Sap Fico Portfolio - Monisha Demark
Sap Fico Portfolio - Monisha Demark
Sap Fico Portfolio - Monisha Demark
ZIYA-UL-HAQ SUNDARMAHALINGAM
SELF INTRODUCTORY
My name is Monisha Subban. I have completed Bachelor of Commerce with
Professional Accounting in the year 2016. I have a professional experience of about 1.5 years
of experience as a Technical Support Analyst with IBM (2016-2017) and about 1 year with
BNP Paribas (2018) in Corporate Actions supporting Australia and New Zealand clients.
I have a professional gap of about 4 years (2019 - present) to take care of my family. In order
to kick start my career I chose SAP which is highly expected in business nowadays. For my
educational qualification SAP FICO (Finance & Controlling) was the best suite.
I now successfully completed the course and also the internship at Thiranz Tech Solutions
under the guidance of Mr. Ziya-Ul-Haq.
All the details in this portfolio are my 4 months hard work and are true to my knowledge.
Sincerely,
Monisha Subban.
SAP – System Application Product in Data Processing
SAP is software or a company itself. It is a German based Organization formed in the year
1972 by Ex-IBM employees. SAP is an ERP (Enterprise Resource Planning) Application
Software.
History of SAP
1972-1980: IBM employees became SAP Founders and launched SAP Logo.
They formed a LLC and have employees to work as well as customers/ clients.
1981-1990: SAP growth to other countries with increase in revenue and manpower.
They entered Financial Markets and Industries.
1991-2000: SAP an agreement with Microsoft.
Marketing activities in Russia, Japan and China.
SAP entered Share Market and had a lot of investors.
2001-2010: SAP started running on latest web technology.
Downfall in the year 2009 but rose back again and entered US markets.
2011-Present: SAP on mobile devices where Apple and SAP became partners.
Launched new generation S/4 HANA.
Now it‟s the words largest business network.
SAP Modules – Functional Modules
Technical Module:
Network Module:
Database Module:
Implementation Project: SAP is being implemented for the first time in an organization. For
Implementation SAP follows ASAP methodology (Accelerated SAP)
Project Preparation: Initial planning takes place as to what all can be implemented
and how along with the timeline to complete the project and cost. These all are
discussed in the very first meeting “kick-off meeting”.
Business Blueprint: AS IS Project (Current Status Scenario) TO BE Project (Future
Business Scenario) is pictured along with scope, planning and team building to
execute the project. GAP analysis takes place here (difference between existing
system and SAP system)
Realisation: Submission of all TO BE documents. Core Team Member to consultant.
Quality Checking, Testing and Feedbacks.
Pre-Final Preparation: Check with the client if they are satisfied with their
implementation. Check user acceptance testing. In case the project is approved then
we move to next stage or get back to discussion and blue print.
Go- Live and Support: Project implemented and goes live. As per the SLM any
issues can be rectified without any charges and later is converted as Incidents. Every
incident has a ticketing charge.
Support Project: After implementation and go live the implementation team will provide
support to the client as agreed in the SLA.
Roll-out Project: Means expanding the business in other regions after implementation.
o MRF
o Coco-Cola
o TATA
o Samsung
o TITAN
o Nestle
o Sony
o HUL – Hindustan Unilever Limited
o Dabur
o Hero
o Big Bazaar
o Asian Paints
SAP Competitors:
o Zoho
o Oracle
o Sage
o Infor
o SAS
o MS Dynamics
NILAN’S DAIRY FARM
Fill in the details with exact Country code, Language and Currency.
When you click enter a TR will appear. Click on own request and click on the concerned
query to get a unique TR to be generated. You can write any short description for your
company. All new configuration or customization made for that particular company will be
saved in a TR “Transport Request”.
Every separate legal entity or a limited liability company or a private limited company
is a company code. A company code is mandatory. In every country it is legally required to
provide the financial statements to the government. Hence, a company code is created. A
group can have “n” number of companies.
Eg: Reliance is a company – Reliance Trends, Smart, Footwear, etc is a company code.
Click on the address bar and fill in the details. Save.
ASSIGN COMPANY CODE WITH COMPANY (OX16)
SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define Business
Area
To know where exactly the area is based (region wise). Eg: district state,
statecountry.
Path: SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Maintain
Consolidation Business Area
Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Business Area to Consolidation Business Area.
BUSINESS AREA FINANCIAL STATEMENTS (OB65)
Path: SPRO > IMG > Financial Accounting > Financial Accounting Global Settings >
Enable Business Area Balance Sheet.
SEGMENT (S_AL0_19000003)
Path: SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define
Credit Control Area
Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Credit Control Area.
FUNCTION AREA (OKBD)
FM AREA (OF01)
This is one of the most important areas in an organisational unit in order to conduct
the cost or the budget of financial statements of the business. It determines in what currency
the fund is to be managed in the forthcoming years. New entries can be done only through
path and not through T-code.
Path: SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Maintain
FM Area
ASSIGN FM AREA WITH COMPANY CODE (OF18)
Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to FM Area.
VARIANT
Each month in the fiscal year is called as a Period. Every country has its own
fiscal year and special periods. Fiscal year is of 12 months and the special period
is a maximum of 4 months. Eg: SAP has designed a Fiscal Year Variant for many
countries and that could be copied to company code according to country. For
example Germany K0 – denotes no special period. K1 - denotes 1 special period.
Likewise it has up to K4 – 4 special periods. Fiscal Year has 3 attributes which
are:
Periods
Period Text
Shortened Fiscal Year
Path: SPRO > IMG > Financial Accounting (New) > Global Settings > Ledgers > Fiscal
Year & Posting Periods > Maintain Fiscal Year Variant
Periods: Denotes the number of months (for SAP to understand) as SAP knows only calendar
year.
FYI (Fiscal Year Indicator): It is calculated on the basis of current year minus future year.
Period Text: The periods (months) are noted as text for SAP to understand.
Shortened Fiscal Year: A company which is operating for less than 1 year or more than 1
year. Eg: Leap year
Period Text: For SAP to understand non calendar year we are specifying texts.
Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Fiscal Year Variant.
Fiscal year variant is pre-defined by SAP for every country. In India we follow v3. My fiscal
year variant is *1.
To make transactions for the concerned period. Posting of entries for a specific
period. This period is designed to have control
In case we need to make a transaction for the future period or previous period, we
need to open a posting period for the transaction to be made in SAP. If it is closed it will not
allow any entry to be made except for the current period.
ASSIGN POSTING PERIOD WITH COMPANY CODE (OBBP)
Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Posting Period Variant.
This variant controls the line items. In order to make a transaction we would require
few items to be modified as required/ optional.
ASSIGN FIELD STATUS VARIANT WITH COMPANY CODE (OBC5)
Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Field Status Variant.
CHART OF ACCOUNT (OB13)
It is a list of all General Ledger a/c that controls the name and number of GL Master
Data and some control information. In other words, the grouping of GL a/c forms the
framework for recording accounting transactions in a structured way. One COA can be used
by one or many company codes. For every G/L a/c COA contains a/c no., a/c name, and some
information on how an a/c functions and how a G/L is created in a company code.
Types of COA:
Liabilities (1series)
Assets (2 series)
Revenue (3 series)
Expenses (4 series)
DEFINE RETAINED EARNINGS ACCOUNT (OB53)
To allow conditions or make settings in SAP for year-end assumptions. This is a place where
revenue gets merged with Equity. During the year-end period this automatically posts in the
financial statement.
Here x denotes nil. And 1999 has been taken because retained earnings account is processed
in the year-end period in General Ledger and will affect the Capital/ Equity of the business in
the financial report.
Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting (New) >
Financial Accounting Global Settings (New) > General Ledger Accounting (New) > Master
Data > G/L accounts > Preparations > Assign Company Code to Chart of Accounts.
DOCUMENT TYPE (OBA7)
Document type is used to classify business transactions and to know how documents
are stored. In SAP language posting a transaction is called document. For every document
type there is a corresponding reversal document type.
In order to determine the transaction type which is entered in the line item, a two digit
numerical is used known as „Posting Key‟. Posting key determines
a) Account Types
b) Types of posting. Debit or Credit
c) Field status of transaction
40 – Debit
50 – Credit
TOLERANCE
Tolerance is used to predefine the amount limits for your employees on the basis of
Minor differences between the Invoice amount and the amount received from the
customers/amount paid to the vendors are a very common occurrence. In such scenario, the
following options can be adopted:
The receipts/payments can be posted by partially clearing the invoices and creating a
residual item for the difference, if the amount of difference is beyond a certain limit
and is hence material
The receipts/payments can be posted by clearing the invoices and creating a separate
entry for the difference amount, if the amount of difference is within a certain limit
and is hence immaterial
The above mentioned limit which controls whether a difference amount is material or
immaterial is determined by the tolerance limit defined in the SAP system.
For eg: Buying a product worth Rs.999/- and paying Rs.1000/- the seller does not give a
balance of Re.1/- this can be the sellers profit and vice versa.
These tolerances are used for dealing with differences 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:
The handling of the terms of payment for residual items, if they are to be posted
during clearing
DOCUMENT SPLITTING (S_ELN_06000009)
It is a new feature to ECC 6.0 and it does not have any T-codes.
It helps line item section on certain characteristics.
It has Entry View (sub-ledger) and GL Entry View (main ledger).
Business Area
Segment
Profit Centre
Path: SPRO > IMG > Financial Accounting > General Ledger Accounting New > Business
Transaction > Document Splitting
Activate Document Splitting
Only if we activate document splitting, the transactions can be split and posted. If we
check Inactive from Deactivate General Ledger Document Splitting view, we will not be
allowed to split transactions.
One who can analyse a report and give an output in various forms is a controller. He is also
called as a Business Analyst. The management consults the CO Team for important decision
making in an organization.
CO helps to improve management across financial variances by planning and analysing costs
to deliver reports that influence decision making. CO Team should be able to realize errors
and correct them on time. A person with good analytical skills only can be a controller.
Any report that a CO generates should be informative and include detailed information on
any actual/ plan variance. CO Team is the best at providing suggestions on management
decisions. It analyses the data prepared by the Finance Team. It does:
Planning
Actual
Variance / Actual Repost
It supports coordination, monitoring, planning, budgeting, cost centre, profit centre etc.
Purpose
Controlling Area
Version
Business Transactions
Hierarchy Concept
CO helps in Cost Center reports. There are two types of Cost Element.
Primary Cost Element: It takes the source from FI GL & its destination to CO.
Secondary Cost Element: It takes the source from CO & its destination to CO.
Controlling Area:
For SAP FI all the activities are done from company code perspective.
For SAP CO all the activities are done from controlling area perspective. Controlling
Area is the Hero for CO.
Version: In SAP a plan is called as the version. Like the organisation follows a plan for the
next 5 years is the version. SAP standard version is “0”.
Business Transaction:
Currency Concept:
Hierarchy Concept:
Top Node
Middle Node
Lower Node
Path: SPRO > IMG > Controlling > General Controlling > Organisation > Maintain
Controlling Area
ASSIGN CONTOLLING AREA WITH COMPANY CODE (OX19)
ACTIVATE CONTROL AREA (OKKP)
SAP Standard Version is “0” (plan/ actual/ variance). This is similar to government setting a
plan for 5 years. Using the default version
CONTROLLING DOCUMENT (KANK)
Maintain Control Area Settings (Profit centre) (0KE5)
PROFIT CENTER GROUP (KCH1)
Easy Access Screen > Accounting > Controlling > Profit Center accounting > Master Data >
Profit Center Group > Create
DEFINE PROFIT CENTER (KE51)
COST CENTER GROUP (KSH1)
Field Status Variant - OBC4 *Cost Center Optional, *CO/PP order Optional, *Cost Object
Optional.
KONK
To KO02
Reports (S_ALR_87013019)
Entry on FB50
GENERAL LEDGER
For each account a number has to be maintained in SAP. This is mainly because SAP
does not understand terms (names). This is helpful when posting transactions.
In order to create master data we need Architecture, Master Data Field and Method
Field: States the GL a/c no., COA, A/c group, A/c type, Short text, Long text.
1. Type/ Description:
Specifies the Account Group (Liability, Asset, Revenue & Expense)
2. Control Data:
States the currency (currency in terms of local currency/ parallel
currency – 2 other currencies can be used for foreign transactions)
Reconciliation account for account type denotes the customer or
supplier name.
Open Item Management states to whomever the business is repayable
Line Item display shows the transaction type
Sort Key specifies how to sort transaction (posting date wise)
6. Information Cocd:
Information linked from company code.
This activity is one type which can be performed by both Controlling and FI end user
screen.
This is mainly used by the controlling team to track the purchases/ other expenses made by FI
or other departments.
Path (CO End user): SPRO > IMG > Accounting > Controlling > Cost Element Accounting
>Master Data > Cost Element > Individual Processing > Create Primary
Path (FI End user): Accounting > Financial accounting > General Ledger > Master Records >
General Ledger account > Individual Processing > Centrally
General Ledger End User Activity
General Ledger Transaction Data Posting (F-02) or FB50
End user activities of posting each document into SAP. All activities are done from
Easy Access Screen.
Shortcut key for copying amount (*) and for text (+)
Once the debit and credit details are given, to recheck if the entered transaction is right we
can go to Simulate to show the transaction.
FB03 – Display Screen
This is for the same level employee (he can keep the transaction on hold and can post it by
himself). This does not have any financial impact unless posted.
(OR)
PARK DOCUMENT
A document is kept on park when that particular employee does not have the
authorization to post that particular document. This is mostly for the lower level employees
dealing with higher possessions. This is actually an end user feature to authorise the
document and post. This too does not have any financial impact. Park document process
enables with Employee Level Tolerance. (a link between tolerance)
This concept in SAP term is called as “Work Flow Concept” (between 1 employee and
another employee).
Setting Tolerance level for employee in order to Park a document.
Or
A residual payment will clear the original document and a new item will be created.
Manual Clearing
Clearing a document manually rather than using clearing method. Here Bank entry is
created for amount debited from account.
FB01 for Manual Clearing:
GL Level Tolerance (Gain & Loss)
Setting up a percentage or amount for allowing LOSS or GAIN is called GL Tolerance Level.
The system usually takes the amount or percentage whichever is lower.
A master data is created as “Tolerance Gain and Tolerance Loss” in FS00. These are mapped
with necessary cost and profit center in Default account Assignment (OKB9)
Gain:
Saving a template document and utilising that document for daily activities. There is
no financial impact until the document is moved or posted. We give an ID and post the right
transaction with reference.
Sample Document Type – x2 ; Number Range – x2 (In real time its 92) – OBA7
F-01 – POST WITH REFERENCE
Setting up default CC and PC for that particular master data account no (OKB9)
Enter Recurring Document (FBD1)
Processing Recurring Document (F.14)
RECURRING DOCUMENT WITH RUN SCHEDULE
Setting up default CC and PC for that particular master data account no (OKB9)
Creating Run Schedule (OBC1)
When a company purchases goods on credit which needs to be paid back in a short
period of time, it is known as Accounts Payable. It is treated as a liability and comes under
the head 'current liabilities'. Accounts Payable is a short-term debt payment which needs to be
paid to avoid default.
The Accounts Payable department is responsible for the financial, administrative and
clerical support of a company. They are in charge of making payments owed by the company
to suppliers and other creditors, paying vendor invoices or bills, and recording the company's
short-term debts.
It is predefined by SAP.
Vendor:
It‟s predefined and designed by SAP. SAP has given almost 666 entries. Terms of
Payment is defined to set up certain conditions or terms for payment to vendor or payment
from customer.
Day limit specifies the “Due date” on which the payment is made or received.
Fixed day specifies the “Exact date” on which the payment is made or received.
Additional months here denotes on which month the payment is to be made. For instance the
invoice is raised on 12th January and the ToP specifies the payment to be made on 7th of that
month, then this particular payment will be overdue. So the company uses additional months
so that the payment can fall on the preceding month also.
Block Key is mostly set up for vendor when the payment is released. We can block a vendor
on different conditions so that the company does not make any kind of payment.
Default for baseline date specifies the date when the invoice has to be posted. Usually every
company uses “Document date”.
Certain conditions need to be made for bank charges to be applicable. The bank charges will
affect Bank account and not vendor account.
Mapping Bank Charges master data created along for the charges to affect Bank account and
not vendor account.
Default account assignment settings (OKB9)
INSTALMENT PAYMENT (OBB8)
Payment made on instalments. It‟s a kind of EMI payment but as per the terms the customer
makes necessary payments. Terms are defined as;
Conditions are made in own explanation and for each condition a ToP is created and mapped
along the main condition. Instalment payment is checked.
Both the sub conditions are linked with the main condition in OBB9
Applying this condition in vendor account for it to reflect during transaction and payment.
CASH DISCOUNT
Down payment means paying in advance before the goods are received. This kind of
GL is called as “Special GL” and its posting key is 29(A). This transaction is known as
“Commitment Management”.
OBYR
Integration happens when your vendor becomes your customer. Same vendor and
same customer.
In vendor account mapping customer ID and on customer account mapping vendor ID.
Accounts receivable (AR) are the balance of money due to a firm for goods or
services delivered or used but not yet paid for by customers. Accounts receivable are listed on
the balance sheet as a current asset. Any amount of money owed by customers for purchases
made on credit is AR.
It is predefined by SAP.
Number range (OBAR)
Customer:
Eg:
Customer Invoice (FB70) or (F-22)
Partial Clearing
Raising Invoice:
Banking deals with managing accounting transactions with your banks. Further, it
helps you to manage both incoming and outgoing payments for effective cash-balance
management.
HOUSE BANK
The house banks of your company are the banks that your company has an account
with. You can use them to process payment transactions. In the SAP system, house banks
have the following characteristics: Each company code can have multiple house banks. You
can define multiple house banks for each bank.
This is the companies‟ Bank account where the transaction takes place. A legal entity
can have many House Banks.
Bank Number here denotes the contact number of the bank.
Bank Key
First, it's important to note that the bank key is a unique, country-dependent identifier.
It is an SAP internal ID used to uniquely identify a bank. This ID, together with the country
key, links to the other bank data in the system, such as name, bank number, and SWIFT code.
Account ID
A bank account number is a unique set of digits assigned to the account holder when
you open a bank account. Financial institutions will assign such numbers to each account you
hold. Businesses and banks use these numbers to identify your account.
Create Bank Master Data (FI01)
A cheque is a document you can issue to your bank, directing it to pay the specified
sum mentioned in digits as well as words to the person whose name is borne on the cheque.
Cheques are also called negotiable instruments.
Raising Invoice:
Record for Cheque sent (FCH5)
FCHN -
BRS – FB50
A petty cash fund is a small amount of company cash, often kept on hand (e.g., in a
locked drawer or box), to pay for minor or incidental expenses, such as office supplies or
employee reimbursements.
It is to maintain cash in hand transactions. It can post all kind of transactions such as cash
receipts, payments in one single screen. It allows you to make small petty expenses and
receive small incomes in cash.
PATH: SPRO > IMG > Financial Accounting (New) > Financial Accounting Global Settings
(New) > Bank Accounting > Business Transactions > Cash Journal > Create G/L account for
Cash Journal
This indicates how much cash balance can be kept in hand. Excess any should be
immediately deposited into bank account.
Creating a loan account and getting loan from Denmark. Loan from “Nordea Bank”.
Viewing balance in FB03
FOREX LOSS or GAIN
When a transaction is made using a foreign currency and a payment is made for the same on a
future date, then the value of the currency might increase or decrease. If the value increases
then it‟s a Loss for the business and if the value decreases it‟s a Gain for the business. This
might not affect the open item but will be reflected as a Loss or Gain.
Creating Master Data for Forex Loss and Forex Gain with respective Cost Element mapped
in FS00.
Dunning Types:
Automatic Payment Program (APP) serves the purpose of posting accounts payable
like payment to a vendor based on vendor invoices automatically. APP is used to find out
due/overdue invoices and to process a list of customer and vendor invoices to make payments
in one go.
*House Bank
*Bank Determination
DOCUMENT TYPE (OBA7)
“ZP”
Number Range Maintenance
The concept of TDS was introduced with an aim to collect tax from the very source of
income. As per this concept, a person (deductor) who is liable to make payment of specified
nature to any other person (deductee) shall deduct tax at source and remit the same into the
account of the Central Government.
Tax deducted at source is the amount that is to be deducted at the time of making payment to
contractors or professionals. Withholding Tax is the amount deducted in advance that is
before paying the amount to the payee. Withholding tax is deducted for paying the tax to the
government.
For WHT the individual or a company requires PAN (Permanent Account Number) and TAN
(Tax Assessment number) number.
If the deductee does not have a PAN number then TDS is calculated for 20%
Path: SPRO > IMG > Financial Accounting (New) > Financial Accounting Global Settings
(New) > Withholding Tax > Extended Withholding Tax > Basic Settings……………….
Path: SPRO > IMG > Cross-Applicant Component >General Application Functions >
Business Place
Activate
Section Code
Factory Calendar
GST is a single tax on the supply of goods and services, right from the manufacturer
to the consumer. Credits of input taxes paid at each stage will be available in the subsequent
stage of value addition, which makes GST essentially a tax only on value addition at each
stage.
The types of GST in India are CGST, SGST, and IGST. This simple division helps
distinguish between inter-state and intra-state supplies and mitigates indirect taxes.
In accounting, an asset is any resource that a business owns or controls. It's anything
that could be sold for money. The study of a balance sheet and assets and liabilities helps us
to ascertain the equity value. Asset Accounting in the SAP system is used for managing and
monitoring fixed assets. In Financial Accounting, it serves as a subsidiary ledger to the
general ledger, providing detailed information on transactions involving fixed assets.
Purchase of Asset and calculating depreciation for every year using a depreciation method.
T-code: ORFA
Asset Class
1. Account Determination
4. Asset Class
Financial statements are written records that convey the business activities and the
financial performance of a company. Financial statements are often audited by government
agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing
purposes.
T-Code: OB58
Run Financial Statement (F.01)