SAP FICO DOCUMENT

INTRODUCTION

SAP stands for Systems Applications and Products in Data Processing. SAP, by definition, is also the
name of ERP(Enterprise Resource Planning) software as well as the name of the company. SAP softeware
is a European multinational, founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira.They
Develop software solutions for managing business operations and customer relationships.

SAP FI

SAP FI stands for financial accounting and it is one of the important modules of SAP ERP. It is used to
store the financial data of an organisation. SAP FI helps to analyse the financial conditions of a company
in the market. SAP FI module enables us to manage financial accounting data within an international
framework of multiple companies, currencies and languages.

FI

GL( General Ledger)

AP( Accounts Payable)

AR ( Accounts Receivable)

AA (Asset Accounting)

PCA ( NEW GL)

CO

OM- Overhead Management

CE ( Cost Element Accounting)

CCA (Cost Center Accounting)

IO ( Internal Order)

PC (Product Costing )

COPA (Controlling Profitability Analysis)

PCA (Classical )
Finance Accounting General Ledger

A General Ledger contains all the transaction details of a company. It acts as the primary record to
maintain all accounting details. Common general ledger entries are customer transactions, purchases from
vendors, and internal company transactions.

Path- SAP Customizing IMG> Financial Accounting> GL Accounting> Master Data> G/L Accounts>
Preparations> Define Account Groups

Finance Accounting Accounts Receivable and Payable

It includes the details of amount that is paid by the customer and the amount that is paid by company
tothe vendors. In other words. AP includes all the vendor transactions and AR includes all the customer
transactions.

Finance Accounting Asset Accounting

Asset Accounting deals with all the fixed asset of the company and provides all the transaction details
about fixed assets. The asset accounting module of Finance Accounting works closely with other modules
like SAP MM, SAP Plant Management, EWM, etc.

SAP FI- Company Basics

Company: Company represents the group. It contains up to 6 characters. It is alpha numeric. The
definition of company is optional. A company can have any number of company codes

1. Define Company – TC – OX15

IMG-->Enterprise Structure-->Definition-->Financial Accounting-->Define company

Click on “New entries”

Company =

Company name =

City =

Country =

Language Key =
Currency = Click on SAVE

Click on “Create Request”

Short description = Click on SAVE and Press Enter

2. Define Company Code – TC – OX02

Path- IMG-->Enterprise Structure-->Definition-->Financial Accounting-->Edit, Copy, Delete, Check

Company Code Double Click on “Edit Company Code Data”

Click “new entries”

Company code =

Company name =

City =

Country =

Currency =

Language = Click on SAVE

Name =

Country = Press Enter

Press Enter to save in Request

Company Code:

· it is the organizational unit in the Financial Accounting for which a complete set of books of accounts
are maintained for external legal reporting i.e. to prepare the legal financial statements.

· It is four-character id. It is alphanumeric.

Country:
The information given in this field is called the Home Country of the company code and every other
country is considered by the system as foreign country.

Currency:

The currency entered in this field is called ‘Company Code Local Currency’. Every other currency is
treated by the system as foreign currency. This information is used by the system in identifying the
foreign currency. The financial statements are prepared in the company code local currency.

Language:

The language entered in this field determines the language in which the books of accounts are maintained,
the checks and correspondence documents are printed.

3.Define Segment

IMG-->Enterprise Structure-->Definition-->Financial Accounting-->Define Segment Click on New

Entries >Click on Save

4.Assign Company Code To Company – TC- OX16

IMG-->Enterprise Structure-->Assignment-->Financial Accounting-->Assign company code to company

Click on position Button Company code =

Press Enter Company =

Click on Save

Fiscal Year Variant

1. Define Fiscal Year Variant – TC – OB29

2. Assign Company Code To Fiscal Year Variant – TC – OB37

Fiscal year means Accounting year. The Accounting year means the period of 12 monthsfor which the
companies prepare financial statements.

Can a Fiscal Year Have The Period Less Than 12 Months?

If period is less than 12 months that is called as Shortened Fiscal year, but for whichyear-end closing must
be carried out. The definition of ashortened fiscal yearis alwaysyear-dependent, since it represents ayear-
related exception. You must always define an entirecalendar yearwhen defining afiscal yearvariant.

When do we use Shortened fiscal Year in SAP?

If business is getting closed permanently and period of operations are less than 12 months then we use
Shortened Fiscal Year. Shortened Fiscal Year is Year Dependent. Ex: Business is getting closed legally in
middle of Fiscal year.

We use this concept during transition period i.e. Changing from ‘Non-Calendar Year’ to ‘Calendar Year ‘
or ‘Calendar Year’ to ‘Non-Calendar Year.

Define Fiscal Year Variant – TC – OB29

Path- IMG-->Financial Accounting-->Financial Accounting Global Settings-->Ledgers-->Fiscal Year and

Posting Periods-->Maintain Fiscal Year Variant

Assign Company Code To Fiscal Year Variant – TC – OB37

IMG-->Financial Accounting-->Financial Accounting Global Settings-->Ledgers-->Fiscal Year and

Posting Periods-->Assign Company Code to a Fiscal Year Variant

Chart of Accounts:

1. Define Chart of Accounts – TC – OB13

IMG-->Financial Accounting-->General Ledger Accounting-->Master Data-->G/L Accounts--

>Preparations-->Edit Chart of Accounts List

Click on “new entries”

Chart of accounts =

Description =

Maintenance language =

EN Length of GL A/c No = 6 Click on Save

2.Assign Company Code To Chart Of Accounts - TC- OB62

IMG-->Financial Accounting-->General Ledger Accounting-->Master Data-->G/L Accounts--

>Preparations-->Assign Company Code to Chart of Accounts
Click on Position Button

Company Code = Press Enter

Chart of accounts = Click on Save

ACCOUNT GROUPS :

All the General Ledger accounts of the organization are classified in to different groups for the easy and
convenient management of GL accounts. These are called the account groups.

1.Define Account Groups- TC- OBD4

IMG-->Financial Accounting-->General Ledger Accounting-->G/L Accounts-->Master Data--

>Preparations-->Define Account Group

Click on “New Entries”

Click on Save

2. Define Retained Earnings Account - TC- OB53

IMG-->Financial Accounting-->General Ledger Accounting-->G/L Accounts-->Master Data--

>Preparations-->Define Retained Earnings Account

Chart of accounts =

Press Enter P&L statement A/c type =

X Account =

Ignore yellow Color Warning message by Pressing “Enter”

Click on Save

Transaction Code

Transaction Code is a code number given for each activity. SAP has given standard Transaction Codes
( TC's ) which are common in SAP through the world.

Tcode Use

FS00 Create General Ledger Accounts

VF01 Billing from SD Module

ME21N Create Purchase Order

FB50 Post GL Document

FBL1N Vendor Line Item Report

If SAP Customer / Purchaser want to give their own TC's it should start either with "Y" or"Z". Other
Alphabets are not allowed in SAP. These are called ‘Z-Transaction Code’

SAP CO:

Controlling Module:

Operating Concern: it is the highest node in Controlling Module. It collects the sales and marketing
information.

Controlling Area: It records and analyses the overhead related activities, product costing and Profit
Center related activities. We can assign “n” number of controlling areas to Operating Concern subject to
following Condition in Controlling. Fiscal Year Variant Should be identical between Controlling Area and
Operating Concern.

Controling area - central Organizational unit within the CO module, it is represented by accounting
environment which manages costs and revenue.

path > Enterprise structure > Definition > Controling > maintain Controling area.

path > Controling > General controling > Organization > maintain Controling area

Company Code: it is a legal entity responsible for preparing financial statements i.e Balance Sheet,
Income Statement and Cash Flow statement and to maintain book keeping.

We can assign “n” of company codes to Controlling area subject to following conditions.

Chart of accounts should be same between company code and controlling area.

Fiscal Year Variant should be same between means.

1.Number of normal periods should be same

2.Starting period and ending period should be same

3.Starting date and ending date should be same.

Controlling Module Configuration

1.Create Operating Concern

IMG-->Enterprise Structure-->Definition-->Controlling-->Create Operating Concern Click on New

Entries

Click on Save

2.Maintain Operating Concern

IMG-->Controlling-->Profitability Analysis-->Structures-->Define Operating Concern-->Maintain

Operating Concern

Operating Concern =

Press Enter Press Enter for all warning messages appeared.

3.Maintain Controlling Area

Path: TC – OKKP IMG-->Enterprise Structure-->Definition-->Controlling-->Maintain Controlling Area

Double Click "Maintain Controlling Area”

4.Assign controlling area to operating concern

IMG-->Enterprise Structure-->Assignment-->Controlling-->Assign controlling area to operating concern

Click on Position Button CO Area =

Press Enter Operating Concern =

Click on Save

5.Assign company code to controlling area

IMG-->Enterprise Structure-->Assignment-->Controlling-->Assign company code to controlling area

Click on Position Button

CO Area = Press Enter

Select CO Area line and double click on Assignment of company code(s)

6.Maintain Controlling Area- Components
IMG-->Controlling-->General Controlling-->Organization-->Maintain Controlling Area
Click on Position
Controlling Area = Press Enter
Select CO Area line
Double Click "Assignment of Company Codes"
Click "New entries",
Company Code =
Click on Save
7.Maintain versions -TC - OKEQ

IMG-->Controlling-->General Controlling-->Organization-->Maintain Versions

Select Version “O” line.

Double Click "Settings for each Fiscal Year"

CO Area = Press Enter