INDEX

FINANCIAL ACCOUNTING BASIC SETTINGS

 Define Company
 Define Company Code
 Assign Company Code to Company
 Define Business Area
 Define Fiscal Year Variant
 Assign Fiscal Year Variant to Company Code
 Define Posting Period Variant
 Assign Posting Period Variant to Company Code
 Define Open and Close Posting Period
 Define Document Type and Number Ranges
 Define Field Status Variants
 Assign Field Status Variant to Company Code
 Define Chart of Accounts
 Assign Chart of Accounts to Company Code
 Define Accounts Group
 Define Retained Earning Account
 Define Tolerance Groups
 Define Tolerance Groups for Employees
Define Company( Group in Normal ):
Company: The smallest organizational unit for which individual financial
statements are created according to legal requirements. A company can
include on or more company codes.
When project is started Group Company Name in SAP Company should be
defined. Path for defining Company as in Example Project ROYAL .
SPRO : SAP Project Reference Object
Path:
Tool > Customizing > IMG > SPRO > Execute Project Click on SAP reference
IMG Button
1. Define Company
Path: SAP Reference IMG > Enterprise Structure > Definition > Financial
Accounting > Click on IMG Button (OX15)
Select New Entries Button
IMG: Implementation Guide
Company : ROYLG
Company Name : ROYAL GROUP
Name of company 2 : -

Detailed information
Street : 3rd Street
Post Box : JAYANAGAR
Postal Code : 560030
City : BANGALORE
Country : INDIA
Language : EN
Currency : INR
Select Save Button ( or) Ctrl + S Buttons for saving the Company Information.
Once the Company information is saved, SAP will generate one Transport
Request. Every time it saves 2 files. One in Client 800 and 2nd one in
Transport Request with Key Number.
By default gives the latest transport request we have to create our own
transport request and save in the request.
We need to create separate request for each and every step.
All FI Basic settings will be saved in one request
For Example Project we create 6 requests like below.
1. Basic Settings
2. General Ledger
3. Accounts Payable
4. Accounts Receivable
5. Asset Accounting
6. Controlling
How to creation our own request: Select create button or F8 give short
description Create request
Short description: FI Basic settings for RYOAL GROUP Financial .
Press enter Once again to save in the message data was save.
Data was save in 2 places
i) Client 800
ii) Transport request
Company Code
Smallest organizational nit of external accounting for which self contained
set of accounts can be created.

Define Company Code, Transaction Code - (OX02)

SPRO---> to go directly to SAP Reference IMG Button. So whenever we are

customizing , no need to give full path up to SPRO. We can give SPRO directly
in command field to go directly to SAP reference IMG Button Screen.
SPRO option will be activated only for Consultants . End User Job is without
SPRO Option. So Path for defining the Company Code is as follows:

SPRO > Enterprise Structure > Definition > Financial Accounting > Edit, Copy,
Delete, Check Company Code( Select IMG Activity Button here) >Double click
on Edit Company Code Data---->Select New Entry Button ( Screen like below
will open…)
Company Code : SSCL
Company Name : South Steel Costing Pvt Ltd
Address : #22, MADHAPUR
City : HYDERABAD
Country : INDIA
Currency : INR
Language : EN
Select Save Button or CTRL + S for saving. Once Saved New Screen Will
open.
Press enter to select our request button select drop down button select request
number

Select CRTL + F find enter ROYAL press enter double click on request number.
Select your request number press enter to save in your request we get a
message data was saved.
 above screen we have to give Double click on basic settings for ROYAL GROUP
Financial than below screen will display and again select enter button and we get a
massage data was saved.
Assign company code to company (OX16)

Path: SPRO ----- > Enterprise structure -------- > Assignment -------- >
financial accounting --------- > Assign company code to company >
Select IMG Button
Here above Screen we have to Select Position Button again below screen will display
select company code from drop down button SSCL press enter.
Here we select Find Button from below Screen and enter company code and
enter
above screen we select company code SSCL and Enter again will screen display
below and we select company (ROYLG) from drop down button
Above screen we select Find Button and type Company ROYLG and enter and
put Enter and again below screen will display
Here Ctrl+S or select Save Button one screen display below
Here we create our own Request and select enter button and we get a massage
data was saved.
Business Area:
Organizational unit of external accounting that corresponds to a specific
business segment or area of responsibility in a company. Financial
statements can be created for business areas for internal purposes. (BS &
P&L A/C). Business area assignment to company code is not required.
Define Business Area T-Code – OX03
Path: SAPRO > Enterprise Structure > Definition > Financial Accounting > Define
Business Area Click On New Entry Button or F5
Than Below Screen Appear in that screen we have to give our Business Area
Business Area Description
BAN BANGALORE BUSINESS AREA
HYDR HYDERABAD BUSINESS AREA
DELI DHELI BUSINESS AREA
MUAB MUMBAI BUSINESS AREA
PUBA PUNE BUSINESS AREA
CHNB CHENNAI BUSINESS AREA
Select Ctrl +S or Save Button
Select Enter Button and Save Our Request , we get a message data was
saved
Definition of Fiscal Year
Usually a period of 12 months for which a company regularly creates
financial statements and check inventories. A fiscal year is divided into
posting periods. One fiscal year variant can be used by several company
codes. A fiscal year can have a maximum of 12 posting periods and 4
special periods. To get profitability ay different stages we use special
periods. Fiscal years are always year independent.
Year Independent fiscal year variant:
If the fiscal year of a fiscal year variant uses the same number of periods
and the posting period always start and end at the same day of the year the
variant is called year independent.
Shortened fiscal year variant:
One year fiscal year variant has less posting periods that the other it is called
a shortened fiscal year. A shortened fiscal year must always be defined as
year dependent.
Year dependent fiscal year:
Deselect the year dependent check box. If we select the check box every
year we should define fiscal year variant.
Deselect calendar year check box. If we select this check box irrespective
or the periods. what we have specified system will take calendar month
year as its fiscal year.
 If Companies in Fiscal Year Period Fiscal Year
Variant

Indian Companies April to March + 4 Special Periods V3

US Companies Jan to Dec + 4 Special Periods K4
Some Companies
Follow July to June + 4 Special Periods V6
Oct to Sep + 4 Special Periods V9
 If Fiscal Year period is from Aril’2013 to March’2014, in SAP it is called as
Fiscal Year 2013
If Fiscal Year period is from July, 2013 to June, 2014, in SAP it is called as
Fiscal Year 2014
If Fiscal Year period is from Oct, 2013 to Sept, 2014, in SAP it is called as
Fiscal Year 2014
Logic behind this is based on Number of Months covered in Next Calendar
Year. If in next Calendar Year period is above 6 months, call it as Next
Year. Otherwise with the same year.
Ex: No. of Months in
Period 2013 2014 SAP Year(Fiscal Year)
April, 13 to March, 14 9 3 2013
July, 13 to June, 14 6 6 2013
Oct, 13 to Sept, 14 3 9 2014
What are Special Periods:
For Fiscal Year 2013 i.e. Accounting Period from April, 2013 to March,
2014, March 2014 will be the last month. In SAP it has 4 special periods
for March, 2014
No. in Financial Year
Month
April 1
March 12 Normal Periods

March 13
March 14
March 15 4 Special Periods
March 16
Special periods are part of last period in that Fiscal Year. In this ex. March,
2014
HOW SPECIAL PERIODS WILL BE USEFUL
Entries made up to the Profitability of Accounts Department will be posted
up to period 12
Entries made for Management Adjustments will be in the period 13
Entries made for Auditors Rectifications will be in the period 14
When we want to see the Report:
Period Report We View
From To
1 12 Profitability Finalized by Accounts Department
1 13 Profitability Suggested by Management
1 14 Profitability Finalized by the Auditors
14 14 To see the list of Rectification Entries suggested by
Auditors
How to Convert Calendar Year to Accounting Year Periods:
SAP by default know only calendar year ( Jan – Dec) as accounting year( Fiscal
Year) below is the process to convert the calendar year to accounting year
Conversion for Accounting Year from Apr, 2013 to Mar, 2014 (fiscal Year 2013)
Months Days Periods Year Shift

Jan 1 31 10 -1

Feb 2 29 11 -1

Mar 3 31 12 -1

Apr 4 30 1 0

May 5 31 2 0

Jun 6 30 3 0

Jul 7 31 4 0

Aug 8 31 5 0

Sep 9 30 6 0

Oct 10 31 7 0

Nov 11 30 8 0

Dec 12 31 9 0
Define Fiscal Year Variant (T-Code – OB29)
Path: SPRO – Financial accounting – Financial accounting Global settings -
Fiscal year – Maintain fiscal year variant (Maintain shortened fiscal year)

Select New Entries Button

The below screen will dispelled in that in we have to fill the accounting year
details ( FISCAL YEAR) details
FV Description Year Dependent Calendar Year NO. of Posting No. Of Special Periods
RY April to March for ROYAL - - 12 4
The above Screen select Save Button or Ctrl+S, again below screen appear , here
we have to create our request, select Enter Button , we get a Massage Data was
Saved
Deselect the year dependent check box. If we select the check box every
year we should define fiscal year variant.
Deselect calendar year check box. If we select this check box irrespective
or the periods. what we have specified system will take calendar month
year as its fiscal year.
In Screen first select FV(fiscal
year variant) and Double click
on Periods Folder, the below
screen will display , in that
screen select New Entries
Button
The above screen we select Save Button or Ctrl + S , We get a message data was saved
Assigning Fiscal Year Variant to Company Code ( T- Code OB37)
Path: SPRO > Financial Accounting> Financial Accounting Global
Setting>Fiscal Year>Assign Company Code to a Fiscal Year Variant Select
IMG button
Select Position Button
Give the company code : SSCL enter
Fiscal year variant select RY from drop down button
Press save button enter to save in your request. We get message data was
saved.
In the live environment we take V3 as the fiscal year for April to march
In the above screen select FISCAL YEAR VARIANT (RY) from drop down button, if
we select drop down button again one screen will display below
In the above screen select Find Button and enter fiscal year variant (RY) Enter, again
Enter than one screen display below
In the above screen select Save Button or Ctrl + S, Customizing Request screen will
display below
In below screen select Enter Button we get a message data was saved
Posting period variant:
In order to manage identical posting periods in several posting
periods in several company codes, maintain one posting period variant. It
controls which posting periods both normal and special or open for each
company code. Posting period variants controls the opening and closing of
posting period for each company code.
Here we define which periods are to be open for posting purpose. In
all other software, closing of the period is there. Once we selected closing
the periods, end user cannot enter any documents before to that period. But
in SAP Open period is there. If we open period for entering documents, the
periods before to that and after that periods, end user is not able to enter any
document. Once we open the period, automatically other periods will be
closed. We can enter any document between the dates of the open periods
only
Ex: If we declared profitability up to June, 2013 and we want to open periods
from July. 2013 to March, 2014. in SAP we call it as 4.2013 to 12.2013
For Opening and Closing of periods we have two options in SAP Ex. are
below
 Options Company Codes

SSCL GCL MISL

Option 1
All the Company codes will open & close
Periods at the same time and same periods
There are 3 steps in opening & closing of
Periods.
A. Define Posting Period Variant
“X” to PP Variant Option
B. Assign Company Code to PP
Variant X to SSCL X to GCL X to MISL
C. Define Open & Closing periods
for Variant
Practically this option is not possible as all the company codes are not able to
close books at the same time . For that purpose SAP has given Option 2.
Option 2: SSCL GCL MISL
A. Define Posting Period Variant
To PP Variant Option X X X

B. Assign Company Code to

PP Variant X to SSCL Y to GCL Z to MISL
C. Define Open & Closing
Periods for variant
For “X” July.13 to Mar,14 4,2013 to
12, 2013
For “Y” Apr,13 to Mar,14 1,2013 to
12.2013
For “Z” Jun,2013 to July 2013 3,2013
4,2013
Define Posting Period Variant ( T-Code OBBO)
Path: SPRO > Financial Accounting > Financial Accounting for Global
Settings > Document > Posting Periods > Define Variant for Open Posting
Periods
Select New Entries Button
Variant : SSCL
Name : Posting Period Variant for SSCL
In above screen select SAVE button, again one screen display below
In above screen select Enter button , we get a message data was saved
Assign Posting Period Variant to Company Code ( T- Code OBBP)

Path: SPRO > Financial Accounting > Financial Accounting for Global
Settings > Document > Posting Periods > Assign the Variant to Company
Code
Select Position Button
Select Company Code (SSCL) and Press Enter
Select the Variant from Drop down button
In above screen enter Company Code ( SSCL ) and select Enter one screen display
below
In the above screen select VARIANT(SSCL) from drop down button if we select drop
down button one screen will display below
In the above screen select Find Button here type Variant (SSCL) and select enter
and again enter one screen display below
In the below screen select Save Button , customizing request screen will display below
In below screen select Enter Button, we get a message data was saved
Open and Close periods for variant:
You define posting periods in your fiscal year variants. You can open and
close these posting periods for posting usually only the current posting
period is open for posting all other posting periods are closed, at the end of
this posting period. The period is closed and the net posting period is
opened.
Posting period variant should assign to company code. Open and close
periods should assign to posting period variant and not to company code.
Open & Close Posting Period Variant ( OB52)

SPRO > Financial Accounting > Financial Accounting for Global Settings > Document
> Posting Periods > Open and Close Posting Periods

Select the New Entries Button

Variant SSCL
A + (Valid for all account type)
From Account --
To Account --
From Period1 1
Year 2013
To Period 11
Year 2013
From Period2 12
Year 2012
To Period 12
Year 2012
AUGR
We have to fill above details in the below screen
In the above screen select Save Button, again one screen will display below
In the below screen select Enter Button, we get a message data was saved
In live environment Production Server is On and Every Day so many entries
has pass on the system. For every mount transactions it is need to we open
the periods but in the production server no one has the customization access
So it is mandatory to open every period for transactions if we open all the
period at a time user will misuse that area, for that SAP has given
authorization group only manager level or higher level has authority to
open and close the periods. Here BASIS Consultant has assign the manager
User Id in the authorization group . So SAP has given the option to end
user for open the periods at the end user level open and close posting period
Path: Accounting > Financial Accounting > General Ledger > Environment >
Current Settings > Open & Close Posting Period Variant (T-Code
S_ALR_87003642)
Select Position Button Posting Period Variant (SSCL)
Select Save Button
Document Types and Number Ranges
At the time Demo we are discussed about Departments.
Account Dept. Store Dept. Sales Dept.
(Accountant) (Store Person) (Sales Person)
Accountant has pass one entry 1
Store person Pass one entry 2
Sales person has sale one item 3
 All departments they want to start their ranges from 1. But it is not possible to
every department has Sl no is 1. In the live environment, number ranges are
not transported to production server. It will define by respective dept heads.
At the time of customization all department heads sit together and decide
what will be the account dept. Sl no will Start. Same thing for the other
department they are decide and tell them the consultant. According to their
decision consultant has customize the document number and number ranges.
Account department head they decide their Sl no is start from 1 to 100000
Purchase department head they decide their Sl no is start from 100001 to
200000
Sales department head they decide their sl no is start from 200001 to 300000 In
the normal accounting we say it Voucher in SAP it is Document.
SAP has given the Documents types
1. SA - 1 General Ledger
2. RE - 2 Purchase
3. RV - 3 Sales
Number Range: Number range is two types.
1. Internal: The system will generate the number. 2. External: The user has to
give the number.
One number range can be assigned to one or more document types.
Number range for document type is company code dependent. The number
range must not overlap. The number range may be year dependent or
independent. You can define number ranges for each company code, this
code can use the same number interval. You can define no. range intervals
as year specific. You can also define alphanumeric no. ranges in this case
the document no. can only be assigned externally. For every no. range you
must specify the following things 1.Account key 2.Account validity date
until which the no. range is valid.
14. Define Document Types and number ranges
Path: SPRO>Financial Accounting>Financial Accounting Global
Settings>Document>Document Header>Define Document Types T-code: OBA7
Select Position Button
Document Type - SA
Select details button
Select Number range Information button
Select Company Code- SSCL
Select Change Interval Button
Select Insert Interval Button
No. 1
Year 2013
From Number 1
To Number 100000
Current Number 0
Ext
Press enter Save it press enter Ignore the warning message press enter We get message
Change were saved.
Select Enter the below screen will display,
In above screen select SA Document type and select Details Button
(Ctrl+Shift+F2) again below screen will display
In the above screen you have select Number Range Information , the
below screen will display in below screen give company code(SSCL)
In above screen we have to select Intervals Button the below screen will display
In above screen select Insert Interval Button(Shift+F1), the below screen will display in the
below screen we will give the details
No. 1
Year 2013
From Number 1
To Number 100000
Current Number 0
Ext
Press enter Save it press enter Ignore the warning message press enter We get message Change
were saved.
Here select Enter and Save Button(Ctrl+S) one warning message will display
, again select Enter we get a message the changes were saved
 Current number it shows the right now which document number is being
used. Ext Check box leaves, blank Deselect the external check box
because we are posted so many entries on regular basis and it not easy to
maintain manually. So that ext check box is not selected. If ext check box is
not selected SAP has taken document number internally. SAP has given two
Types for posting the entries
SAP has given two Types for posting the entries
Option 1 Option 2
1. Year Specific 2. Common for all years
It is specific for same year It is for all year
Here we customize for the year 2013 Year is 9999 9999 it means it is
applicable for all years
If we are looking above example in option 2 we can't track how many
documents are posted every year. Same thing in option 1 here we know
how many documents are posted in which year. Companies are follow
option 1.
Field Status Variant and Field status Groups
Field status groups are used to control the screen appearance for document
posting. The achieved through general ledger account by assigning field
status group to general ledger account or through posting key.
 Fields, which must have an entry, can be made Required Fields.
 Fields that can be entered, but are not required can be set to optional entry.
 Fields, which is not required, can be suppressed.
 At the time of accounts creation on screen so many fields are appear. More
than 1000 accounts are created in SAP. So it is very tough to post every
filed on regular basis and it is also take too much time for posting one entry.
SAP has given for ever accounts more than 70 fields. And system has give
45 field status groups.

If suppose we are posting 70 fields for one entry so it will takes too much
time.
In account we post any transaction it means
1 Debit is 70 fields 70
2 Credit is 70 fields 70
total number of fields 140
SAP has given field status group It is 3 types
1. Suppress
2. Required
3. Optional
Example
Quantity field
It is related to purchase, sales departments So quantity field is required for
purchase any things But Repair it is not mandatory the quantity field.
According to this field which fields are suppress which fields are required
and which fields are optional. According to that fields are appear on the
screen at the time of choose any account for post entries.
Steps:
1. At the time of posting we assigned Field status variant group to company
code.
2. At the time of accounts creation we specify which fields are required,
which fields are optional and which are suppressed.
3. At the time of accounts selection for the entries we specify the fields
according to that fields are appear on the screen.
4. Field status groups are creating under the field status variant.
Field status group
General
Bank
Material
Cost etc.
Afterwards we create the two accounts and post the entry.
Cash A/c
To Preference Share Capital a/c
Bank General
I I
Text (narration), Business Area, Value date Text (narration), Business Area
Required Required
All the required fields are appear on screen with tick mark or question mark.
It means system not permitted to go on next screen without give the inputs
in that fields.
All the optional fields are appear on screen with but it permitted move to go
on next screen without put any inputs or not.
All the suppress fields are not appear on the screen when we select the
account for the posting.
Define the field status Variant (T-Code OBC4)
Path: SPRO> Financial Accounting>Financial Accounting Global
Settings>Document>Line item>Controls>Define Field Status Variant
Select Position Button
Field Status Variant - 1000 press enter
Select 1000 field status variant
Click on Copy as button
Change the field status variant - SSCL
Change the field status name - Field status variant for SSCL press enter
Select copy all button
we get message number of dependent entries copied 47.
press enter Save press enter to save in your request
 Select position Button
Field status variant SSCL press enter
Select SSCL field status variant
Double Click on field status group folder
Select field status group G001 General (with text, Allocation)
Double click on it
Double click on General Data
Select the Text field is required entry radio button
Click on the Next Group button.
Select the Business area field is required entry radio button
Save and press the enter to save in your request.
Select field status group G005 Bank Accounts(Obligatory value date) Double
click on it
Double click on General Data
Select the Text field is required entry radio button
Click on the Next Group button.
Select the Business area field is required entry radio button
Select 2 times next group button
Select Value Date is required entry radio button
save we get message data was saved.
In the SAP three types of date
1. Document Date Not modifiable
2. Posting Date Not modifiable
3. Value Date Modifiable
1. Document Date it means on which date post the entry. Once the entry will
post we cannot change the date. SAP is not permitted to change the
document date.
2. Posting Date: It is default date (i.e. server date) SAP has automatically
taken the date whatever the date is going on the server and it is also not
changeable.
3. Value Date: SAP has given the concept of Value date it is modifiable or
changeable. It is effective date. Suppose we are taken a loan from the bank
as on 10 th Jan 2014. The bank will be calculated the interest on the same
date. In the SAP we post the loan entry on 11th Jan 2014 then SAP will
calculate the loan interest on 11 th Jan 2014. Where as bank calculate the
interest on 10 th above example loan interest amounts are differ from the
bank and SAP. For that amount calculation is not going wrong that’s why
SAP has given the Value Date Concept. Here we change the date according
to the respective date of bank for loan interest calculation date. Now SAP
and Bank loan interest amount is same.
Here select Enter the below screen will display
In the above screen select 1000 field status name and select copy as Button(F6)
in the below screen
Change the field status variant - SSCL
Change the field status name - Field status variant for SSCL press enter
Select copy all button
we get message number of dependent entries copied 47.
press enter Save press enter to save in your request
Select position Button
Field status variant SSCL press enter
Select SSCL field status variant
Double Click on field status group folder
Select field status group G001 General (with text, Allocation)
Double click on it
Double click on General Data
Select the Text field is required entry radio button
Click on the Next Group button.
Select the Business area field is required entry radio button
Save and press the enter to save in your request.
In the above screen double click on General Data
In the above screen Select the Text field is required entry radio button
Click on the Next Group button.
In the below screen Select the Business area field is required entry radio button
Save and press the enter to save in your request.
Select field status group G005 Bank Accounts(Obligatory value date)
Double click on it
Double click on General Data Select the Text field is required entry radio
button
Click on the Next Group button. Select the Business area field is required entry
radio button
Select 2 times next group button Select Value Date is required entry radio
button
save we get message data was saved.
Assign Company Code to Field Status Variants (OBC5)
Path: SPRO >Financial Accounting>Financial Accounting Global
Settings>Document>Line Item>Controls> Assign Company Code to Field
Status Variants
Go to position button
select company code SSCL Press enter
Select field status variant (SSCL) from the drop down button
Save it and press the enter to save in your request. we get message data was
saved.
Chart of Accounts
Chart of Accounts is set of Accounts or Account Group.
Structure of Account creation:
Chart of Account>Account Group> Accounts
This is a list of all general ledger used by one or several company code.
For each GL account it contains the account number, account name and the
information that controls how an account functions and how a GL account is
created in the company coed. The same chart of accounts has to be assigned
one or more company codes.(Its operating chart of accounts)
Operating Chart of Accounts:
The chart of Accounts contains the GL accounts that you use for posting in
the company code during daily activities. Financial Accounting and
Controlling both use this chart of accounts.
Group Chart of Accounts:
The group chart of accounts contains the GL accounts. That is used by the
corporate group. The assignment of group chart of accounts to company
code is optional.
Country specific chart of Accounts:
The country specific chart of accounts contains all GL accounts needed to
meet the country's legal requirement. This is allows you to provide
statements for the country's legal requirement (It is optional).
General Scenario creating accounts
100001-Equity Share Capital Account
100002-Cash Account
100003-Preference Share Capital Account
100004- SBI Bank Account
We want to see the statement of current assets we search 1 by 1 account. It
takes too much time .
We want to see the statement of profit & loss account and balance sheet we
search 1 by 1 account. It takes too much time. For not take too much time
and easily check the balances, statements and details of particular accounts
SAP give the Chart of account
There are two types for creating chart of accounts
Option 1 SSCL GCL MISL
Some Companies they are following
same coding accounts number for the
other company codes
salaries account 100000 100000 100000
Option 2 SSCL GCL MISL
Some Companies they are following
separate accounts coding for different
company codes
Salaries Account 100000 200000 300000
If we are going for the 1st option we not need to create any other account
for consolidation If we are going for the 2nd option we need to create other
Group account for consolidation. In live environment companies follow
option first.
Create Chart of Accounts
Path: SPRO >Financial Accounting>General Ledger Accounting>G/L
Accounts>Master Data>Preparations>Edit Chart of Accounts List
Select IMG Activity button T-code: OB13
Click on New Entries Button
Chart of Accounts : SSCL
Description : Chart of Accounts for SSCL
Maint. Language : English
Length of G/L account Number : 6 max10 (we are taking 6 digit)
Controlling integration : Manual creation of cost element
If we go for the second option we define group chart of account We are
follow 1st option Click on save button and press the enter to save in your
request. We get a message Data was saved.
Assign the company code to Chart of accounts
Path: SPRO>Financial Accounting>General Ledger Accounting>G/L
Accounts>Master Data>Preparations>Assign Company Code to Chart of
Accounts
Select IMG activity button T-Code: OB62
GO to Position button
Select Company code(SSCL) from drop down enter
Select Chart of account from drop down SSCL
save press enter to save in your request. We get a message Data was saved.
Account Groups:
When we are creating GL accounts we must specify account group. The chart
of account contains different types of a count grouping or putting of same type
and nature of accounts under one name or account is called account groups.
All liabilities account should start with 1
All Asset account should start with 2
All Income account should start with 3
All Expenditure Account should start with 4

We create Equity share capital account in between 100000 to 100099

We create Cash account in between 200000 to 200099
We create Sales account in between 300000 to 300099
We create Salaries account in between 400000 to 400099
We want to see the details of liabilities account we search 1* We want to know
about the current assets balances we search 2*. If any balance is there it will
appear otherwise not.
Define Account Group
Path: SPRO>Financial Accounting>General Ledger Accounting>G/L
Accounts>Master data> Preparations> Define Account Group
Select IMG activity button T-Code OBD4

Select New Entries Button

We have to fill below details in required fields
Chart of Account Name From Account To Account
accounts Group

SSCL SCPL Share Capital 100000 100099

SSCL RSPL Reserves & Surplus 100100 100199

SSCL ACDN Accumulated Depreciation 100200 100299

SSCL SCLN Secured Loans 100300 100399

SSCL UNSL Unsecured Loans 100400 100499

SSCL CLPR Current Liabilities & Provisions 100500 100599

SSCL FAST Fixed Assets 200000 200099

SSCL CALA Current Assets loans & Advances 200100 200199

SSCL SALE Sales 300000 300099

SSCL OTHER Other Incomes 300100 300199

SSCL INCR Increase/Decrease in Stock 300200 300299

SSCL RMEL Raw Material Consumption 400000 400099

SSCL PRSN Personnel Cost 400100 400199

SSCL MFRE Manufacturing Expenses 400200 400299

SSCL ADMN Administration Expenses 400300 400399

SSCL INTR Interest 400400 400499

SSCL DEPR Depreciation 400500 400599

In above screen select Save Button or Ctrl + S , one screen will display
below, here select Enter, we get a message data was saved
Retained Earnings Account:
At the end of fiscal year the balance in the profit & loss account must be
transferred to balance sheet account. To automatically carry forward the
balance by the system to the retained earnings accounts define one or more
profit & Loss statement account types per chart of account, assign them to
retained earnings account.
In year end All Profit & Loss Account balances Transfer to Surplus and
Profit & Loss A/c (Reserve & Surplus)
Retained Earning Accounts Same Balance of Balance Sheet are Carry
forward for next year As an Opening Balances for next year

SAP gives it is mandatory field to define at the time of customization because

consultant is not available at the year end.
Define Retained Earnings Account (T – Code OB53)
Path: SPRO>Financial Accounting>General Ledger Accounting>G/L
Accounts>Master Data>Preparations>Define Retained Earnings Account
Select IMG activity button
Chart of Accounts : SSCL Press enter
P&L Statement Acct Type : Account
X 100100
Press Enter
ignore the warning message and press enter save in your request press enter
Press Enter below screen will display
In the above screen Press Enter Button
ignore the warning message and press enter save in your request press enter
Tolerance Groups:
Tolerance group used to define permissible limits to employees or user to
enter document/payment/receipt. And to allow cash discount and accept
differences in under/over payments/ receipts. Tolerance is give at account
level and not at transaction.
Basically it concept is open item management. It means payable, paid and
cleared items. In the month end so many provisions are done like that
salaries, rent, wages, Vendor wise payment, customer wise receivables etc.
At the time of payment it some amount will full paid. Some amount will
partial paid it means a part of total amount some amount will paid and rest
amount will pay afterwards.

Total amount is 100000

Partial payment is 40000
Balance is 60000
 How much amount is paid how many partial payment is done we are
don't know. For that purpose we want to see the details of full payment and
partial payment.
1. Full payment open item radio button - It means entire amount are paid.
Only Paid items
2. Partial payment open item radio button - It means how much amount
is paid against which invoice. Only payable items
3. Cleared Items radio button Payable + Paid items (Full paid)
At the time of accounts creation we define the tolerance group. In the SAP
given the option Tolerance i.e. Payment Differences. Tolerance Group is
two types:
1. GL accounts Tolerance Group
a. Receipts/Payments transactions
b. Mandatory area.
2. Employee Tolerance Group
Employee Tolerance Group
It is the mandatory area to define tolerance group for create the accounts in
SAP. Users don't know how much amount is keep for tolerance for whom.
That’s why we keep the tolerance group is Blank. If we create tolerance
group blank system expect it is already assigned. Tolerance Group is
basically amount tolerance, percentage tolerance or both. Tolerance group It
is debit or credit.
Define Tolerance Group (OBA0)
Path: SPRO>Financial Accounting>General Ledger Accounting>Business
Transactions>Open Item Clearing >Clearing Differences>Define Tolerance
Groups for G/L Accounts
Select New Entries Button
Company Code SSCL
Tolerance Group Blank Tolerance group for SSCL
Debit Posting : 0 Percentage : 0
Credit Posting : 0 Percentage : 0
Select Save button and press enter to save in your request. We get message
data was saved
In the Live environment we keep the tolerance group is blank it means SAP
expect already tolerance group is assigned for the company code.
Employee Tolerance Group
It is for upper limits for tolerance amount for user wise.
1. Manager is posting Rs1000000 amount invoice and he is given Rs2000 for
tolerance
2. User is post an entry of Rs. 100000 amount and he will give rs 100 for
tolerance.
3. Another user they had post an entry for rs 200000 invoice and he had
given tolerance amount is 5%.
Define Tolerance Groups for Employees
Path: SPRO>Financial Accounting>General Ledger Accounting>Business
Transactions>Open Item Clearing> Clearing Differences>Define
Tolerance Groups for Employees T-Code – OBA4
Select New Entries Button
Group : Blank
Company Code : SSCL
Amount Per Document 9999999999
Amount per open item account item 1000000
Cash Discount per line item 10 Permitted payment difference Blank
Select Save button and press enter to save in your request. We get message
data was saved
THANK YOU