SAP Finance Notes
SAP Finance Notes
SAP Finance Notes
Advantages............................................................................................................. 5
Disadvantages.........................................................................................................5
HISTORY OF SAP......................................................................................................7
R/3 ARCHITECTURE..................................................................................................8
ENTERPRISE STRUCTURE.......................................................................................22
3. Posting Periods..................................................................................................38
A). Define variant For Open Closing Posting Periods Tr Code OBBO...................38
MASTER DATA.......................................................................................................44
Document Date in Document: The document date is the date on which the
original document was issued............................................................................47
Posting Date in the Document: Date, which is used when entering the document
in Financial Accounting or Controlling................................................................47
Posting key: A two-digit numerical key that determines the way how line items
are posted? This key determines several factors including -Account type, Type
of posting (debit or credit).................................................................................47
Value date : The value date is used in bank accounts and bank sub-accounts. .47
ACCOUNTS PAYABLE.............................................................................................49
Use.....................................................................................................................63
Payment method................................................................................................64
Use.....................................................................................................................64
It give message Details have been saved for the run on 20.07.08 VIJA.............68
Down Payment......................................................................................................73
DUNNING...............................................................................................................76
CASH JOURNAL......................................................................................................81
ASSET ACCOUNTING..............................................................................................84
Cost element....................................................................................................112
Primary cost element: A cost element whose costs originate outside of CO and
accrual costs that are used only for controlling purposes................................112
Secondary cost element: A cost element that is used to allocate costs for
internal activities..............................................................................................112
1. What is ERP ?
ERP is a package with the techniques and concepts for the integrated
management of business as a whole, for effective use of management
resources, to improve the efficiency of an enterprise. Initially, ERP was
targeted for manufacturing industry mainly for planning and managing core
business like production and financial market. As the growth and merits of
ERP package ERP software is designed for basic process of a company from
manufacturing to small shops with a target of integrating information across
the company.
2. What are the different types of ERP ?
SAP, BAAN, JD Edwards, Oracle Financials, Siebel, PeopleSoft. Among all the
ERPs most of the companies implemented or trying to implement SAP
because of number of advantages over other ERP packages.
3. What is SAP?
SAP is the name of the company founded in 1972 under the German name
(Systems, Applications, and Products in Data Processing) is the leading ERP
(Enterprise Resource Planning) software package.
3. Why do you usually choose to implement SAP?
There are number of technical reasons numbers of companies are planning to
implement SAP. It’s highly configurable, highly secure data handling, min
data redundancy, max data consistency; you can capitalize on economics of
sales like purchasing, tight integration-cross function.
4. What is IDES?
International Demonstration and Education System. A sample application
provided for faster learning and implementation.
5. What is SAP R/3?
A third generation set of highly integrated software modules that performs
common business function based on multinational leading practice. Takes
care of any enterprise however diverse in operation, spread over the world. In
R/3 system all the three servers like presentation, application server and
database server are located at different system.
6. What are presentation, application and database servers in SAP R/3?
The application layer of an R/3 System is made up of the application servers
and the message server. Application programs in an R/3 System are run on
application servers. The application servers communicate with the
presentation components, the database, and also with each other, using the
message server. All the data are stored in a centralized server. This server is
called database server
7. How can an ERP such as SAP help a business owner learn more about how
business operates?
In order to use an ERP system, a business person must understand the
business processes and how they work together from one functional area to
the other. This knowledge gives the student a much deeper understanding of
how a business operates. Using SAP as a tool to learn about ERP systems will
require that the people understand the business processes and how they
integrate.
8. Name some drawbacks of SAP
Interfaces are huge problem, Determine where master data resides,
Expensive, very complex, demands highly trained staff, lengthy
implementation time.
HISTORY OF SAP
Over the course of three decades, SAP has evolved from a small, regional
enterprise into a world-class international company. Today, SAP is the global
market leader in collaborative, inter-enterprise business solutions. The
company now employs more than 39,300 people, whose commitment and
innovative spirit pace our future success.
The 1970s: A Real-Time Vision
In 1972, five former IBM employees -- Dietmar Hopp, Hans-Werner Hector,
Hasso Plattner, Klaus Tschira, and Claus Wellenreuther -- launch a company
called Systems, Applications, and Products in Data Processing in Mannheim,
Germany. Their vision: to develop standard application software for real-time
business processing.
One year later, the first financial accounting software is complete, forming
the basis for the continuous development of other software components in
what later came to be known as the "R/1 system." "R" stands for real-time
data processing.
By the end of the decade, intensive examination of SAP's IBM database
and dialog control system leads to the birth of SAP R/2.
The 1980s: Rapid Growth
SAP moves into the company's first building on Max-Planck-Strasse in an
industrial park in Walldorf, near Heidelberg. Our software development area
and its 50 terminals are all now under one roof. Fifty of the 100 largest
German industrial firms are already SAP customers.
The SAP R/2 system attains the high level of stability of the previous
generation of programs. Keeping in mind its multinational customers, SAP
designs SAP R/2 to handle different languages and currencies. With this and
other innovations in SAP R/2, SAP sees rapid growth.
By the middle of the decade, SAP founds its first sales organization
outside Germany, in Austria. The company makes its first appearance at the
CeBIT computer fair in Hanover, Germany. Revenues reach DM 100 million
(around $52 million), earlier than expected.
In August 1988, SAP GmbH becomes SAP AG. Starting on November 4, 1.2
million shares are listed on the Frankfurt and Stuttgart stock exchanges.
Germany's renowned business journal, manager magazine, names SAP its
Company of the Year -- a distinction we would receive twice more in the next
few years.
With the founding of subsidiaries in Denmark, Sweden, Italy, and the
United States, SAP's international expansion takes a leap forward.
The 1990s: A New Approach to Software and Solutions
SAP R/3 is unleashed on the market. The client-server concept, uniform
appearance of graphical interfaces, consistent use of relational databases,
and the ability to run on computers from different vendors meets with
overwhelming approval. With SAP R/3, SAP ushers in a new generation of
enterprise software -- from mainframe computing to the three-tier
architecture of database, application, and user interface. To this day, the
client-server architecture is the standard in business software.
A growing number of subsidiaries are managed out of Walldorf. The new
Sales and Development Center in Walldorf officially opens it doors. It
symbolizes the global success of the company. In our twentieth year, our
business outside Germany exceeds 50 percent of total sales for the first time.
By 1996, the company has earned 1,089 new SAP R/3 customers. At the
end of the year, SAP R/3 has been installed in more than 9,000 systems
worldwide.
SAP celebrates its twenty-fifth anniversary in 1997 and now employs
approximately 12,900 people. We continue to strengthen our industry focus
and build more and more industry-specific solutions. Henning Kagermann
becomes Co-Chairman and CEO of SAP AG with Hasso Plattner. On August 3,
1998, the letters S-A-P appear for the first time on the Big Board at the New
York Stock Exchange (NYSE), the largest stock exchange in the world.
As the decade draws to a close, Hasso Plattner, Co-Founder, Co-Chairman,
and CEO announces the mySAP.com strategy, heralding the beginning of a
new direction for the company and our product portfolio. mySAP.com links e-
commerce solutions to existing ERP applications, using state-of-the-art Web
technology.
The 2000s: Innovation for the New Millennium
With the Internet, the user becomes the focus of software applications.
SAP develops SAP Workplace and paves the way for the idea of an enterprise
portal and role-specific access to information.
By 2005, 12 million users work each day with SAP solutions. There are
now 100,600 installations worldwide, more than 1,500 partners, over 25
industry-specific business solutions, and more than 38,000 customers in 120
countries. SAP is the world's third-largest independent software vendor.
Today, based on Enterprise Services Architecture and the underlying
integration and application platform, SAP NetWeaver, SAP is providing its
customers with solutions for end-to-end business processes. With SAP
NetWeaver, companies can integrate people, information, and processes
within the company and beyond.
R/3 ARCHITECTURE
The fundamental services in a business application system are presentation
services, application services, and database services.
a one-tier R/3 System configuration, all processing tasks are performed on
In
one server, as in classic mainframe processing.
Two-tier R/3 System configurations are usually implemented using special
presentation servers that are responsible solely for formatting the graphical
user interface. Many R/3 System users use Windows PCs for example as
presentation servers. An alternative two-tier configuration (not shown) is to
install powerful desktop systems and to use these for presentation and
applications also (two-tier client/server). This type of configuration is
particularly useful for processing-intensive applications (such as
simulations) or for software developers, but due to the additional
administration requirements is usually used for test purposes only.
In a three-tier configuration, separate servers are used for each tier. Using
data from the database server, several different application servers can
operate at the same time. To ensure that the load on individual servers is
as even as possible and to achieve optimal performance, you can use
special application servers for individual application areas such as
distribution or financial accounting (logon and load balancing).
The R/3 System is a client system. The client concept enables the joint operation,
in one system, of several enterprises that are independent of each other in business
terms. During each user session you can only access the data of the client selected
during the logon.
A client is, in organizational terms, an independent unit in the R/3 System.
Each client has its own data environment and therefore its own master data
and transaction data, assigned user master records and charts of accounts,
and specific customizing parameters.
A user master record linked to the relevant client must be created for users
to be able to log on to the system.
To protect access, a password is required for logon.
The password is hidden as you type (you only see asterisks).
SAP systems are available in several languages. Use the Language input field
to select the logon language for each session.
Multiple logons are always logged in the system beginning
This is for security as well as licensing reasons. A warning message appears if
the same user attempts to log on twice or more. This message offers three
options:
Continue with current logon and end any other logons in the system
Continue with current logon without ending any other logons in the
system (logged in system)
Terminate current logon
The new SAP Easy Access user menu is the user-specific point of entry
into the SAP System. A typical user menu (here, in the R/3 System) is shown
below:
The user menu contains only those items – such as transactions, reports, and
Web addresses – you need to perform your daily tasks.
Procedure
3. Enter a name and the Web address or file name, and choose Continue.
Procedure
Inserting Folders
To move favorites or folders between hierarchy levels, use drag and drop:
1. Select the favorite or folder with the mouse, and keep the mouse
button pressed.
2. Drag the favorite or folder to the desired position in the favorites list,
and release the mouse button.
3. The favorite or folder appears below the position where you let it go.
From the context menu, choose Change favorites. To open the context
menu, click the right-hand mouse button.
To enter information in the SAP System, you must sometimes select among
several options. In some cases, you can select only one option; in others, you
can select more than one.
When you can select only one, the options are identified by radio buttons:
When you can select more than one, the options are identified by checkboxes:
Command field: You can use the command field to go to applications directly by
entering the transaction code. You can find the transaction code either in the SAP
Easy Access menu tree (see next slide) or in the relevant application under
System® Status.
Menu bar: The menus shown here depend on which application you are working in.
These menus contain cascading menu options.
Standard toolbar: The icons in the system function bar are available on all R/3
screens. Any icons that you cannot use on a particular screen are dimmed. If you
leave the cursor on an icon for a moment, a small flag will appear with the name (or
function) of that icon. You will also see the corresponding function key.
Application toolbar shows you which functions are available in the current
application.
Title bar: The title bar displays your current position and activity in the system.
Check boxes: Checkboxes allow you to select several options simultaneously
within a group.
Radio buttons: Radio buttons allow you to select one option only.
Status bar: The status bar displays information on the current system status, for
example, warning and error messages.
A tab provides a clearer overview of several information screens.
Options: You can set your font size, list colors, and so on here.
Use F1 for help on fields, menus, functions and messages.F1 help also
provides technical information on the relevant field. This includes, for
example, the parameter ID, which you can use to assign values to the field
for your user.
Use F4 for information on what values you can enter. You can also access F4
help for a selected field using the button immediately to the right of that
field.
If input fields are marked with a small icon with a checkmark, then you can
only continue in that application by entering a permitted value.
You can flag many fields in an application to make them either required entry
fields or optional entry fields. You can also hide fields using transaction or
screen variants or Customizing.
As an alternative to using the mouse, the following table shows the key
combinations you can use to work with fields. These functions are identical to the
corresponding MS Windows functions.
Use
To navigate in the SAP Easy Access workplace menu, you use the up and down
cursors as well as the Delete and Enter keys.To choose a menu from the menu bar,
you use the F10 key, the cursors, and the Enter key.
Procedure
Using the Keyboard to Navigate in the SAP Easy Access Workplace Menu
• To move up and down in the workplace menu, use the up and down cursors (
and ¯).
• To delete a favorite from your favorites list, choose Delete.
• To open a folder or start a transaction, choose Enter.
Choosing a Menu in the Menu Bar
To choose a menu with the keyboard:
1. Press F10 .
The system activates the menu bar and highlights the first menu on the left.
2. To highlight the menu of your choice, use the left and right cursors (¬ and
®).
3. Press the down cursor (¯).
The menu opens. If your system is busy, it may take a few seconds for the
contents to appear.
The system highlights the first item in the menu. Submenus are indicated by
dropdown arrows to the right of menu items.
Choosing a Submenu
To choose a submenu with the keyboard:
1. From the open menu, use the up and down cursors ( and ¯) to move the
highlight to the desired submenu.
2. Press the right cursor (®).
The submenu opens next to the original menu, and its contents (functions,
submenus, or both) appear. If your system is busy, it may take a few seconds
to display the contents.
The system highlights the first item in the submenu.
To cancel, or close, any menu or submenu, press ESC . Or, press F10.
The system closes the respective menu and submenus, and deactivates the menu
bar. To choose another menu, press F10 again.
Command field
You can execute the following commands in this field with Enter:
• To call a transaction
o in the same session (window)
Enter: /nxxxx (xxxx = transaction code).
o in the same session (window), whereby the initial screen is
skipped.
Enter: /*xxxx (xxxx = transaction code).
o in an additional session,
Enter: /oxxxx (xxxx = transaction code).
ENTERPRISE STRUCTURE
SELECT
NOW SELECT Enterprises StructureDefinitionFinancial AccountingDefine
Company
1. CLICK ON EXECUTE
2. Select
REQUEST MEANS
There are different types of requests or tasks, which fulfill different
functions in the SAP System:
Change requests:
1. Transportable change request: For recording changes to Repository objects
and transporting them to other SAP Systems
2. Local change requests: For recording changes to Repository objects within an
SAP System
3. Customizing request: For recording changes to Customizing settings and
transporting them, if necessary, to other SAP Systems or clients
Tasks: Correction for recording changes to Repository objects if they
are carried out in the object's original system
4. Customizing settings: Repair: For recording changes to Repository objects if
they are not carried out in the object's original system
Use
Credit and risk management takes place in the credit control area. According to
your corporate requirements, you can implement credit management that is
centralized, decentralized, or somewhere in between.
- For example, if your credit management is centralized, you can define one credit
control area for all of your company codes.
- If, on the other hand, your credit policy requires decentralized credit management,
you can define credit control areas for each company code or each group of
company codes.
SELECT
NOW SELECT Enterprises StructureDefinitionFinancial AccountingDefine Credit
control area
1. CLICK ON EXECUTE
2. Select
SELECT
NOW SELECT Enterprises StructureDefinitionFinancial AccountingEdit, copy,
delete, check company code
1. CLICK ON EXECUTE
2. Select
You can create financial statements for business areas, and you can use
these statements for various internal reporting purposes.
SELECT
NOW SELECT Enterprises StructureDefinitionFinancial AccountingDEFINE
BUSINESS AREA
1. CLICK ON EXECUTE
2. Select
SELECT
NOW SELECT Enterprises StructureDefinitionFinancial AccountingDEFINE
FUNCTIONAL AREA
1. CLICK ON EXECUTE
2. Select
SELECT
NOW SELECT Enterprises StructureDefinitionFinancial AccountingDEFINE
Consolidation FUNCTIONAL AREA
1. CLICK ON EXECUTE
2. Select
Sales organization, defines our own master data. This allows a sales organization to
have its own customer and material master data as well as its own conditions and
pricing.
Define our own sales document types within a sales organization.
Assign sales offices and our own employees to a sales organization.
All items in a sales & distribution document, that is, all items of an order, delivery or
a billing document belong to a sales organization.
A sales organization is the highest summation level (after the organizational unit
Client) for sales statistics with their own statistics currency.
The sales organization is used as a selection criterion for the lists of sales
documents and for the delivery and billing due list.
For each sales organization, determine the printer for output differently based on
sales and billing documents. A sales organization cannot share any master data
with other sales organizations. The master data must be created separately. The
data for a distribution channel or a division can, however, be created for several
distribution channels or divisions.
Path: SproEnterprise structure DefinitionSalesDistributionDefine Define
Copy, Delete, Check Sales Organization
Within a distribution channel, define our own master data for customers or
materials as well as your own conditions and pricing.
create master data for a representative distribution channel which is then also used
in other distribution channels. To do this, you have to additionally create the
allocation of the representative distribution channel to the other distribution
channels.
For a distribution channel, determine own sales document types.
Determine sales offices for a distribution channel.
All items of a sales document belong to a distribution channel. The entire sales
document is therefore entered for a distribution channel.
The items of a delivery can belong to different distribution channels.
All items of a billing document belong to a distribution channel.
The distribution channel can be used as a selection criterion in lists.
You can determine the printer destination for messages differently for every
distribution channel on the basis of the sales and billing documents.
A distribution channel does not fulfill the following criteria:
A distribution channel does not have its own address.
You cannot allocate your own employees to a distribution channel
Distribution Name
channel
V1 Direct sales
SAVE
Purchase PO details
Organization
VIPO PO FOR V101
SAVE
ASSIGNMENT
SELECT
NOW SELECT Enterprises StructureASSIGNMENTFinancial
AccountingAssign company code to company
Go to
Give Company Code – and Enter
Assign the company
Save
SELECT
NOW SELECT Enterprises StructureASSIGNMENTFinancial
AccountingAssign company code to credit control area
Go to
Give company code and assign credit control area
SAVE
SELECT
NOW SELECT Enterprises StructureASSIGNMENTFinancial
AccountingAssign business area to consolidation business area
Go to
Give company code and assign consolidated business areas
SAVE
ENTER
D.CLICK On V101
Select ASSIGN
SELECT
VIJP –PLANT
ENTER
SAVE
The R/3 System uses the valuation area and the division to find the relevant
business area for account assignment when material postings are made (e.g. goods
movements in Inventory Management, invoice receipts in Invoice Verification
Valuation level = company code
Maintain the business area assignments separately for each individual plant and
valuation area.
Valuation level = plant
You can maintain business area assignments for all plants and valuation areas
together. To do this, choose Plant/valuation area - Division.
If you want to define different business area assignments for revenue postings and
material postings, maintain these objects separately.
If any assignments are missing for valuation areas, you can copy these
automatically from the plant assignment
Select
Select NEW ENTRIES
Give
SAVE
SELECT 2 TIMES
Select
Select NEW ENTRIES
Give
SAVE
Select FIND
Give co-code: V101
D.CLICK On V101
Select ASSIGN
Select ENTER
SAVE
7.Assign Distribution channel to Sales Organization
[OVXK]
Same path next step
Select FIND
Give co-code: V101
D.CLICK On V101
Select ASSIGN
ENTER
SAVE
Select ASSIGN
ENTER
SAVE
Select ASSIGN
A maximum of twelve posting periods and four special periods make up a fiscal
year.Posting period is a period within a fiscal year for which transaction figures are
updated and special period are period used to divide the last regular posting period
for closing operations.
There are 3 types of Fiscal years
Calendar Year
Non-Calendar year
Shortened Fiscal year : A shortened fiscal year is a fiscal year having less than
twelve months, but for which year-end closing must be carried out. There are two
ways to define a shortened fiscal year:If we only use Financial Accounting (FI)
without Asset Accounting (FI-AA) , we can begin a fiscal year with any period, Keep
in mind that the last period of a fiscal year must correspond to the number of
periods in that year. This means that if we want to define 12 periods, the last
period in that year must be number 12. If we are using Non-Calendar fiscal year we
have to mention the year shift.
Current Year: 0
Previous Year: -1
Next Year: +1
System Defined Fiscal Year Variants V3, V6, V9
V3 April To March, 4 Special Periods
V6 July To June, 4 Special Periods
V9 October To September, 4 Special Periods
Go to New Entries
Give Company Code VIJA Enter
Assign V3 Save
3. Posting Periods
Here we specify for each variant which posting periods are open for posting. Two
intervals are available for doing this (period 1 and period 2). For every interval,
enter a lower period limit, an upper period limit and the fiscal year.
We close periods by selecting the period specifications so that the periods to be
closed are no longer contained.We can also assign authorization groups for
permitted posting periods. This means that, for example, some posting periods can
only be opened for particular users within monthly or annual closing. We can only
assign the authorization group at document header level and it only affects period
1. There are 7 types of accounts
Go to New Entries
Give Company Code VIJA
Posting Variant For VIJA Save
Go to Position
Give Company Code VIJA Save
Go to New Entries
SAVE
a) Go to Position
b) Give Document Type SA Enter
c) Select SA
d) Got Details Button Number Range-01
e) Click Number Range Information
f) Give Company Code VIJA
g) Select Change Interval, Select Insert Interval
h) Number Range 01 To 1000 Enter
i) System Gives Message Enter Save
For G/L account clearing, tolerance groups define the limits within which
differences are accepted and automatically posted to predefined
accounts. The groups defined here can be assigned in the general ledger
account master record
Go to New Entries
Give Company Code VIJA
Give Description Tolerance Group For VIJA Save
SAVE
C. Define Tolerances For Vendors/Customers Tr Code OBA3
These tolerances are used for dealing with difference in payment and residual
items, which can occur during payment settlement. Specify the tolerances under
one or more tolerance groups. Allocate a tolerance group to each vendor via the
master record. For each tolerance group specify the following. Tolerances up to
which differences in payment are automatically posted to expense or revenue
accounts when clearing open items. The handling of the terms of payment for
residual items, if they are to be posted during clearing
Path:SproImgFinancialAccounting
FinancialAccountingGlobalSettingsAccount Receivable and Account
PayableBusiness TransactionsOpen Item Clearing Clearing
DifferencesDefine Tolerances For Vendors/Customers
Go to
Give the company code & description under tolerance group like this
Save
Several field status groups together in one field status variant. The field status
group determines which fields are ready for input, which are required entry fields,
and which are hidden during document entry. Bear in mind that additional account
assignments (i.e. cost centers or orders) are only possible if data can be entered in
the corresponding fields
Save
Save
Go to Position
Give Company Code VIJA ENTER And Give COA
Save
Save
MASTER DATA
The fields in chart of accounts data and company code data are in Central level, So
we are creating in FS00
4. Bank Account
Tr Code F-02
Document Date in Document: The document date is the date on which the
original document was issued.
Posting Date in the Document: Date, which is used when entering the
document in Financial Accounting or Controlling.
Posting key: A two-digit numerical key that determines the way how line
items are posted? This key determines several factors including
-Account type, Type of posting (debit or credit).
Value date : The value date is used in bank accounts and bank sub-
accounts
Affiliated companies
If a vendor also is a customer, or vice-versa, we can have payment program and the
dunning program to clear the vendor and customer open items against each other.
We can also select the customer line items when we display vendor line items for
this account.
Before we can clear items between a vendor and customer account we must
1. Create a customer master record for the vendor who is also a customer.
2. Enter the customer account number in the customer field in the control section of
the general data in the vendor master record.
3. Enter the vendor account number in the vendor field in the control section of
general data in the customer master record.
Select clearing with vendor and clearing with customer in the company data in the
both customer and vendor master record. In this way each company code can
decide separately, whether it wants to clear the customer with vendor.
With the account groups, we group vendor accounts together according to the
criteria. We determine number interval and type of number assignment by using
number ranges and define field status.
PATH:SproImgFAAR&APVendorAccountsMaster
RecordsPreparations for creating vendor master records Define
Account Groups with Screen Layout Vendors
Go to
Save
Go to Next Entry
Give Vendor Account Group Vij2
Give Name MM Vendor For VIJA
Double Click On Company code Data
Double Click On Account Management
Reconciliation Account Required Entry &Cash management group Optional entry
Save
SAVE
Path:SproImgFinancialAccountingFinancialAccountingGlobalSettingsAccount
Receivable and Account PayableVendor Accounts Master DataPreparations for
Creating Vendor Master DataAssign Number Ranges For Vendor Account Groups
Go to
Give VIJ1 ENTER
Give the number range you mention in he previous step like this
Save
Select
Path:-AccountingFinancialAccountingGeneralAccountingAccount
PayableDocument EntryInvoice General
Give Document Date & Posting date
Give Company Code VIJA
Give Currency INR
Give Posting Key 31
Give Vendor Account Number Enter
Give Amount 100000
Give Business Area vijh
Give Text Purchase Invoice
Give Posting Key 40 Give Inventory Account Enter
Give Amount * Business Area VIJH Text + Save
Down payments are used for short or medium financing. Generally the vendor or
manufacturer does not have to pay interest on down payments. Down payments are
generally made before production begins or after partial completion. Down
payments must be displayed separately in the balance sheet. On the balance sheet,
down payments made are displayed on the assets side and down payments
received on the liabilities side. Down payments made are further divided,
depending on whether they are:
a. Down payments on tangible fixed assets
b. Down payments on intangible fixed assets.
c. Down payments on inventory stocks.
d. General Down payments
Once you have received the goods or service for which the down payment have
been made, you need to clear this payment for the final settlement either manually
or using the payment program.
SAVE
STEP 3.Down Payment Entry Tr Code F-48
Go to Position
Select Sap-06
Select Copy As Button
Give Company Code VIJA Enter Save
PAYMENT TERMS
Day Limit: Day of the month up until which the corresponding terms are valid for
terms of payment, which depend on whether or not the baseline date is after or
before the 15th of the month, you can define a two-part payment terms under the
same terms of payment key. The terms of payment key is expanded by the day
limit entered here. Thus there are two entries in which different terms can be
specified.
Example:
The following terms of payment require you to enter a day limit Documents with an
invoice date on or before the 15th of the month are payable on the last day of the
next month documents with an invoice date after the 15th of the month are payable
on the 15th of the month after the next month.
Calendar Day for the Baseline Date for payment
Calendar day with which the system overwrites the day of the baseline date for
payment of the line item
Additional Months
Number of months, which the system adds to the calendar month of the baseline
date for payment Base line date may be No default Posting date, Document date,
Entry date
Due date is base line plus number days entered for each term to enjoy the cash
discount.
In this step define you own payment terms or use the system delivered and make
necessary changes and assign payment terms key to customers/vendors master
records. The key and the terms determined with it are proposed when entering a
document to the vendor account.
SAVE
GIVE VENDOR :
CO-CODE
UNDER COM-CODE DATA
SELECT PAYMENT TRANSACTION
GIVE PAYMENT TERMS : LNS
SAVE
Save
2. Setup Paying Company Codes For Payment Transactions
Save
Save
5. Setup Bank Determination For Payment Transactions
Path: - SproFinancial AccountingAccounts Receivable and Accounts
PayableBusiness TransactionsOutgoing PaymentsAutomatic
Outgoing PaymentsPayment Method/Bank Selection For Payment
ProgramSetup Bank Determination For Payment Transactions
Select VIJA
Double Click On Ranking Order
SELECT NEW ENRIES
SAVE
Double click on Bank account ’s Folder
Select New Entries button
Go to New Entries
Click On Available Amounts
Go to New Entries
Save
SAVE
It give message Details have been saved for the run on 20.07.08 VIJA
Select one time
Select schedule proposal button on the application bar
ENTER
It gives message proposal run has been scheduled.
Keep on ENTER until the message displays payment proposal has been
created
Select payment run button, give like this
ENTER
Keep on enter until the message displays ,payment run has been created
Select payment run button
Start date : 20.8.2007
Select start immediately check box
Enter
Keep on enter until the message display posting order 1 generated 1 completed
Select print out data medium tab OR 6. Payment With Print Tr Code
F-58
ACCOUNT RECEIVABLES
Go to New Entries
Give Customer Account Group SACS
Give Name MM Customer For VIJA
Double Click On Company code Data
Double Click On Account Management
Reconciliation Account Required Entry Save
Go to Next Entry
Give Customer Account Group SACF
Give Name FI Customer For VIJA
Double Click On Company code Data
Double Click On Account Management
Reconciliation Account Required Entry Save
Path:AccountingFinancialAccountingAccountReceivableMasterRecordsMaint
ain CentrallyCreate
Give Company Code VIJA
Give SD Group For VIJA Enter
Give Title – Company
Give Name Nagarjuna Agro Chemicals Hyderabad
Give Search Item NACH
Give Remaining All Address Fields Enter
If Customer is going to be Customer Give That Details Enter
If Customer Bank Details Available Give That Details Enter
Select Company code data on Application Bar
Give Reconciliation Account F4 Select Sundry Debtor
Give Sort Key 031 (Customer Number)
Give Payment Transaction Tab – 0001 (Immediately Due Net) Save
DR 18 Customer Invoice
DZ 14 Customer Receipt
DA 16 Customer Transfer Reversal
DG 16 Customer Credit Memo
Down Payment
DUNNING
Sometimes your business partner may fall behind on payments. You can send them
a payment reminder or a dunning notice to remind them of their outstanding debts.
The SAP system allows you to dun business partners automatically. The system
duns the open items from business partner’s account in which the overdue items
create a debit balance. The dunning program selects the overdue open items,
determines the dunning level of the account in question, and creates a dunning
notice. It then serves the dunning date determined for the items and accounts
affected.
You can use the dunning program to dun both the customers and vendors. It may
be necessary to dun a vendor if he or she has a debit balance as a result of a credit
memo. I a customer is also a vendor, you can off set the account balance against
one another.
If you wish top use the automatic dunning procedure, you have to make settings in
the following places before using the system and while its operational.
1.In customizing for financial accounting.
2.In the master data for you customers or vendors.
3.When you post documents.
You use the following attributes to control the dunning program and you can
configure them according to the needs of the company.
Dunning Procedures
Dunning Levels
Dunning areas – A dunning area is an organizational unit within a company code
used for the dunning process. It may be a division or a sales operation.
The SAP system allows you to use either the automatic dunning program, which
duns all overdue items in accordance with your selection criteria or if received you
can dun individual customers or vendors.
You have the following options and functions for dunning.
1.Payment deadline, interest on arrears and dunning charges.
2. Dunning Currency.
3. Cross company code dunning. You can combine the overdue items for one
customer or vendor from several company codes in one dunning run and issue the
items in the one dunning notice.
4. Dunning for head office / Branch relationship.
5.Dunning one time accounts.
6.Dunning History
Define dunning keys
With dunning keys, you can limit the dunning level of an item.
Define dunning blocks reasons
Here create dunning block reason for dunning procedure
Dunning procedure.
Enter the following settings that control the dunning program
1.Specify the company code to include in dunning.
2. set up the dunning procedure you want to use.
3. Set the dunning charges.
4. Specify the net payment due date at which a particular dunning level is reached.
6. Specify the dunning notice you want to send to your customers.
Give
CASH JOURNAL
Go to New Entries
Give Company Code
Give Cash Journal Number 0001
Give G/L Account – Cash G/L Account No.200106
Give Currency – INR
Give Doc – SA, Doc – KR, Doc – KZ, Doc – DR, Doc – DZ,
Give Cash Journal Name Ameerpet Branch Save
Tr Code: - FBCJ
ASSET ACCOUNTING
Save
Select One time
Double click on Copy/Delete Depreciation Areas
Give COD: V101 Enter
Select 03,10,15,20,31,32,41,51
Select Delete & Save
Keep on Enter until the save message displays.
Save
Step 4:Create Screen Layout Rules
DEF: The screen layout specifies the status of the fields in the asset master record.
You use the screen layout to determine if fields are required entry or optional entry
fields, or if they are suppressed completely
Same path Next step
Select 1000,1100,2000,3000,3100,4000
Select COPY AS
Screen layout Name of the screen
layout rule
V100 Land
V110 Buildings
V200 Plant & Machinery
V300 Furniture & Fixtures
V310 Vehicles
V400 CWP
Save
Step 5: Define Number Range Interval [AS08]
Same path Next step
DEF: A range of numbers that you can assign to business objects (or
their sub-objects) of the same type. We can roughly classify our asset
portfolio using the number ranges.
Give Co-Code: V101 ENTER
Select Change Intervals
Select Insert Interval
Number From Number To Number
V1 1 1000
ENTER
Select Insert Interval
Number From Number To Number
V2 1001 2000
ENTER
Select Insert Interval
Number From Number To Number
V3 2001 3000
ENTER
Select Insert Interval
Number From Number To Number
V4 3001 4000
ENTER
Select Insert Interval
Number From Number To Number
V5 4001 5000
ENTER
Select Insert Interval
Number From Number To Number
V6 5001 6000
Save
Select Select
Select NextEntry
Give Asset class: V11000 BUILDINGS
Short text: BUILDINGS
Account determination: V11000
Screen layout rule: V110
Number range: V2
Select Select
Select NextEntry
Give Asset class: V20000 Plant & Machinery
Short text: Plant & Machinery
Account determination: V20000
Screen layout rule: V200
Number range: V3
Select Select
Select NextEntry
Give Asset class: V30000 Furniture & Fixtures
Short text: Furniture & Fixtures
Account determination: V30000
Screen layout rule: V300
Number range: V4
Select Select
Select NextEntry
Give Asset class: V31000 Vehicles
Short text: Vehicles
Account determination: V31000
Screen layout rule: V310
Number range: V5
Select Select
Select NextEntry
Give Asset class: V40000 CWP
Short text: CWP
Account determination: V40000
Screen layout rule: V400
Number range: V6
DeSelect Select
Save
Step 7: Determine Depreciation Areas in the Asset Class
[OAYZ]
Path: SproF/AAsset accountingValuation Determine Depreciation Areas in
the Asset Class
Give COD: V101
Select Position
Give Asset class: V10000
Select V10000 , D.CLICK on Dep areas folder
Save
Select One time
Same procedure for V11000,V20000,V30000,V31000,V40000
Select
Give Enter
Change A/c Group as Fixed assets, Sort key: 018, F.Status group as G067 Save
G/L account Name Copy from Sort Key F.Status group
number
200005 Buildings 200000 018 G067
200010 Plant & Machinery ‘’ ‘’ ‘’
200015 Furniture & ‘’ ‘’ ‘’
Fixtures
200020 Vehicles ‘’ ‘’ ‘’
200025 CWP ‘’ ‘’ ‘’
100200 Acc dep on ‘’ ‘’ ‘’
buildings
100205 Acc dep on p& m 100200 ‘’ ‘’
100210 Acc dep on f&f ‘’ ‘’ ‘’
100215 Acc dep on ‘’ ‘’ ‘’
vehicles
300110 Asset sale 300105 ‘’ G052
300115 P.on Asset sale 300110 ‘’ G001
400310 L.on asset sale 300115 ‘’ ‘’
400315 L.on asset scrap 400310 ‘’ ‘’
400500 Depreciation ‘’ ‘’ ‘’
Save
Step 9: Assign G/L accounts for automatic posting of asset
transactions into FI
[AO90]
Path:SproF/AAsset accountingIntegration with G/L a/cAssign
G/L a/c’s
Give COD: V101 Enter
Select V101
D.click on Account determination
Select V10000
D.click on Balance sheet accounts folder
Give land
Save
Select 2 times
Select V101
D.click on Account determination
Select V11000
D.click on Balance sheet accounts folder
Give 200005buildings
Save
Select 2 times
Select V101
D.click on Account determination
Select V20000
D.click on Balance sheet accounts folder
Give 200010 plant and
machinery
D.click on Depreciation folder
Save
Select 2 times
Select V101
D.click on Account determination
Select V30000
D.click on Balance sheet accounts folder
Give 200015 f & fixtures
Save
Select 2 times
Select V101
D.click on Account determination
Select V31000
D.click on Balance sheet accounts folder
Give 200020 vehicles
Save
Select 2 times
Select V101
D.click on Account determination
Select V40000
D.click on Balance sheet accounts folder
Give 200025 CWP
Save
Select
Select
Give
Save
Step 11: Specify Rounding off Net Book value and/or
depreciation [OAYO]
Path: SproF/AAsset accountingValuationAmount
specifications Specify Rounding off Net Book value and/or
depreciation [OAYO]
Select
Give Co-Code: V101 Enter
Select V101
D.Click on Rounding specifications folder
Select 01( Book depreciation)
Select
Select
Save
Step 12: Specify Intervals and posting rules [OAYR]
Path: SproF/AAsset accountingIntegration with G/L
a/cPost depreciation to the G/L account Specify Intervals and
posting rules
Select
Give co-code: V101 Enter
Select V101
D.Click on Posting rules folder
Select 01( Book depreciation)
Select
Select Annual posting
Save
Step 13: Define Base method
Path:SproF/AAssetaccountingDepreciationValuation
methodsdepreciation keyCalculation methodDefine base method
Select
Select
Give
Save
Select 1 time
Select
Give
Save
Select
Give
Save
Step 17: Maintain Depreciation Key [ AFAMA]
Path:SproF/AAssetaccountingDepreciationValuationmethods
depreciation key Maintain Depreciation Key
Select
Give
D.Click on folder
Select
Give
Save
Select 2 times
Select
Give like this
D.Click on folder
Select
Give
Save
Select 4 times
Select 0000,VY1,VY2
Select Save
Step 18: Define screen layout rules for asset master data
Path: SproF/AAsset accounting Master datascreen layoutDefine screen
layout for asset master data
Select
Give V100 land
D.Click on Logical field groups folder
Select 2 Posting information
D.Click on Field group rules
Select 1 time
Select 3-Time dependent terms
D.Click on Field group rules
Save
Select 2times
Same procedure for V110, V200, V300, V310, V400
Step 19: Define screen layout rules for Depreciation areas
Path: SproF/AAsset accounting Master datascreen layoutDefine screen
layout rules for Depreciation areas
Save
Step 20: Create Asset master record [ AS01]
Path: AccountingF/AccountingFixed
AssetsAssetCreateAS01-Asset
Give Asset class: V20000 (Plant & Machinery)
Company code: V101
Number of similar assets: 1
Enter
Select Master data tab
Give description: Machinery1
Give Capitalisation on 1.4.2008
Select Time dependent tab
B.Area:
Select Depreciation area tab
Save
Save
It give message Asset 2001 0 was created
Step 21: Create Sub-Asset master record [ AS01]
Path:AccountingF/AccountingFixedAssetsAssetCreateSub
numberAS11-Asset
Enter
ENTER
Amount: * , B-area: VYH, Text: +
Save
Step 22: To View Individual asset [AW01N]
Path: AccountingF/AccountingFixed AssetsAssets Asset
Explorer
Give Asset number :
Enter
Step 23: To View Asset balances by business areas
[S_ALR_87011965]
Path: AccountingF/AccountingFixed AssetsInformation
systemReports on asset accountingAsset balancesBalance
listsAsset balances S_ALR_87011965 by B-area.
Give Co-code: V101
Business area: VYH
Select list assets
Select
Activity Type
to company code.
Select
Double click on COIN,RKIU,RKP1,RKU1,RKU3
Select EDIT Menu
Select Assign Element Group button
SAVE
Select 0
Enter
Select New Entries
SAVE
Features
You can restrict the entry of cost data to part of the valuation differences and
additional costs. While you can transfer depreciation costs from Asset Accounting
for the depreciation of fixed assets, for example, you must use accrual calculation in
cost accounting for management income.
Cost accounting in the system also has the task of identifying the costs incurred in
subareas of the company and tracing the cost flows. The system provides complete
information on the costs for all types of account assignment objects (such as cost
centers, orders, and projects).
For cross-company-code or cross-business-area cost accounting, the cost flow in
Controlling may require reconciliation between internal and external accounting.
The necessary reconciliation is also one of the tasks of Cost and Revenue Element
Accounting.
Cost element
A cost element classifies the organization's valuated consumption of
production factors within a controlling area. A cost element
corresponds to a cost-relevant item in the chart of accounts
Primary cost element: A cost element whose costs originate outside of
CO and accrual costs that are used only for controlling purposes.
Secondary cost element: A cost element that is used to allocate costs
for internal activities.
Secondary cost elements do not correspond to any G/L account in
Financial Accounting. They are used only in Controlling and
consequently cannot be defined in FI as an account.
Cost Element Accounting, Cost Center Accounting, and Order
Controlling are closely linked together in the SAP System. Every
posting to a cost element account is assigned to an object in cost
accounting.
Primary cost element
You can create a primary cost element, only after you indicate it as a G/L account in
the chart of accounts, and create it as a G/L account in Financial Accounting.
A primary cost element must have a corresponding account in Financial Accounting.
When you create a cost element, the SAP System checks if a corresponding account
was created in Financial Accounting.
Secondary cost element
A secondary cost element is used only in cost accounting, and may not be created
in Financial Accounting
Cost element category
The classification of cost elements according to their usage or
origin.
Examples of cost element categories are:
Material cost elements
Settlement cost elements for orders
Cost elements for allocating internal activities
The cost element category has a technical control function, which
determines whether a cost element can be posted to directly or
indirectly.
Direct posting: You post an amount to each account, specifying the account
number. You can make direct postings to all primary cost elements.
Indirect posting: The SAP System always determines the account during
the posting transaction. You cannot enter the account number during the
posting transaction.You can only make indirect postings to secondary cost
elements
SAVE
1. It is a cost allocation
It is a cost allocation tool only tool for both primary &
for primary cost elements. secondary cost elements
2.While allocation of cost 2.While allocation of cost
receiver side details will be receiver side details does
appear on the sender side. not appears on the sender
side.
Enter
Give like this
ENTER
IGNORE THE WARNING AND SAVE
Again Double Click Create Cost Center
Give Department-B Valid From 1-4-2008 Enter
Name Department-B
Cost Center Category Production (1) F4
Hierarchy F4 Business Area VIJH Currency INR Save
Again Double Click Create Cost Center
Give Department-C Valid From 1-4-2008 Enter
Name Department-C
Cost Center Category Production (1) F4
Hierarchy F4 Business Area VIJH Currency INR Save
Again Double Click Create Cost Center
Give Service Dep-DValid From 1-4-2008 Enter
Name Service Dep-D
Cost Center Category Production (2) F4
Hierarchy F4 Business Area VIJH Currency INR Save
Select
Give like this
Save
Like this create a number of cost center groups as per the requirement.
STEP3. Create field status group as cost center is required TR. Code:
OBC4
Select postion
Give F.S.V.—vija
Double click on field status group folder
Double click on G004 Cost accounts
Double click on additional account assignments
Select cost center as required entry. SAVE
STEP4. Assign field status group in cost elements TR. Code: FS00
Give posting key 40, Account : Rent A/c(primary cost element ) ENTER
Give Amount 100000
Give Cost Center Service Dep_A
Text Rent Posting Key 50 Bank A/c Enter
Amount *, Business Area VIJH, Value Date Text + Save
Execut
e
IT shows the report like this
Save
Execute (F8)
A. Client
B. Business Area
C. Company code
D. Company
Answer:
A, C
Apart from this, there are certain Basic settings that are mandatory as well. These
are:
Chart of accounts
Fiscal year
Currencies
Q2. You can configure different types of Chart of Accounts in the ERP
system. Some of these are:
A. Operating chart of accounts
B. Group chart of accounts
C. Country-specific chart of accounts
D. Plant specific chart of accounts
Answer:
A, B, C
Charts of accounts can have three different functions in the system:
group.
The assigning of an corporate group chart of accounts to a company code is
optional.
Q3. The company code, business area and controlling area organizational
units can be combined in a number of ways. Using these combinations you
can represent organizations with different structures. Which of the
following are valid combinations?
A. One Company Code can be assigned to multiple Controlling areas
B. One Controlling area can be assigned to multiple company codes
C. One business area can be assigned to multiple company codes
D. One company code can be assigned to multiple business areas
Answer:
B, C, D
Q4. You need to assign more than one company code to one controlling
area. Under what kind of a business scenario would you need to consider
such a decision?
Answer:
A, B
A 1:n relationship between controlling area and company code is recommended for
the
following situations:
A 1:1 relationship between controlling area and company code is recommended for
the
following situations:
Q5. Which of the following tax types does the SAP System support for
calculating, posting, and correcting tax, as well as for tax reporting?
Answer:
A, B, D
Additional tax
Additional taxes are taxes that are posted in addition to tax on sales/purchases.
They are usually country-specific, such as investment tax in Norway, or sales
equalization tax in Belgium.
Sales tax
An example of sales tax is the sales and use tax that exists in the USA. Sales
transactions that are taxed must be kept strictly separate from sales transactions
that are not taxed.
In general, goods that are intended for production or for resale to a third party are
procured untaxed; that is, the vendor does not calculate tax on the sale of these
goods
(sales tax). Procurement transactions for individual consumption, on the other hand,
are taxable (use tax).
The principle of sales tax does not permit the option of offsetting input tax against
output tax. The vendor must pay the taxes to the tax authorities.
The system calculates sales tax based on material and customer location and posts
it in Sales and Distribution (SD) and Materials Management (MM). If customers or
vendors are exempt from taxation, you can specify this in their master records by
entering the appropriate indicator.
Withholding tax
In some countries, a portion of the invoice amount must be withheld for certain
vendors and paid or reported directly to the tax authorities.
SAP currently provides two functions for calculating withholding tax: Classic
withholding tax and extended withholding tax.
Extended withholding tax includes all the features of classic withholding tax and, in
addition, also fulfills a number of further country-specific requirements.
If you wish to implement the withholding tax functions, you should choose extended
withholding tax.
Answer:
A, B, C
The following line items are generated for each of the above business transactions:
Q7. You can add details to any automatically generated line item. For
example, you can add text to a tax on sales/purchases line item.
A. True
B. False
Answer:
A
To enable this, you need to make sure that the G/L account is marked as adjustable
and that the appropriate field is defined as optional or required in the field status
group.
Answer:
A, B, D
• Applying the vendor net procedure. This means that any discount and
the net amount are calculated (and posted) when the vendor invoice is posted.
Q9. If you have entered an incorrect document, you can reverse it, thereby
also clearing the open items. With reference to 'document reversal', which
of the following are true?
Answer:
A, C
If a line item from a source document has been cleared, a reversal can only be
carried out after the clearing is reset. Information on clearing is available in FI
General Ledger
Accounting as well as FI Accounts Receivable and Accounts Payable.
There are two ways of updating transaction figures when reversing a document:
● The document and the reverse document increase the account transaction
debit and credit figures by the same amount.
● After a document has been reversed, the balance of the account affected is
shown
as if the document had never been posted. (Negative Postings)
You generally post the reversal document in the same posting period as the
corresponding original document. If the posting period of the source document has
already been closed, you have to enter a date that falls in an open posting period
(for
example, the current one) in the Posting date field.
A. Flow definition
B. Scheduler
C. Monitor
D. Exception area
Answer:
A, B, C
Flow definition
In a flow definition, you can link tasks to each other if they are related or if you wish
to use a worklist in them. You can therefore schedule a flow definition as a task in
the scheduler.
Scheduler
In the scheduler, you can schedule tasks in a structure tree. You can use drag-and-
drop in a daily overview to enable the system to execute the tasks at a certain time.
Monitor
The monitor gives you an overview of the scheduled tasks during and after
processing.
You can correct faulty objects in a worklist.
Worklist
Objects that are to be processed in a processing step sequence are managed in the
worklist.
The worklist monitor presents information such as which objects were processed
without errors and which objects could not be processed. You can display
information on the cause of errors, and thus control the way in which the object is
processed further.
The worklist ensures that when a processing step sequence is processed again, the
system only processes the objects which had errors or which you manually
instructed the system to reprocess.
Q11. You would like to use recurring entries for periodic transaction.
Which of the following are False with reference to 'recurring entries'?
Answer:
C
Recurring entries are business transactions that are repeated regularly, such as rent
or insurance. The following data never changes in recurring entries:
• Posting key
• Account
• Amounts
You enter this recurring data in a recurring entry original document. This document
does not update the transaction figures. The recurring entry program uses it as a
basis for creating accounting documents.
Structure The system uses the recurring entry original document that you enter as a
reference. It is not an accounting document and therefore does not affect the
account balance.
In the recurring entry document, you define when a posting is to be created with
this
document. You have two options for scheduling. Postings can be made periodically
or on a specific date:
• For periodic postings, specify the first and last day of execution, as well as the
interval in months.
• If you want to specify certain dates, enter a run schedule in the recurring
entry
original document. Store the required dates in the Implementation Guide (IMG).
Choose Financial Accounting Global Settings → Document → Recurring Entries →
Define Run Schedules/Enter Run Dates.
To post recurring entry documents, you have to set up a separate number range for
the company codes that use them. You have to use key X1 for the number range.
The system takes numbers for the recurring entry original document from this
number range.
A. Dunning Codes
B. Dunning Items
C. Dunning areas
Answer:
C
• Dunning procedure
The dunning procedure controls how dunning is carried out by the system. You can
define as many dunning procedures as you like.
• Dunning level
The dunning levels are calculated based on the number of days open items are in
arrears.
You can also have the system calculate the dunning levels based on the dunning
amount or a percentage paid (sales-related dunning level determination).
You can determine more than one dunning level per dunning procedure.
• Dunning areas
A dunning area is an organizational unit within a company code used for the
dunning
process. A dunning area can be a division or a sales organization. You assign a
dunning area to an open item when you are posting. You can dun items separately
by dunning area.