retained Earnings A/c

9) Define Posting Period Variant(Here we are going to activate Accounting

Open & Close Posting Periods

11) Assign posting period variant to company code

2) Define Tolerance Group for G/L A/cT C :/NOBA0

Select New Entries

Define Tolerance Group for Employees:

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

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

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

500,000 units of local currency per document

100,000 units of local currency per open item

We can define tolerance group ABC2 and assign following tolerances:

1,000,000 units of local currency per document

500,000 units of local currency per open item

10% cash discount

Field Status Variant::

13) Maintain Field Status Variant T C: /NOBC4

Click on Copy All Enter & Save

Do the same procedure for G005 also.

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

15) Defining No. Ranges for Document Types:

General Ledger contains two segments:

1. Chart of Account Segment

2. Company Code Segment.

15) Creation of General Ledger A/cs T C:/NFS00