SAP

Systems Applications Products

In data processing

SAP – is called as an ERP Product.

What is ERP?

Enterprise Resources Planning

It is an Organization Man I will adopt of the method to utilise

Where a Grp of People Money available Resources without
Working together for a Material wasting in order to achieve the
Common Goal Machineries Common Goal of an Enterprise/Org/
Methods Company
Common Goal?
To Minimize the Cost &
Maximize Profit

What are the different ERP’s Available in the Market

Talley
Baan
People Soft HR
Oracle Finance
Dynamics
SAP – 75% of the world

HCL/Wipro/HP/Accenture/Capgemini (Partners of SAP)

Revathi & CO
Capgemini chennai Tiruchi – go for SAP
Development QAS Production

100

800 Testing
Organization
Testing

Technical Training

FICO SD MM Fin Sales Purchase Prod

Implementation Partners/Service Providers Core Team Members

Sandbox - 800
100 – Golden Client 201 - Testing
101 – Testing 202 - Training
102 - Technical

ASAP Methodology/Road Map

1. Project Preparation AS-IS Report
2. Business Blue Print
3. Realization To – BE Report
4. Finalization
5. Go Live & Support

Types of Projects
1. Implementation Project: (Creating everything from Scratch is called Implementation)
2. Roll out project / Migration Project
3. Enhancement Project
4. Support Projected

Revathi Cements (SAP) REvathi Steels(SAP)

Enhancement do you want to upgrade the software? Version

Upgrading from the old version to the New Version

Support Project

Enterprise Structure

Definition Assignment

What is an Enterprise?
It is nothing but the structure of an Organization and you know whom to meet when the down
people are not working by seeing that Structure.

Definition:
You are defining your Organization Structure like Company, Company Code, Business Areas, Credit
Control areas etc.
Whatever defining in the Definition, they are standing alone (they are independent)
Company CdoCd CCArea

I will call Company as an Object, CoCde as an object. When I try to call whatever I define in the
definition part as an Object.

Every object stands alone /they are independent. Independent means they are Standing alone
without the help of other objects.
Assignment: you have defined many objects in the Definition part and they stand alone.
We are establishing the relationship between 2 or more objects

When I want to establish relationship I need more than one object.

In simple, linking two objects together is called Assignment.

Non-SAP SAP
Group of Companies Company (6) variant

Tata Group of Companies

Company  Steel Motors TCS Company Codes (4)

Variant

What is a Variant? It is a name given to an object is called a Variant. Table, Stool

Revathi Group of Companies - Company

Steel Cement Bricks Motors Textiles --- Company/Company Codes

Consolidated Financial statement Revathi Group of Companies (Defi)

Assignment

Company Codes

Financial statement  Revathi Steels Revathi Motors (Defi) textiles

Revathi Steels – P&L & Balance Sheet is called a Financial Statement

Configurations /Basic settings of Enterprise Structure

Definition:

2 of Screens are available in SAP

Client Id 800
User ID SAP Easy Access Display IMG
Password Default Screen SPRO Screen
Home Screen Customization Screen
Welcome Screen Configuration
Front End Screen Back-End Screen
End-User screen Consultant Screen

Note: Endusers will have access only to the SAP Easy Access screen whereas Consultants will have
access for Display IMG as well as SAP Easy Access

Standard Menu Bar Standard Tool Bar Title Bar

Working Area

Application Tool Bar wrt Title Bar Status Bar

How many Colors – 3

Red Color – When you see the Red color, you need to ERROR. Without rectification of this error, you
cannot move forward further.

Yellow/Orange – It is Optional, this is indicating wrong or right but you can proceed by ignoring this
indicator.

Green – You are successfully saved.

From SAP Easy Access – I wanted move to – IMG Screen

DC SPRO Executte Project

Click on SAP Reference IMG

Definition of Enterprise Structure

Define company OX15

It is a character variant.

Near Head Post Office  Post Master - This facility only in the Head Posting Office. Locker – This is
the safest Place. PoBOx 123

Hindu and you will advertise PO BOX 123 (620006)

You should mentioned the 6 digits no i.e., the location where PO Box is located.

620005 – Residential Pin Code

Edit, Copy, Delete, Check Company Code OX02

Define Credit Control Area: Making the rich as beggar

You are fixing the limits of Credit based on the status of a person

Define Credit Control Area: OB45

RR Cements – am the owner of this company

Who is my Customer & who is my Vendor?

To whom we sell (Finished Goods) is called a Customer – Customer

From whom we purchase (Raw Material) is called a – Vendor

Credit: Fixing the Credit limits of a Customer is called Credit Control Area.

CCAreas  RR00

Description  RR00 Credit Control Area

Scenario 1 RR00  CCArea

RR10 (Cements) RR20(Bricks) – Company Codes

You can assign One Credit Control Area to Multiple Company Codes.

`Scenario 2 RR00 RR01  2 CCAreas

RR10 (Cements) RR20(Bricks) – Company Codes

You can assign only one Credit Control Area to One Company Code.

Define Credit Control Area

In this step, you define your credit control areas. The credit control area is an
organizational unit that specifies and checks a credit limit for customers.
Note
A credit control area can include one or more company codes. It is not possible to assign a
company code to more than one control control area. Within a credit control area, the credit
limits must be specified in the same currency.
Standard settings
The credit control area 0001 is defined in the SAP standard system.
Activities
Define your credit control areas.

Company – RevGroup – Group of Companies (Company)

Defined at Company Level Part1

RR10 RR20 RR30 RR40 – Company Codes

Whatever defining below Company Codes

Define Business Area OX03

It may be an Area of Operation or Line of Activity.
Area of Operation: It indicates the location or the Geographical Area. They are all called my
Business Areas. So Branches are called Business Areas.

Revathi & Co located in Steels

1. Madurai
2. Chennai
3. Coimbatore

Line of Activity:

Revathi & Co involved 3 activities

1. Textile – Each business is called Line Of Activity

2. Steel
3. Cement

Madurai Chennai Coimbatore

Textile Textile Textile
Steel Steel Steel
Cement Cement Cement

When I have Area of Operation and Multiple Line of Activities, Always take Location as a Business
Area and Line of Activities as Profit Centers.
Functional Area: OKBD
Each Dept is called a Functional Area in an organization.
Example, Finance Dept, Sales Dept, Production Dept, Marketing Dept HR Dept

Maintain consolidation business area OCC1

Already we have defined Business Area OX03 T. Code  Chennai & Madurai  Business Area.

Grouping all business areas is called Consolidated Business Area

Hyd /Vijayawada - AP
Madurai/Chennai - TN South Rent 20000
Trivandrum/Cochin – Kerala Rent 10000
Bangalore/Mysore - Karnataka

Delhi North
Mumbai
Kolkatta

Maintain FM Area OF01

Definition portion of FI is over

Company RevGroup
Company RR10 & RR20
CCArea RR00
BArea Madurai & Chennai
Functional Area Depts Finance/Sales
FM Area RRFM
In Definition portion, they are all Standing alone means they are independent Organizational Units.
They don’t have any relationship and they stand alone.

Appa Ponnu Amma payya

Assignment: Establishing the relationship between two or more objects is called Assignment.

Assign company code to company OX16 (Merging together OX02 + OX15)

Ox02 OX15

RR10
RR20 RevGrp

Assign company code to credit control area OB38 (OX02 + OB45)

OX02 OB45

Assign business area to consolidation business area OBB6 (OX03 + OCC1)

OX03 OCC1
Assign company code to financial management area OF18 (OX02 + OF01)
Enterprise Structure
Definition & Assignment is over

Fiscal Year

CY NCL SFY

CY NCY
Fiscal Year is a 2 character Variant.
1. Normal Periods (12) Dependent independent
2. Special Periods (04)

Dependent belongs to Shortened Fiscal Year alone

What is a Year?
A year comprises of 12 months. There are 2 types of Years.
1. Calendar Year
2. Non-Calendar Year

What is a Period?
Month is called a Period in SAP. Each Period is called a Month.
CALENDARYEAR N O N – C A L E N D A R Y E A R
S NO Months NoDay Period FisYear Month NoDays Period FisYear Year Shift
s s
1 Jan 31 01 2021 Jan 31 10 2022 -1
2 Feb 28 02 2021 Feb 28 11 2022 -1
3 Mar 31 03 2021 Mar 31 12 2022 -1
4 April 30 04 2021 April 30 01 2021 0
5 May 31 05 2021 May 31 02 2021 0
6 June 30 06 2021 June 30 03 2021 0
7 July 31 07 2021 July 31 04 2021 0
8 Aug 31 08 2021 Aug 31 05 2021 0
9 Sep 30 09 2021 Sep 30 06 2021 0
10 Oct 31 10 2021 Oct 31 07 2021 0
11 Nov 30 11 2021 Nov 30 08 2021 0
12 Dec 31 12 2021 Dec 31 09 2021 0

Calendar Year: It comprises of 12 months, which begins in the SAME year and ends in the SAME
year.

Non-Calendar Year: Non-Calendar Year comprises of 12 months but begins in the Current Year
(April) and ends in the Next Year(March).

I wanted to convert Non-Calendar Year like Calendar means, Non Calendar Year comprises of 2
years i.e., 2021 & 2022. Now I wanted to shift/convert 2022 to 2021. When I convert 2022 to 2021
then it becomes like Calendar year.
 You consider in which year Majority of the months lies 2021 which contains 9 months. Now
observe in which year Less no of Months are available.

So you take 2021 as a base year because it contains majority of the months i.e., 9 months. So base
value is always 0

Shortened Fiscal Year

A Year comprises of 365/366 days. When the No of days is less than either 365/366 days, it is called
a Shortened Fiscal Year.

Scenario 1
I got money today (15/12/2021), am starting my business
December – 17 days How many days a year contains 365 days
January – 31 days 97 days is a less than a year so it is called Shortened FY
February – 28 days
March – 31 days
Total no of days 97 days

Scenario 2
I have go money on April 2nd A Year Contains 365 days
April – 29 days
May – 31 days
Jun – 30 days 364 days is less than a year or not?
Jul – 31 days This is called a Shortened Fiscal Year
Aug – 31 Days
Sep – 30 Days
Oct – 31 Days
Nov – 30 Days
Dec – 31 Days
Jan – 31 Days
Feb – 28 Days
Mar – 31 Days
Tota 364 Days

Why I called Shortened Fiscal Year as Year Dependent?

As per Scenario 1, how many periods we have 4.  R6 (2021-2022) 4 periods

Can I carry forward R6 as my Non-Fiscal year to next Year R6 (2022 -2023) because it contains
less no of periods 2022-2023 should contain 12 periods because it starts with April and ends with
March 2023.

Year Dependent: It means No of periods will be less than the Normal periods.

Year Independent: It contains all 12 periods.

Normal Periods: This is used for Posting Day to Day Business transactions.
Special Periods: This is used for Posting Adjustment Entries either month-end or year end.
 Chart of Accounts
It is a list of GL Accounts.. It is a 4 character Variant. There are 3 Chart of Accounts:
1. Operational Chart of Accounts
2. Group Chart of Accounts
3. Country Specific Chart of Accounts.

Common Feathers:
1. Every Chart of Account is a 4 character Variant.
2. Description of Chart of Account
3. Maintain Language EN
4. Maximum Length of 10 of GL Account Number 06 999999
5. Controlling Integration – Costing
6. Block

Operational Chart of Accounts: This is used by the Company Codes for day to day business Postings.
Without Operational of Account, you cannot create Master Data, once there is no Master Data, you
cannot post Business Transaction/Transactional Data. Defining Operational Chart of Account is
Mandatory. We are assigning Operational Chart of Accounts to the Company Code. Business
Transactions are posted at the Company Code level only.

You are going to pull the Financial Statement from Operational Chart of Accounts for issuing to the
External Authorities. Like Banks, Tax authorities, Legal Authorities and so on.

Group Chart of Accounts: It is a 4 Character Variant. Defining Group Chart of Accounts is an

Optional. If you have a Single Company Code, defining Group of Chart of Accounts not required
means it is optional. When you have more than One Company Code(Multiple Company Codes), then
Defining Group of Accounts is Mandatory. This is used for Consolidated Financial Statement. The
Length of the GL Account may vary.
You cannot Post Any business Transaction to the Group of Account. We are not going to Assign to
Company Code. When you are not assigning to a Company Code then you cannot post any
transaction to the Group Chart of Account. This is used only for pulling/Extracting Consolidated
Reports for Internal Management only.

Country Specific Chart of Account: It is a 4 Character Variant. Defining Country Specific Chart of
Account is Optional. This Chart of Account is assigned to the Company Code.
Can I assign Business transaction to Country Specific Chart of Account?
We can post the Business Transaction to the Country Specific Chart of Accounts also because we
have assigned to the Company code. Defining
Defining Country Specific is optional.
Group Chart of Account

Operational Chart of Account

Country Specific Chart of Account

Company Code
How many Chart of Accounts you can we assign to your Company Code?
Operational Chart of Accounts & Country Specific Chart of Account

Where you will assign Group of Chart of Accounts?

We will assign Group Chart of Accounts in Operational Chart of Accounts

Posting Period

What is a Posting: Entering all the Business transactions into a particular Period into the GL
Accounts.
What is a Period: Period is called a Month. We are posting all the Business Transaction to a specific
Month/Period.

You need to define one Posting Period Variant. It is a 4 character variant.

What is a Posting Period?

Period is a Month in SAP.
Posting is an activity to record / Book all the Expenses and Incomes into a GL Account, which is
nothing but a Master Record for a Specific period.

Posting Period Variant is a 4 character variant. Without creation of Posting Period, you cannot Post
any business transaction into any period.

Posting Period Variant is assigned to the Company Code. The Same variant can be assigned to
Multiple Company Codes also. Yes, if the all the Company Codes belongs to the same Company or
Client.

When you are trying to login into SAP. What are the Parameters you are Entering?

Client: 800
User iD: 12234
Pwd: XXXXX

Client 800

Company

Company Codes
We have 3 steps to define Posting Period Variant.
1. Define Variants for Open Posting Periods OBBO
2. Assign Variants to Company Code OBBP
3. Open and Close Posting Periods OB52

1. Define your Posting Period Variant which is 4 character

2.

Document Header Document Number Range

OBA7 FBN1

What is a Document Type?

It is a combination of 2 varaints.
1. Accounting Type &
2. Accounting Information.
D O C U M E N T T Y P E Document Number Range
SN AType Desc + AInfo Desc = DType Desc NKe No Year FNR TNR E
y
01 S GL + A GAD = SA GLAD 01 01 2021 1000 1099

02 D Cust + A CAD = DA CAD 16 16 2021 1600 1699

03 D Cust + R CSD = DR CSI 18 18 2021 1800 1899
04 D Cust + Z CPD = DZ CIP 14 14 2021 1400 1499

05 K Vendor + A VAD = KA VAD 17 17 2021 1700 1799

06 K Vendor + R VPD = KR VPD 19 19 2021 1900 1999
07 K Vendor + Z VPD = KZ VPD 15 15 2021 1500 1599

08 A Asset + A AAD + AA AAD 01 01 2021

From Number Range (FNR) Maximum limit is 10 Digits

To Number Range (TNR) Maximum limit is 10 Digits
E  External
Range ? Nungambakkam(starting) - Guindy (Destination)
Accounting Type Accounting Info
S – GL A – Accounting Document
D – Customer R – Invoice(Sales/Purchase)
K – Vendor Z – Payment(Sales / Purchase)
A – Asset

Every transaction you post into SAP, will carry a Number.

Rent Paid (7000)

I have to pay the Rent to the Owner

Cash is going out from You – 7000

Who is receiving - Owner

Rent A/C Dr 7000

To Cash A/C 7000

Golden Principles of Accounting

Personal Impersonal

Real Nominal

Personal: any human being or an Artificial Person in the eye of law as per Companies Act of 1956
Example of Human Being: Ram, Raghava, Lakshmi, REvathi, Shiva
Example of Artificial Person: Any Registered Company is called an Artificial person. Vasanth & CO,
Vivek & CO, Reliance, Amazon

Impersonal:
Real Account: All the Balance Sheet Accounts are called Real Accounts like Cash Account, Bank
Account

Nominal: This indicates Expenses and Losses

Personal Debit the Receiver Credit the Giver
Real Account Debit What Comes in Credit What Goes Out
Nominal Debit All Expenses / Losses Credit All Incomes / Gains

Personal: Debit the Receiver

Field Status Variant

Name Application / Template

Father Name
Date of Birth
Address Mandatory
Qualification / Required
Mobile
Cast Category

Physically Optional
Ex-Service man
Blood group
 Hide/Suppress

Ramasamy FSV) RR10

Venkat Revathi Karthi  3 SAP 47

01 01 01

02 02 Fields -

03

Fields: We are controlling the Behavior of these Fields

Tolerance Group
It is a limit beyond which you cannot tolerate.
Junior cashier
Cashier
Senior
MGr Finance
MD

1. General Ledger Employees Customer /Vendor

(OBA0) (OBA4) (OBA3)

Assume you are going to big bazaar

5 items
1. Rice
2. Soaps
3. Power
4. Dhal
 5. Ghee

Going to the Bill Counter

They will give you a bill

Header

Line Items

For all the items you purchase, you will get only one invoice.

Rice – 50*2 = 100

Soap -10*2 = 20

Maximum Posting Amount per Line Item

Maximum posting amount permitted per customer or vendor item for this user group.
Note
The restriction does not apply to automatically created line items, for example, during
payment settlements.

150 Outstanding Limit

Account Group:

We are Postings (Business Transactions) into GL Accounts. These postings are Classified /
Segregated/Separated (divided into 2 Groups) based on P&L and Balance Sheet items.
 Account Groups

P&L Balance Sheet

Income Expenditure Liabilities Assets

Sales

Other Income

Account Group Description From Number To Number Groups in General

Chart of Accounts
PG01 SCPL Share Capital 100000 100099
PG01 RSPL Res & surpluses 100100 100199
PG01 ACDN Accu dpn 100200 100299 Liabilities
PG01 SCLN Secured Loan 100300 100399 B/S Items
PG01 UNLN Unsecured Loan 100400 100499
PG01 CLPV CLiab & Provi 100500 100599
PG01 FAST Fixed Assets 200000 200099 Assets
PG01 CAST Current Assets 200100 200199
PG01 SALE Sales 300000 300099
PG01 OTIN Other Income 300100 300199 Income
PG01 INCR Inc/Dec in Stock 300200 300299
PG01 RMCN R Mat Consump 400000 400099
PG01 MFEX Mnfg Expenses 400100 400199 P&L Items
PG01 PREX Personnel Expens 400200 400299 Expenses
PG01 ADEX Admn Expenses 400300 400399
PG01 INTR Interest 400400 400499
PG01 DEPN Depreciation 400500 400599

Define Retained Earnings Account OB53

Dr Trading Account Cr
OP Stock 80000 by Sales100000
Purchases 40000
Less Returns 50000
Gross Profit Gross Loss
115000

When Debit Side is higher value then it is called Gross Loss. Because you are balancing with the
difference on the credit side

When the Credit Side is higher Value then it is called Gross Profit. Because eyou are balancing with
the difference on the Debit Side.

All Factory Expenses are entered into the Trading Account which is nothing but Direct Expenses.
 Dr Profit & Loss A/C Cr
All Expenses All Incomes
To Balance B/d (Gross Loss) BY Balance B/d (Gross Profit)

At the End of the year

To Net Profit By Net Loss

Balance Sheet
Liabilities Assets
Capital
(+) Net Profit
(-) Net Loss

This job of Transfer of Profits is taken care by Retained Earnings Account.

Basic Settings Over

Data

Master Data Transactional Data

What is a Data?

Collection of Fields put t.ogether is called a Record. Multiple Records are called Data.

Master Data: It is a Permanent in Nature. Without creation of Master Data, you cannot post any
Transactional Data. As a Consultant, you are going to create Master Data at the time of
Implementation job.

Why consultant will create Master Data at the time of implementation?

In order to upload the balance from previous (ERP/Manual), all those balances needs to be uploaded
from previous ERP to SAP by the Consultant. Creation of Master Record is a one Time job.

For the Creation of Master Records, we need Basically Chart of Accounts which is nothing a List of GL
Accounts. When I Create Account Groups then only I can create GL Master Record into the
respective Account Groups. Without Account Groups, you cannot create a Master Record.
It is actually an End-User job

Transactional Data: You need to Post Data to Day Business Transactions. Without Master Data, we
cannot post any Transactional Data. Transactional Datas are posted by the End-Users.

When you post a transaction, you need to post a minimum of 2 line items.

I cannot post a Transaction either with Credit Side or with Debit side as a single line item.

When I post Debit and Credit side, they should balance and the total value should become 0, then
only you can post this 2 line items.

For the Posting Transactional Data, we use Operational Chart of Accounts.

Why do you use Operational Chart of Accounts to Post the Transactional Data?

Because We extract the Data for Financial statements from Operational Chart of Accounts only.

Financial Statement means Profit & Loss and Balance Sheet Accounts.

Master Data can be created in 2 ways:

FSP0: At Chart of Account Level
FS00: At Company Code Level
FS00: Centrally

FSP0(at Chart of Accounts Level): This Contains 3 Tabs: FS00(at Company Code Level):
1. Type/Description 1. Control Data
2. Key word/Translation 2. Create/Bank/Interest
3. Information at Chart of Account Level 3. Information at Company level

FS00(Centrally): FSP0 + FSS0

It is a Combination of at Chart of Account and Company Code Level

FS00: Contains all the 6 Tabs.

1. Type/Description
2. Key word/Translation
3. Information at Chart of Account Level
4. Control Data
5. Create/Bank/Interest
6. Information at Company level

Why we need to define at Chart of Accounts Level / at Company Code level?

Reference Documents

1. Account Assignment Model

2. Sample Document
3. Recurring Document
Reference:

I have an address already where I have gone. She does not know so am guiding to go to the
respective place, if am referring that should have been already existed. Referring to the Existing one
is called Reference.

I have document number already posted into the system. I want the same thing repeated then I can
refer to that Document No to post any number of times but with a slight change.

What are those changes? You are modifying the existing document according to your requirements.
Like what changes?

1. Document & Posting date is different from Existing Document.

2. Amounts

Why I need to create a Reference Doc/Template?

When I post an Entry, I need to fill

35 many fields on the Debit Side &

35 many fields on the Credit side

We are only human beings so we may commit an error while posting to avoid those errors or
repetitive work, we are using Template to avoid errors and to save timings.

GL Account 200100

Chart of Accounts Company Code Data

FSP0 FSS0

SKA1 SKB1 SKAT

ORT01

Account Assignment Model:

Rent A/C Dr 4000 40

To Cash A/C 4000 40
If I create a template, I can reuse the same template any number of times.

Sample Document

Sample Document

This is the Special type of Document. This is used to post the Business Transactions which occur
frequently every day. Using the Sample Document we can reduce the posting burden on the users.
The sample document is a template for Original / Accounting Document. Sample documents do not
update any transaction figures. We have to define a Special Number Range for Sample documents.
X2 is the Number Range number key for Sample Documents. The following functions are available
for the sample documents.
1. Display
2. Change
3. Delete

Every time when you want to post the Sundry Expenses payment, all the information for each line
item is same except the amount. That is why what we do is to create one document in which you
debit sundry expenses account and you credit with cash account with some dummy amount. This is
called Sample Document. When you create a Sample document, it will not update the GL Accounts
balance because it is dummy business transaction.

Whenever Sundry Expenses incurred and whenever it has to be posted, the user will retrieve this
sample document from the database, he will just change the amount and post it. That is how the
burden of the end-user is reduced by not filling the text, business area and so on.

When the Sample documents are created, they do not update any GL Account balances, they are
just stored in the database. When the Actual Business Transactions are posted using the Sample
document as a reference then only the GL Account balances are updated.
 Recurring Documents

Recurring means Re-occurring any number of times means repeating the same work or activity n of
times.
There are some Business Transactions which we post regularly at fixed intervals.
Example, Rent payment, Insurance payment, Payment of Term Loan instalment and payment of
Vehicle Loan.
In order to pay this type of transactions, we can use Recurring Document functionality.

To use the Recurring Document, 2 Conditions must be satisfied:

1. The day of posting should be same in every interval
2. The amount of the transaction should be the same in every interval

In simple, Recurring means, it is always re-occur or it will be repeating in 2ways:

1. The day of posting is same.
2. The amount is same

For every Recurring Document, we should specify the First Run Date and the Last Run Date and
Interval for Posting.
When the Recurring Documents are created, they don’t update any GL Accounts.
We need to create a Number Range with X1.
Only when execute the Recurring Document, then only the respective GL Accounts get updated.

Reversal

Once the Entry is posted, you cannot delete in SAP. There is no option for Deletion.
Example, I wanted to post Rent Account say 1000. Every month my Rent is 1000

Entry will be
Office Expenses A/C Dr 1000 (40)
To Cash A/C 1000 (50)
Instead of posting to Rent A/C, by mistake posted against Office Expenses.

But when you try to Reverse the above Entry

Office Expenses A/C Dr 1000 (50)
To Cash A/C 1000 (40)

Individual Reversal
Reversal of a Reversed Entry
Mass Reversal
Cleared item Reversal
Individual Reversal: FB08 (100008)
You need to some configuration in IMG Screen for the Reversal. It is nothing, defining the Reason
for Reversal. It is a Mandatory to define the Reason. That reason can be configured in IMG Screen.

Reversal of a Reversed Entry (Reversing once again Reversed Document 100008), this document
number gets changed to 100009 = 100007(Original posted Document)

30
Salary Account Dr 2000
To Salary Outstanding A/C 2000

1st
Salary Outstanding A/C Dr 20000
To Salary Account A/c 20000

Salary A/c dr
To Cash Cr 1000

Foreign Exchange
Am running a business, there is a possible of either importing or exporting. Even if you run a small
retail shop, there is a possibility of entering by the foreign customer and he may not have Indian
Currency to pay, that time he may offer you whatever the currency he has.

There are 3 types of Exchange Rate Types are available. These are predefined by SAP. If you want,
you can define your own Exchange Rate types. They are:
1. G – Standard Translation Ratio for Bank Buying Rate
2. B – Standard Translation Ratio for Bank Selling Rate
3. M – Standard Translation Ratio for Average Rate (Bank Buying + Bank Selling Rate)/2

You need to define/configure with the respective countries you are dealing.
Australia – GBM (CCC)
USA – GMB(CCC)
Singapore – GBM
India – INR(CCC)

Currencies
Company Code Currency OX02 – This is called Company Code Currency. Native Currency/Home
Currency/Local Currency.
Other than your Company Code Currency is called Foreign Currency
Group currency: Group Currency is used for the Consolidated Report. This is defined at client Level.
You can see this currency at SCC4.

800 is called client and our Company is also called a client.

Hard (40)/Index-base currency(50): This is used where inflation is high.

Global Currency (60): This is called Company Currency (OX15)

(Client)Revathi Group – Company (INR) – Global

RR10 RR10 RR10

India USA Singapore
INR(LC/CCC) USD SGD

800 (Client)

Foreign Exchange
Am running a business, there is a possible of either importing or exporting. Even if you run a small
retail shop, there is a possibility of entering by the foreign customer and he may not have Indian
Currency to pay, that time he may offer you whatever the currency he has.

There are 3 types of Exchange Rate Types are available. These are predefined by SAP. If you want,
you can define your own Exchange Rate types. They are:
1. G – Standard Translation Ratio for Bank Buying Rate
2. B – Standard Translation Ratio for Bank Selling Rate
3. M – Standard Translation Ratio for Average Rate (Bank Buying + Bank Selling Rate)/2

You need to define/configure with the respective countries you are dealing.
Australia – GBM (CCC)
USA – GMB(CCC)
Singapore – GBM
India – INR(CCC)
 Accounts Receivable & Accounts Payable
(ARAP)

What is Accounts Receivable?

Cash Sales?
Sales A/c DR 1000
Cash Account 1000

I will selling on Credit or I will be purchasing on Credit. No cash involved at the time of Purchase or
Sales
This is called either Credit sales or Credit Purchases

Account Group
Number Range
Assign Number Range to the Account Group
You will create GL Account
You will the Post Transaction

Accounts Receivable and Accounts Payable

AR AP
Account Groups(OBD2) Account Groups (OBD3)
Define Number Rage(XDN1) Define Number (XKN1)
Assign NRange to Account Groups(OBAR) Assign NRange to Account Groups (OBAS)
Create Customer GL Account Create Vendor GL Account
Start Posting Start Posting

Am classifying Customers into different Account Groups

AR AP
1. Domestic/Local Customers Local/Domestic Vendors
2. Foreign Customers Foreign Vendors
3. Service Customers Service Vendors
4. One-Time Customer One-Time vendor
5. Regular Customer Regular Vendor
6. Fixed Customer Fixed Vendor

Revathi
Shiva Local Customers

Customers may be Company or an individuals

B2B B2C
TVS Company
Entries to be posted in AR & ABP

AR Entries Posting
Sales –F-22 (Double screen)/FB70 Single Screen
Sales Return you can use FB75
F-27 - Credit Memo - General
Payment Receipt – F-22
Customer Balance – FBL5N(Line Item wise)
T0 GL Balance (monthly balance) FD10N

Sales- Customer
General sales without Customer(Cash) Sales Entry with Customer Pymt Recd -Cust
Cash A/C Dr 1000 Sekar A/C Dr 2000 Cash A/C Dr 20
Sales A/C 1000 To Sales A/C To Sekar A/C 2000
(Credit Sales)
Purchase - Vendor
General Purchases Without Vendor Purchase Entry with Vendor Pymt Made - Vend
Purchase A/C 1000 Purchase A/C Dr 1000 Revathi A/C Dr 1000
To Cash A/C 1000 to Revathi A/C 1000 to Cash/Bank A/C 1000

Posting Keys for Customer & Vendor

Description Dr Cr
Customer 01 15
Vendor 25 31