ADVANCE FICO COURSE

What is ERP?
ERP stands for Enterprise Resource planning all functions are integrated into one system.

Enterprise : Large Organization.

Resource : Manpower, Material, Machinery, Money, etc.

Planning : Proper Utilization of Resources.

Organization

 Purchase Dept.

 Sales Dept.

 Production Dept.

 Accounts Dept.

 HR Dept.

 Admin Dept.

ERP Advantages

 There will be number of departments in organization. ERP integrate all the functions into one
system. It will facilitate free flow of data among the departments.

 It Provide the correct information on time to take the business decision.

 ERP Provide on time delivery and customers satisfaction.

ERP Packages

 JD Edwards : Account Software

 People Soft : HR

 Siebel : CRM
  Oracle : Finance

 SAP : All Modules

 SAP ERP -Stands for System Application and Products in Data Processing.

 SAP AG(Ltd.)

 In 1972, SAP R/2 System.

 In 1992, SAP R/3 System.

ECC stands for ERP Central Component SAP was released in 1972 - It’s headquarters in Germany

SAP Implementation Overview

 Normally when a Company intends to start SAP in its Company, it purchases SAP software from
SAP.

 Price of SAP software is based on the Number of Users.

 Once company purchased the software, it appoints another Company (ex. WIPRO, TCS, IBM) for
implementation purpose.

 Both the purchaser and implementor will delegate its employees for implementation of SAP. They
are called as Core Team Members. Structure of Core Team will be like

Company Module want to Implement Consultant Company

 Costing Head  CO Module.  CO Consultant

 Purchase Head  MM Module.  MM Consultant
 Accounts Head  FI Module.  FI Consultant
 Sales Head  SD Module.  SD Consultant
 IT Head, etc  Implementation.  ABAB/BASIS
Consultant
 SAP - Project Lifecycle

Evaluation
Evaluation may be a decision to choose between different software vendors or selection of products from a single
vendor.
Project Preparation
Since a SAP implementation intends to map the organization processes to the ones defined by SAP, the
implementation needs to have on-board people with complete knowledge of the organization business processes.
The project preparation phase, amongst other things, aims to identify this team.
Business Blueprint
A business blueprint includes what modules of a SAP product would be used and the mapping of the existing
business processes to the processes provided by SAP.
Realization
The actual work of customizing the SAP software to be in sync with the organizations business processes is done
in this phase. It includes customization of existing SAP package and solution along with the development of new
objects based on requirement.
Testing
The changes made in the realization phase need to be tested in isolation as well as in a consolidated manner
using real-time data. This is done in the testing phase.
Final Preparation
The production system is prepared using the changes from the realization and testing phases. Certain activities
need to be done directly in the production system as well. These activities take place during the final preparation
phase.
Go-live
In this stage, the final product is released to the end-users. The go-live may be done in a Big Bang (all modules at
one go) or in a phase-by-phase manner.
Sustain / Support
The project now moves into the “sustain and support” phase where the end-users’ issues would be resolved and
ongoing maintenance of the system would be taken care of.

Basis Consultant will install Server and Create the Client Numbers. There are Minimum 3 type of Clients will be
created by Basis Consultant. It is called System Landscape
After completing all necessary Setup & installation, Basics Consultant will create user IDs for Business Users as
well as for Consultants to start the work.

SAP Landscape:

Development Testing Production

Client Client Client
800 700 400

Server 1 (192.168.1.100) Server 2 (192.168.1.101) Server 1 (192.168.1.102)

Enable Disable Disable
Customization Purpose Testing Purpose Live Data
 Enterprise Structure

Company use for

Consolidation

BASIC SETTINGS
1. Definition of Enterprise Structure:
COMPANY: Company represents the group. It contains up to 6 characters. It is alpha numeric. The
definition of company is optional. A company can have any number of company codes

1.1: Define Company - TC - 0X15

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

Click on "New entries"
Company =
Company name =
City Country =
Language Key =
Currency =
Click on SAVE Click on “Create Request”
Short description =
Click on SAVE and Press Enter
1.2: Define Company Code - TC - 0X02
IMG—Enterprise Structure—>Definition—>Financial Accounting—>Edit, Copy, Delete, Check Company
Code
Double Click on: ‘‘Edit Company code data” Click "new entries”
Company code =
Company name =
City Country =
Currency =
Language =
Country =
Click on SAVE
1.3: Assign Company Code to Company - TC- 0X16
IMG—>Enterprise Structure—>Assignment—>Financial Accounting—>Assign company code to company
Click on position Button
Company code =
Company =
Click on Save
BUSINESS AREA / SEGMENT:

 The branches of the organization can be taken as the business area /Segment.
 The purpose of the business areas/Segment is to prepare the financial statements for the
internal management analysis purpose.

 The business areas are not assigned to any company code.

 The business areas are created at client level. This enables any company code can use the same
business area.
1.4: Define Two Business Areas- TC - 0X03
IMG-->Enterprise Structure—>Definition—>Financial Accounting—> Business Areas
Business Area =
Description =
2. Fiscal Year Variant
What is Fiscal Year in SAP?
Fiscal year means Accounting year. The Accounting year means the period of 12 months for
which the companies prepare financial statements.

It contains the period of It contains the period of 12 If period is less than 12 months
12 months starting JAN months starting from the that is called as Shortened Fiscal
any month of the current
year and ending with
before calendar year
month in the next calendar
year

April 2019 To March 2020

July 2019 To June 2020

Pre-Defined Variants Available in SAP

 V3 April to March 12 normal + 4 special periods
 K3 calendar year 12 normal + 3 special periods
 K4 calendar year 12 normal + 4 special periods.
How to identify Fiscal Year in Non-Calendar Accounting Year?
2020 2021 Fiscal year

April 2020-March 2021 9 3 2020

July 2020-June 2021 6 6 2020
October 2020-September 2021 3 9 2021
It no of periods are above 6 months in next year take next year otherwise same year as Fiscal
year.

Why to De-select Calendar Year Check Box: If we select this check box, System will consider
January as Period 1 in the Fiscal Year and April will be as 4th period. But we require April will be
treated as 1st period and January will be 10th in Periods.

2.1 Define Fiscal year variant - Tcode - OB29

IMG—>Financial Accounting—>Financial Accounting Global Settings—>Fiscal Year—>Maintain
Fiscal Year Variant.

2.2 Assign Company Code to Fiscal Year Variant - Tcode - OB37

IMG—>Financial Accounting—>Financial Accounting Global Settings—>Fiscal Year— >Assign
Company Code to a Fiscal Year Variant
Click on Position Button
Company code =
Press Enter
3. Posting Period Variant
What is Posting Period Variant in SAP?
SAP FI posting periods are used to open and close periods of a financial year. Posting periods
are maintained in a posting period variant that is assigned to a company code. One posting
period variant can be assigned to more than one company code.
Posting periods can be maintained for each account type
All account types (+).
Assets (A).
Customers (D).
Vendors (K).
Materials (M).
G/L Accounts (S).
3.1: Definition of Posting Period Variant - Tcode - OBBO
IMG—>Financial Accounting—>Financial Accounting Global Settings—>Document— >Posting
Periods—>Define Variants for Open Posting Periods
Click on “new entries”
Variant =
Name =
Click on Save

3.2: Assign Posting Period Variant to Company Code - Tcode - OBBP

IMG—>Financial Accounting—>Financial Accounting Global Settings—>Document— >Posting
Periods—>Assign Variants to Company Code
Click on “position" button
Company code
Variant
Click on Save

3.3: Open and Close Posting Periods -Tcode - OB52

IMG—>Financial Accounting—>Financial Accounting Global Settings—>Document— >Posting
Periods—>Open and Close Posting Periods
Click on “New Entries"
Path for user level maintenance of posting period - Tcode - S_ALR_87003642
Sap Easy Access - Accounting - Financial Accounting - General Ledger - Environment - Current
Settings - Open & Close posting periods.
4. Field Status Variant
What is Field Status Variant in SAP?
Field status variant is the collection of field status groups. Field status variant enables to define
required fields during entry of transactions.
Field status group is maintained in GL account. Field status group defines the fields while
posting to the GL. In other words, Field status group define a field as optional, suppressed or
mandatory.
Field status Variant is used to define the fields as entry fields and hidden fields used for input
to cost centre, profit centre, plant, etc. Field status variant is assigned to company code.
Field status Variant is a tool to assign same set of properties to one or more object. Field
status variant helps users to input only required fields while booking business transactions.

Below is the available field status -

 Suppress − The field is hidden on the screen.

 Optional − The field is available on the screen and can keep it blank or fill it.

 Require − The field is available on the screen and must fill it in all scenarios.

 Display − The field is available on the screen. But it's greyed out and cannot fill anything
in here.

4.1: Define Field Status Variants -Tcode- OBC4

IMG—>Financial Accounting—>Financial Accounting Global Settings—>Document—>Line
Item—>Controls—>Define Field Status Variants
Select ‘‘0001" Field Status Variant line
Click on “copy as" button
Field status name =
Click on “copy all” button and Click enter on the message
Click on Save
4.2: Assign Company Code to Field Status Variants -Tcode - OBC5
IMG—^Financial Accounting—>Financial Accounting Global Settings—>Document—>Line
Item—>Controls—>Assign Company Code to Field Status Variants
Click on “position” Button
Company code =
Field status variant =
Click on Save

5. Document Number Ranges?

Document number range in SAP uniquely identifies every transaction within a fiscal year in a
company code. These are used to define how numbers are assigned to documents. For every
document number range, the following must be specified.
 A two-character code

 Period until when (a year value) it is valid

 An interval from which it will be chosen and

 Whether it will be used as internal or external assignment

 The document number range intervals should not overlap.

Document Type Description

AB General document

CO CO posting

DG Customer credit memo

DZ Customer payment

DR Customer invoice

KZ Vendor payment

KG Vendor credit memo

KR Vendor invoice

SA General G/L accounts

5.1 Define Number Ranges For Document Type “SA” - TCode - OBA7

IMG—>Financial Accounting—>Financial Accounting Global Settings—>Document— >Document

Header—>Define Document Types

Click on “position" button

Document type = SA Press Enter

Double Click on Document Type “SA”

How to Copy Document Number Range from Company Code?

You can copy document number range from a source company code to your target company

code with transaction code OBH1 or through following path.

IMG-> FINANCIAL ACCOUNTING -> FINANCIAL ACCOUNTING GLOBAL SETTINGS ->

DOCUMENT -> DOCUMENT NUMBER RANGE -> COPY TO COMPANY CODE

6. Tolerance Groups

SAP Tolerance Groups define posting authorizations of users in SAP ERP system. These
posting permissions define the amounts that certain groups of accounting clerks are allowed to
post. SAP Tolerance Groups determine various amount limits for employees and predefine the
maximum amount an employee is permitted to post, the maximum amount the employee can
post as line items in a customer or a vendor account, the maximum cash discount percentage
the employee can assign in a line item, and the maximum allowed tolerance for payment
differences for the employee.

In accounting, tolerances are divided into three groups. The three tolerance groups are:

 Employee tolerances
 General ledger account tolerances
 Customer or vendor tolerances

CFO - 50Lac, SR. MANAGER -30Lac, MANAGER - 25Lac, ACCOUNTANT- 15Lac, ACCOUNT EXE. -5Lac

6.1: Define Tolerance Groups For G/L Accounts -TC - OBAO

IMG—>Financial Accounting—>General Ledger Accounting—>Business Transactions— >Open Item

Clearing—>Clearing Differences—>Define Tolerance Groups for G/L Accounts

Click on “New Entries"

Company code = Tolerance group =

Name =

Click on SAVE

When we create the G/L Account, Tolerance Group will be " Blank" in G/L Master. System expects we
have created Blank Tolerance Group and Assigned in the Account. “Blank Tolerance Group” is called Null
Tolerance.

6.2: Define Tolerance Groups For Employees -TC - OBA4

IMG—>Financial Accounting—>General Ledger Accounting—>Business Transactions— >Open Item

Clearing—>Clearing Differences—>Define Tolerance Groups for Employees

Click on “New Entries”

Group =
Company code =
Amount per document =
Amount per open item =
Cash discount per line item =

Click on SAVE

6.3: Assign Users to Tolerance Groups - TC- OB57

IMG—>Financial Accounting—>General Ledger Accounting—>Business Transactions— >Open Item

Clearing—>Clearing Differences—>Assign Users to Tolerance Groups

Click on “new entries”

User name =

Click on SAVE

7. Chart of Accounts

The chart of accounts in SAP (COA) is a group of general ledger (G/L) accounts that records the
organizational transactions in a structured way. Each general ledger account consists account
number, name and control information.

The FI chart of accounts represents the list of GL accounts that are used to meet the daily
needs and the operating country’s legal requirement in a company. The master chart of
accounts must be assigned to each company code.

7.1: Define Chart of Accounts - TCode - OB13

IMG—>Financial Accounting—>General Ledger Accounting—>G/L Accounts—>Master

Data—Preparations—>Edit Chart of Accounts List

Click on “new entries"

Chart of accounts =
Description =
Maintenance language =
Length of GL A/c No =
Controlling Integration =
Manual Creation of Cost Elements
Click on Save
7.2: Assign Company Code To Chart Of Accounts - TCode- OB62

IMG—>Financial Accounting—>General Ledger Accounting—>G/L Accounts—>Master

Data—Preparations—>Assign Company Code to Chart of Accounts

Click on Position Button Company Code =

Press Enter
Chart of accounts =
Click on Save

7.3 Define Account Groups- TC- OBD4

IMG—>Financial Accounting—>General Ledger Accounting—>G/L Accounts—>Master

Data—Preparations—>Define Account Group
Click on “New Entries"

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

Coding for Account Groups:

While creating account groups in SAP
All Liability Accounts Will Start With 1 Series
All Assets Accounts Will Start With 2 Series
All Income Accounts Will Start With 3 Series
All Expenses Accounts Will Start With 4 Series

Note: in Live Environment, we take the Client’s Balance Sheet and Create Account Groups.

7.4: Define Retained Earnings Account - TCode- OB53

IMG—>Financial Accounting—>General Ledger Accounting—>G/L Accounts—>Master

Data—Preparations—>Define Retained Earnings Account

Chart of accounts =
Press Enter
P&L statement A/c type = X
Account = Warning message appears.
Ignore it by Pressing Enter again
Click on Save

Retained Earnings: At the end of every fiscal Year balance of Income Statement (Profit or Loss)
gets transferred to Retained Earning Accounts.
Note: Once we complete our basic configuration, we have to create this GL Account from FSOO.
8. General Ledger Accounting
How to Create GL Accounts?

We can create GLs Chart of Accounts at

1. Chart of Accounts Level 2. At Company Code Level 3. Centrally

Create GL Master - TC - FSOO

Path: Accounting - Financial Accounting - General Ledger - Master Records - Individual processing –
centrally

Create Equity Share Capital Account — 100000

GL Account Number =

Company code =

Go to Menu, G/L Account,

Create Account group =

P&L statement account

Balance sheet account Short text =

Short text =

Long text =

Go to control data tab, Account Currency =

Only Balances In Local Currency

Line Item Display

Sort key =

Go to create/bank/interest tab

Field status group =

Click on SAVE

9.Fast Data Entry

1. Maintain Fast Entry Screens for G/L Account Items - TC - 07E6

IMG—>Financial Accounting—>General Ledger Accounting—>Business Transactions— >G/L Account

Posting—>Make and Check Document Settings—>Maintain Fast Entry

Screens for G/L Account Items

Click on New Entries

Variant = Name =

No. of Lines =

Press Enter

10. Documents attachment, URL attachment, Notes attachment.

11. Document Reversals
1.) When we post a Wrong Entry in SAP, we have to go for Reversal or pass a Rectification Entry.

 The normal reversal posting causes the system to post the incorrect debit as a credit and the
incorrect credit as a debit
 The normal reversal posting therefore causes an additional increase In the transaction
figures

A.) Individual Document Reversal

1. Create Reversal Reason- TC - s_alr_87002472

IMG - Financial Accounting - G/L Accounting - Business Transactions- Adjustment Postings/Reversal -

Define Reasons for Reversal.

2. Post Some Entries - FB01

3. Individual Reversals: TC - FB08

B.) Mass Reversal

5. Post Some Entries - FB01

6. Check the Line-Item Report of Outstanding- TC - FBL3N

7. Mass Reversal TC-F.80

8. Check the Line-Item Report of Outstanding- TC - FBL3N

2.) Negative Reversal

• The negative reversal posting posts the incorrect debit as a credit and the incorrect credit as a
debit but this time the posted amount is not added to the transaction figures, but is subtracted
from the transaction figures of the other side of the account

• This sets the transaction figures back to as they were before the Incorrect posting took place

12.) Hold Documents:

It is a temporary document this is user for adjustment purpose or at the time of posting we do not know
either debit or credit.

Run Program "RFTMPBLU" from SE38 for conversion of Hold Documents. This Option is for converting
the Documents of older version SAP4.7 to New Version ECC6.0. This is given at Client Level but not at
Company Code level. This is one-time Exercise for each client.

1. Go to TC - SE38

2. Enter program^ RFTMPBLU Click on execute

3. Select “no termination for read error" option Click on execute

4. Now the document can be held without any messages.

13.) Park Documents:
SAP FI provides a Park Facility for the document which allows the user to save the document but the
amount is not posted in the G/L accounts.
This allows to review the document later reviewed by a higher authority Personnel who has appropriate
posting amount authorization. Once approved, the document is posted in the G/L accounts.
SAP easy access menu >Accounting > Financial Accounting > General Ledger > Document entry >
Parked document
TCODE –> F-65
How to display parked documents in sap

To display it you use TCODE –> FBV3 or following path

SAP easy access menu > Accounting > Financial Accounting > General ledger > Document > Parked
documents > Display
14.Reference Documents

A.) Sample Document: -

Sample Document is a Template
It won’t update the Ledger
We can post the entries by copying and making necessary changes

Create Sample Document for Below:

Salaries A/c Dr. 1000
Rent A/c Dr. 1000
Electricity A/c Dr. 500
To Cash A/c 2500

STEPS: -
1. Define Number Range Interval for Number Range X2 FBN1
2. Create Sample Document Template F-01
3. Display Sample Document Posted FBM3
4. Posting of Transactions by using Sample Document Template FB01
5. Change Sample Document FBM2
6. Delete Sample Document F.57

1. Define Number Range Interval for Number Range X2 - TC - FBN1.

IMG—>Financial Accounting—>Financial Accounting Global Settings—>Document
—>Document Number Ranges—>Define Document Number Ranges

2. Create Sample Document Template - TC - FBM1

Path: Accounting - Financial Accounting - General Ledger- Posting - reference documents
- Sample Document – Creation

3. Display Sample Document - TC - FBM3

Path: Accounting - Financial Accounting - General Ledger - document - reference
documents - Sample Document – display

B.) Recurring Document

 Some business transactions are repeated regularly every period or quarter such as
rent and insurance. SAP gives the Recurring Entry option to make this entry one
time and run it every period and have the same financial effect.

 The following data never change in the Recurring Entry: Posting Key – Account –
Line-item Amounts.

 You enter the recurring data in a Recurring Entry original document and then run
the Recurring Entry Program

Ex: Fixed Exp.

1. Define Number Range for Recurring Document X1 FBN1

2. Create Recurring Document- FBD1
3. To display Recurring Documents F.15
3. To Post Documents using Recurring Document- F.14
4. To post the document by executing the batch input session SM35
5. To display the document posted by the recurring cycle FB03
6. Change Recurring Document FBD2
7. To display Recurring Document F.15
8. Delete Recurring Document F.56
16.) Accrual /Deferral documents (Month End Provision)

What Is the Difference Between an Accrual and a Deferral?

Accrued expenses are expenses a company needs to account for, but for which no invoices
have been received and no payments have been made. Accrued expenses would be recorded
under the section “Liabilities” on a company’s balance sheet.

Accrued revenue are amounts owed to a company for which it has not yet created invoices for.
They are recorded as “Assets” on a balance sheet.

Deferred expenses are expenses a company has prepaid. They are recorded as “Assets” on a
balance sheet.

Deferred revenue is income a company has received for its products or services, but has not yet
invoiced for. They are considered “Liabilities” on a balance sheet.

Accrual Concept of Accounting: It is the process of Accounting all expenses and revenue in
the month in which they are incurred and derived even though they are not actually paid or
received.

Exp: - 10th of every month salary paid Rs. 5000

On 31st Provision for Salary

Salary Exp. A/c Dr. 5000
To Salary Payable A/c 5000

On 1st of next month Provision for Salary (Reverse)

Salary Payable A/c Dr. 5000
To Salary Exp. A/c 5000

On 10th Actual Payment of Salary

Salary Exp. A/c Dr. 5000
To Cash A/c 5000

Note: - If Actual Payment is more than Provision than difference Amount Treated as Current
month exp.

Posting of Accrual Document - TC - FBS1

Path: Accounting - Financial Accounting - General Ledger - periodic processing- closing - valuate
- enter accrual/deferral document

Display Outstanding Expenses A/c Balance - TC - FS10N

Reversal of Accrual Document - TC - F.81 - on 1st of Next Month

Path: Accounting - Financial Accounting - General Ledger - periodic processing - closing -
valuate- reverse accrual /deferral document

Display Outstanding Expenses A/c Balance - TC - FS10N

 FI-ACCOUNTS PAYABLE
Accounts Payable (AP) is an important application of SAPFICO module that helps to record
and manage accounting data of all vendors. In SAP, sundry creditors are called accounts
payables and sundry debtors are called accounts receivable.
AP Accounts payable accounting is also called as sub-ledger accounting, as the business
transactions are carried out individually in the vendor accounts. All the transactions that are
processed in accounts payable are recorded directly in the general ledger account.
SAP FI accounts payable can be integrated with SAP FI – GL (General Ledger), FI-AA (Asset
Accounting), SAP MM (Material Management), etc. The deliveries and invoices are managed
according to the vendors.

Step :- 1 Accounts Payable Configuration:-

1. Creation of Vendor Account Groups 0BD3
2. Creation of Number Ranges for Vendor Accounts XKN1
3. Assign Number Ranges to Vendor Account Groups OBAS
4. Define Tolerance Groups for Vendors OBA3
5. Define Document Types and Number Ranges OBA7
KR - Vendor Invoice
KZ - Vendor Payment
KG - Vendor Credit Memo
KA - Vendor Document Reversals

1. Creation of Vendor Account Groups- TC - OBD3

Menu path: Display IMG—>Financial Accounting—>Accounts Receivable and Accounts Payable—>Vendor
Accounts—>Master Data—>Preparations for Creating Vendor Master Data—>Define Account Groups with
Screen Layout (Vendors

2: Create Number Ranges for Vendor Accounts- TC - XKN1

Menu path: Display IMG -> Financial Accounting -> Accounts Receivable and Accounts
Payable -> Vendor Accounts -> Master Data -> Preparations for Creating Vendor Master
Data -> Create Number Ranges for Vendor Accounts

3. Assign Number Ranges to Vendor Account Groups- TC -. OBAS

Menu path: Display IMG -> Financial Accounting -> Accounts Receivable and Accounts
Payable -> Vendor Accounts -> Master Data -> Preparations for Creating Vendor Master
Data -> Assign Number Ranges to Vendor Account Groups

4. Define Tolerances (Vendors)- TC - OBA3

Menu path: Display IMG—>Financial Accounting-->Accounts Receivable and Accounts
Payable—>Business Transactions—>Outgoing Payments—>Manual Outgoing Payments—>Define
Tolerances (Vendors)

5. Define Document Types and Number ranges - TC - OBA7

Step: - 2 Vendor Master Records

Path: Accounting ->Financial Accounting->Accounts Payable->Master Records->Maintain centrally
Create Vendor Master Record - XK01
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

1. Creation of Reconciliation GL Accounts – TC - FS00

Path: Accounting - Financial Accounting - General Ledger - Master Records - Individual

processing – centrally
a.) Sundry Creditor Local A/c ---- Vendor1, Vendor2……
b.) Sundry Creditor Foreign A/c

2. Create Vendor Master Records - TC - XK01

Path: Accounting ->Financial Accounting->Accounts Payable->Master Records->Maintain centrally Create

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

3. Posting of Purchase invoice - F-43/FB60

4. Posting Keys - 21 Vendor Debit
31 Vendor Credit
5. Check the Vendor Line item display - FBL1N
6. Display Vendor Account Balance - FK10N

Posting of outgoing payment(F-53)

Accounting -> Financial Accounting -> Accounts Payable->Document entry-> Outgoing payment-> Post

The manual payment can be performed in two variants that will be explained further in this
lesson:

 Partial payment: it is used in cases when a partial payment for a certain open item
is needed. The system will keep outstanding both documents: the original open
item (invoice) and the partial payment until full outstanding amount will be settled.
 Residual payment: it is related to partial payments also, but the original open item
(invoice) is cleared with the residual payment and the system will create a new
outstanding document.
 Reset Cleared Items (AP/AR/GL)
• Documents with cleared items cannot be reversed. The document
must first be reset by using the Transaction code: FBRA

• Menu path: SAP Easy Access -> Accounting - Financial Accounting

General Ledger -> Document -> Reset Cleared Items
Special G/L Transactions
Down payment or in other words, Advance payment is one of the types of Special G/L
transactions in SAP.
Special G/L transactions are transactions in the Accounts receivable and Accounts payable,
which are displayed separately in the general ledger and the sub ledgers due to internal reasons
or for certain report purposes
Down Payment Made (Configuration) Accounts Payable Vendors)

Create a Reconciliation Account for Vendor Down Payment - T-code- FSOO

Menu path: SAP Easy Access -> Accounting -> Financial Accounting -> General Ledger -> Master
Records -> G/L Accounts -> Individual Processing -> Centrally

Define Reconciliation Account for Vendor Down Payments - T-code: OBYR

Menu path: Display IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable ->
Business Transactions -> Down Payment Made -> Define Alternative Reconciliation Accounts for Down
Payments

Special G/L indicator - F - Down Payment Requests

Special G/L indicator - A - Down Payments, Current Assets

Down Payment Made (End-User) Accounts Payable (Vendors)

Menu path: SAP Easy Access -> Accounting -> Financial Accounting
Accounts Payable -> Document Entry -> Down Payment

Down Payment Request-T-code: F-47

Display Line items as Noted item - T-code: FBLIN

Down Payment-T-code: F-48

The down payment request as Noted item has been cleared
It Is now an Open item as Special G/L transaction - T-code: FBLIN

Clearing - T-code: F-54

Post Vendor Invoice - T-code: FB70
Enter the posted invoice number as a reference for vendor down payment clearing
 CLEARING DIFFERENCES
1. When You Buy Goods from Vendor Rs. 1500.
Purchase A/c Dr 1500
To Vendor Cr 1500
2. Pay Amount to Vendor Rs. 1300 Out of 1500.
Vendor A/c Dr 1500
To Cash in Hand Cr 1300
To Clearing Difference Write Off Cr 200

STEP: -
1. Create Clearing Difference Accounts for Clearing Differences - TC - FS00
2. Assign Clearing Difference Account Postings- TC – OBXL
3. Define Tolerance Groups for G/L Accounts - TC - OBAO
4. Define Tolerance Groups for Employees -TC - OBA4
5. Define Tolerance Groups for Vendor/Customer -TC – OBA3
6. Post Vendor Invoice – TC – FB60
7. Check Vendor Line-Item Display – TC – FBL1N
8. Posting Outgoing Payment – TC – F-53

Terms of Payment
Purchase Order Placed on 1st Feb.
Goods Received on 5th Feb.
Vendor Invoice Date is 5th Feb.
Invoice Posted in SAP on 10th Feb but entered on 15th Feb.
Credit Period is 10 Days

Baseline Date Due Date

Document Date 05-02-2021 15-02-2021

Posting Date 10-02-2021 20-02-2021

Entry Date 15-02-2021 25-02-2021

1. Create Four Payment Terms
Maintenance of Terms of Payment - TC - OBB8
IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business
Transactions-->incoming Invoices/Credit Memos-->Maintain Terms of Payment
Click on "New entries"
Y001 - 10 DAYS No Default (Baseline Date)
Y002 - 10 DAYS Document Date (Baseline Date)
Y003 - 10 DAYS Posting Date (Baseline Date)
Y004 - 10 DAYS Entry Date (Baseline Date)

2. Post Four Vendor Invoice with Four Payment Terms.

A. Buy Goods from Vendor Rs. 1000.
Purchase A/c Dr 1000
To Vendor Cr 1000

Installment Payment Terms(FIXED)

Due on 10 Days

Due on 20 Days

Due on 30 Days

1. Create Four Payment Terms

Maintenance of Terms of Payment - TC - OBB8
IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business
Transactions-->incoming Invoices/Credit Memos-->Maintain Terms of Payment
Click on "New entries"
Y005 – Installment Payment Terms
Y006 – Due 10 DAYS Document Date (Baseline Date)
Y007 – Due 20 DAYS Document Date (Baseline Date)
Y008 – Due 30 DAYS Document Date (Baseline Date)

2. Define Terms of Payment for Installment Payments -TC - OBB9

IMG->Financial Accounting->Accounts Receivable and Accounts Payable->Business
Transactions->Incoming Invoices/Credit Memos->Define Terms of Payment for Installment
Payments
 Day Wise Payment Terms
Example:
th
 1 to 10 Transactions are paid on 20 of the same month.
th
 11 to 20 Transactions are paid on month's 30 of the same month.
th
 21 to 31 Transactions are paid on next month's 10 .

From 1 TO 10 From 11 TO 20 From 21 TO 31

1. Create Three Payment Terms with Same Name

Maintenance of Terms of Payment - TC - OBB8
IMG-->Financial Accounting-->Accounts Receivable and Accounts Payable-- >Business
Transactions-->incoming Invoices/Credit Memos-->Maintain Terms of Payment
Click on "New entries"

Cash Discount in Payment Terms

1. Purchase Goods from Vendor Rs. 1000

Purchase A/c Dr 1000
To Vendor A/c 1000
2. If Vendor Pay within 10 days (10% Cash Discount)
Vendor A/c Dr 1000
To Cash/bank A/c Cr 900
To Cash Discount Rec. A/c Cr 100

1. Creation of G/L Account (Cash discount) FS00

2. Assignment of Cash Discount A/c OBXU
3. Maintenance of Terms of Payment 0BB8
4. Purchase Invoice Posting FB60
6. Check Vendor Line-Item FBL1N
7. Outgoing Payment F-53
 Alternative Reconciliation Configuration
Example :-

We have one vendor he provides service and supply of goods to the company and Company
requirement to show both liabilities separately like below in Financial Statement.
1. S. Creditors - Goods
2. S. Creditors – Services

1. Create Service Reconciliation Account - FS00

Path: Accounting -> Financial Accounting -> General Ledger ->Master Records -> Individual
Processing->Centrally
2. Define Alternative Reconciliation Accounts
IMG->Financial Accounting->Accounts Receivable and Accounts Payable->Business
Transactions
->Postings with Alternative Reconciliation Account->Define Alternative Reconciliation Accounts
 SAP-FI HOUSE BANK

House Bank :- It Represent Branch of Bank. One House Bank Consist of one or
more Accounts.

Bank Key :- It Represent Particular Branch of Bank and it’s a unique key used by
bank for transfer money online. Example IFSC, Swift Code.

Accounts ID :- It Represent Particular Bank Account at a particular Branch.

Steps:
1. Creation of Bank GL - FS00
2. Creation of House Bank. - FI12
3. Assign House Bank and Account ID in GL Master

SAP-Cheque Configuration
1. Creation of Cheque lots - FCHI
2. Purchase invoice posting - FB60
3. Payment of invoice using Bank Account - F-53
4. Manual check updating - FCH5
5. Display Check register - FCHN
6. Check encashment date updating - FCH6
7. Unused checks cancellation - FCH3
8. Creation of Void reason - FCHV
9. Issued checks cancellation - FCH8
 Automatic Payment Program
• Automatic Payment Program is a tool in SAP Finance which is used to make payments in bulk for
overdue Vendors' and Customers' invoices and Credit memos for a single or multiple company
codes

• The payment program has been developed for both national and international payment transactions
with vendors and customers, and handles both outgoing and incoming payments

Automatic Payment Program – Configuration

APP requires the 5 following steps for configuration:

• Transaction code: FBZP

Menu path: Display IMG -> Financial Accounting -> Accounts Receivable and

Accounts Payable -> Business Transactions -> Outgoing Payments -> Automatic

Outgoing/Payments -> Payment Method/Bank Selection for Payment

Program:
• Set up all company codes for payment transactions

• Set up paying company codes for payment transactions

• Set up payment methods per country for payment transactions

• Set up payment methods per company code for payment transactions

• Set up Bank determination for payment transactions

Automatic Payment Program - End-User

• Automatic Payment Program is one of the week-end or month-end or period-end activities
carried out by the Business Users to pay the high volume of AP and AR invoices

• Run Payment - Transaction code: F110

Menu Path: SAP Easy Access -> Accounting -> Financial Accounting ->Accounts
Receivable -> Periodic Processing -> Payments

• Schedule Payment program periodically - Transaction code: F110S

Menu Path: SAP Easy Access -> Accounting -> Financial Accounting ->Accounts
Receivable -> Periodic Processing -> Schedule Payment Program Periodically
A). Block Invoice in Automatic Payment Program.
B). Free Selection in Automatic Payment Program.
C). Individual Invoice Payment in Automatic Payment Program.
D). Individual and Group Invoice Payment in Automatic Payment Program.
E). Invoice Payment Through Multiple House Bank in Automatic Payment
Program.

F). Cash Discount, Tolerance and Maximum Cash Discount in Automatic Payment
Program.
 Accounts Receivable
SAP FI Accounts Receivable component records and manages
accounting data of all customers. It is also an integral part of sales
management.

1. Define Account Groups with Screen Layout (Customers) - 0BD2

Menu path: – SPRO -> Financial Accounting (New) -> Accounts Receivable and Accounts Payable
–> Customer Accounts —> Master Data —> Preparations for Creating Customer Master Data.

2. Create Number Ranges for Customer Accounts - XDN1

Menu Path: – SPRO > Financial Accounting (New) -> Accounts Receivable and Accounts Payable
–> Customer Accounts —> Master Data —-> Preparations for creating customer master data
—> Create number ranges for customer accounts.

3. Assign Number Ranges to Customer Account Groups - OBAR

Menu Path: – SPRO > Financial Accounting (New) -> Accounts Receivable and Accounts Payable
–> Customer Accounts —> Master Data —-> Preparations for creating customer master data
—> Assign number ranges to customer account groups.

4. Creation of GL master - FS00

Sales Account

Sundry Debtors

Menu Path: – SAP Menu >Accounting> Financial Accounting -> General Ledger –> Master Record —>
G/L Accounts —> Individual Processing —> FS00-Centrally

5. Create Customer Master Record - XD01/FD01

Menu Path: – SAP Menu > Accounting → Finance Accounting → Accounts Receivable → Master
Records
→ Maintain Centrally → Create.
6. Posting of sales invoice - F-22/FB70

7. Check Customer Line-Item Display - FBL5N

8. Display Customer Account Balance - FD10N

Customer A/c DR. 100

To Sales A/c 100

Cash/Bank A/c DR 50

To Customer 50

Incoming Payment
There are three methods of Incoming Payment in SAP.
1. Full Incoming Payment Method :- it is used full outstanding original open item (invoice)
amount will be settled.
Menu Path: – SAP Menu > Accounting → Finance Accounting → Accounts Receivable → Document
Entry
→ F-28(Incoming Payment).

2. Partial Incoming Payment Method :- it is used in case when a partial payment for a certain
open item is needed. The system will keep outstanding both documents: the original open item
(invoice) and the partial payment until the full outstanding amount will be settled.
Steps:

1. Posting of The Sales Invoice – FB70

2. Posting of Part Payment Received – F-28

3. Display the Line Items of Customer – FBL5N

4. Post the Remaining Incoming Part Payment – F-28

5. Display customer line items – FBL5N

6. Clearing of Part Payments against the Invoice – F-32

7. Customer line item Display – FBL5N

3. Residual Incoming Payment Method :- it is related to partial payment also but the original
open item (invoice) will be cleared with the partial payment and the system will create a new
outstanding document.
Testing Steps:
1. Post the sales invoice in – FB70

2. Post the part payment in – F-28

3. Display customer line items – FBL5N
 Auto Check Deposit
It is a method to receive incoming payment from customer through cheque.

When we receive cheque from customer we deposit into a bank and post accounting entry.

Ex. Incoming Bank A/c DR. ZHP1

To Customer A/c CR.
Posting Rule – ZHP2
Transaction Key – ZHP3

Steps:

1. Define Posting Keys and Posting Rules for Check Deposit

a) Define Account Symbols.

b) Assign Account to Account Symbols.
c) Creating Keys for Posting Rules.
d) Define Posting Rule.

2. Define Variants for Check Deposit and Activate.

3. Create and Assign Business Transactions
4. Go Transaction Code FF68

Customer as a Vendor
1. Link Customer and Vendor Master Data - XD02
2. Change in Document Type “DZ & KZ” Allow Vendor/Customer - OBA7
3. Post Customer Invoice - FB70
4. Post Vendor Invoice - FB60
5. Receive Customer Payment - F-28
6. Check Line Item - FBL1N/FBL5N

Vendor 0000300003
Customer - 200001
Purchase – 1000
Sale - 700
Bal - 300
 TAX ON SALES AND PURCHASE(GST)

TAX
INDIA

Tax Procedure
Condition Type – 1 (Deductable) Accounting
key
GL ACCOUNTS

C di i T 2 (N D d bl )

1. Create Condition Type- OBQ1 (Copy MWVS and MWAS)

For Input
INCG - INP: Central GST
INSG - INP: State GST
INIG - INP: Interstate GST
For Output
OTCG - OUT: Central GST
OTSG - OUT: State GST
OTIG - OUT: Interstate GST

2. Create Accounting Key- OBCN

For Input
ICG - INP: Central GST
ISG - INP: State GST
IIG - INP: Interstate GST
For Output
OCG - OUT: Central GST
OSG - OUT: State GST
OIG - OUT: Interstate GST

3. Create GL for Accounting Key- FS00

For Input

CGST INPUT TAX

SGST INPUT TAX

 IGST INPUT TAX

For Output
CGST OUTPUT TAX
SGST OUTPUT TAX
IGST OUTPUT TAX

4. Account Determine (Assign GL to Accounting key)- OB40

5. Define Tax Procedure – OBQ3

6. Assign Tax Procedure to Country- OBBG

7. Create Tax Code- FTXP

A1 – 18% OUTPUT TAX (CGST + SGST)

A2 – 18% OUTPUT TAX (IGST)

A3 – 12% OUTPUT TAX (CGST + SGST)

A4 – 12% OUTPUT TAX (IGST)

V1 – 18% INPUT TAX (CGST + SGST)

V2 – 18% INPUT TAX (IGST)

V3 – 12% INPUT TAX (CGST + SGST)

V4 – 12% INPUT TAX (IGST)

8. Create Entry- FB60

GST Compensation Cess

GST Compensation Cess is an additional cess levied on certain notified goods
in addition to GST applicable on it.

Who is liable to collect GST Compensation Cess?

All taxable persons selling the notified goods will be liable to collect and remit the GST
compensation cess. GST compensation tax payers have been exempted from it.

Which goods are notified for charging GST Compensation Cess?

The following goods have been notified so far:

 Pan
 Masala
 Tobacco and tobacco products
• Cigarettes
• Coal, briquettes, ovoids and similar solid fuels manufactured from coal, lignite
excluding jet and peat.
• Aerated waters
• Motor vehicles

 Create Condition Type- OBQ1 (Copy MWVS and MWAS)

For Input
INCE - INP: Comp. Cess
For Output
OTCE - OUT: Comp. Cess

 Create Accounting Key- OBCN

For Input
ICE - INP: Comp. Cess
For Output
OCE - OUT: Comp. Cess

 Create GL for Accounting Key- FS00

For Input

Comp. Cess Input

 For Output
Comp. Cess Output

 Account Determine (Assign GL to Accounting key)- OB40

 Edit in Tax Procedure – OBQ3

Deductible and Non-Deductible Taxes

Generally, company offsets output tax (payable) against input tax (already paid).
Net tax payable = Output tax (payable) – input tax (already paid)
But tax authority can also declare a portion of input tax which cannot be set off against output tax. This
portion of input tax which cannot be offset against output tax is knows as non-deductible tax.
Deductible input tax ⇒ Input tax which can be offset against output tax

Non-deductible input tax⇒ Input tax which cannot be offset against output tax.

Accounting for deductible input tax and non-deductible input tax

Deductible input tax is posted in a separate GL account since it needs to be offset against output tax.
Non-deductible input tax amount is added back to expense account. Since this portion of tax is not going to be
claimed against output tax hence it is treated as increase in cost or expense.
Example:
Company purchased goods worth 100 with 18% IGST (deductible)
Purchase account DR 100
IGST Input tax DR 18
To Vendor 118
Company Conveyance Charge worth 100 with 18% IGST (non-deductible).
Conveyance Charge DR 118
To Vendor 118

 Create Condition Type- OBQ1 (Copy MWVS and MWAS)

For Input
INND - INP: Not Deduct

 Create Accounting Key- OBCN

For Input
IND - INP: Not Deduct
  Create GL for Accounting Key- FS00
For Input

Reverse IGST Payable

 Edit in Tax Procedure – OBQ3

Reverse Charge in GST

Reverse Charge

Reverse charge is a scenario in Taxation, where, the tax paying entity creates a tax liability on it self.

One of the examples of this is India GST, where reverse charge needs to be applicable under specific
scenarios, such as Purchase from Unregistered Vendors, Import of services and Purchase of specific Goods
and Services.

To understand it better, let us take an example. An organization purchases goods from a supplier. That
supplier is not eligible/registered to pay taxes to government. The rule in that particular tax regime tells that,
in such case, the buyer needs to create a tax liability on itself and submit the tax amount to government. This
concept is called reverse charge.

Let’s talk about it from an accounting point of view.

Purchase without Reverse Charge (Regular Purchase)

In case of a normal purchase, the accounting entry will be as it below.

Purchase account DR 100

IGST Input tax DR 18
To Vendor 118

Purchase with Reverse Charge

In case of a reverse charge, the accounting entry will be as below.

Expenses Dr 100

Vendor Cr 100

IGST Input tax Dr 18

Reverse IGST Payable Cr 18

 Create Condition Type- OBQ1 (Copy MWVS and MWAS)
For Input
RCIG - INP: Reverse IGST

 Create Accounting Key- OBCN

For Input
RCI - INP: Reverse IGST

 Edit in Tax Procedure – OBQ3

 Create Tax Codes – FTXP

 WITHHOLDING TAX(TDS)
Configuration Step:-

1. Check Withholding Tax Countries :-

The withholding tax country is needed for printing the withholding tax form and also for
maintaining the tax codes in the vendor master and customer master.

Path :- IMG > Financial Accounting > Financial Accounting Global Settings>Withholding Tax>
Extended Withholding Tax > Basic Settings > Check Withholding Tax Countries

2. Define Official Withholding Tax Keys:-

If the national tax authorities use official withholding tax keys to identify the different withholding
tax types, you can define these official names for your tax codes here. Here we configure the
various tax keys which are applicable in different scenarios.

Path :- IMG > Financial Accounting > Financial Accounting Global Settings>Withholding Tax‡
Extended Withholding Tax > Basic Settings > Define Official Withholding Tax Keys

 (194J Payment of Professional Fees 10%)

3. Define Reasons for Exemption:-

Here we define reasons for exemption from withholding tax. This indicator can be entered in the
vendor master record or in the company code withholding tax master record information.

Path :- IMG > Financial Accounting ‡ Financial Accounting Global Settings > Withholding Tax >
Extended Withholding Tax > Basic Settings > Define Reasons for Exemption

 (E1 Exempt under TDS )

4. Check Recipient Types:-

For example:- If the vendor is a company or, Other than a company.

Path :- IMG > Financial Accounting > Financial Accounting Global Settings > Withholding Tax‡
Extended Withholding Tax > Basic Settings > Check Recipient Types

 (Company and Other Than Company)

5. Define Business Places:-

Business places are the location where tax is deducted. A company has various offices at Head
Office, Regional offices etc. Tax can be deducted at any of these places. Withholding tax tracking
is thus done based on business places. The use of business places is mandatory. Create a
business place for each tax deduction account number (TAN) that your company has.
 Path :- IMG > Financial Accounting > Financial Accounting Global Settings > Withholding Tax >
Extended Withholding Tax > Basic Settings > India > Define Business Places

 Delhi-

 UP -

6. Define Section Code:-

The section code process the system under which TAN item is post and which TAN has to
declare it in its TAX statement.
Path :- IMG > Financial Accounting > Financial Accounting Global Settings > Withholding Tax >
Extended Withholding Tax > Basic Settings > India > Define Section Code

Withholding Tax Type:-

 The withholding tax type controls the essential calculation options for extended
withholding tax.

 While the withholding tax code only controls the percentage rate of the withholding tax.

 You must enter the withholding tax type in the customer/vendor withholding tax master
data and in the company code master data.

7. Define Withholding Tax Type for Invoice Posting:-

Here you define the withholding tax type for the posting at the time of entering an invoice. This
withholding tax type does not have any effect on the payment.
Path :- IMG > Financial Accounting ‡ Financial Accounting Global Settings > Withholding Tax >
Extended Withholding Tax > Calculation‡ Withholding Tax Type >
Define Withholding Tax Type for Invoice Posting

8. Define Withholding Tax Type for Payment Posting:-

Here we define the withholding tax type for posting at the time of payment. We also have to
enter the
withholding tax information when entering the document for this withholding tax type.
Path :- IMG > Financial Accounting > Financial Accounting Global Settings‡ Withholding Tax >
Extended Withholding Tax > Calculation‡ Withholding Tax Type >
Define Withholding Tax Type for Payment Posting
9. Define Withholding Tax Codes:-
Let us create 2 withholding tax codes for Contractors (Companies & other than companies) for
Invoice
posting and 2 tax codes for Payment posting (Companies & other than companies)
Path :- IMG > Financial Accounting > Financial Accounting Global Settings > Withholding Tax >

Extended Withholding Tax > Calculation‡ Withholding Tax Codes > Define Withholding Tax
Codes

10. Assign Withholding Tax Types to Company Codes:-

 Path :- IMG > Financial Accounting > Financial Accounting Global Settings > Withholding Tax >
Extended Withholding Tax > Company Code > Assign Withholding Tax Types to Company
Codes

11. Activate Extended Withholding Tax:-

Path :- IMG > Financial Accounting > Financial Accounting Global Settings > Withholding Tax >
Extended Withholding Tax > Company Code‡ Activate Extended Withholding Tax

12. Create GL for Withholding Tax:-

Path :- Accounting > Financial Accounting >General Ledger > Master records > G/L Accounts >
Individual Processing > Centrally(FS00)

13. Define Accounts for Withholding Tax to be Paid Over:-

Path :- IMG > Financial Accounting > Financial Accounting Global Settings > Withholding Tax‡
Extended

Withholding Tax > Postings > Accounts for Withholding Tax > Define Accounts for
Withholding Tax

to be Paid Over

14. Update withholding tax codes in the vendor master:-

We assume that the vendor master is already created. We are changing the vendor master data with the
withholding tax codes details. Use transaction code FK02/XK02

Defining Minimum and Maximum Amounts in Withholding Tax

We can define the minimum and maximum amounts at one of two levels, depending on the setting on the corresponding
withholding tax type for base amounts or withholding tax amounts.
 Define Min/Max Amounts for Withholding Tax Types
 Define Min/Max Amounts for Withholding Tax Codes

Make the following settings:

 Withholding tax minimum amount
If the withholding tax amount calculated is lower than the minimum amount you specify here, then the system calculates the
withholding tax amount as being zero.
Ex. Minimum withholding tax amount is 1,000, Means if we post any Entry and withholding tax amount is less than 1000, then
the system calculates the withholding tax amount as being zero.

 Withholding tax maximum amount

If the withholding tax amount calculated is higher than the withholding tax maximum amount you specify here, then the system
uses this maximum amount in the withholding tax calculation.
Ex. Maximum withholding tax amount is 10,000, Means if we post any Entry and withholding tax amount is Higher than 10,000,
then the system uses this maximum amount in the withholding tax calculation.

Defining Withholding Tax Formulas

It is use when we want to deduct Withholding Tax slab wise
Ex.
Base Amounts Withholding Tax
10,000 0%
20,000 10%
 30,000 20%
Above 30,000 30%

Path :- Financial Accounting (New) → Financial Accounting Global Settings → Withholding Tax → Extended Withholding
Tax → Calculation → Withholding Tax Codes → Define Formulas for Calculating Withholding Tax or Define Calculation Types .
 CASH JOURNAL
The cash journal is a subledger 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.
Cash journal can be used to record all transactions involving cash in place of posting a journal entry
via transaction code FB50.(T-Code-FBCJ )
Why Use the Cash Journal?
1 Ability to post all transactions related to cash receipts and payment in a single screen.
2. Daily cash position, including opening balance, total receipts, total payments and closing balance,
is
automatically calculated by the system.
3. Entries are very quick and easy via customized business transactions.
4. Daily, weekly or current period reporting available
5. Cash journal can be printed easily.
6. Very simple to configure.

Cash Journal Configuration Step:-

SPRO > Financial Accounting(New) > Bank Accounting > Business Transactions > Cash Journal
 GL-Creation for Cash Journal.
 Define Document Type.
 Define Number Range for Cash Journal Document.
 Setup Cash Journal.
 Create, Change, Delete Business Transaction.
 Setup Print Parameter for Cash Journal.

Example :- We have to Maintain 3 Cash Journal(Corporate Office, Delhi Office, Pune Office)
Accounting Transaction :-
1. Cash Withdraw from Bank.
Petty Cash A/c Dr.
To Bank A/c
2. Cash Deposit into Bank.
Bank A/c Dr.
To Petty Cash A/c
3. Cash Sales.
Petty Cash A/c Dr.
To Sales A/c
4. Paid Expenses.
Expenses A/c Dr.
To Petty Cash A/c
5. Cash Receive from Customer.
Petty Cash A/c Dr.
To Customer A/c
6. Cash Paid to Vendor.
Vendor A/c Dr.
To Petty Cash A/c
 Bank Reconciliation Statement (BRS)
Bank reconciliation statement is a report or statement prepared by the business to match the bank
transactions recorded in the books of accounts with the bank statement. The bank reconciliation
statement helps to check the correctness of the entries recorded in the books of accounts and thereby,
ensures the accuracy of bank balances.

Why bank reconciliation statements are prepared?

 Cheques Issued but not cleared in the bank

 Difference in cheque deposited and cheque credited date
 Date of cheque issued towards payment and date on which it is debited is different
 Cheque issued or received is not presented to the bank for clearing
 Bank interests, charges etc. are not accounted for. Reason being it is not known till you reconcile.
 Banks can also do mistake in debiting or crediting the transactions
 Just like banks, you too can make mistake in accounting the bank transactions in books of
accounts and so on….

Due to the reasons listed above, the closing bank balance in your books of accounts and actual bank
balance as per bank will not match. This means, the bank balance what you think you have it your
bank is not the one available in the bank. Deciding basis, the book balance will put you in an
uncomfortable situation.

To avoid those situations, bank reconciliation statements are prepared. This statements simply
matches the bank transactions as per company books with bank statement so that you always have
accurate bank balance reflecting in the books of accounts.

Bank reconciliation statement (BRS) format

Bank Reconciliation Configuration Step:-
 House Bank Creation - FI12
 Create Three Bank Ledger - FS00
Main Bank Account(++++++0)
Outgoing Account (++++++1)
Incoming Account (++++++2)
IMG - Financial Accounting (New) - Bank Accounting - Business Transactions - Payment Transactions -
Manual Bank Statement
 Define Posting Keys and Posting Rules for Bank Statement
1. Create Accounts Symbol
ZHBANKMAIN - Main Bank A/c
ZHBANKOUT - Outgoing A/c
ZHBANKINC - Incoming A/c
2. Assign Accounts to Accounts Symbol
3. Create Key for Posting Rules
ZH01 - Outgoing Payment
ZH02 - Incoming Payment
4. Define Posting Rules
 Define Variants for Manual Bank Statement
 Create and Assign Business Transactions - OT52
ZH01
ZH02
 To Run Bank Reconciliation - FF67
Dual Control Functionality in SAP
Sensitive Data Fields provides dual control function in SAP to provide more security when changes are
made in Customer and Vendor Master Data records. After activating Sensitive Data Fields functionality,
changes done by one profile (Ex. Clerk) in AP and AR Master Data has to be confirmed by another profile
(authorized person), thereby facilitating strong control over unauthorized modification. Changes made in
relevant Customer or Vendor Master Data are visible but the account is automatically blocked for
payment run till the changes are confirmed.

SPRO -> Financial Accounting -> Accounts Receivable and Account Payable -> Vendor Accounts -> Master Data ->
Preparations for Creating Customer Master Data -> Define Sensitive Fields for Dual Control. Single data fields
can be defined as sensitive.
TCODE – S_ALR_87003179

a. Maintaining Sensitive Fields and Save

b. Changing Bank Account No. in Vendor Master Data
c. Confirmation of Change (FK08)

Financial Statement Versions in SAP

Financial statement versions help to group all the related accounts to get the Balance sheet and Income
statement for the purpose of reporting. SAP systems uses the financial statement version (FSV) that
assigned to the company code when creating the balance sheet and P&L reports.
You can maintain financial statement versions as per organization requirements. SAP systems has
come with standard financial statement version for all countries. So you can use those standard version
if your business requirements are limited or you can create new FSV as per business requirements.
Financial Statement Version Configuration Steps

SPRO >> Financial Accounting >> General Ledger Accounting >> Periodic Processing >> Document
>> Define Financial Statement Versions.

Tcode – OB58

Click on “New entries” to maintain new FSV.

On new entries screen, update the following details.

1. Fin. Stmt.Version: – Enter the new four digits key that identifies the financial
statement versions in SAP.

2. Name: – Update the descriptive name of the FSV.

3. Main. language: – Update the language key, in which language your financial
statement to be maintain.

4. Item Keys Auto: – Item keys are linked to financial statement items in the FSV. This
indicator determines the item keys to be assign automatically or manually. Its
recommended to to check this option so that item keys are assign automatically.

5. Chart of Accounts: – Enter the COA that you want tag to financial statement version.

6. Group Account number: – Select this indicator to assign account number from the
group char of accounts. This configuration is valid only if we are using consolidation
functionality.

7. Fun.area.perm.:– Select this indicator to use the functional area organizational

elements. It helps to maintain alternative group costs.

To Check Financial Statement Version – F.01

 SAP FI-MM INTEGRATION

SAP ensures that data from one module automatically flows to another module. In case of SAP
MM FI integration, functionality and data from SAP MM (Materials Management) module
triggers automatic postings in SAP FI (Financial Accounting) module.

SAP FI-MM Integration Configuration Steps

1. Define Company Code (FI) - OX02

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Financial Accounting ⇒ Edit, Copy, Delete, Check Company
Code

2. Define Plant - OX10

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Logistic General ⇒ Define, Copy, Delete check plant

3. Define Storage Location - OX09

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Materials Management ⇒ Maintain Storage Location

4. Define Purchase Organisation - OX08

IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Materials Management ⇒ Maintain Purchasing Organization

5. Define Purchase Group - OME4

IMG ⇒ Materials Management ⇒ Purchasing ⇒ Create Purchasing Group

6. Assign Plant to Company Code - OX18

IMG ⇒ Enterprise Structure ⇒ Assignment ⇒ Logistics - General⇒ Assign Plant to Company Code

7. Assign Purchase Organisation to Company Code - OX01

IMG ⇒ Enterprise Structure ⇒ Assignment ⇒ Materials Management ⇒ Assign Purchasing
Organization to Company Code

8. Assign Purchase Organisation to Plant - OX17

IMG ⇒ Enterprise Structure ⇒ Assignment ⇒ Materials Management ⇒ Assign Purchasing organization
to Plant

9. Creation of Plant Parameters - OMI8

IMG > Material Management >Consumption based planning > Plant parameters > Carry out overall
maintenance of plant parameters

10. Maintain Company Code for Material Management - OMSY

IMG > Logistics General > Material Master > Basic settings > Maintain company code for material
management.

11. Group Together Valuation Areas - OMWD

IMG ⇒ Materials Management ⇒ Valuation and Account Assignment ⇒ Account Determination ⇒
Account Determination without Wizard ⇒ Group Together Valuation Areas

12. Set Tolerance Limits for Price Variance(PO)

IMG ⇒ Materials Management-> Purchasing-> Purchase Order-> Set Tolerance Limits for Price Variance

13. GR Tolerance Group - OMC0

IMG ⇒ Materials Management-> Inventory Management and Physical Inventory->Goods Receipt->Set
Tolerance Group

14. Parameters for Invoice Verification

IMG ⇒Materials Management->logistic invoice verification->Invoice Verification Background->Define
Automatic status change

15. Maintain Plant Parameters for Inventory Management & Physical Inventory
IMG ⇒Materials Management->Inventory Management & Physical Inventory->Plant Parameters

16. Default Value of Tax Codes for Invoice Verification

IMG ⇒Materials Management->logistic invoice verification->Incoming Invoice->Maintain Default Value
for tax codes

17. Maintain AN and ST Tolerance Limit - OMR6

18. Define Attributes for Material Type - OMS2

IMG ⇒logistic General->MM Basic Settings->Define Attributes for Material Type

19. Create Material Master - MM01

20. Define Vendor Account Group - OBD3

IMG ⇒ Logistic General ⇒ Business Partner ⇒ Vendors ⇒ Control ⇒ Define Account group and field
selection(vendor)

21. Define Number Range. - XDN1

IMG ⇒ Logistic General ⇒ Business Partner ⇒ Vendors ⇒ Control ⇒ Define Number Range for Vendor
master record

22. Vendor Creation - XK01

SAP Menu ⇒ Logistics ⇒ Material Management ⇒ Purchasing ⇒ Master Data ⇒ Vendor ⇒ Central ⇒
Create

23. GL Creation - FS00

24. Assignment of Accounts for Automatic Posting(Integration)- OBYC

 VALIDATIONS IN SAP DOCUMENTS
While entering a transaction into FI module, system will validate the combination that is entered and if its
matches with the requirement that is defined in validation rule in SAP then it will allow you to post the
transaction or else it will show an error message that the combination is not allowed.

 By configuring the validation rule, the entered data is validated according to that validation rule

 The data is posted after it is validated as per the validation rule

 The validation rules are defined by using Boolean logic

 When you define a validation rule, the system checks that validation rule to ensure that it Is syntactically
correct

 You can also assign several steps with one validation instead of creating individual validations per step.
The
maximum number of steps possible in one validation are 999

Menu path: Display IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business
Transactions -> incoming Invoices/Credit Memos -> Make and Check Document Settings -> Validation in
Accounting Documents

Menu path; Display IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business
Transactions -> Outgoing Invoices/Credit Memos -> Make and Check Document Settings -> Validation in
Accounting Documents

Step to Configuration :-

1. Create Validation - GGB0

Prerequisite - Enter the Combination.

Check - System Check the Condition if Its True it allows the Transaction.

Message - If Condition is not True it show the Error Msg.

2. Activate Validation - OB28

Header BKPF
Accounting
Line Item BSEG
Document
Complete Document BKPF+BSEG

Example-1
Requirement :- As Per the Company Requirement Document Date and Posting Date Should be
Same
in FB60(Vendor Invoice) for the Company Code HP01.

Example-2
Requirement :- As Per the Company Requirement Text Field Not Empty During Entry with Cash
GL(200005) for the Company Code HP01.
 SUBSTITUTION IN SAP DOCUMENTS
In Substitution, the values entered into the SAP system are validated according to a prerequisite defined
by the user. If the prerequisite is met the system replaces the value entered with other values.

 Substitutions are not supported by the document parking feature. Substitutions can only be made
with posting transactions after turning parked documents into accounting documents.

 It works in an empty field and replaces the existing value in that field as per the substitution rule

Menu path: Display IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable ->Business
Transactions -> Incoming Invoices/Credit Memos -> Make and Check Document Settings -> Substitution in
Accounting Documents

Display IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions ->
Outgoing Invoices/Credit Memos -> Make and Check Document Settings ->Substitution in Accounting Documents

Step to Configuration :-

1. Create Validation – GGB1

Prerequisite - Enter the Combination.

Substitutions - Enter the Substitutions.

2. Activate Validation - OBBH

Example-1
Requirement :- As Per the Company Requirement “Reference Field as” (Foreign Invoice) on
Foreign Vendor and “Document Header Text as” (Being Foreign Trade) in FB60(Vendor Invoice)
for the Company Code HP01.(Like =USD)

Example-2
Requirement :- As Per the Company Requirement Auto Text Field During Entry with Cash
GL(200005) for the Company Code HP01.