Fico Material Part 1pdf

Sap Fico Financial Accounting
BASIC SETTINGS
Enterprise structure
Every company will have some departments, manufacturing plant and branches. These are
called organizational units in the company. One organizational unit is linked with the other
organizational units in some way or the other way. This relation is called enterprise
structure. The enterprise structure is different for every module. The enterprise structure for
each module is created by the respective functional consultants.
Company, company code and business areas are called organizational units in financial
accounting.
COMPANY: Company represents the group. It can contain up to 6 characters. It is alpha

numeric. At the company level we can prepare the consolidated financial statements. The
definition of company is optional. A company can have any number of company codes
Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

1. Project creation
Step 1.1: Creation of company
Path: SPRO - Enterprise structure – Definition - Financial accounting –Define Company

T.code OX15
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 click Enter
Step 1.2: Define company code
Company code: it is the organizational unit in the financial accounting for which a
complete set of books of accounts are maintained necessary for external legal reporting i.e.
to prepare the legal financial statements. Generally every separate legal entity is created as
company code in sap. If the boundaries of particular country are also crossed, then we have
to create the company code. The definition of the company code is mandatory. It can
contain up to 4 characters.. It is alphanumeric.
Path: SPRO – enterprise structure - definition -financial accounting - Edit, Copy,

Delete, Check Company code T.code OX02
Double click on: “Edit Company code data”
Click “new entries”
Company code =
Company name =
City =
Country =
Currency =
Language =
Click on “save”
Title =
Country =
Click on “save” and click on Enter on the Request message.
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.
Step no 1.3: Assign company code to company
Assignment: providing the links between two objects in the software is called assignment.
Path: SPRO –Enterprise structure-assignment-financial accounting-assign company

code to company T.CODE. OX16
Click on position,
Company code= click on enter
Company = click save
Step1.4: Define Business area.
BUSINESS AREA: it is the organizational unit in the financial accounting which structures
the organization according the geographical area of operations or the line of activity to
which the business transactions can also be posted. Generally the branches of the
organization can be can be created as business areas. The purpose of the business areas
is to prepare the financial statements for the internal management analysis purpose. The
definition of the business areas is optional. The system identifies the expenses and incomes
with the business areas by specifying the business area while entering the business
transactions. The business areas are not assigned to any company code. The business areas
are created at client level so that they can be used across the company codes.

Path: SPRO-enterprise structure-definition-financial accounting-define business area

T.code OX03
Business area =
Description =
Business area =
Description =
Business area =
Description =
Business area =
Description =
Business area =
Description =
Business area =
Description =
Business area =
Description =
Business area =
Description =
Click “save”.

Step 1.5: Maintain consolidation business area.
Consolidation business area: the consolidation business areas are used to prepare the
statements according to regions or product groups. The definition of consolidation business
areas are also optional. The individual business areas are assigned to consolidation business
area.
Path: SPRO – enterprise structure – definition – financial accounting – maintains

consolidation business area.
Click on “new entries”

Consolidation business area =
Description =

Description =

Description =

Description =
Click on “save”
Step: 1.6 Assign business area to consolidation business area.

Path: SPRO – enterprise structure – assignment – assign business are to consolidation

business area.
Click on “position”
Business area =
Click on “enter”
Business area description Consolidation description

business area
Click on save.
2. Fiscal year variant
Step2.1: Define Fiscal year variant
Variant: it is an object for which some values are defined. When this object is assigned to
another object, then those values are also applicable to that other object. This is called
variant principle. The variant principle is widely used in sap.

Fiscal year: it also called Accounting Year. The accounting year is a period of 12 months
for which the organizations generally prepare the financial statements. The fiscal year may
the calendar year or it may be non-calendar year.





In the fiscal year variant, we define the number of normal posting periods and the number
of special posting periods. For the purpose of general ledger accounting the number of
normal posting periods are 12 and maximum number of special posting periods are 4. So
the total maximum number posting periods for the General Ledger accounting is 16.
It is mandatory that every company code should be assigned with one fiscal year
variant. Otherwise the postings are not possible. For this purpose we can use the system
defined fiscal year variant or we can define our own fiscal year variants. The following
are the some of the system defined fiscal year variants.
V3 ---- April to March --- 12 normal periods+ 4 special
periods K4 ----- calendar year --- 12 normal periods+ 4 special
periods K3----- calendar year---- 12 normal periods+3 special
periods V6 ----- July to June --- 12 normal periods+4 special
periods
V9 --- October to September—12 normal periods+4 special

periods.
Path: SPRO-financial accounting (new) - financial accounting global settings (New) –

ledgers - fiscal year and posting periods - maintain fiscal year variant - T code –
OB29
No action required. Just identify which Fiscal Year Variant you want to use for your
Company code.
Step2.2 Assign Company code to Fiscal year variant
Path: same as above- T code – OB37
Click on “position”,
Company code= click “enter”
Fiscal year variant click “save”
If any warning messages are displayed ignore the
=
enter button in the key board. warning message
by clicking on
3Chart of accounts:
Step3.1: Define chart of accounts.
• It is the list of General Ledger accounts used by the organization.
• It is compulsory to define the Chart of Accounts before creating any General Ledger
master record
• For every general ledger account it contains the information such as the name of the
account, general ledger account number and account group etc.
There are three types of chart of accounts.
 1. Operating chart of accounts: It is the list of all the general ledger accounts to
which the daily business transactions are posted. It is compulsory for every
company code that it should be assigned with one operational chart of accounts. The
financial statements according to the legal requirements of the country are prepared
from the operational chart of accounts. The controlling component also uses this
operational chart of accounts.
 2. Group chart of accounts: it contains the list of the general ledger accounts used
by the corporate group to prepare the consolidated financial statements. The
definition of Group chart of accounts is optional.
 3. Country specific chart of accounts: it contains the general ledger accounts

required to meet the country specific legal requirements.

A Chart of account can be used by one or several company codes.
Chart of accounts
Company code A Company code B
In this case, the GL account number, Account name and Account group etc. will be same in
all the company codes. In order that the several company codes to use the same chart of
accounts, the following two conditions should be satisfied.
1. All the company codes should be in same nature of business
2. All the company codes should lying in the same country.
A company code can be assigned with the two chart of accounts.

3. Operational chart of accounts
4. Country specific chart of accounts
Company code
Operational COA Country specific COA
Path: SPRO-financial accounting (new) - general ledger accounting (new) - Master

data - G/L accounts – preparations - edit chart of accounts list – T code OB13

Chart of accounts =
Description =
Maintenance language =
Length of GL A/c No = click save
Step3.2: Assign company code to chart of accounts - T code- OB62
Path: same as above.

Click on “position”,
Company code = click enter
Chart of accounts = click save
Step3.3 Define account groups T.code OBD4
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.
The GL account master records are created under the respective GL account group. Every
GL account is to be identified with the number. For this we create and assign the number
range for every GL account group. At the time of creating the GL account master records
we select the a number from the number range of the accounts group under which the
GL account master records is created and give to the GL account master record. There is no
limit to the maximum no of GL account groups. But there should be minimum two GL
account groups.
1. Balance sheet account group

2. Profit and loss accounts group.
We can add the GL account groups during the fiscal year if the need arises. We can delete
the GL account group provided no accounts are created in that group.
The following are the functions of the GL account groups.
3. To control the number to be allotted to the general ledger master record created
under the respective group.
4. To control the display of fields to be maintained in the general ledger master records
created under the respective the group. i.e. Whether every field is required or
optional or displayed or suppressed.

Path: same as above
Click on “New Entries”
Chart of Account Group Name From A/c To A/c

Accounts
SCPL Share capital 100000 100099
RSPL Reserves and surpluses 100100 100199
ACDN Accumulated depreciation 100200 100299
SCLN Secured Loans 100300 100399
UNSL Unsecured Loans 100400 100499
CLPR Current Liabilities&prvns 100500 100599
FAST Fixed Assets 200000 200099
CAST Current Assets,Loans&adv 200100 200199
SALE Sales 300000 300099
OTHR Other Income 300100 300199
INCR Incr/decr of stocks 300200 300299
RMCN Raw material consumption 400000 400099
PRSN Personnel cost 400100 400199
MFRG Manufacturing cost 400200 400299
ADMN Administration cost 400300 400399
INTR Interest 400400 400499
DEPR Depreciation 400500 400599
Click save
Step3.4: Define Retained Earnings Account T code OB53
RETAINED EARNINGS ACCOUNT
While creating the expenses accounts and incomes accounts we have to specify the profit
and loss account type. For this, it is compulsory to create one retained earnings account. We
can define any no of profit and loss account types. For example operating profit and loss a/c
to know the operating profit and non-operating profit and loss account to know the non-
operating profit or loss. At the year end the balances in these profit and loss accounts are
taken to the Balance sheet.
Path: same as above
Chart of accounts = click enter
P&L statement a/c type =

Account click save
=
Warning message appears. Ignore it by clicking on Enter again.
Operating profit or loss a/c---- type X –100100
Salaries a/c type X

Rent a/c type X
Wages a/c type X
Sales a/c type X
Non-operating profit or loss a/c--- type Y--- 100101
Dividend on shares a/c----- type Y

Brokerage on share a/c— type Y
 Operating profit or loss: it is the difference between operating revenues and

expenses.
 Operating revenues: these are the revenues generated from the Main business
operations of the company. Ex: sales
 Operating expenses: these are the expenses which are incurred to run the
main business. Ex: rent, wages and salaries etc.
 Non-operating profit or loss: it is the difference between non

operatingRevenues and non-operating expenses.
 Non-operating Revenues: these are the revenues generated From the business
operations which are not related to main business
 Ex: dividend on shares if the main business is textile manufacturing.
 Non-operating expenses: these are the expenses incurred to earn Non-

operating revenues: ex. Brokerage paid on purchase of shares
4.Posting Period Variant
Step.4.1: Definition of posting period variant
POSTING PERIOD VARIANT

The posting periods are defined in the fiscal year variant. To prevent documents from
being posted to wrong posting period, desired periods can be closed. Usually the current
posting period is open and all other periods are closed. At the end of period it is usually
closed and the next period is opened. A period is opened by entering a range into the
posting period variant which encompasses this period. It is possible to have as many

periods open as required. During the procedure of financial closing, some special
periods may also be open for closing postings. The following activities are
involved in the maintenance of the posting period variant
1 Define the posting period variant
2. Assign the posting period variant to the company code
3. Open and close posting period.
Path: SPRO-financial accounting (new) - financial accounting global settings (new) –

ledgers – fiscal year and posting periods – posting periods – define variants for open
posting periods . T.code OBBO
Variant =
Name =
Click
on
“save”
Step 4.2: Assign posting period variant to company code T.code: OBBP
Click on “position” button

Variant = click save
Step4.3: open and close posting periods T.code: OB52
Path: same as above

Variant =
Account type =
(To open the Normal posting periods)
From period 1 = year =

To period = year =
(To open special periods)

From period 2 = year =
To period = year = click on save
Account types in SAP: the account types describes the nature of the account in sap. The
account types are already defined in the system. We cannot define our own account types or
we cannot change the existing account types. The following are the account types defined
in the system already.
1. GL accounts (S)
2. Vendor accounts (K)

3. Customer account D)
4. Asset accounts (A)
5. Material Accounts (M)
5. Creation of number ranges for document types
DOCUMENT TYPES AND NUMBER RANGES
The business transactions are posted in to the system through an accounting process called
“posting”. As evidence of posting, a record is generated and stored in the database. This
record is called DOCUMENT.
There are two categories of documents.
1.Original documents. These include the vouchers, cheque book, purchase invoices, copies
of sales invoices and receipts. These are the basis for entering business transactions in to the
system.
2.Processing documents. These include the recurring documents, sample documents, and
accounting documents. The accounting documents represent records (journal entries)
generated on the posting of original documents into the system.
Every accounting document contains two parts.
1. Document Header. This part contains the data such as document date, posting date,
posting period, currency, company code, DOUCMENT TYPE. Etc. the document header
describes the whole business transaction.
2. Document line item part.
Rent 10000 (line item no 1)
10000 (line item no 2)
The document a/c line item part contains the data such as posting key, GL account no. and
amount etc. for every line item. A document should contain minimum two line items. One
should be the debit line item and the other should be credit line item. In SAP the accounting
document can contain up to 999 line items including both debits and credits. The total of the
debit line items dr To cash
should be equal to the total of the credit line items. It is called the document
principle in SAP.
The document typea/c controls the following.
1. It differentiates the business transactions among the account types
2. For every account type it differentiates among the nature of business transactions.
3. The number to be assigned to the document
4. Whether the number assignment to the document is internal assignment (the number
to the document is assigned by the system serially) or external assignment (the
number to the document is assigned by the user by himself from the assigned
number ranges.)
The standard system is delivered with documents types which can be used, changed or
copied. Or we can define our own document types.
SL no doc. Type description account type number range
01 SA GL account posting GL accounts 1-100000
19 KR vendor invoice posting 100001-200000
15 KZ vendor payment posting vendor accounts 200001-300000
17KA vendor other document 300001-

400000
18 DR customer invoice posting

400001-500000
14 DZ customer payment posting customer accounts500001-

600000
16 DA customer other document 600001-

700000
04 AF depreciation posting. Asset accounts 700001-

800000
The document types are defined at the client level and are therefore valid for all company
codes. The number ranges for document types are defined at company code level.
Note1: if any object is defined at the client lever (group level), that object can be used by
all the company codes of the client.
Note2: if the object is defined at the company code level, that object is specific and
applicable to that company code only.
Note3: at the time defining the object, if the system does not ask for the company code, then
we can assume that the object is created at client level. And at the time of creating object, if
the system asks for the company code, then we can assume that the object is created at the
company code level and it is applicable to that company code only.
Step: creation of number ranges for document type “SA”
Path: SPRO-financial accounting (new) - financial accounting global settings (new) -

document- document types – define document types for entry view. T.code OBA7
Click on K.Lakshmana
Faculty: “position” Swamy. saplakshman@yahoo.com
Document type =SA click enter

Select “SA” document type line
Click on “details” button
Notice the properties of
“Number range” (i.e. Serial
number of number range)
Click on “Number range information” T.code FBN1
Company code =
Click on “(change) intervals” button
Click on “(insert) intervals” button
No =
Year =
From number
= To number =
Click on “insert
(enter)” button
Click on “save”
and OK”
6.Field button
Status Variant
on the message.
Step6.1: definition of field status variant
FIELD STATUS VARIANT.
During document entry, different fields are displayed depending on the transaction and the
account used. For example, when posting expenses, cost center and tax information is
usually required. However, when posting cash, this same information is not necessary.
These different displays during document processing are controlled by the field status.

In the above example, the text field, and business area field are required for every account.
The cost center field is required only for rent a/c, but not for other accounts. The tax rate
field and quantity field is required only for raw materials account but not for other accounts.
That is why for every field, there are three statuses available.

For every field we can maintain only either of the following status.
1. Suppressed status: if this is selected then that particular field is hidden

in the document while posting the business transaction.
2. Required status: if this is selected for a field then it is compulsory to give the
information in that field.
3. Optional status: if this selected for field then that field is displayed in the document
but we may or may not provide the information in that field.
Based on the nature of the GL accounts, all the fields were categorized in to 41 groups.
These
are called the field status groups. Every field status group contains all the 75 fields. Based
the information to be maintained at the time posting to the GL accounts, we select either
suppressed status, or required status or optional status for every field in every field status
group. Later on, at the time of creating the GL account we assign the required field status
group. As a result at the time of debiting or crediting the GL accounts, the fields will be
populated accordingly.
In short the field status variant controls the display of fields to be entered at the time
of posting the transactions to the GL accounts (at the time of the document entry)

It is mandatory that every company code should be assigned with one field status variant.
For this purpose we can use the system defined field status variant or we can define our own
field status variant by copying from one of the system defined field status variant 1000 or
0001.
Step6.1: definition of field status variant
Path: SPRO – financial accounting (new) – financial accounting global settings (new)
– ledgers – fields – define field status variants. T.code OBC4
Select “0001” field status variant

line Click on “copy as” button
FSTV =
Field status name =
click enter
Click on “copy all” button and click enter on the
message Select”--------“field status variant line created
above Double click “field status groups”
Double click on the field status group “G001”
Double click “General data”
Select “Required entry” option against “Text” Click save
field.
Double click on field status group “G001”
Double click “additional account assignments”
Select “Required entry” option against
“Business area” field click save
Select “optional entry” option against “partner
businessclick
Double area”onfield.
field status group “G005”
Double click on “General data”
Select “Required Entry” option against click save
“text” field
Double click “additional account assignments”
Select “required entry” option against “Business area” field
Select “optional entry” against “partner business area” field click save

Double click on “payment Transactions”
Select “Required entry” option against click save
“value date”
Value date: it is the expected date of realization of funds involved in the bank instruments,
like cheques and bank drafts. At the time of creating the bank accounts, we assign the filed
status group G005 in which we have selected value date also as required entry. As the
result, at the time either debiting or crediting the Bank account , the user has to enter the
value date compulsorily. Then this information is passed on to the treasury or cash planning
department to help in the cash planning
Step6.2: Assign company code to field status variant
Path: same as above T.code OBC5
Field status variant = click save
Tolerance groups: in the financial Accounting we have to define the tolerance groups for
the following objects in the financial accounting
1. GL accounts
2. Users (employees in the finance and accounts department)
3. Vendors and customers.
Tolerance groups for GL accounts: setting the maximum limits equal to which or below
which the differences in balance sheet GL accounts are automatically taken to the profit and
loss account or some predefined account like sundry balances written off a/c. based on the
requirements of accounting department we define different tolerance groups and we assign
them in the respective GL account master records. Based on the limits specified in those
tolerance limits, the differences in that GL account is automatically transferred to profit and
loss account. The limits are applied at account level not for the every transaction level in
that GL account.
A tolerance group can be assigned in any no of gl account master records. But a GL

account master record can be assigned with only one tolerance group. The upper limits
can be specified either for the debit difference or for credit difference separately. We can
define the upper limits either in terms of whole amounts or in terms of percentages or both.
if the both the terms are defined, the system will consider the lower of the two as upper
limit, and behaves accordingly.


Step7.1:Define tolerance groups for G/L accounts
Path:SPRO:- financial accounting-general ledger accounting-business

Transactions-open item clearing-clearing differences – define tolerance groups for
G/L accounts OBA0

Company code =
Tolerance group =
Name =
Click on “save”

Step7.2: define tolerance groups for employees OBA4
Tolerance group for employees: For the employees of the accounting dept. we define the
upper limits for posting procedures. With help of tolerance groups for employees, we can
control the posting activities of the emplyees in the finance and accounts department. The
following are the posting procedures.
1. The amount of a document an employee can post into gl accounts, vendor accounts,
customer accounts and asset accounts
2. The amount of the open item he can deal with
3. The percentage of cash discount he can offer or post
4. The amount of payment difference he can accept.

Based on the requirements of the accounts department, the fi consultant will define the
number of tolerance groups with the upper limits for the above posting procedures. The
required tolerance group is assigned to the users. As a result, the upper limits are applicable
to the user, for postings. When the user has to post a document whose amount is more than
his allowable upper limit, he has to get the approval from the respective employee. For this
purpose keeps the document pending for posting. This is parked document.
Path: same as above

Group =
Company code =
Amount per document =
Amount per open item =
Cash discount per line item = click save
Step7.3: assign users to tolerance groups OB57
Path: same as above

User name =
Tolerance group click save
=
8.Global parameters: in this activity, we can define various global specifications for the
company code. We can also display all the objects defined and assigned to the company in
the overview.
Step: enter global parameters
Path: SPRO-financial accounting – financial accounting global settings – company

Code – enter global parameters OBY6

Select “ ” company code line
Click on details button
Select “Business area financial statements”
Select “propose fiscal year”
Select “define default value date”
Select “negative postings permitted” click
save

GENERAL LEDGER ACCOUNTING
The General Ledger Accounting is called main ledger, because all the information required
for the preparation of financial statements (profit and loss accounts and balance sheet) is
processed from the General Ledger Accounting only. The other sub modules in Financial
Accounting i.e. Accounts Payable, Accounts Receivable and Asset Accounting etc., are
called Subsidiary Ledgers. These Subsidiary Ledgers are integrated with the General
Ledger Accounting through Reconciliation Accounts. The other modules in SAP like,
Materials Management (MM), sales and Distribution (SD), Human Resources Management
(HR) etc. are also integrated with General Ledger Accounting of Financial Accounting.
We have to maintain a Master Record for the each GL account in the General ledger
Account.
There are two types of data.
1. Master data: the data which is permanent in existence is called master data. The
record which contains the master data is called master record. The master data is
again and again used during processing. Ex: GL account name, GL account
number, Account currency etc.
2. Transactional data: it is the data which is posted to the master record during

the daily management of the business. This is temporary in existence

The General ledger master record contains the data under two segments.
General Ledger Master

Record
Chart of Accounts Company cod

Segment Segment.
1. GL account no 1. Account Currency

2. GL account name 2. Only balances in local currency
3. Account group 3. Line item display
4. Short text 4. Sort key
5. Long text 5. Field status variant.
(It contains lot of other information
in addition to the above data).
1. Chart of accounts segment: this segment contains the data such as GL account
number, GL account name, account group, short text and long text etc. When
all/several company codes are using the same chart of accounts this data is same
in all company code.
2. Company code segment: this segment contains the data such as account currency,
line item display and sort key etc. This data is specific and available to each
company code.
We can create the general ledger master record in the following ways.
3. Centrally (we can enter the data both in chart of accounts segment and company
code segment at the same time)
4. At chart of accounts level first then at the company code level

Creation of GL master (using the one step method or centrally).
Step: Creation of Equity share capital account
Check up the list of account groups and identify account group under which we have
To create this GL master and choose the GL account number – T code. OBD4
Path: accounting – financial accounting – general ledger – master records –

Individual processing - centrally – T CODE – FS00
GL Account Number =
Company code
=
Go to Menu, G/L
Account, Create
Account group =
O P&L statement account
Short =
text sheet account
O Balance
Long text =
Go to Control data tab,
Account Currency =
O only balances in local currency
O line item display
Sort key =
Go to create/bank/interest tab
Field status group = click on “save”
The fields in the General Ledger master record:
1. Account Currency: it is the currency in which the GL account is maintained.

The account currency is automatically defaulted from the company code
local currency. We can change the account currency, if necessary. If the
account currency is company code local currency then we can post the
business transactions in any currency into that account. If the account
currency is other than company code local currency (foreign currency), then
we can post the business transactions into that account in that currency only.

2. Only balances in local currency: if this check box is selected, the system
displays the balances in the company code local currency only. For this
purposes if any foreign currency business transactions are posted, the system
will convert those foreign currency business transaction in to the company code
local currency. For this we require some settings.
3. Line item display: by selecting this check box the system displays the line items
in this GL account. i.e. it maintains the details of the business transactions
posted.
4. Sort key: it is the criteria according to which the business transactions are
organized in the GL account. The sort keys are system defined.
Step: creation of cash account
to create this GL master and choose the GL account number – T.CODE OBD4
Path: accounting – financial accounting – general ledger – master records -

Individual processing - centrally – T. code.FS00
GL Account Number =
Company code
=
Go to Menu G/L Account, Create
Account group =
O Balance sheet account
Short text =
Long text =
Go to control data tab,
Account currency =
O line item display
Sort key =
Field status group =
Additional selections:
O Relevant to cash flow click on “save”

Step: creation of surplus in P&L account

Check up the list of account groups and identify the account group under which we have to
create this GL master and choose the GL account numberT.code OBD4
Path: accounting – financial accounting – general ledger – master records

– Individual processing – centrally – T.code FS00
GL account number
= Company code
=
Go to menu, GL account,
create Account group =
O P&L statement
account O Balance sheet
account Short text
Long text
Go to control data tab
Account currency
=
O only balances in local
currency O line item display
Sort key
Go to create/bank/interest
tab Field status group =
Step: creation of Salaries

a/c:
create this GL master and choose the GL account number T.code OBD4

GL account number
= Company code
=
O P&L statement
account
Faculty:Short text
K.Lakshmana Swamy. saplakshman@yahoo.com
Long text

Account currency =
O line item display
Sort key
Step: creation of wages a/c:
create this GL master and choose the GL account number T.code OBD4

GL account number
= Company code
=
O P&L statement
account
Short
text Long
text
Account currency
=
O only balances in
local currency
O line item
display Sort key
Go to create/bank/interest
tab Field status group =
Step: creation of Rent a/c :


GL account number
= Company code
=
Account group =
Short text
Long text
Account currency
=
O line item display
Sort key
Click on save.
Creation of GL master records using the two step method
Step: creation of GL account at chart of accounts level.
Path: Accounting - financial accounting – general ledger – master records – GL accounts

- individual processing - in chart of accounts T.code FSP0
GL account =
Chart of accounts =
Go to menu, GL account, create,
Account group =
Short text =
Long text =
Click on “save”.
Step: extending the GL account for company code.
Path: same as above. T.code. FSS0.
GL account =
Company code =
Go to menu, GL account, create

Account currency =
O line item display
Sort key
Display the GL accounts

created in the chart of
GL accountT.code F.10
accounts: =
Chart of accounts =
Click on
“execute”
To edit GL Account Master
Once the GL account master record is created we can not change the following fields
1. GL Account number
2. Company code
3. Account group
4.Status of open item management if the any business transactions are existing as open
items in that GL account. Once open items are cleared we can change the status
Go To t.code-FS00,
GL Account number =
Company code
=
Go to menu, GL account, and change
Make necessary changes and click save
To display changes made to GL account master
Path: Accounting – Financial Accounting – General Ledger – Master Records – Display

changes - Centrally T.code FS04
GL Account Number =
Company code = click on enter
Click on “All changes” button to see all the changes including old and new values.

Configuration for New General ledger accounting:
Step1: classify GL accounts for document splitting:
Path: SPRO – financial accounting (new) - general ledger accounting (new) – business
transactions - document splitting – classify GL accounts for document splitting.
Chart of accounts =
Click on “new
entries”
Account from Account to Category description
Click on “save”
Step2: define document splitting characteristics for general ledger accounting
Path: same as above
Ensure that every check box is deselected.

.

Posting of transactions

Document date: it is the date on which the business transaction takes place. It is also the
date on which is put on the original document
Posting date: it is the date on which the account balances are updated in the data base.
The document date and posting date may be same or different based on the nature of the
business transactions.

Path: Accounting – Financial Accounting – General Ledger – Document entry –

General posting - T.code F-02
Document date= type = company code=

Posting date = period = currency/rate =
Posting key = Account = click on enter
Amount =
Business area =
Text
=
Amount =
Business area =
Text
=
Click on “Display Document overview” icon (on the application tool bar),
Make corrections if necessary and click on “save” button.
* to copy the amount from the previous line items
+ to copy the text from the previous line item.
Display of posted document
To see the latest document posted, from same T.code f-02, go to Menu, Document,
Click on Display.
Click: “F5” Function key to display the document header (for audit trail).
To see the list of documents posted in a company code.
Path: Accounting – Financial accounting – General Ledger – Document – Display

T.code - FB03
Click on “Document list” button,

Company code =
Document number = to=
Fiscal year = click on Execute
From this list, if you want to see any document, double click on that document
Number.
Display of GL account balance
Path: Accounting – Financial Accounting - General Ledger Account – Display

balances – T.code - FS10N
GL account =
Company code =
Fiscal year = click on execute
Double click Month line item to display documents posted on that month.
Double click document line item to display the document.
GL account line item display.
Path: Accounting – Financial Accounting - General Ledger- Account -

Display/Change line items T. CODE - FBL3N
GL Account =
Company code =
Click Execute and double click on line item to display the document.
Selection /creation of own layouts:
Click on “change layout” icon to make changes in the layout.
Note: we can add/remove columns from display and change the position of the column and
change the length of field.
Change the length, add and remove columns as required.
Click on “save layout” icon to save the changes made to the layout.
Layout = (use “/” before name for user defined layouts)
Description =
Click on “Save”
To make your own layout as the default layout, go to T.code FB00 click on “line items
tab” (4TH Tab) under GL Account Layout,
Default selection screen under GL account line layout =
click on save .

Blocking of GL Account– T.code.FS00
GL account number =
Company code
Go to Menu G/L account,

Block - select relevant
items to block and save.
UN blocking of GL
account – T.code. FS00
GL Account =
Company code =
Go to Menu, GL account,
Block – deselect the
relevant items to UN
block and save.
Parking of a Document
It is the activity of keeping the documents pending for posting due to want of
authorization. The need for parking arises due to the operation of tolerance group for
employees. The documents are parked by the junior level employees and authorized by
the senior level employees. The parked documents do no update any gl accounts. The gl
accounts are updated when that is authorized i.e. posted by the senior employees. The
junior level employee or the senior level employee can change the parked document
before it is authorized. Once it authorized and posted by the senior employee neither of
them can change it. While authorizing the parked document the senior employee has the
following options.
1. He can post it as it is
2. He can change it if necessary
3. He can delete
4. He can reject
Even though the parked documents do not update any GL accounts, the system
considers these parked documents for evaluation purposes such calculating taxes etc.

Step 1: parking document.
Path: Accounting- Financial accounting – General Ledger – Document entry – General

Document parking T.CODE - F-65
Document date = type = company code =

Posting date = period = currency/Rate =
Amount =
Text =
Amount =
Text =
Make corrections if necessary, and click on “save” button.

SAP FICO financial accounting
Step 2: To display a parked document, go to T code – FBV3
Company code =
Doc. Number =
Fiscal year = click on enter
To change a parked document, go to T.code – FBV2
Company code =
Doc. Number =
Fiscal year =
Double click on Debit line/Credit line item if you want to make changes.
Step 3: post park document.
Path: Accounting – Financial Accounting – General Ledger – Document - Parked

Documents – post/delete. T.CODE FBV0
Company code =
Document number =
Double click Debit/credit line items to make any modifications.
Click on “save” to post it.
Business area = (for debit line item) click on enter

Business area = (for credit line item) click on enter
Deletion of parked document:
Step 1: parking of Document. T.code F-65

Posting date period = currency/Rate =
=
Amount =
Text =
Faculty: K.Lakshmana Swamy Mail id: saplakshman@yahoo.com

Amount =
Text =
Step 2: delete the parked document. T.code FBV0
Company code =
Document number =
Go to Menu, Document, Delete and click ‘yes’ on the message.
Deletion of line item from the parked document:
Business requirement: salaries were paid. But at the time of parking the document, the
user has debited the Rent a/c. at the time of authorizing the parked document, the higher
level employee has identified the mistake. So he as to delete the rent line item and has to
insert the salaries line item.
Step1: parking of Document T.code F-65

Posting date = period = currency/Rate =
Amount =
Text =
Amount =
Text =
Step2: delete the line item T.code FBV0
Company code =
Document no =
Fiscal year = click on ‘enter’

Double click on the debit line item

Make the amount column ‘0’. (By making the amount column of any line item ‘0’ that line
item is deleted)
Posting key = Account = click on ‘enter’
Ignore the warning message
Amount =
Text =
Click on back arrow
Double click on credit line item

Text =
Click on save.
Business area = (for debit line item) click on enter
Business area = (for credit line item) click on enter.
Hold documents:
It is the activity of keeping the documents pending for posting due to want of information.
When the information necessary to post the document is not completely available we hold
the document. The held documents do not update any GL accounts. When the required
information is available we can retrieve the held document and give the information and
we can post it. Then only the GL accounts are updated. When holding the document the
system will ask for the temporary document no. which is to be given by the user. The
temporary document no is alphanumeric
Step 1: Holding a document – T.code – F-02.
Path: Accounting – Financial Accounting – General Ledger – Document entry –

General posting. T CODE. F-02
Document date = type = company code=

Posting date = period = Currency/Rate=
Amount =
Business area =
Text =
Go to Menu, Document, click on “hold”

Temporary document number = click on enter
Step 2: posting of held document - T.code – F-02
Go to Menu, Document, click on “Get held document”
Document number = click on “enter”
Amount =
Business area =
Text =
Go to Menu, Document, and Post.
Note: if error message “Held documents must be converted” is displayed, follow this
procedure.
Step 1: Go to T.code se38

Step 2: enter program= RFTMPBLU click on execute
Step 3: select “no termination for read error” option click on execute
Step 4: now the document can be held without any messages.
Special document/ reference documents/template documents/ posting techniques
There are two types of special document.

1. Sample documents
2. Recurring documents.
Using the special documents we can reduce the posting burden on the users.
Sample documents:
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 template for original/accounting document.
Sample documents do not update any transaction figures. We have to define a special
number range for sample documents. The number range no. for sample documents is X2.
The following functions are available for the sample documents.
3. Display
4. Change
5. Delete.

Step 1: Creation of number range interval for sample documents.
Path: SPRO – Financial accounting - financial accounting global settings- document-

Document number ranges - define document number ranges T.code FBN1
Company code =
Click on the “change Intervals” Button

Click on the “Insert Intervals” Button
No year From number To number
X2
Click on the “Insert” Button and save.
Step2: creation of GL account General expenses a/c

Individual processing – centrally – T.code FS00
GL account number =
Company code
=
Go to menu, GL account, create

Account group =
Short text
Long text
Account currency
=
O line item display
Sort key
Step 3: creation of sample document.
Path: Accounting - financial accounting - General ledger- document entry – reference

documents - sample document – T Code. – F-01
Document date = type company code =

Posting date = Currency/Rate =
=
period
=
Posting key = Account click on enter
=
Amount =
Business area =
Text =

Click on “display document overview” icon (on the application toll bar),
Amount
Make corrections=if necessary and click on “save” button,
Business area =
Text =
Step 3: Display sample document.
Path: Accounting – financial accounting – general ledger - document – reference

documents – sample document – display – T.code – FBM3
Click on “document list”

Company code =
Document number =
Fiscal year = click execute
Double click on the document number to display any document.
Step 4: posting of document by taking sample document as reference. Tcode.f-02
Go to Menu, document, Post with reference
Document number =
Company code =
Fiscal year =
Select “display line items”

Document date =
Posting date = click on ‘enter’
Amount = click on ‘enter’

Amount = click on ‘save’ and ‘save’
Step 5: change sample document T.code - FBM2
Document no =
Company code =
Fiscal year = click on ‘enter’
Double click on the debit and credit line items and make the necessary changes and click on
‘save’
Step6: delete the sample document. T.code - F.57
Company code =
Document number =
Fiscal year =
Select “test run”
click on “execute”
Observe the document, click on ‘back arrow’
Deselect “test run” click on “execute”
Click on “yes” in the message.

.
Recurring documents
There are some business transactions which occur regularly at fixed intervals. Examples
are rent payment; payment of term loan installment and payment of vehicle loan
installment. In order to post this type of transactions we can use this recurring document
functionality. To use the recurring documents two conditions are to be satisfied..
1. The day of posting should be same in every interval
2. The amount of the transaction should be same in every interval.

For every recurring document we should specify the fist run date. Last run date and
interval for posting.
The original recurring documents do not update any transactional figures. The
transactional figures are updated when the accounting documents are posted using the
recurring documents by running the recurring cycle.
The following functions are available for recurring documents.

1. Display
2. Change
3. Delete.
We have to define the special number range for recurring documents also. The number
range no. for recurring documents is X1.
Step1: creation of number range for recurring documents – T.code FBN1
Company code =
Click on the “change Intervals “button

Click on the “Insert Intervals” button
No Year From number To number
X1
Click on “insert” button and click on save.
Step 2: creation of recurring document – T code – FBD1
Company code =
First run on =
Last run on =
Interval in months =
Document type =
Posting key = account = click on enter
Amount
= Business area
= Text =
Posting key = Account = click on
enter

Amount =
Business area =
Text
=
Click on “Display document overview” icon (on the application tool bar)
Step 3: To display recurring documents - T.code – F.15

Company code =
Document number =
Fiscal year = click on execute
Step 4: To post documents using recurring document – T.code F.14
Company code =
Document number =
Fiscal year =
Settlement period
=
Batch input session

name
=
Click on execute
Step 5: To post the

document by
executing the batch
input session.
Go to Menu, system, services, batch input, and sessions. T.code SM35

Select your batch input session line, click on “process” button.
Company code =
Select “Display errors only” radio button – click on “process” button
Fiscal year click on enter
Click on “exit Batch input session” Button.
=
Step7: Change Recurring Documents T.Code – FBD2
Step 6: To display the document posted by the recurring cycle _
Document number =
T.code.FB03 =
Company code
Fiscal year =
Document no =

Double click on the debit line item and credit line item and make the necessary changes
Click on save.
Step8: Delete Recurring document T.Code - F.56
Company code =
Document no =
Fiscal year =
Select “test run” click “execute” observe the document

Click on “back arrow”
Deselect “test run” click on “execute”
Click on “yes” in the message
Foreign currency postings
The financial statements of the company code are to be prepared in the company code local
currency. But is quite common that the company code incurs the business transactions in
the foreign currencies also. In that case, the amount of the foreign currency business
transactions are to be converted into company code local currency. So we configure the
system to convert the foreign currency business transaction into company code local
currency at any of the following exchange rate types.
Bank buying rate (G)
OR
INR—USD Bank selling Rate (B)
OR
INR---- GBP
Bank average rate (M)
INR ----- SGD
Bank buying rate (G): it is the rate at which the bank will purchase any foreign currency
Bank selling rate (B): it is the rate at which the bank will sell any foreign currency
Bank average rate (M): it is the average of bank buying rate and bank average rate.

Step 1: To verify the foreign exchange rate types
Path: SPRO – Sap Net weaver - general settings – currencies – check exchange rate types.
T. code – OB07
No action required. Just verify whether following exchange rate types are available.
Click on “position” button, Exchange rate type = G click on enter

Click on “position” button, Exchange rate type = B click on enter
Click on “position” button, Exchange rate type = M click on enter
Step 2: Define Translation ratios for currency translation.
Translation ratios for currency translation: it is the relation between the minimum
units of two currencies in the commercial usage for the conversion purpose. For any
pair of currency the translation ration is always 1:1. but for the Japanese Yen the
relation is always 1:100
Path: same as above
Click “Yes” on the message.

Exchange rate type =G
From =
To =
Valid from =
Ratios (from) =1
Ratios (to) =1
Next line
Exchange rate type =B

From =
To =
Valid from =
Ratios (from) =1
Ratios (to) =1
Next line
Exchange rate type =M
From =
To =

Valid from =
Ratios (from) =1
Ratios (to) =1 click on save
Step 3: Enter Exchange Rates
Path: SPRO – sap net weaver - general settings - currencies - enter exchange rates
T.Code.OB08

Exrt =G
Valid from =
From =
Dir. Quotation =
To =
Exrt =B
Valid from =
From =
Dir. Quotation =
To =
Exrt. =M
Valid from =
From =
In Dir.Quotation =
To = click on save
Foreign exchange quotations: there are two types of quotation which we can enter in
the foreign currency tables.
1.Direct quotation: for one unit of foreign currency how many number of units of
company code local currency. It is convenient to use the direct quotation when the
foreign currency is bigger than the company code local currency.
2.Indirect quotation: for one unit of company code local currency, how many number
of units of foreign currency. It is convenient to use the indirect quotation when the
company code local currency is bigger than the foreign currency.
Transaction currency: it is the currency in which the business transaction occurs. It is

also called document currency. For every foreign currency posting the system stores
two figures. One in document currency and the other in company code local
currency.

Step 4: post a document in a foreign currency – T.code – F-02

Amount =
Business area =
Text =
Amount =
Business area =
Text =
Click on “Display document overview” icon (on the application tool bar)
Make corrections if necessary and click on “save” button
Go to menu, document, click on “Display” option

Click on “display currency” to see the amount in local currency also.
Important note: whether a particular document should be posted at Exchange rate type
G,B,M value, is decided by its document type (SA,KR,DR). We have to decide and assign
default exchange rate type to document types in T.code OBA7
Procedure to assign default exchange rate type to document type T.CODE OBA7
Click on “position” button, Document type = SA

Click on enter,
Select the document type SA
Click on “details” button, Assign Default value of exchange rate type for foreign currency
documents
Click on save

Interest Calculations
Interest calculation types: there are three interest calculation types in sap.
1. Balance interest calculation. This type is used to calculate interest on gl

account balances. For example on term loans. This type is denoted as ‘S’ in the
system
2. Item interest calculation. This type is used to calculate the interest on
vendor/customer account balances. This type is denoted as ‘P’ in the system.
3. Penalty interest calculation. This type is used to impose the penalty on the
interest
payments. this is denoted as ‘Z’ in the system
The first and second types are used by the commercial enterprises and the third type is
used by the financial institutions.

Step 1: Define interest calculation types
Path: SPRO – financial accounting (new) – GL Accounting (new) - Business transactions –

Bank account interest calculation – interest calculation global settings – define interest
calculation types.
Click “New Entries”

Interest ID =
Name/description =
Calculation type =S click on save
Interest indicator: This is the identification for which we assign all values necessary for
calculating the interest. The interest indicator is assigned in the term loan account master
record to enable he system to calculate the interest according to the values specified in it.
Step 2: prepare account balance interest calculation – T.code OBAA
Path: same as above

Interest calculation Indicator =
Interest Calculation frequency=
Calendar Type =G
Select “Balance plus interest” click on “save”
Calendar type: the calendar type determines the no of days to be considered for per
period for which interest is calculated. There are 4 types of calendars available for
interest calculations in sap.
1.Bank calendar (B): it uses 30days as basis for the month and 360 days as the basis for
the year
2.French calendar (F): it uses the actual no of days in a month as the basis for the month
and 360 days as the basis for the year
3.Gregorian calendar (G): it uses the actual no of days in a month as the basis for the
month and 365 days as the basis for the year.
4. Japanese calendar (J): it uses 30 days as the basis for the month and 365 days as
the basis for the year.

Step 3: Define reference interest rate
Reference rate of interest: It is identification for which we assign the real interest rate i.e.
12%, 13% etc. the reference rate of interest is assigned to the interest indicator. We can
define any no of reference rates of interest.
Path: SPRO – financial accounting (new) – GL accounting (new) - business transactions-

bank account interest calculation – interest calculation – defines reference interest rates –
T.code – OBAC

Reference interest rate =
Long text =
Short text =
Date from =
Currency = click on save

Step 4: Define time dependent terms

Interest calculation indicator =
Currency =
Effective from =
Sequential number =
Term =credit interest: balance interest calculation
Reference interest rate = click save
Click on “next entry” button

Interest calculation Indicator =
Currency =
Effective from =
Sequential number =
Term = Debit interes: balance interest calculation
Reference interest = click on save.
rate

Step 5: Enter interest values - T.code – OB83

Path: same as above
Select “new entries”

Reference interest rate =
Effective from =
Interest rate = click on save.
Step 6: creation of Interest account – T.code FS00
GL account number =
Company code =
Go to Menu, G/L Account, Create
Account group =
O P&L Statement Account
O Balance Sheet Account
Short text =
Long text =
Go to Control Data,
Account Currency =
O Line item display
Sort key =
Go to Create/Bank/Interest tab,
Field status group = click on save
Creation of Term Loan account
GL Account Number =
Company code
=
Go to Menu, G/L
Account, Create
Account group
=
O Balance sheet Account
Short text
Long text
Go to
Faculty:
control K.Lakshmana Swamy Mail id: saplakshman@yahoo.com
data tab
Account currency =
O line item display
Sort key =
Go to Create/Bank/Interest tab
Interest indicator = click on save

Step 7: Assignment of Accounts for automatic postings
Path: SPRO - financial accounting (new) – GL accounting (new) – Business

transactions – Bank Account interest calculation – Interest posting – Prepare GL a/c
balance interest calculation – T.code – OBV2
Click “symbols” button, Observe symbols

0002 – Interest paid
2000 – GL Account Paid (term loan
account)
Click on “Accounts” button
Chart of accounts = click on enter
Account symbol =0002

Currency =INR
GL Account =400400
Account symbol =2000

Currency =INR
GL Account = ++++++++++ click on save

Step 8: Term Loan receipt - T.code – F-02

Amount =
Business area = value date =
Text =
Amount =
Business area = value date =
Text =
Click on “display Document overview” icon (on the application tool bar)
Make corrections if necessary and click on save button.
Step 9: Term loan installment payment

Posting key = Account= click on enter
Amount =
Business area = value date=
Text =
Amount =
Business area = value date=
Text =
Click on “Display Document overview” icon (on the application tool bar)
Make corrections if necessary and click on save button
Step 10: Calculation of interest – T.code F.52
Chart of accounts =
G.L. Accounts =
Company code =

Further selections
Calculation period =
Output control
Select “Additional Balance line”
Posting control
Select “post interest settlements”
Select “update master record”
Note the session name = RSZIS00
Posting to business area =
Posting date of session =
Document date of session =
Click on execute
Step 11: to post the documents by executing batch input sessions
Go to Menu. System, services, batch input, and sessions
Select “RFSZIS00” line
Click on “process” button
Select the “Display errors only” radio button

Click on “process” button
Click on “Exit batch input” button
Step12: To verify the term loan account

balance- T.code- FS10N
G/L Account no =
Company code
=
Fiscal year
=
Business area
=
Click on execute.
To see the document

posted go to
T.code.FB03
To verify the updates

in Term Loan account
master – T.code FS00
GL account number =
Company code =
Menu, GL account, display

Reversals
The reversal function is used to reverse the error documents. There are five types of
reversals in sap.
1. Individual reversals: this function is used to reverse a single document only at a

time. When the document is reversed, the system reverses the posting keys only.
A document can be reversed only once.
2. Reverse of reversal: this function is used to reverse a document which was
already reversed.
3. Mass reversal: this function is used to reverse a group of documents at a
time.
4. Accrual/deferral document reversals: this function is used to reverse the accrual
and deferral documents posted on the last day of the month
5. Cleared item reversals: this function is used to reset the open items which were
cleared.
At the time of reversing the documents, the user can give the date on which the reverse
document is to be posted. If the user does not give any date, the system posts thereverse
documents as on the posting date of the original document.
While reversing the document the user has to specify the reversal reason. We can define
our own reversal reasons in addition to the reversal reasons which were already defined
in the system
Individual Reversals: T.code FB08

Document number = (to be reversed)
Company code =
Fiscal year =
Reversal reason =
Click on the “display before reversal” button to display the document before reversal.
Observe the document before the reversal
Click on “back arrow”
Click on save and observe the document number.
Go to T.code FB03 to display the reversed document.
Document no =
Company code =
Fiscal year =

Reverse of reversal: T.code F-02
Menu, Document, click on “post with reference” option
Document number = (give the document number to be re-reversed)

Select “Generate reverse posting” option and click on enter
Click on “save” to post it and observe the document number.
Go to T.code FB03 to display re-reversed document.
Mass Reversal T.code F.80
Company code =
Document no =
Fiscal year =
Reason for reversal
=
Select Test Run check

box and click on
execute
List of document that can be reversed is displayed - click on “reverse documents”

Button to reverse all the documents at once.
Accrual /Deferral documents
Accrual concept of accounting: it is the process of accounting for all the expense and
revenues in the month only in which they are incurred or earned even though they are not
actually paid or received.
In every business transaction there are two aspects.

1. service aspect
2. payment aspect
If the service aspect happens first and then the payment aspect, it is called accrual
business transaction. Example: outstanding expenses (expenses payable) and
outstanding incomes (incomes receivable). If the payment aspect happens first and then
the service aspect then it is called deferral business transaction. Example: pre-paid
expenses and incomes received in advance.

Step 1: creation of GL master – Out standing Expenses Account as “Open item

Management” Account
Check up the list of account groups and identify account group under which we have to
create this gl master and choose the gl account number. T.code OBD4
Path: accounting – financial accounting - general ledger – master records - individual

processing – centrally – T.code FS00
GL Account number =
Company code =
Go to menu, G /L account, create
Account group =
Short text
Long text

Go to control data tab,
Account currency =
O open item management
O line item display
Sort key =
Field status group = click on save
Open item management: if any GL account is maintained on the open item

management then we can display the items which are pending for payment
or the items
which are pending for receipt. We can manage only the balance sheet accounts on the
open item management. For the GL account which is managed on the open item
management we display
1. only open items ( items which are pending for payment or the items which are
pending for receipt
OR
2.Only cleared items (the items on which the amount was paid or the items on
which the amount was received
OR
3. all items : we can display both open items and cleared items ( in one
screen).
Step 2 to create reversal reason
Path: SPRO - financial accounting - G/L accounting – business transactions- adjustment

postings/reversal – define reasons for reversal.
Reason =
Text =
Select “neg.postings” (negative posting)
Select “alt.posting.dt” (alternative posting date) click on save
Step 3: posting of accrual document.
Path: accounting – financial accounting – general ledger – periodic processing- closing -

valuate – enter accrual/deferral document T.code FBS1

Posting date = period = Currency/rate =

Reversal Reason =
Reversal date =
Amount =
Business area =
Text =
Amount =
Business area =
Text =
Click on “display document over view” icon
Make corrections if necessary and click on “save” button
Step 4: Display GL account line items T.code FBL3N
GL account no =
Company code =
Select “open items”
Open at key date =
Click on execute.
Observe the status of the document.
Step 5: Reversal of accrual document.
Path: accounting – financial accounting - general ledger – periodic processing – closing –

valuate- reverse accrual /deferral document - T code F.81
Company code =
Document no =
Fiscal year =
Document type =
Select “Test Run” and click on “execute”
Observe, go back and deselect “Test Run” option
Click on “execute” to reverse all accrual
documents.
Step 6: Go to T.code FBL3N to display the document status in “outstanding expenses

account” after reversal of accrual document. T.code FBL3N
GL account no =

Company code =

Open at key date =
Click on execute.
Observe the status of the document
Select “cleared items”
Click on “execute”
And observe the document status.
Note: document AB represents
reversal documents.
GR
OUP
CUR
REN
CY
It is also called client currency or company currency. The group currency is used to prepare
the consolidated financial statements. When the group and company codes are lying in
different countries, the company code Local currencies will be different from client
currency. In that case all the Business transactions posted in the company codes are to be
converted in to the client currency (group currency). For this purposes we have to
maintain the group currency as additional local currency for each company code.
The currency maintained, in addition to the company code local currency, is called
Parallel currency. In addition to the company code local currency, we can maintain
Two parallel currency for each company code.
Step1: identify the group currency. T.code SCC4
Select the client 800

Observer the currency.

Step2: maintain additional currencies for the company code T.code.OB22
Click on “mew entries”

Company code =
Click on “enter”.
2nd local currency
Currency type =
Valuation =
Exchange rate type =
Source currency =
Translation date type =
Step3: Maintain
conversion factors for
group currency.
T.code: OBBS
From on “yes” on the message=
Click
To on “new entries”
Click =
Valid from =
Ration from =
Ratio to =
Step4: maintain exchange rates. T.code: OB08

Valid from =
From currency =
Indirect quotation =
To currency =
Step 5: post of transaction in F-02


Amount =
Business area =
Text
=
Amount =
Business area =
Text
=
Step6: display the document FB03
Document no =
Company code =
Fiscal year =
Click on enter
Click on “display currency”
Select “croup currency”
Click on enter and observe
the value group currency.

ACCOUNTS PAYABLE
This component is used to process the business transactions related to suppliers or vendors
or creditors like purchase invoices, payment to vendors (both full payments and part
payments), advances to vendors, payments through automatic payment program, purchase
returns, TDS (tax deducted at source) where ever necessary and payments to vendors
through bank etc. for this purpose, we have to maintain the master record for every vendor
with reference to company code. Every vendor master record is to be identified with the
number. Vendor master record number is controlled by the vendor accounts groups.
Vendor account groups: based on the similarities in the master data maintenance
requirements, all the vendors are grouped together, which are called vendor account groups.
The mater record for the individual vendors are created under respective vendor account
groups. As every vendor accounts is identified with the number, we create and assign the
number range for every vendor account group. At the time of creating the vendor account,
the user enters the account group under which the account is to be created, then the system
will take the number from the number range of that vendor account group and assigns it to
the master record. We classify vendors as domestic vendors and foreign vendors and
another way of classification may be vendors for raw materials , vendors for stores and
spares, and vendors for expenses etc.


The following are the functions of the vendor account groups.
They control:
A number range for assigning account number to vendor master record.

The field status for the vendor master records created under the respective groups
i.e. which fields are suppressed, required and optional
Whether the number assignment is external (the number to the vendor master record
is given by the user from the defined number ranges) or internal (the number to the
master record is given by the system itself from within the defined number ranges.)

Other important points relating to vendor account groups and vendor master records.
 The SAP R/3 system works on the principle of numbers, as opposed to names, for
master records.
 Each master record has a unique number. You need this number to display or
change the master record and to post to the vendor account.
 The vendor master record number is assigned automatically by SAP R/3 in
sequential order or manually
 SAP R/3 ensures that the numbers assigned are always unique, the system selects
the next number from the interval. When the account number is entered manually,
SAP R/3 checks the number against existing vendor master records.
 A vendor account has the same number for all company codes.
In the real time, the Accounts payable component is integrated with the Material
Management component. When the Materials Management component is implemented and
integrated with the Accounts payable component, the purchase orders and purchase
invoices etc., are processed from Materials Management module and Accounts payable
component of Financial Accounting is used to process the payments to vendors. If the
Materials management component is not implemented, then all the business transactions
relating to vendors are process from Accounts payable component of Financial Accounting
module.
Every vendor master record contains the data under 3 segments.

1. General data
2. Company code data
3. Purchase data.
Vendor master record
General data company code data Purchase data

1.General data: it contains the information like vendor name, number, address, bank
information, tax information and contact person information etc. this is information is
stored at the client level so that this information can be used by all the company codes in
which he is the vendor.
XYZ LIMITED --- VENDOR

(NAME, ADDRESS, BANK AND TAX INFORMATION etc. stored at
client level)
A company code B company code C company code
The general data is common in all the company codes in which he is vendor.
2. Company code data: it contains the information like payment terms (credit period),
payment methods,
Reconciliation account no, tolerance groups etc. this is information is stored at company
code level so that this information is specific and available to that company code only.
XYZ LIMITED --- VENDOR

(NAME, ADDRESS, BANK AND TAX INFORMATION etc. stored
at
client level)
A company code B company code C companycode
Credit period 10days 30 days 45 days
Stored at company code level.

3. Purchase data: it contains the information like, purchase order currency, terms of
delivery, minimum order quantity, etc. which is used by the purchase department of the
company code.
The certain specifications entered in the vendor master record like payment terms
are automatically defaulted each time when we are processing the business
transactions relating to that vendor.
Configuration:
Step 1: Creation of Vendor Account Groups
Path: SPRO – Financial Accounting – Accounts Receivable and Accounts Payable –

Vendor Accounts – Master data – Preparations for creation of Master data – Define A/c
Groups with Screen Layout (Vendors)

Account Group =
Name =
Double Click on “Company Code data”

Double Click on “Account Management”
Make “Reconciliation Account” as Click on Save.
“Required entry”
Account Group =
Name =

Step 2: Creation of number ranges for Vendor accounts – T.code XKN1
Path: Same as above.
Click “Change intervals” button

Click “Insert intervals” button
No =
From Number =
To Number = Click Enter


No =
From Number =
To Number = Click Enter and save.
Step 3: Assign number ranges to Vendor Account Groups OBAS
Click on “Position” button

Account Group = Click Enter
Number range =
Account group = Click on “enter”
Number range = click on “save”
Step 4: Define tolerance groups for Vendors
Path: SPRO  Financial Accounting  Accounts Receivable & Accounts Payable 

Business Transactions  Outgoing Payments  Manual outgoing payments  Define
tolerances (Vendors)

Company Code =
Tolerance group =
Text = Click Save

Step 5: Creation of two GL Accounts – T.Code FS00
Step: Creation of Inventory of Raw Material Account
Check up the list of Account Groups and identify Account Group under which we have to
create this GL Master and choose the GL Account Number – T.Code - OBD4
Path: Accounting  Financial Accounting  General Ledger  Master Records 

Individual Processing  Centrally – T.Code - FS00
GL Account Number =
Company Code
=
Go to Menu, G/L
Account, Create
Account Group = P&L

Statement Account
ShortBalance =
Text Sheet Account
Long Text =
Go to Control Data tab,
Account Currency =
Only balances in local Currency
Line item display
Sort Key =
Field Status Group = Click on “Save”
Step: Creation of Sundry Creditors Account (As Reconciliation Account)
Reconciliation accounts
 it is the control account maintained in the general ledger to post
all the
business transactions effected in the sub ledger accounts i.e.
vendor accounts
 it is used to know the total amount of the vendors payable by the company at
any point of time
 The figure to be represented in the balance sheet is taken from this account.
 we cannot post directly into these accounts

example
Vendor x a/c
To bank 5000 By raw materials 10000
1.
Vendor Y a/c
To bank 15000 By raw materials 25000 Sunder
creditors (total payables) a/c (reconciliation a/c in the general ledger)
To bank (X) 5000 By raw materials (X) 10000
To bank (Y) 15000 By raw materials (Y) 25000
To balance 15000
Sort key 012

(Vendor number)
create this GL Master and choose the GL Account Number – T.Code - OBD4
Path: Accounting  Financial Accounting  General Ledger  Master Records 

Individual Processing  Centrally – T.Code - FS00
GL Account Number =
Company Code
=
Go to Menu, G/L
Account, Create
Account Group = P&L

Statement Account
ShortBalance =
Text Sheet Account
Long Text =

Account Currency
=
Note: “Only balances

in local currency”
should
Faculty:not be selected Swamy
K.Lakshmana Mail id: saplakshman@yahoo.com
for Reconciliation A/cs
Reconciliation Account
for Account type =
Line item display
Sort Key =
Go to Create/Bank/Interest
tab, Field Status Group Click on “Save”
Path: Accounting
Step  Financial
6: Creation of Accounting  Accounts Payable  Master Records 
Maintain centrally  Create – T.Code XK01
Vendor Master
Company Code =
Title =
Name =
Country =
Click “Next Screen” button thrice

Reconciliation Account =
Sort Key =
Cash Management Group =
Click “Next Screen” button
Payment terms =
Tolerance group = Blank
Select “Check Double Invoice” Click Save
Other relevant transaction codes for vendor master records.
Change Vendor Master Record - XK02

Display Vendor Master Record - XK03
Display change made to Vendor Master Record - XK04
Block and UN block Vendor Master Record - XK05
Flag Vendor Master Record for deletion - XK06

Step 7: Define document types and number ranges – T.Code - OBA7
Vendor Document types:

KR - Vendor Invoice (Purchase Invoice) (Number range – 19)
KZ - Vendor Payment (Number range – 15)
KA - Vendor other Document (Number range – 17)
Click on Position, Document type = KR “Enter”,

Select “KR-Vendor Invoice” line and click on “Details” icon
And observe Number range = 19 in “Properties” (i.e. Serial Number of the number range)
Click on “Number range information” button,
Company Code =
Click on “(Change) intervals” button
Click on “(Insert) intervals” button
No. Year from Number to Number
Click on “Insert” and “Save”.

Click on “Enter” after observing the Message.
Click on “Back” button three times
Click on Position, Document type = KZ “Enter”,

Select “KZ-Vendor Payment” line and click on “Details” icon
and observe Number range = 15 in “Properties” (i.e. Serial Number of the number range)

Company Code =

Click on “Back” button three times

Click on Position, Document type = KA “Enter”,
Select “KA-Vendor Document” line and click on “Details” icon

and observe Number range = 17 “Properties” (i.e. Serial Number of the number range)

Company Code =

Step 8: Posting of Purchase invoice – T.Code F-43
Document date = Type = Company Code =

Posting date = Period = Currency =
Posting key = Account = (Vendor Number) “Enter”
Amount =
Business Area =
Payment terms =
Bline date = (Baseline date)
Text =
Posting key = Account = “Enter”
Amount =
Business Area =
Text =
Click on “Overview” Icon and “Save” to post it.
Step 9: Check the Vendor Line item display – T.Code – FBL1N

Vendor Account =
Company Code =
Select O Open Items

Open at key date =
Layout = 1SAP (Standard)
Click on “Execute” Icon and observe the Document Status.

Step 10: Display Vendor Account Balance T.Code - FK10N
Vendor Number =
Company code =
Fiscal year = click on “execute”
Double click on the month totals to see the details of transactions posted
Step 11: Display the balance in “sundry creditors” Reconciliation Account T.Code FS10N
GL account =
Company code =
Fiscal year =
Business area = click on “execute”
Double click on the month totals to see the details of the transactions posted. Observe the
effect of sort key.
Step 12: Posting of outgoing payment – T.Code - F-53

Posting date = Period = Currency
=
Bank Data:
Account = Business Area =
Amount =
Text =
Open Item Selection:

Account = (Vendor Account Number)
Click on “Process Open items” button
Observe Amount entered, Amount assigned and Not assigned fields. To post the payment,
the “not assigned” column should be ensured 0.for this purpose the “amount entered”
should be set off against the invoice. To set off the “amount entered” against the invoice,
the amount entered should be equal to the amount due on the invoice. For setting off the
amount entered against the invoice,
Keep the cursor on Amount entered and double click on amount field of purchase invoice
Against which we want to post outgoing payment. Ensure “Not Assigned” field becomes
zero. Click on “Save” to post the document.

Step 13: Check the Vendor Line item display – T.Code – FBL1N
Vendor Account =
Company Code =
Select O Open Items

Open at key date =

Select “cleared items”
Click on “execute” icon
Observer the document status of cleared items.
PART PAYMENTS
There are two methods to deal with the part payments in SAP. They are
1. partial payment method
2. residual payment method
Partial payment method: under this method the system displays both the amount of the
invoice and part payments made as open items. When the total of the part payments made is
equal to the amount of the invoice, the part payments are cleared against the invoice
amount.
Procedure:
Step1: posting of the purchase invoice T.code. F-43

=
Amount =
Business Area =
Payment terms =
Text =

Amount =
Business Area =
Text =
Step2: posting of part payment T.code F-53

=
Bank Data:
Amount =
Text =


Click on “partial payment” tab; double click on “net amount” column and “payment
amount” column
Against the invoice document number.. Click on
“save”
Step3: display the line items of vendor T.Code FBL1N

2. Vendor Account =
Company Code =
Select O Open Items

Open at key date =
Click on “Execute” Icon and observe the Document Status
Observe that both the amount of the invoice and part payments made are shown as open
items
Step4: post the remaining outgoing part payment T.code F-53


Bank Data:
Amount =
Text =

Click on “Process Open items” button.

amount column” against the invoice document number. Click on
“save”
Step5: display vendor line items T.Code FBL1N
Vendor Account =
Company Code =
Select O Open Items

Open at key date =
Observe that both the amount of the invoice and part payments made are shown as open
items
STEP 6: clearing of part payments against the invoice. T.Code F-44
Account = Clearing date = period =

Company code = currency
Click on “process open items” =
Double click on all the line items.
Step7: vendor line item display. T.code FBL1N
Vendor Account =
Company Code =

Select O Open Items

Open at key date =
Residual payment method:
Under this method only the remaining amount is shown as open item. For this, the system
clears the total amount of invoice (vendor is debited with the total amount of the invoice)
and the system creates another line item for the remaining amount (vendor is again credited
with the remaining amount of the invoice).
Procedure
Step1: post the purchase invoice in F-43

Amount =
Business Area =
Payment terms =
Text =
Amount =
Business Area =
Text =
Step2: post the part payment in F-53

=
Bank Data:
Amount =

Text =

Click on “Process Open items” button. Click on “Residual items” button

Double click on “net amount” column and “residual items” column
Click on “save”
Double click on the blue line item

Text =
Step3: Display vendor line items FBL1N

Vendor Account =
Company Code =
Select O Open Items

Open at key date =
Click on “Execute” Icon and observe that only the remaining amount is shown as open
items

HOUSE BANKS OR BANK ACCOUNTING
 Banking organizations or bank branches are called house banks in sap

 The accounts maintained at house banks are called account ids
 We have to maintain a GL account master record for each account id and
assign that account id in house bank master record.
In sap the House banks are used to process all the accounting transactions done with and
through banks. Using the Bank accounting component, we can define all the required
country specific characteristics like various specifications for both manual and electronic
payment processing, definitions and settings for automatic payment programs,
specifications for data media, definition of payment forms etc.

The bank master data includes the following

1. Address
2. Control data
Address data includes:

 Bank key
 Bank name
 Bank address
 Bank country
The control data includes:
 Swift codes
 Bank groups.
Step 1: Creation of GL A/c – Bank A/c – T.Code FS00
GL A/c Number =
Click “With template”
GL A/c Number = 200100
Company Code =
Give Short Text / Long text =

Select “Relevant to Cash flow” Click Save
Step 2: Creation of House Bank and assignment of GL A/c Number in House Bank
Path: SPRO – Financial Accounting – Bank Accounting – Bank accounts – Define House
Banks - T.Code FI 12
Company Code = Enter,

Click “New Entries”,
House Bank =
Bank country = IN,

Bank key = Click Save
Bank name = Enter Click Save
Double Click “Bank Accounts” Folder.

Account ID =
Description =
Bank A/c Number =

GL A/c Number
= Click Save
Currency
= INR
Step 3: Creation of Cheque lots
Path: Accounting – Financial Accounting – Accounts Receivable – Periodic processing –

Payments
Go to Menu, Environment, Check information, Number ranges - T.Code FCHI
Paying Company Code =

House Bank =
Account ID =
Click “Change” Icon
Click “Create” Icon
Lot Number =
Check Number =
To =
Short Info =
Purchase = Click Save.
Step 4: Purchase invoice posting – T.Code F-43

Document date = Type = Company Code -
Posting key = Account = (Vendor Number) "Enter"
Amount =
Business Area =
Payment terms =
Text =
Posting key = Account = "Enter"
Amount =
Business Area =
Text =
Click on "Overview" Icon and "Save" to post it.
Step 5: Payment of invoice using Bank Account - T.code F-53

Posting date = Period = Currency=

Bank Data:
Amount =
Text =

Click on "Process Open items" button
Observe Amount entered, Amount assigned and not assigned fields.
Keep the cursor on Amount entered and double click on amount field of purchase invoice
against which we want to post outgoing payment. Ensure "Not Assigned" field becomes zero.
Click on "Save" to post the document.
Step 6: Manual check updation – T.Code FCH 5
Payment document Number =

Fiscal Year =
House Bank =
Account ID =
Check Number = Click Save
Step 7: Display Check register – T.Code FCHN

House Bank =
Account ID = Click Execute
Step 8: Check encashment date updation – T.Code FCH6

House Bank =
Account ID =
Check Number = Click Enter
Check encashment = Click Save
Display Check Register – FCHN and see the check encashment date in the Register.
Step 9: Unused checks cancellation – T.Code FCH3

House Bank =

Account ID =
Check Number =
Void reason code = Click Void button
Display Check Register – FCHN and see the check cancellation details in the Register.
Step 10: Creation of Void reason – T.Code FCHV

Reason =
Void Reason Code = click on “save”
Step11: post the payment of rent using bank a/c T.Code F-02

Amount =
Business area =
Text =
=
Amount
Business area ==
Text
=
Step12: update the check register T.code FCH5

Payment document Number =
Fiscal Year =
House Bank =
Account ID =
Check Number = Click Save
Step13: Issued checks cancellation – T.Code FCH8

House Bank =
Account ID =
Check Number =
Void reason code =
Reversal reason = Click “Cancel payment”

Display Check Register – FCHN and see the check cancellation details in the Register.
Correspondence / Party Statement of Account
Step 1: Copy Program to Company Code: T.Code OB78

Select the line item “SAP06 – Account Statement”
Click “Copy as”
Company Code = – Click Save
Step 2: Request for correspondence: T.Code

FB12
Company Code = - Click Enter

Double Click “SAP06 =– Account Statement”
Vendor
Postings from =
Postings to = – Click Enter
Step 3: Maintain correspondence: T.Code F.64
Correspondence = SAP06
Company code = -- Execute
Double click on Line item,
Output device = LP01
Click continue and See the
document.

Advance payments (Down payments)
When the payment is required by the vendor before delivery of goods, then that is called
advance payments. The advance payments are generally required by vendors when the
vendor is new to us or when the goods to be supplied are of very high value.

Reconciliation a/c
1000 vendors------ to pay 10,00,000--- sundry creditors---- displayed on the liabilities

side of balance sheet
To 100 vendors paid adv. of 2, 00,000---- adv. to vendors --- displayed on the assets
side of the balance sheet.
Reconciliation a/c






Step 1: Creation of GL A/c 200150 - Advance to Vendors A/c as Special G/L-FS00
Check up thelist of Account Groups and identify Account Group under which we have to
create this GL Master and choose the GL Account Number - T.Code - OBD4
Path: Accounting→ Financial Accounting → General Ledger →Master Records→

Individual Processing → Centrally - T.Code - FS00
GL Account Number =
Company Code =
Account Group =
O Balance Sheet Account
Short Text =
Long Text =
Go to
Control
Account
Data tab, Currency =
Reconciliation Account for a/c type = Vendors
O Line item display

Sort Key
=
Click on "Save"
Field Status Group

Step 2: Associate Sundry Creditors with Advance to Vendors A/c
Path: SPRO – Financial Accounting – A/cs Receivable & A/cs Payable – Business
Transactions – Down payment made – Define alternative reconciliation A/c for down
payments – T.Code OBYR
Double Click “Down payments on Current Assets”

Chart of Accounts = Click Enter
Reconciliation Account = 100505 (Sundry Creditors)
Special GL A/c = 200150 (Advance to Vendors A/c) Click Save.

Step 3: Advance payment posting – T.Code F-48

Account = (Vendor Number)

Special GL Indicator =A
Bank A/c =
Business Area =
Amount =
Text = "Enter"
Amount =
Business Area =
Text =
Menu, Document, Simulate and Save.
Step 4: Check party A/c (Vendor line item balance display) – T.Code FBL1N
Vendor Account =
Company Code =
Select O Open Items

Open at key date =
Under type select “normal items”

Layout = 1 SAP (Standard)
Click on "Execute" Icon and observe the Document Status.
Select O special GL transactions”
Click on “execute”and observe the document status
Step 5: Purchase invoice posting – T.Code F-43
Document date = Type = Company

Posting date = Code = Period = Currency =

Amount =
Business Area =
Text =
Posting key =

Account =
Amount
Business Area =
Text =
Menu, Document. Simulate and Save.
Step 6: Check party A/c (Vendor line item balance display) – T.Code FBL1N
Vendor Account =
Company Code =
Select O Open Items

Open at key date =

Under type
Select O normal items, click on “execute” and observe the document status
Click on back arrow
Select O special GL transactions
Click on “execute” and observe the document status.
Step 7: Transfer Advance from Special GL to Normal by clearing Special

GL A/c – F-54
Account = (Vendor Number) "Enter"

Text =
Click "Process down payments" button.
Transfer posting = Click Save.
Step 8: Check party A/c – T.Code FBL1N

Vendor Account =
Company Code =
Select O Open Items

Open at key date =
Under type select “normal items”
Click on "Execute" Icon and observe the Document Status.

Step 9: Clearing of normal item – T.Code F-44
Account = Vendor Account Number

Click “Process open items”
Double click both the line items. Click Save.
Step 10: Check party A/c – T.Code FBL1N
Vendor Account =
Company Code =
Select O Open Items

Open at key date =
Under type select “normal items” and
“special GL transactions”
Click on "Execute" Icon and observe
the Document Status.
Advance payments – other

scenarios:
Document date
When the invoice =
amount is more than thetype =
advance company code=
amount.
Posting =
date of advance
Step1: posting period=
paid. T.code : F-48 currency =
Vendor:
Account = special GL indicator=
Bank:
Account = business area=
Amount =
Text = click on enter
Amount =
Business area=
Text =
Click on
“save”
Go to Menu, Document, click “display” and note the document
Step2: posting
Document dateof =purchase invoice.
type T.code.
= F-43 company code =
Posting date = period= currency
Posting key = account= = “enter”
Amount = (customer no)
Business area
Payment
= terms =
Bline date = (base line date)

Text =
Posting key = account =
“enter”
Amount =
Business area =
Text =
Click on “over view” icon and “save” to post it.
Step3: transfer of advance to purchase invoice. T.code- f-54
Vendor: =
Account =
Text =
Click on “process down payments” button
Transfer posting = click “save”
Go to Menu, document, click on “display” and note the document.
Step4: ;posting of remaining part payment made F-53

Document date = Type = Company Code
Posting date =
= Period = Currency
=
Bank Data:
Amount =
Text =

Account = (customer Account Number)

amount column” against the invoice document number. Click on “save”
Step5: clearing of advance and part payment against invoice. T.code F-44
Account = (venor account no)
Click on “process open items”
Double click on both the line items
Click on “save”
Step6: display vendor line items.FBL1N

Vendor account =
Company code =
Select O open items
Open at key date =
Type:


Lay out =1SAP (standard)
Click on “execute” icon and observe the document status
Type:
Select O normal items
When the advance is more then invoice amount.
Step1: posting of advance paid. T.code : F-48

Vendor =
Account = special GL indicator =
Bank:
Amount =
Amount =
Business area=
Text =
Click on
“save”
Step2: posting
Document dateof purchase
= invoice.
type T.code.
= F-43 company code =
Posting date = period= currency =
Posting key = account= (customer no) “enter”
Amount =
Business area
Payment
= terms =
Text =
Posting key = account = “enter”
Amount =
Business area =
Text =
Step3: transfer of advance to purchase invoice. T.code- f-39

Vendor:
Account =
Invoice Ref: =
Text =


Step4: clearing of advance and against invoice. T.code F-44
Account = (vendor account no)
Click on “save”
Step5: display vendor line items.FBL1n
Vendor account =
Company code =
Select O open items
Open at key date =
Type:
Type:
Step1: create GL Account master record for “down payment requests – vendors”

GL Account Number =
Company code
=
Account group =
Short =
text sheet account
O Balance
Long text =
Account Currency
=
Do not select “only balances in local currency” for Reconciliation A/C.
O line item display
Sort key =

Step2: Associate Sundry creditors a/c with down payment requests – vendors a/c

Business transactions – Define alternative reconciliation a/c for down payment. T.CODE:
OBYR
Double click on “special GL indicator – F” down payment requests

Chart of accounts = click on enter
Reconciliation account = (sundry creditors a/c)
Special GL account = (down payment request -
vendors) click on “save”.
Step3: posting of down payment request received from vendors.
Path: Accounting – Financial Accounting – Accounts payable – Document entry – Down

payment – request T.code – F-47

Vendor:
Account (vendor account number)
click on “enter”.
=
Targeted Spl. GL indicator =
Amount
=
Due on
=
Step4: display of vendor line items. T.code: FBL1N
Text
=
Vendor account =
Company code =
Open at key date =
Select “noted items”
Lay out =
Click on “execute”.
Observe that the down payment request received from the vendor is shown as open item.
Step5: posting of the down payment against down payment request. t.code F-48


Account = (Vendor Number)

Special GL Indicator =A "Enter"
Bank A/c =
Business Area =
Amount =
Text =
Click on “requests” button
Select the “request line”
Click on “create down payments” button
Step 6: display of vendor line items.

T.code: FBL1N
Vendor account =
Company code =
Open at key date =
Select “noted items”
Lay out =
Click on “execute”.
Observe the status of down payment request received from the vendor.

One time vendors configuration
Step 1: Creation of Vendor Account Groups
Path: SPRO – Financial Accounting(new) – Accounts Receivable and Accounts Payable –

Vendor Accounts – Master data – Preparations for creation of Master data – Define A/c
Groups with Screen Layout (Vendors)

Account Group =
Name =
Select “one time vendors” check box

Account Group =
Name =


Step 2: Creation of number ranges for Vendor accounts – T.code XKN1

No =
From Number =
Step 3: Assign number ranges to Vendor Account Groups t. code OBAS

Account Group = Click Enter and save.
Number range =
Step4: creation of one time vendor account
Path: Accounting  Financial Accounting  Accounts Payable  Master Records 

Maintain centrally  Create – T.Code XK01
Company Code =
Title =
Name =
Country =
Click “Next Screen” button thrice

Reconciliation Account =
Sort Key =
Cash Management Group =
Click “Next Screen” button

Payment terms =
Tolerance group = Blank
Select “Check Double Invoice” Click Save
Step 5: : Posting of Purchase invoice – T.Code F-43

Posting key Account = ( one time Vendor account Number)

= “Enter”
Name =
City =
Country = click on enter
Amount =
Business Area =
Payment terms =
Text =
Amount =
Business Area =
Text =
Step6: Check the Vendor Line item display – T.Code – FBL1N

Vendor Account =
Company Code =
Select O Open Items

Open at key date =

Step 7: Posting of outgoing payment – T.code - F-53

Posting
= date = Period = Currency
=
Bank Data:
Amount =
Text =

Observe Amount entered, Amount assigned and Not assigned fields. To post the payment,
the “not assigned” column should be ensured 0.for this purpose the “amount entered”
should be set off against the invoice. To set off the “amount entered” against the invoice,
the amount entered should be equal to the amount due on the invoice. For setting off the
amount entered against the invoice,

AUTOMATIC PAYMENT PROGRAM
Step 1: Set up payment method per country for payment transactions
Path: SPRO – Financial Accounting – Accounts Receivable & Accounts Payable –

Business Transactions – Outgoing payments – Automatic outgoing payments – Payment
method / Bank selection for payment program – Set up payment methods per country for
payment transactions

Click “Position”, give Country = IN. If country “India” is set up already, you don’t have to
make any inclusions here. If you don’t have IN country line item,
Click New entries,
Country = IN,
Payment method = C (for check payments)
Description = Payment method for India
Payment method for

Select “Outgoing payment”
Payment method classification

Select “Check”
Posting details
Document type for payment
Clearing
= KZ document = KZ
Payment medium program = RFFOUS_C Click Save
Double Click, Currencies allowed Folder.

Click, “Add New Entries”
Type “INR” Click Save
Step 2: Set up payment methods per Company Code for payment transactions
Path: Same.

Payment method =C
Minimum Amount = 100

Maximum Amount = 999999999
Grouping of items:
Select “Payment for marked item”
Select “Payment per due day”
Click “Form data” button

Form for the payment transfer medium = F110_PRENUM_CHCK
Drawer on the form

“Company Code” Click Save

Minimum amount: the system will use this payment method for those invoices whose
amount is below the amount entered in the “minimum amount” field
Maximum amount: the system will use this payment method for those invoices whose
amount is less than the amount entered in the “maximum amount field”.
Note: these limits are not applied if the payment method is entered in the vendor
master record or in the line item at the time of posting the invoice.
Distribution amount: the payment program analyses this field, and tries to split the
payments so that they are paid through this payment method. The system makes the
distribution analysis independent of the payment method specifications entered in the
line item.

Example:
Distribution 10000 Total Payment

limit method
Invoices paid Invoice no 110 11000
together
Invoice no 113 11500 22500
Credit memos
Cr memo 1 600
Cr memo2 300
Cr memo 3 350
Cr memo 4 350
Cr memo 5 900 2500
Payments made
Invoice no 110 11000
Less: Crmemo2 300
CrMemo3 350
Cr memo4 350 10000 10000
Payment made
Invoice 113 11500
Less:Crmemo1 600
Cr memo5 900 10000 10000
Single payment per marked item: by selecting this indicator the system will print the
cheque for each due line item ( for each due invoice) of the vendor provided the
payment method “C” has been entered at the time of posting the invoice in F-43 or
FB60. Otherwise it print only one cheque for all the due invoices. So we can make the
payment invoice wise.
Example:
X vendor:
Invoice no amount
110 10000
113 20000
116 30000
In the above case, for the x vendor, the system will print 3 cheques. One cheque for
10000, one cheque for 20000 and one cheque for 30000. Otherwise it will print only
one cheque for the total amount of 60000(10000+20000+30000)

Payment per due day: when this indicator is selected, the system groups the invoices
as per the due dates and prints the cheques accordingly. i.e., we can make the
payments due date wise.
Step 3: Set up all Company Codes for payment transactions
Path: Same.
Click “New entries”,
Company Code =
Control data:
Sending company code =
Select “Separate payment per Business area”
Cash discount and tolerances:

Select “Maximum Cash discount” Click Save

Step 4: Set up paying company codes for payment transactions
Path: Same.
Click “New entries”

Minimum amount for incoming payment = 100
Minimum amount for outgoing payment = 100
Click “Forms” button

Form for the payment advice = F110_D_AVIS
Click “Sender details” button

Text Id = ST (Standard Text)
Text elements:

Letter Header = F_0001_HEADER

Footer Text = F_0001_FOOTER
Signature text = (Leave it Blank)
Sender = F_0001_SENDER
Step 5: Creation of GL A/c – Bank A/c – T.Code FS00
GL A/c Number =
Click “With template”
GL A/c Number = 200100
Company Code =
Give Short Text / Long text =
Check up whether “Relevant to cash flow” is selected or not.
Step 6: Creation of House Bank and assign GL A/c Number in House Bank
Path: SPRO – Financial Accounting – Bank Accounting – Bank accounts – Define House
Banks - T.Code FI 12
Company Code = Click Enter

Click “New Entries”,
House Bank =
Bank country = IN,
Bank key =
Save.
Bank name = – Enter Click Save
Double Click “Bank Accounts” Folder.

Account ID =
Description =
Bank A/c Number =
GL A/c Number =
Currency = INR Click Save.
Step 7: Creation of Cheque lots
Path: Accounting – Financial Accounting – Accounts Receivable – Periodic processing –

Payments
Go to Menu, Environment, Check information, Number ranges - T.Code FCHI

House Bank =
Account ID =

Click “Change” Icon

Click “Create” Icon
Lot Number =
Check Number =
To =
Short Info =
Purchase date = Click Enter and Save
Step 8: Set up Bank determination for payment transactions
In this activity, we can set up the ranking order for each combination of house bank and
payment method. For each payment method, in every house bank we can set up the
following parameters.
1. the account id from which the payment method is to be used

2. The Bank GL account to be updated for that account id.
3. the amount to be used from that account id
4. the number of days for which the amount is to be kept in the bank.


Path: SPRO – Financial Accounting – Accounts Receivable & Accounts Payable –

Business Transactions – Outgoing payments – Automatic outgoing payments – Payment
method / Bank selection for payment program – Set up Bank determination for payment
transactions
Click “Position” button,
Select the line item “ ”,
Double Click “Ranking Order” folder,
Payment method =C
Currency = INR
Rank Order =1
House Bank = Click Save
Select the
line item.
Double Click “Bank Accounts”,
House Bank =
Payment method =C
Currency = INR
Account ID =
Bank Sub Click Save
account Click
Double = “Available amounts”
House Bank =
Account Id =
Days = 999 (For normal payments it should be given 999, For
Bills of Exchange – actual duration)
Currency = INR
Available for outgoing payments =
Click Save.
Step 9: Assign payment method in Vendor Account
Path: Accounting – Financial Accounting – Accounts Payable – Master records – Maintain

Centrally – Change - T.Code XK02
company code =
Vendor A/c Number = Give your Vendor A/c Number for whom you are processing
Payments (Repeat this process for all the vendors)
Select “Payment transaction” under Company Code Data group – Click Enter
3. Payment terms = 0001
Select “Check double invoice”
Payment method =C Click Save

Step 10: Invoice posting – T.code F-43
Document date = Type Company Code =

Posting date = Currency =
= Period
=
Amount =
Business Area =
Payment terms =
Text =
Posting key = Account = "Enter"
Amount =
Business Area =
Text =
Click on "Overview" Icon and "Save" to post it.
Post one purchase invoice. Don’t process payment for this invoice manually. Checkup
whether this document is shown as an open item using FBL1N.



Step 11: Execution of Automatic Payment Program - T.Code F110
Path: Accounting – Financial Accounting – Accounts Payable – Periodic Processing –

Payments
Run date =
Identification =
Select “Parameter” tab

Company Code =
Payment method =C
Next Run date =
Vendor = Give your Vendor A/c Numbers
Select “Additional Log” tab

Select “Due date check”
Select “Payment method
Selection in all cases”
Vendor
Faculty: K.Lakshmana
= Give your Vendor A/cSwamy Mail id: saplakshman@yahoo.com
Numbers
Click Save
Go back,
Status shows “Parameters have been entered”.
Click “Schedule proposal” button

Start date =
Select “Start immediately”
Target Computer = Give your
Server name (Press F4 key to
find and insert the name)
Enter
Status shows “Proposal

scheduled”
Enter
Status shows “Proposal has been
Enter
created”
Double Click line item
Double Clickproposal”
Select “Edit again button
Block payment, if you
want. Enter and Click Save.
Select “Reallocate” to
changeGo
Click Bank
backA/c etc. come to Proposal screen.
twice,
Click “Payment run” button. Enter
Go to “Print out/Data medium” tab

RFFOUS_C = (the identification you have given in the first screen)
Click “Maintain Variants” button,
Click “Continue”, Enter
Program run date =
Identification feature = (the identification you have given in the first
screen)
Business Area =
House Bank =
A/c Id =
Check Lot Number =1
Select “Print Checks”

Printer = LP01
Select “Print immediately”
Select “Print payment advice notes”

Printer = LP01

Select “Print payment summary”

Printer = LP01
Number of sample print outs = 0

Select “Do not void any checks”
Click “Attributes” button

Desc = (Give your Identification) Click Save
Click “Back arrow” Save again.
Click “Back arrow”

Select “Print out button”
Job Name = (Identification in the place of question mark)
Enter.
Step 12: To see checks
Path: System – Services – Output control --------- Execute
Select “Spool Number”

Click “Display contents”
Last step: Display Check register

Paying company code =
House Bank = Execute
Verify whether the Invoice is paid (FBL1N) and Vendor A/c (FS00) is updated.

Terms of Payment - Cash Discount :
Step 1: Maintenance of terms of payment
Payment terms: the payment terms are used to

1. to determine the due date for the purchase invoice and sales invoice
2. To calculate the cash discount received in accounts payable and cash discount paid
in accounts receivables
3. to determine the dunning date in account receivable.
Path: SPRO - Financial Accounting - Accounts Receivable and Accounts Payable -

Business Transactions - Incoming Invoices/Credit Memos - Maintain terms of payment
Click "New entries"

Payment terms =
Sales Text = 20
days-3%; 30 days-
2%; 45 days due
Account type:
Select "Vendor"
Select "Customer"
Default baseline date:

Select "No default"
Payment terms:
Term Percentage No. of days

1 3 20
2 2 30
3 45 Click Save
Step 2: Creation of G/L Account - "Cash discount" - T.Code FSOO
create this GL Master and choose the GL Account Number - T.Code - OBD4
Path: Accounting → Financial Accounting → General Ledger →Master Records →

Individual Processing → Centrally - T.Code - FSOO
GL Account Number =
Company Code
=
Go to Menu, G/L
Account,K.Lakshmana
Faculty: Create Swamy Mail id: saplakshman@yahoo.com
Account Group =
O . Balance Sheet Account
Short Text =
Long Text =
Account Currency =
Select "Only balances in local Currency'
Select "Line item display"
Sort Key =
Field Status Group = Click Save
Step 3: Assignment of Cash Discount A/c for automatic postings — T.Code OBXU
Chart of Accounts = ---- Enter
Click on "Save"
Account Number =
Save.
Step 4: Purchase invoice posting - T.Code F-43


Amount =
Payment terms =
Text =
Posting key =
A/c Number =
Amount =
Business Area =
Text =
Step 5: Outgoing payment - T.Code F-53

Posting date = Period = Currency=
Bank data:
Account =
Business Area =
Amount =
Text =
Open item selection:
Account =
Click "Process open
items" Document and Simulate
Menu,
Double Click on Blue line item,
Text =
Click on “save”
Purchase
Returns
(Vendor
Credit
Memo)
Step 1: Define Number ranges

for document type KG -
T.Code OBA7
Path: SPRO - Financial Accounting - Financial Accounting Global Settings - Document -

Document Header - Define document types
Click "Position" button, give "KG", Select "KG-Vendor Credit Memo"

Select "details" button,
Note that the Number Range for KG document type is also "17" which has already been
defined for KA earlier. No need to create again.
Step 2: Posting of Purchase Returns document - T.Code F-41
Note
Path:the document-type
Accounting = KG,Accounting
Financial Posting key- =Accounts
21. Payable - Document entry –
Credit Memo - General
Amount = Business Area =
Text = Purchase return document
Posting Key = 50. Account = Enter,
Amount = *, Business Area =
Text = +

ACCOUNTS RECEIVABLE
This component is used to process the business transactions related to customers or debtors
or like sales invoices, payment to from customers (both full payments and part payments),
and advances from customers. For this purpose, we have to maintain the master record for
every customer with reference to company code. Every customer master record is to be
identified with the number. customer master record number is controlled by the customer
accounts groups.
Customer account groups: based on the similarities in the master data maintenance
requirements, all the customers are grouped together, which are called custoemr account
groups. The mater record for the individual customers are created under respective
customer account groups. As every customer accounts is identified with the number, we
create and assign the number range for every customer account group. At the time of
creating the customer account, the user enters the account group under which the account is
to be created, then the system will take the number from the number range of that customer
account group and assigns it to the master record. We classify customers as domestic
customers and foreign customers for example.

The following are the functions of the customer account groups.
They control:
A number range for assigning account number to customer master record.

The field status for the customer master records created under the respective groups
i.e. which fields are suppressed, required and optional
Whether the number assignment is external (the number to the customer master
record is given by the user from the defined number ranges) or internal (the number
to the master record is given by the system itself from within the defined number
ranges.)
Other important points relating to customer account groups and customer master
records.
 The SAP R/3 system works on the principle of numbers, as opposed to names, for
master records.
 Each master record has a unique number. You need this number to display or
change the master record and to post to the vendor account.
 The customer master record number is assigned automatically by SAP R/3 in
sequential order or manually
 SAP R/3 ensures that the numbers assigned are always unique, the system selects
the next number from the interval. When the account number is entered manually,
SAP R/3 checks the number against existing customer master records.
 A customer account has the same number for all company codes.
In the real time, the Accounts receivable component is integrated with the Sales and
Distribution component. When the Sales and Distribution component is implemented and
integrated with the Accounts Receivables component, the sales orders and sales invoices
etc., are processed from Sales and Distribution module and Accounts receivable component
of Financial Accounting is used to process the payments from customers. If the Sales and
Distribution component is not implemented, then all the business transactions relating to
customers are process from Accounts receivables component of Financial Accounting
module.
Every vendor master record contains the data under 3 segments.

4. General data
5. Company code data
6. Sales area data

Customer master record
General data company code data Sales data
1.General data: it contains the information like customer name, number, address, bank
information, tax information and contact person information etc. this is information is
stored at the client level so that this information can be used by all the company codes in
which he is the customer
XYZ LIMITED --- customer

(NAME, ADDRESS, BANK AND TAX INFORMATION etc. stored at
client level)
A company code B company code C company code
The general data is common in all the company codes in which he is customer
2. Company code data: it contains the information like payment terms (credit period),
payment methods,Reconciliation account no, tolerance groups etc. this is information is
stored at company code level so that this information is specific and available to that
company code only.
XYZ LIMITED --- custoemr

(NAME, ADDRESS, BANK AND TAX INFORMATION etc. stored
at
client level)
A company code B company code C companycode

Credit period 10days 30 days 45 days
Stored at company code level.

3. Sales data: it contains the information like, order order, terms of delivery, etc. which is
used by the sales department of the company code.
The certain specifications entered in the customer master record like payment terms
are automatically defaulted each time when we are processing the business
transactions relating to that customer.
Configuration:
Step1: creation of customer account groups
Path: SPRO- financial accounting – accounts receivable and accounts payable – customer
accounts – master data – preparations for creation of master data – define account group
with screen layout (customers) T.Code OBD2
Account group =
Name =
Double click on “company code data”, double click “account management”, and select
“reconciliation account” as required entry. Click on save
Click on next entry button
Account group =
Name =
Double click on “company code data”, double click “account management”, select
“reconciliation account” as required entry. Click on save
Step2: creation of number ranges for customer accounts T.Code – XDN1
Path: same as above
Click on ‘change on intervals” icon, and then click on “insert interval” button
No =
From number =
To number =
Click on “insert”

Click on “save” and “enter”
Step3: assign number ranges to customer account groups T.Code OBAR
Path: same as above

Account group = “enter”
Number range = click “save” and “enter”
Step4: creation of “sales a/c” T.code – FS00
Gl account no =
Company code =
Go to menu, gl account, create
Account group =
0 p and l statement account
0 balance sheet a/c
Short text =
G/l account long text =
Go to “control data tab”,
Account currency =
0 only balances in local currency
0 line item display
Sort key =
Go to “create/bank/interest” tab
Step5: creation of “sundry debtors a/c” (as Reconciliation a/c). T.code FS00
Reconciliation accounts
 it is the control account maintained in the general ledger to post all the
business transactions effected in the sub ledger accounts i.e. customer account
and vendor accounts
 it is used to know the total amount to be received from all the custoemrs by
the company at any point of time
 The figure to be represented in the balance sheet is taken from this account.
 we cannot post directly into these accounts

Example:
Customer A A/c
To sales a/c 10000 By bank a/c 7000
Customer B A/c
To sales a/c 20000 By bank a/c 10000
Sundry debtors A/c (Total receivables A/c) reconciliation a/c in General Ledger
To sales (A) 10000 BY Bank a/c (A) 7000
To sales (B) 20000 By Bank (B) 10000
BY balance 13000
Customer no 031 (sort key)
GL account number =
Company code =
Go to menu,GL account, create
Account group
=
0 p & l statement a/c
0 balance sheet a/c
Short text
=
Long text
= not select” only balances in local currency (because it is reconciliation account)

“Do
Go to “control data” tab
Reconciliation Account for account type =
Account currency =
0 line item display

Sort key =
Click on “save”
Step: 6 Creation of customer master record
Path: accounting – financial accounting – a/cs receivable – master records – maintain

centrally - create t.code XD01
Account group =
Company code = click on “enter”
Title =
Name =
Country =
Click on “company code data” button

Reconciliation account = (sundry debtors a/c)
Sort key =
Cash management =
group
Click on “payment transactions tab”
Terms of payment = click on “save”
Other relevant transaction codes for Customer Master Records:
1. Change Customer Master Record XD02

2. Display Customer Master Record XD03
3. Display changes to Customer Master Record XD04
4. Block/unblock Customer Master Record XD05
5. Flag Customer Master Record for Deletion XD06
Step 7: Define types and number ranges t.code OBA7
Customer document types
DR - customer invoice(sales invoice) (number range - 18)

DZ - customer payment (number range - 14)
DA -customer document (number range - 16)
Click on “position”, document type = DR, click on enter.

Select “DR- customer invoice” line and click on “details” icon

And observe number range = 18 in “properties” (i.e. serial no of number range)
Click on “number range information” button
Company code =
Click on “(change) intervals” button
Click on “(insert” intervals” button
No. year from number to number
Click on “insert” button and “save”

Click on “enter” on the message.
Click back arrow three times
Click on “position” button, document type = DZ “enter”

Select “DZ – customer payment” line and click on “details” icon
And observe number range = 14 in “properties” (i.e. serial number of the number
range) Click on “number range information” button
Company code =
Click on “(change) intervals”
button Click on “(insert) intervals”
button
Click on “insert” and “save”

Click on “enter” on the message after observing it
Click on back button three times
Click on “position”. Document type = DA “enter”

Select “DA” - customer document “ line and click on “details” icon
And observe the number range = 16 under “properties” (i.e. serial number of the number
range)
Click on “number range information” button

Company code =
Click on “(change) interval” button
Click on “(insert) intervals” button

Click on “insert” and “save”

Click on “enter” after observing the message.
Step8: Posting of sales invoice T.Code F-22
Path: accounting – financial accounting – accounts receivable – document entry – invoice

general

Posting date = period = currency =
Posting key = account = (customer no) “enter”
Amount =
Business area =
Payment terms =
Text =
Posting key = account = click on enter
Amount =
Business area =
Text
=
Click on
“overview” icon
and “save” to post
Customer
it account =
Company code =
Step: 9 check
Select 0 open
customer line items
item
Open at key date
display - T.Code - =
FBL5N
Lay out = 1SAP (STANDARD)
Click on “execute” button and observe the document status.
Step 10: display customer account balances T.code: FD10N
Customer Account no =
Company code =
Double click on the month totals to see the transactions posted in the month.

Step 11: display the balance in “Sundry Debtors Account” T.Code FS10N
GL Account =
Company code =
Fiscal year =
Business area = click on “execute”
Observe the effect in the Reconciliation Account
Step12: posting of incoming payment - T.Code F-28

Bank data:
Amount =
Text =

Account = (customer account number)
Click on “process open items” button
Observe amount entered, amount assigned and not assigned.
Keep the cursor on amount entered and double click on amount field of sales invoice
against which we want to post incoming payment. Ensure “not assigned” field becomes
zero
Click on “save” to post the document.
Step:13 Check the customer line item display T.code FBL5N
Customer account no =
Company code =
Select O open items

Open at key date =
Step14: display the account balance in Customer Account. T.Code. FD10N

Customer account =
Company code =
Double click on the month totals to see the details of the business transactions posted in
that month.
Step15: display the balance in ‘sundry debtors account’ T.Code. FS10N
GL account number =
Company code =
Observe the effect
of the sort key
PART PAYMENTS
There are two methods to deal with the part payments in SAP. They are
3. partial payment method
4. residual payment method
Partial payment method: under this method the system displays both the amount of the
invoice and part payments received as open items. When the total of the part payments
received is equal to the amount of the invoice, the part payments are cleared against the
invoice amount.
Procedure:
Step1: posting of the sales invoice T.code. F-22

Posting key = Account = (Customer number) “Enter”
Amount =
Business Area =
Payment terms =
Text =
Amount =
Business Area =

Text =
Step2: posting of part payment received T.code F-28

=
Bank Data:
Amount =
Text =

Account = (Customer Account Number)

amount” column against the invoice document number
Click on
“save”
Step3: display
Customer the line items of= Customer T.Code FBL5N
Account
Company Code =
Select O Open Items

Open at key date =
Observe that both the amount of the invoice and part payments received are shown as open
items
Step4: post the remaining incoming part payment T.code F-28

=
Bank Data:
Amount =
Text =



Step5: display customer line items T.Code - FBL5N
Customer Account =
Company Code =
Select O Open Items

Open at key date =
Observe that both the amount of the invoice and part payments received are shown as open
items
STEP 6: clearing of part payments against the invoice. T.Code F-32
Account = Clearing date = period = currency

Company code = =
Double click on all the line items.
Step7: Customer line item display. T.code FBL5N
Customer Account =
Company Code =
Select O Open Items

Open at key date =

Residual payment method:
Under this method only the remaining amount is shown as open item. For this, the system
clears the total amount of invoice (customer is credited with the total amount of the
invoice) and the system creates another line item for the remaining amount (customer is
again debited with the remaining amount of the invoice).
Procedure
Step1: post the sales invoice in F-22

Posting key Account = (customer Number) “Enter”

= Amount =
Business Area =
Payment terms =
Text =
Amount
Business Area =
Text =
Step2: post the part payment in F-28

=
Bank Data:
Amount =
Text =

Click on “Process Open items” button. Click on “Residual items” button

Double click on “net amount” column and “residual items” column against the invoice
document number.
Click on “save”
Double click on the blue line item

Text =
Step3: Display customer line

items FBL5N
Customer Account =
Company Code =
Select O Open Items

Open at key date =
Click on “Execute” Icon and observe that only the remaining amount is shown as open
items

ADVANCE PAYMENTS (DOWN PAYMENTS):
When the payment is required from the customer before delivery of goods, then that is
called advance payments. The advance payments are generally required by us when the
customer is new to us or when the goods to be supplied are of very high value.




Step: 1 creation of advance from customers account (special GL account) t.code. FS00
GL Account no. =
Company code =
Go to Menu, GL account, create
Account group =
Short text =
G/L Account log test =
Go to “control data” tab
Account currency =
“Do not select” only balances in local currency (because it is the reconciliation ac/)
Rcon.account for account type =
O line item display

Sort key =

Click on save.
Step:2 Associate Sundry Debtors A/c with Advance from customers A/C – T.code OBXR
Double click “Down payment”

Chart of accounts = click on “enter
Reconciliation account = (Sundry Debtors A/C)
Special GL account = (advance from
Click on “save” customers A/C)
Step:3 Advance receipt posting - T.Code F-29

Customer:
Bank:

Amount =
Text click on enter
=
Amount =
Business area=
Text =
Click on
“save”
Step:4 check party a/c (customer line item display) – T.Code FBL5N
Company code
=
Select O open items
Type:
Select O special GL
transactions
Lay out
=1 SAP (standard)
Posting
Click ondate =
“execute” period= currency =
icon and observe
the document
Posting key status
= account= (customer no) “enter”
Amount =
Step:5 sales invoice
Business area F-=
posting T.Code
Payment
22 terms =
Text =

“enter”
Amount =
Business area =
Text =

Step:6 check party account (customer line item display) - T,code FBL5N
Company code =
Select O open items

Open at key date =
Type:
Select O special GL
transactions
Lay out = 1SAP (standard)
Click on “execute” icon and observe the document status.

Click on back arr0w
Type:
Click on “execute” icon and observe the document status.
Step: 7 Transfer advance to sales invoice Tcode – F-39


Customer:
Account =
Invoice Ref: =
Text =
Step: 8 check party account (customer line item display) T.Code FBL5N
Company code =
Select O open items

Open at key date =
Type:
Select O GL
transactions
Type:
Step: 9 clearing of normal item F-32
Account = (customer account no)

Click on “save”
Step:10 check party account(customer line items display) FBL5N
Customer account =
Company code =
Select O open items

Open at key date =
Type:

Type:
Advance payments – other scenarios:
When the invoice amount is more than the advance amount.
Step1: posting of advance received. T.code : F-29

Customer:
Bank:
Amount =
Amount =
Business area=
Text =
Click on
“save”
Step2: posting of sales invoice. T.code. F-22


Amount =
Business area =
Payment terms =
Text =

“enter”
Amount =
Business area =
Text =
Step3: transfer of advance to sales invoice. T.code- f-39

Customer:
Account =
Invoice Ref: =
Text =
Step4: posting of part payment received (remaining)

=
Bank Data:
Amount =
Text =



Step5: clearing of advance and part payment against invoice. T.code F-32

Click on “save”
Step6: display customer line items.FBL5N
Customer account =
Company code =
Select O open items

Open at key date =
Type:

Type:
When the advance is more then invoice amount.
Step1: posting of advance received. T.code : F-29

Customer:
Bank:
Amount =

Amount =
Business area=
Text =
Click on
“save”
Step2: posting of sales invoice. T.code. F-22

Amount =
Business area =
Payment terms =
Text =

“enter”
Amount =
Business area =
Text =
Step3: transfer of advance to sales invoice. T.code- f-39

Customer:
Account =
Invoice Ref: =
Text =

Step4: clearing of advance and against invoice. T.code F-32

Click on “save”
Step5: display customer line items.FBL5N
Customer account =
Company code =
Select O open items

Open at key date =
Type:

Type:

One time customers
Configuration
Step 1: Creation of one time customer Account Groups
Path: SPRO – Financial Accounting(new) – Accounts Receivable and Accounts Payable –

customer Accounts – Master data – Preparations for creation of Master data – Define A/c
Groups with Screen Layout (customers)

Account Group =
Name =
Select “one time account” check box
Step 2: Creation of number ranges for customer accounts – T.Code XDN1



No =
From Number =
Step 3: Assign number ranges to customer Account Groups

Number range = save.
Step4: creation of one time customer account
Path: Accounting  Financial Accounting  Accounts receivable  Master Records 

Maintain centrally  Create – T.Code Xd01
Account group =
Company code = click on “enter”
Title =
Name =
Country =
Click on “company code data” button

Reconciliation account = (sundry debtors a/c)
Sort key =
Cash management =
group
Click on “payment transactions tab”
Terms of payment = click on “save”
Step 5: : Posting of Purchase sales invoice – T.Code F-22

Posting key = Account = ( one time customer account Number)

“Enter”
Name =
City =
Country = click on enter
Amount =
Business Area =

Payment terms =
Text =
Amount =
Business Area =
Text =
Step6: Check the customer Line item display – T.code – FBL5N

customer Account =
Company Code =
Select O Open Items

Open at key date =
Step 7: Posting of incoming payment – T.code – F-28

=
Bank Data:
Amount =
Text =

Account = (one time customer Account Number)
Observe Amount entered, Amount assigned and Not assigned fields. To post the receipt, the
“not assigned” column should be ensured 0.for this purpose the “amount entered” should be
set off against the invoice. To set off the “amount entered” against the invoice, the amount
entered should be equal to the amount due on the invoice. For setting off the amount
entered against the invoice,

Keep the cursor on the amount entered and left click, and double click on the amount of
the invoice again which you want set off the receipt.
Click on save.
Step8: display one time customer account line items. FBL5N
Customer account =
Company code =
Select open items
Open at key date =
Lay out =
Click on
“execute”
Observe the line
item status.
Configuration for cash discount paid.
step 1: creation of GL account “Cash Discount Paid”.

GL Account Number =
Company code
=
Go to Menu, G/L
Account, Create
Account group =
Short =
text sheet account
O Balance
Long text =
Account Currency =
O line item display
Sort key =

Step2: assign the GL account “Cash Discount paid “ for automatic postings.
T.code.OBXI
Chart of accounts =
Account =
Click on ”save”
Step3: sales invoice posting T.Code F-22

Amount =
Business area =
Payment terms =
Text =

“enter”
Amount =
Business area =
Text =
Step4: posting of incoming payment. F-28

Bank data:
Amount =
Text =

Account = (customer account number)

Click on “process open items” button
Observe amount entered, amount assigned and not assigned.
Keep the cursor on amount entered and double click on amount field of sales invoice
against which we want to post incoming payment. Ensure “not assigned” field becomes
zero
Click on “save” to post the document.
Sales Returns (customer credit memo)
Step1: define the number ranges for document type DG --- T.code OBA7
Path: SPRO- financial accounting – financial accounting global settings – document –

document header – define document types.
Document type =
Select the document type “DG – vendor credit memo
Note that the number range for DG document type also is 16 which has already been
defined for DA earlier. So no need to define the number ranges again.
Step2: posting of sales returns document
Path: Accounting – Financial Accounting – Accounts Receivable – Document entry – credit

memo –general. T.code F-27

Amount =
Business area =
Text =

=
Amount =
Business area =

Text =
DUNNING
The literal meaning of dunning is to remind. Using this dunning program we

configure the system to generate the reminders to be sent to customers. We can use
this dunning program to generate the reminders to be sent to the vendors also when
their accounts are showing debit balances.
Dunning area: it is the organizational unit within the company code for which the
dunning is to be conducted. We can send the separate dunning notices (reminders)
and we can use the separate dunning procedures for each dunning area. The
definition of the dunning areas is optional when the whole company code is considered
as one dunning area. We can design the dunning areas on the basis of one or more of
the following criteria.
1. Sales organization
2. Distribution channel
3. Division
4. Business area.

Dunning procedure: it is the combination of the parameters which describe how the
dunning is to be conducted. In each dunning procedure we define, the number of
dunning levels, dunning frequency, line item grace periods, and dunning charges,
minimum amounts for dunning and dunning texts. Every customer master record
should be assigned with one dunning procedure. We can define any no of dunning
procedures based the client’s requirement.
Configuration:
Step 1: Define Dunning areas – T.Code – OB61

Business Transactions – Dunning – Basic settings for Dunning – Define dunning areas
Click “new entries”

Company code =
Area =
Text = Click save
Step 2: Define Dunning procedures – T.code – FBMP
Path: SPRO – Financial Accounting – Accounts receivable and Accounts Payable –

Business Transactions – Dunning – dunning procedure – Define Dunning procedures
Click “new procedures”

Dunning procedures =
Description =
Dunning intervals in days =
No. of Dunning levels =
Line item grace period =
Select “Standard Transaction Dunning”
Reference dunning procedure =
Click “Dunning text”

Company Code =
Select “customer”- Click on Enter
Select “new company code”

Company code =
-
click on Enter
Select “separate notice for Dunning Level”.
Click “Back arrow”, Click on Save.
Click “Dunning Text”

Company Code =
Select “Customer” – Click on enter
Normal Dunning Procedure Form
1 F150_DUNN_01
2 F150_DUNN_01
3 F150_DUNN_02
4 FI50_DUNN_02
Click “Dunning Levels”

Click “Charges” (to impose the charges)
Currency =INR Click on Enter
Click “Minimum Accounts” (to specify the minimum amounts if any)
Currency = INR Click on Enter Go back and Save
Ignore warning massages by Clicking on enter button
Step 3: Assignment of Dunning procedure in customer master -T.code –

XDO2
Company code =
Customer = (customer A/c Number) Click on enter
Click on “Company Code data”, and go to “correspondence” tab

Dunning procedure= Click save
Step 4: sale invoice posting – T.code – F-22

Posting date =
= Period = Currency
Posting Key = =
Amount =
Account = (Customer Number) “Enter”
Business Area =
Payment terms =
Bline date = (Baseline Date)
Text =
Posting Key = Account = “Enter”
Amount =
Business Area =
Text =
Click on “Over view” Icon and “Save” to post it.

Go to Menu, Document, Click on “Display” and Note the Document.
Step 5: Dunning – T.code – F150
Path: Accounting – Financial Accounting – Accounts Receivable – periodic processing –

Dunning T.code - F150
Run on =
Identification =
Click “parameter” Tab,

Dunning date =
Documents posted up to =
Customer = (Customer A/C Number) Click on save
Go back,
Click on “Schedule” button
Select “Start immediately”
(Printer name)
Click on “Schedule” button

– Click on Enter
Click – Enter until message
“Dunning Selection is
complete” appears
Click on “Dunning print out” button

Click “Continue”
Click “print”
Click – Enter until message “Dunning print out is complete” appears.
Click on “Sample Print out” button

Output devices = LP01 – Enter
Customer number = (Customer Account number)

Click “print”
Click – Enter until message “sample print out is complete”
appears.
Click “individual Dunning notice”

Output device = LP0I – Enter
Company Code =
Click on “Sample print out” and
Click on continue and then Click
Faculty:
on cancelK.Lakshmana Swamy Mail id: saplakshman@yahoo.com
Click on “Dunning History” button (by clicking on dunning history button and by giving
the information of Account type and company code, the system will update two fields in
1. Date of last dunned 2. Dunning level)

Account type = D
Company Code = Click Execute
Select the identification “ ”
Click on “Display Dunning notice”,
Keep the cursor on Document
Click on “Print preview”
Click “Continue” to see the
dunning letter.
Step 6: Check Customer Master – T.code – XDO2
Customer Number = Give Customer A/c Number

Company Code Click Enter
Go
= to “corresponding tab” in “Company Code data”
And Note the updation of dunning dates and dunning level.
CASH JOURNAL
The cash journal is a sub ledger of Bank Accounting. It is used to manage a

company's cash transactions. The system automatically calculates and displays the opening
and closing balances, and the receipts and payments totals. You can run several cash
journals for each company code like branch wise and/or department wise.
It is also used to process the following transactions:
1. Cash purchases
2. Cash sales
3. Small payment to vendors
4. Small receipts from customers
5. Receipts from the bank (withdrawals)
6. Payments into bank (deposits)
7. Payment of expenses through cash
8. Receipt of revenues through cash
Advantages:
 Number of cash journal business transactions can be created as a part of

customizing. Hence it is easy, smooth and fast to make entries in the cash journal.
 In a two-step procedure, you save the entries in the cash journal before they are
transferred to Financial Accounting.
 If you have the appropriate authorization, you can delete cash journal entries that
have been saved.

 The cash journal is a single-screen transaction. This means that you can enter,
display, and change cash journal documents on one screen.
 Cash journal entry (receipt, payment) can be printed easily. Also cash journal
printing is possible.
 The system automatically calculates and displays the opening and closing balances,
and the receipts and payments totals.
 Cash journal ensures that cash balance cannot go in negative.
 All cash transactions are available at one place.
 Cash position can be viewed at any point of time.
 Cash transactions (receipts, payments) can be easily analyzed on daily / weekly /
monthly basis.
 Configuration time is also very less.
Step1: creation of GL account for cash journal
Path: SPRO – financial accounting – bank accounting – business transactions – cash

journal – create GL account for cash journal T.Code. FS00
GL Account no =
Company code =
Go to Menu, GL Account, create
Account group =
Select “balance sheet a/c”
Short text/long text = petty cash a/c
Go to “control data tab”
Account currency = INR

Select “only balances in local currency”
Select “line item display”
Sort key =
Filed status groups = G001

Select “post automatically” click on save
Step2: define number range intervals for cash journal documents
Path: same as above

Company code =
Click on “change internals” button
Click on “insert interval” button
No. range =01
Year =
From no =1
To no =100000 click on enter and save
Sstep3: set up cash journal.
Path: same as above
Click on “New entries” button

Company code =
Cash Journal no (CJ no) =1
GL account =200102
Currency =INR
DT GL Acct. =SA
(Document type)
D.Type.vept = KZ
(Document type for vendor payment)
D.Type.vept to company =KZ
(Document type for vendor payment to company)
D.Type.cupt. =DZ
(Document payment for customer payment)
D.typ.cupt. =DZ
(Document type for customer payment by the company)
Cash journal name = petty cash book
Click on “save”
Step4: create/delete/change business transactions.
Path: same as above

Company code =
Business transactions type = ‘R’ (Revenue)
GL account = 200102(petty cash a/c)
Cash journal business transaction = Revenue
Select “account modifier” check box
Company code =
Business transaction type = ‘E’ (Expenses)
Cash journal business transaction type = Expenses
Select “account modifier checks” box click on “save”

Step5: set up print parameters for cash journal

Company code =
Program = RF CASH 20
Correspondence = SAP18 (cash journal format given in the system)
Click on “save” .
Step6: Posting of transactions;
Path: accounting – financial accounting – general ledger = document entry – cash journal
posting T.code. FBCJ
Date =
Company code =
Cash journal =1
Click on
“Enter”.
Select “cash receipt” tab = select “revenue”
Business transaction =
Amount = 300000(sales)
GL account =
Business area
Click on post
button.
Similarly post expenses also by selecting the “cash expenses” tab
Click on “print cash journal” button.

U can see the print of cash journal

ASSET ACCOUNTING









Step1: check country specific settings:
In his step we define the general parameters at the country level for the asset accounting
like country currency, and maximum value for Low Value assets.
Path: SPRO- financial accounting – asset accounting –organizational structures – check

country specific settings. T.code OA08
Country =
Select the country “IN”
Country currency =
Max. LVA amount for posting=
Click on “save.

Step 2: Copy Reference Chart of Depreciation / Depreciation Areas
Path: SPRO – Financial Accounting – Asset Accounting – Organizational structures –

Copy reference Chart of Depreciation / Depreciation areas – T.Code EC08
Double Click “Copy reference Chart of Depreciation”

Go to Menu, Organizational Objects, Copy organizational object,
From Chart of Depreciation = ODE maximum valuation - Germany

To Chart of Depreciation = Enter
Ignore all the messages
Click back arrow, Double Click on “Specify description of Chart of Depreciation”

Click on position, chart of depreciation = click on “enter”
Description = Click Save
Click on back arrow, Double Click on “Copy/Delete Depreciation Areas”

Chart of Depreciation = click on “Enter”
Go to Menu, Edit, Selections, Select all,
Deselect “01-Book depreciation”
Deselect “02 –special tax depreciation for APC in financial statements”
Deselect “03 –special reserves because of special tax depreciation”
Deselect “32 – book depreciation in Group currency”
Go to Menu, Edit, delete.
Keep clicking enter till all the lines are deleted. Click Save
Note: It may not allow to delete tax and consolidation areas.
Step 3: Creation of 0% tax code for Sales and Purchases
Path: SPRO – Financial Accounting – Financial

Accounting Global Settings – Tax on sales
/ purchases – Calculation – Define tax codes for sales and
purchases
Tax codeFTXP = V0 Click Enter

T.Code
Tax code = 0% Input tax
Tax type
Country == V
IN(Input tax)Enter
Click Click Enter
Input tax =0
Output tax = Click on “Deactivate line” Click Save
Tax code = A0 Click Enter

Tax code = 0% Output tax
Tax type = A (Output tax) Click Enter
Output tax =0
Input tax = Click on “Deactivate line” Click Save

Step 4: Assign tax code for non-taxable transactions
Path: SPRO – Financial Accounting – Financial Accounting Global Settings – Tax on

Sales / Purchases – Posting – Assign tax codes for non-taxable transactions - T.Code
OBCL
Click on “Position” button, Company Code = Click Enter
Input tax = V0
Output tax = A0 Click Save
Step 5: Assign Chart of Depreciation to Company Code

Assign Chart of Depreciation to Company Code – T.Code OAOB
Click on “Position” button, Company Code = Click Enter

Chart of depreciation = Click Save
Step6: specify the use of parallel currencies.
. Path: SPRO- financial accounting – Asset Accounting – Valuaiton – Currencies – specify

the use of parallel currencies
Depreciation area =
Click on enter
Currency type/valuation view= select “30 group currency”
Adoption of values for depreciation area= select 01
Select “identical transfer of acquisition value”
Depreciation terms transfer from depreciation area”= select 01
Select “identical depreciation terms copied”
Click on save.

Step 7: Specify Account Determination

Asset classes – Specify account determination

Account determination key Nam of the account determinitation
Click on “save”..

Step 8: Create Screen lay out rules
Path: Same path.

Select the rule 1000 – land
Click on copy as button
Screen lay out rule =
Name of the rule =
Select the rule 1100 - buildings

Screen lay out rule
= Name
of the rule =

Click on enter
Select the rule 2000 - plant and machinery

Name of the rule =
Click on enter
Select the rule 3000 -

furniture Click on copy as
button Screen lay out rule
=
Name of the rule =
Click on enter
Select the rule 3100 -

furniture Click on copy as
button Screen lay out rule
=
Name of the rule =
Select the rule
Click on enter 4000 - assets under construction.
Name of the rule =
Click on enter
Step 9: Define number range intervals – T.code AS08
Path: Same path

Click on “Change intervals” button, Click on “Insert
interval” button, Click Enter
No. From Number To Number

01 1 100000 Click Insert and similarly enter the following number
ranges
02 100001 200000
03 200001 300000
04 300001 400000
05 400001 500000
06 500001 600000 Click Save

Step10: Creation of Asset Classes – T.Code OAOA
Path: Same path.
Click on “New entries”,

Asset Class = - Land
A/c determination =
Number range
Select “Include Asset” under inventory data.
=
Select “No AuC or summary management of AUC” Click Save.
Click on “Next entry”
Asset Class = - Buildings

A/c determination =
Number range
Select
= “Include Asset” under inventory data.
Asset Class = - Plant

A/c determination =
Number range
=

Asset Class = - Furniture & Fixtures
A/c determination =
Number range
=

Asset Class = - Vehicles
A/c determination =
Number range
=


Asset Class = - Expansion I
A/c determination =
Number range
=
Note: Deselect “Include Asset” under inventory data.
Select “Line item settlement” Click Save.
Step 11: Creation of GL Accounts – T.code FS00
1. GL Account Number =
Company Code =
Go to menu, GL account, create,
A/c Group =
Select “Balance Sheet item”
Short Text =
Long Text =
Don’t select “Only balances in local currency”

Reconciliation account for acct type =
Select “Line item display”
Sort key =
Go to Create/bank/interest tab,
Field Status Group = Click Save
Company Code =
Click on “With template”
GL Account Number = 200000
Short / Long Text = Buildings Click Save
Company Code =


Short / Long Text = Plant & Machinery Click Save
Company Code =
Short / Long Text = Furniture & Fixtures Click Save
Company Code =
Short / Long Text = Vehicles Click Save
Company Code =
Short / Long Text = Capital Work-in-Progress Click Save
Company Code =
Account Group = Accumulated Depreciation
Short / Long Text = Accm. Depn. – Buildings Click Save
Company Code =
Short / Long Text = Accm. Depn. – Plant & Machinery Click Save
Company Code =


Short / Long Text = Accm. Depn. – Furniture & Fixtures Click Save

Company Code =
Short / Long Text = Accm. Depn. – Vehicles Click Save
11. GL Account Number = 300100

Company Code =
A/c Group = Other Income
Select “P&L account item”
Short Text/Long Text = Sale of Asset Account

Select “Only balances in local currency”
Select “Line item display”
Sort key = 018
(Asset number)
Go to Create/bank/interest tab,
Field Status Group = G052 Click Save

Company Code =
Short / Long Text = Profit on Sale of Asset
Field Status Group = G001 Click Save

Company Code =
Account Group = Administration Expenses
Short / Long Text = Loss of Sale of Asset Click Save

Company Code =


Short / Long Text = Loss due to scrapping Click Save
15. GL Account Number = 400500

Company Code =
Account Group = Depreciation
Short / Long Text = Depreciation Click Save
Step 12: Assignment of Accounts for automatic postings
Path: SPRO – Financial Accounting – Asset Accounting – Integration with General Ledger
– Assign GL Accounts – T.code AO90
Select “ Chart of Accounts”

Double Click “Account Determination”
Select “ – Land” line
Double Click “Balance Sheet Accounts”
Acquisition: Acquis. And production costs = 200000 (Land A/c)
Loss made on asset retirement w/o revenue = 400303 (Loss due to Scrapping A/c)
Clearing account revenue from asset sale = 300100 (Sale of Asset A/c)
Gain from asset sale = 300101 (Profit on Sale of Asset A/c)
Loss from asset sale = 400302 (Loss on Sale of Asset A/c)
Click Save and go back twice,
Select “ – Buildings” line

Double Click “Balance Sheet Accounts”
Acquisition: Acquis. And production costs = 200005 (Buildings A/c)
Loss made on asset retirement w/o revenue = 400303 (Loss due to scrapping A/c)
Clearing account revenue from asset sale = 300100 (Sale of Asset A/c)
Gain from asset sale = 300101 (Profit on Sale of Asset A/c)
Loss from asset sale = 400302 (Loss on Sale of Asset A/c)
Click Save and double click on “Depreciation”

Acc. Dep. A/c for ordinary depreciation = 100200 (Accm. Dep. – Blds A/c)
Expense A/c for ordinary depreciation = 400500 (Depreciation A/c)
Click Save and go back twice, assign accounts for all the remaining Asset Classes in the
same way.

Step13: specify account assignment types for A/C assignment objects.
Path: SPRO – Financial Accounting – Asset Accounting - Integration with General Ledger
accounting – additional account assignment objects – specify A/C assignment types for A/C
assignment objects.
Company code
Select the company
code
Double click on “depreciation areas”
Select the depreciation area 01
Double click on “account assignment objects”
Acct.Assgn. Acct. Transaction Transactioin Account Acct.Assignment

object Assgn.object type type name assignment
name type
Similarly maintain the same settings for the all the depreciation areas.
Step 14: Determine depreciation areas in the Asset Class
Path: SPRO – Financial Accounting – Asset Accounting – Valuation – Determine

Depreciation areas in the Asset class – T.code OAYZ
Select “Land class ” Double Click “Depreciation areas”,

Deselect “Deactivation” checkbox for “01-Book Depreciation”
Layout = 2000 (for all remaining depreciation areas.) Click

Save
Repeat this step for all the Asset Classes.

Step15: Set chart of deprecation.
Path: SPRO- Financial Accounting – Asset accounting – valuation – set chart of

depreciation.
Chart of depreciation =
Click on enter and save.
Step 16: Specify

document type for
posting of Depreciation
Path: SPRO – Financial Accounting – Asset Accounting – Integration with GL – Post

Depreciation to the GL – Specify Document type for posting of depreciation
Double Click “Define Document types” – T.code OBA7
Click on Position button, Document type = AF Click Enter

Select “AF – Depreciation postings”, Click on Details button,
Click on “Number range information”,
Company Code = Click on “Change intervals” button
Click on “Insert intervals” button,
No. Year From To Ext.
Click Insert, Save.
Step 17: Specify intervals and posting rules – T.code OAYR
Path: Same path.
Select your Company Code line, Double Click “Posting rules”,

Select “01-Book depreciation”, Click on “Details” button,
Select “Monthly posting”, Click Save.
Step 18: Specify rounding off net book value and / or

Depreciation
Path: SPRO – Financial Accounting – Asset Accounting – Valuation – Amount

specifications (Company Code / Depreciation area) – Specify rounding off net book value
and / or depreciation –
T.code OAYO
Select your Company Code line, Double Click “Rounding specifications”,

Select “01-Book depreciation”, Select “Details” button,
Select “Automatically calculate depreciation”
Select “arithmetic rounding” Click Save
Step 19: Define screen layout for Asset Master Data
Path: SPRO – Financial Accounting – Asset Accounting – Master Data – Screen layout –
Define screen layout for Asset Master Data
Double click “Define screen layout for Asset master data”

Select screen lay out “ -Land”, Double click “Logical field groups”
Select “2-Posting information”, Double click “Field Group rules”
Select “Capitalization date” as “Required entry” (for Main No., Sub No. and Copy) Click
Save.
Click on “Back arrow”, Select “3-Time dependent data”,

Double click “Field group rules”
Select “Business area” as “Required entry” and
Ensure all other field are marked as optional. Click
Save
Repeat step for all other Asset Classes.
Step 20: Define Screen layout for Asset Depreciation Areas – T.Code AO21
Path: Same path.
Select “2000-Depreciation on asset sub number level”

Double click “Field group rules”
Select Depreciation key as “Required entry” for main
no., sub no. and copy. Click Save
DEPRECITOIN KEYS:
Step21: define base methods.
Base method:
The base method contains general control parameters the system needs for calculating
depreciation. You enter the base method in a depreciation key. The base method is
independent of the chart of depreciation, meaning that it does not contain any country-
specific settings.
We specify the following in the base method
1. Deprecation type
2. Depreciation calculation method
3. Treatment of end of the depreciation.
Path: SPRO-Asset accounting – depreciation – valuation methods- calculation methods –

define base methods.
Click on new entries
Base method =
Description
Type of depreciation =
Deprecation method =
Depreciation after planned life end =
Depreciation below net book value zero =
Curb =
Click on save.
Step22: define declining balance methods.
Declining balance method: in this method we define

1. Multiplication factor for calculating the depreciation percentage rate
2. An upper limit for the depreciation percentage rate
3. A lower limit for the depreciation percentage rate.
Observe that the method 0001 is available.
Stgep19: define maximum amount methods.
Maximum amount method: this method is used to specify the maximum amount up to
which the system should calculate the depreciation until a certain calendar date. During the
specified time period the system calculates the depreciation only until this amount is
reached.

Maximum amount
method
=
Description
Valid
= to =
Currency
Click on “save”. =
Maximum amount
Select the line, =
Click
Doubleonclikc
save.on
“maximum
amounts” folder

Step 23: Define multilevel methods – T.code AFAMS
Example:
Acquisition date of the
asset= 1.4.2018 Expected life of the
asset= 10 years
From 1.4.2018 to 31.3.2021 for 3 years SLM+5%

From 1.4.2021 to 31.3.2025 for 4 years WDV+6%
From 1.4.2025 to 31.3.2025 for 3 years SLM+7%

Path: Same path.
Click on “New entries”,

Multilevel method =
Validity start = From Ordinary Depreciation start date Click Save
Double click “Levels”, Click on “New entries”,

Acquisition year = 9999
Years = 999
No. of periods = 12
Base value = 01 (Acquisition value)
Percentage = Click Save
Click on “back arrow” twice, Click on “Next entry” button
Multilevel method =
Validity start = From Ordinary Depreciation start date Click Save

Acquisition year = 9999
Years = 999
No. of periods = 12
Base value = 24 (Net book value)
Percentage = Click Save
To define the multilevel method given in the example:

Go to the transaction code AFAMS
Click on new entries
Multilevel method =
Validity start Click Save
=
Acquisition year Years Period Base value percentage
Click on save.

Step 24: Maintain period control methods – T.code AFAMP
Period control methods: these are the keys which contains the time frame from which the
depreciation is to be calculated in the case of acquisitions, additions, retirements, and
transfers. Already five period control methods were defined in the system. When the chart
of depreciation is assigned to the company code, the system automatically assigns these
five period control methods to the chart of the depreciation. In addition we can define our
own period control methods.
Path: Same path.

Period control
Description
method= =
Acquisitions =
Additions =
Retirement =
Transfer =
Step 25: Maintain depreciation key – T.code AFAMA
Depreciation key: it contains all the necessary value to calculate the depreciation. In every
depreciation key we assign base methods, multilevel methods, period control methods,
phase of depreciation and class of depreciation etc. the depreciation key is assigned in the
asset master record. Then the system calculates the depreciation according to the values
specified in the depreciation key. Each depreciation key should be saved in the active
status. The depreciation keys are defined at the chart of depreciation level. Therefore they
are available to all the company codes to which the same of chart of depreciation is
assigned.
Path: Same path.

Depreciation key =
Description =
Select “Period control according to fiscal years”
Select “Depreciation to the day” Click Save
Double click “Assignment of calculation methods”

Depreciation type = Ordinary depreciation
Phase = from the start of depreciation
Base method =
Period control =

Multilevel method =
Class = Straight line depreciation Click Save

Click “back arrow” 4 times, Select “ ”, (Depreciation Key)
Click on “Activate” and Save.

Depreciation key =
Description =
Select “Period control according to fiscal years”
Select “Depreciation to the day” Click Save
Double click “Assignment of calculation methods”
Depreciation type = Ordinary depreciation
Phase = From the start of depreciation
Base method =
Period control =
Multilevel method =
Class = Declining balance depreciation Click Save

Click “back arrow” 4 times, Select “ ”, click “Activate” Click Save
Main Asset Master Creation
Path: Accounting – Financial Accounting – Fixed Assets – Asset – Create – Asset -T.code
AS01
Asset Class =
Company Code = – Enter
Description =
Capitalized on =
Go to “Time-dependent” tab
Business Area =
Go to “Depreciation Areas”
Depreciation Key
tab =
Useful life =
Period =
Ord. Dep. Start date = --- Save

Sub-Asset Master Creation
Path: Accounting – Financial Accounting – Fixed Assets – Asset – Create – Subnumber –

Asset
Asset AS11 =
Description =
Capitalized on =
Business Area =
Go to “Depreciation Areas”
Depreciation Key
tab =
Useful life = (Years)
Period = (Months)
Another Sub-Asset Master Creation
Path: Accounting – Financial Accounting – Fixed Assets – Asset – Create – Subnumber –

Asset
Asset AS11 =
Description =
Capitalized on =
Business Area =
Go to “Depreciation Areas” tab

Depreciation Key =
Useful life = (Years)
Period = (Months)

Posting of purchase of Main Asset
Path: Accounting – Financial accounting –Fixed assets- Posting –Acquisiton – External

acquisition-
With venor- T.code F-90

Amount =
Business area =
Text =

=
Amount =
Business area =
Text
=
Posting of purchase of Sub-asset
Path: Accounting – Financial Accounting – Fixed Assets – Posting – Acquisition –

External Acquisition – With Vendor ---- T.Code F-90
Amount =
Business area =
Text =

=
Amount =
Business area =
Text =

Posting of purchase of another Sub-asset
Path: Accounting – Financial Accounting – Fixed Assets – Posting – Acquisition –

External Acquisition – With Vendor ---- T.Code F-90

Amount =
Business area =
Text =

=
Amount =
Business area =
Text
=
Asset Explorer - Asset Report showing sub-asset-wise / year-wise values

(with Depreciation calculations):
Path: Accounting – Financial Accounting – Fixed Assets – Asset – Asset Explorer –
T.Code
AW01N
Company Code =
Asset = (Asset number along with sub number) -- Enter
Observe the Asset balance. Double Click on “Ordinary Depreciation” line item to verify
the depreciation calculations.
Click “Next fiscal year” (right arrow) icon in “Fiscal Year” field to see the depreciation
calculation for the coming years.
Observe the Asset balance at the end of next year. Double Click on “Ordinary
Depreciation” line item to verify the depreciation calculations.
Give Sub-asset Number in the “Asset” field to see the Asset balances and depreciation
calculated for the sub-assets.

Asset Report to view all Assets as on a date
Path: Accounting – Financial Accounting – Fixed Assets – Information system – Reports

on Asset Accounting – Asset balances – Balance lists – Asset balances – By Business Area
--- T.Code S_ALR_87011965
Company Cod =
Business Area =
Report date =
Depreciation area = 01
Sort version = 0001
Select “list assets” redio
button --- Execute
Depreciation run
Path: Accounting – Financial Accounting – Fixed Assets – Periodic Processing –

Depreciation Run – Execute --- T.code AFAB
Company Code =
Fiscal Year =
Posting period = Give the relevant posting period
Select “Planned posting run” - if it is run as per the plan
Select “Repeat run” - For new assets included during the period
Select “Restart posting run” - For improper previous run
Select “Unplanned posting run” - For customized runs
Select “Test Run”, Click on “Execute”

Click Enter on the Warning message, observe the message.
Go back, deselect “Test run”,
Go to Menu, Program, and Execute in background.
Output device = LP01 --- Enter

Click on “Immediate” button, Click Save.
To check whether the job is complete or not
Go to Menu, System, Services, Jobs, Job overview
Click “Execute”
Select the Job line item, Click on “Spool” button,

Select the document,
Select “Display contents”.
To see the Depreciation (automatically posted) document --- FB03
Give the document number and see the document.
Sale of Asset

Path: Accounting – Financial Accounting – Fixed Assets – Posting – Retirement –

Retirement with revenue – With customer – T.Code F-92
Document date =
Posting date =
Document type =
Posting Key = 01
Account = (Customer Account Number)
Amount =
Business area =
Text =
Posting Key = 50
Account = (Sale of Asset Account)
Amount =
Business area =
Select “Asset retirement”,
Text = Click Enter

Asset = (Asset Number)
Sub-number = (Asset sub-number)

Transaction type = 210 (Retirement with revenue)
Asset value date =
Select “Complete retirement” Click Continue
Go to Menu, Document, Simulate and Save.
Go to Menu, Document, Display and Notice the document posted.

Transfer of Asset
Path: Accounting – Financial Accounting – Fixed Assets – Posting – Transfer – Transfer

with in Company Code – T. Code ABUMN
Asset =
Document date =
Posting date =
Asset val. Date =
Text =
Transfer to
Select “New Asset”

Description =
Asset class =
Click “Master data” button

Business area =
Click “Additional data” button
Capitalized on =
Go to “Depreciation areas” tab
Depreciation key =
Useful life =
Period =
Ord. Dep. Start date =
Click “Back arrow” Click Enter and Save
Display the document.
Asset Scrapping

Path: Accounting – Financial Accounting – Fixed Assets – Posting – Retirement – Asset

retirement by scrapping – T.Code ABAVN
Asset Number =
Document date =
Posting date =
Asset val. Date =
Description = Click Save

Settlement of Asset under Construction (Capital Work-in-Progress)

Step 1: Define settlement profile
Path: SPRO – Financial Accounting – Asset Accounting – Transactions – Capitalization of

Assets under construction – Define / Assign Settlement profiles
Double Click “Define Settlement profile” – T.Code OKO7
Click on “Position”, Settlement Profile = AI Click Enter

Select Settlement Profile line “AI - Settlement assets under construction”
Click on “Details”
Select “To be settled in full”
Allocation structure = A1 (Co-allocation structure)
Default object type = FXA (Asset)
Select “Settlement required” against Fixed Asset field (under valid receivers heading)
Select “% Settlement” (under Indicators)
Select “Equivalence numbers” (under Indicators)
Select “Amount settlement” (under Indicators)
Deselect “100% validation”
Click Save
“back
Click on arrow” two
“Position”, times Code =
Company Click Enter
Double Click “Assign settlement
Settlement Profile = AI profile to Click Save
Company Code” – T.Code OAAZ
Step 2: Creation of number ranges for settlement document
Alternative Path: SPRO – Controlling – Internal Orders – Actual postings – Settlement –

Maintain number ranges for settlement documents – T.Code SNUM
Click on “(Maintain) Groups” button

Double Click “ ” (Company Code)
Select “Standard accounting document”
Go to Menu, Edit, Assign element group Click Save
Step 3: Creation of AuC Asset Master – T.Code AS01
Asset Class =
Description =
Capitalized on =
Go to “Time
dependent” tab
Business area =
Cost Center =
Go to “Depreciation areas” tab
Depreciation key = 0000 (No depreciatiion, no interest)
Depreciation start date = Click Save
(Go to T.Code AFAMA to activate depreciation key if necessary)
Step 4: Posting of AuC Acquisition (Purchase) – T.Code F-90
Doc. Date =
Doc. Type = KR
Company Code =
Posting key = 31
Account = (Party Account)
Amount =
Busiess Area =
Text =
Posting key = 70
Account = (AuC Asset master number)
Transaction type = 100 (External Asset acquisition)
Amount =
Business Area =
Text = Click Save
Step 5: Creation of New Asset master – T.Code AS01
Asset Class =
Description =
Capitalized on =
Go to “Time dependent” tab
Business Area =
Go to “Depreciation area”
tab =
Depreciation key = Click Save
Depreciation start date

Step 6: Line item settlement from AuC to New Asset Master
Path: Accounting – Financial Accounting – Fixed Assets – Postings – Capitalize asset

under construction – Distribute – T.code AIAB
Company Code =
Asset = (AuC Asset with sub number)
Click Execute
Select the item which is to be settled, Click on “Enter Icon” (Enter Distribution rules)
Category Settlement Receiver Percentage
FXA (Asset Number) 100
Click “Back arrow” Click Save

Click “Settlement” (Execute Settlement) button
Asset val. Date =
Text =
Select “Test run”
Select “Detail list” Click Execute
Click “Back arrow”, Deselect “Test run”, Click Execute
To see the document

Go to T.Code FB03.

FINANCIAL STATEMENT VERSION
Define financial statement version:
Path: SPRO – financial accounting – GL accounting – business transactions – closing

– Documenting – define financial statement version.

Statement version =
Name = Balance sheet and profit and loss a/c
Maintenance Language =English
Select “Item keys automatic”
Chart of accounts = click on save.
Select “Financial statement item” button

Keep the cursor on “ “
Click on “create items” button
Under “balance sheet & P&L a/c”, enter
Income
Expenditure
Surplus or loss carried to balance sheet click on enter
Double click “No text exists” against “Assets”

Item = Assets click on
enter
Double click on “No text exists” against

“Liabilities”
Item = Liabilities click on
enter and save.
Keep the cursor on “Assets”, click “F9” to

select
Keep the cursor on “Liabilities”, click on “Reassign Button”
Select “Same level” click on enter.
Keep the cursor on “Income”, click on “F9”

Keep the cursor on “Assets”, click “Reassign” button
Select “same level” click on enter
Keep the cursor on “Expenditure”, click “F9”

Keep the cursor on “Income”, click “Reassign” button
Select “same level” click on enter and
save.
Keep the cursor on “Liabilities”, click on “create items” button
Share capital
Faculty: K.Lakshmana
Reserves and surplusesSwamy Mail id: saplakshman@yahoo.com
Profit and loss appropriation a
Accumulated depreciation:
Secured loans
Unsecured loans
Current
liabilities and
provisions.
Keep the cursor on “Assets”, click on “Create items” button

Fixed assets
Current assets, loans and advances
Miscellaneous expenditure not yet adjusted
Similarly create items under “income” and “expenditure”
Double click on “No text exists” against “Net result: profit”

Item = net profit transferred from profit and loss a/c
click on enter
Keep the cursor on “net profit transferred from p and l a/c”

Press “F9” to select
Keep the cursor on profit and loss appropriation a/c
Click on “Reassign” button
Select “subordinate level” button. Enter.
Double click on “No text exists” against “net result:

loss” Item= net loss transferred from profit and loss a/c
Click on enter
Keep the cursor on “net loss transferred from profit and loss a/c”
Press “F9” to select
Keep the cursor on “Miscellaneous expenditure not yet adjusted”
Click on “reassign” button
Select “subordinate level” radio button
Click on enter and save.
Assignment
From account of accounts
=100000
To account =100099
Keep
Selectthe cursor
“D”, selecton“C”
“share capital”,
click on “assign accounts” button
Keep the cursor on “Reserves and surpluses” click on “assign accounts” button
From account =100101
To account =100199
Select “D”, select “C”
Similarly assign all accounts for groups.

Keep the cursor on “surplus or loss carried to balance sheet”
Select “assign accounts” button

Account from =100100

Select “D”
Select “C”
Click on enter.
To check whether all the accounts have been assigned, select “check” button
Select “non assigned accounts”, click on enter.
Double click on “Liabilities”

Start of the group = liabilities
End of the group = total liabilities
Select “display totals” check box. Click on enter.
Double click on “share capital”

Start of the group =sources of
funds End of the group = share capital
Select “display totals “check box click
on enter
Double click on “reserves and surpluses”

End of the group =reserves and
surpluses Select “display totals” check box. Click
on enter.
Double click
Similarly do on
the“Assets”
same thing for all account groups
Start of the group
on liabilities side. = assets
End of the group =total assets
Select “display totals” check box click on enter.
Double click on “fixed assets”

Start of the group = application of
funds End of the group =fixed assets
Select “display totals” check box.
Double click on current assets

End of group = current assets.
Similarly do the same thing for all account
groups on assets side.
Double click on “income”

Start of the group = income
End of the group = total income
Select “display totals” check box. Click on
enter.
Double click on “sales”

End of the group = sales
Select “display
Faculty: totals”Swamy
K.Lakshmana check box, click on enter Mail id: saplakshman@yahoo.com
Similarly do the same thing for all account groups on the income side of the profit
and loss a/c.
Double click on “Expenditure”

Start of the group =expenditure
End of the group = total expenditure
Select “display totals” check box. Click on enter
Double click on “raw material consumption”

End of the group = raw material consumption”
Select “display totals” check box click on
enter.
Similarly do the same thing for all the account groups on the expenditure side of
the profit and loss a/c.
Double click on “surplus / loss carried forwarded to balance sheet”

End of the group = surplus /loss carried forwarded to balance sheet
Select “display totals” check box click on enter.
Double click on “no text exists” against P+L result

Item = surplus /loss carried to balance sheet
End of the group = surplus carried to balance sheet
Select “display totals” check box click on enter and save.
To view the balance sheet and profit and loss a/c
Path: accounting – financial accounting – general ledger – information system – GL

reports – balance sheet/P&L statement/cash flow – general – actual/actual comparisons –
balance sheet / P&L statement - S_ALR_87012284
Company code =
Financial statement version =
Year =
Reporting periods =
1 to 16
Comparison year =
Comparison periods = 1 to
16 Go to “special evaluations” tab
Balance sheet type = 1 (standard financial statement)
Business
Go to “outarea
putsummarization
control” tab =1 (balance sheet for business area)
Summery report
Company code summarization = =31
Comparison type =1 (% of increase)
Scaling =5/2 (rupees in lakhs with 2 decimal values)
Go to “further evaluations tab”
Select “classical list” click on execute.

SAP FICO Basic settings
[Date] 227
Faculty: K.Lakshmana Swamy saplakshman@yahoo.com

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Sap Fico Financial Accounting

COMPANY: Company represents the group. It can contain up to 6 characters. It is alpha

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Step 1.1: Creation of company

Path: SPRO - Enterprise structure – Definition - Financial accounting –Define Company

Click on “New entries”

Step 1.2: Define company code

Path: SPRO – enterprise structure - definition -financial accounting - Edit, Copy,

Double click on: “Edit Company code data”

Click “new entries”

Step no 1.3: Assign company code to company

Path: SPRO –Enterprise structure-assignment-financial accounting-assign company

Company = click save

Step1.4: Define Business area.

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Path: SPRO-enterprise structure-definition-financial accounting-define business area

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Step 1.5: Maintain consolidation business area.

Path: SPRO – enterprise structure – definition – financial accounting – maintains

Click on “new entries”

Consolidation business area =

Consolidation business area =

Consolidation business area =

Step: 1.6 Assign business area to consolidation business area.

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Path: SPRO – enterprise structure – assignment – assign business are to consolidation

Business area description Consolidation description

2. Fiscal year variant

Step2.1: Define Fiscal year variant

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

V3 ---- April to March --- 12 normal periods+ 4 special

periods K4 ----- calendar year --- 12 normal periods+ 4 special

periods K3----- calendar year---- 12 normal periods+3 special

periods V6 ----- July to June --- 12 normal periods+4 special

V9 --- October to September—12 normal periods+4 special

Path: SPRO-financial accounting (new) - financial accounting global settings (New) –

Step2.2 Assign Company code to Fiscal year variant

Path: same as above- T code – OB37

Step3.1: Define chart of accounts.

• It is the list of General Ledger accounts used by the organization.

There are three types of chart of accounts.

 3. Country specific chart of accounts: it contains the general ledger accounts

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

A Chart of account can be used by one or several company codes.

Company code A Company code B

A company code can be assigned with the two chart of accounts.

Operational COA Country specific COA

Path: SPRO-financial accounting (new) - general ledger accounting (new) - Master

Click on “new entries”

Step3.2: Assign company code to chart of accounts - T code- OB62

Path: same as above.

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Step3.3 Define account groups T.code OBD4

1. Balance sheet account group

The following are the functions of the GL account groups.

Faculty: K.Lakshmana Swamy. saplakshman@yahoo.com

Path: same as above

Click on “New Entries”

Chart of Account Group Name From A/c To A/c