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SAP FICO
Step by Step Configuration

SAP ECC 6.0

Published By BlessPro

Visit us at http://www.BlessPro.com/

Copyright2009@blesspro

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted in any form, or by any means electronic or
mechanical including photocopying, recording or any information storage and
retrieval system without permission in writing from BlessPro.
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About This Material:

This material is the result of many years of Research to build a material logically integrate
Accounts and SAP FICO Configuration in a most cost effective way.

This material logically link Accounts and FICO Configuration to help people without
accounts background to learn FICO. (The success of an FICO consultant depend on his
ability to understand account concepts behind each configuration steps. This material is t
to teach you the accounting concepts along with configuration.) To attain this GOAL,
‘Journal entries’ for Each Transaction is given with reason to get a confidence in Accounts
and Internal Structure of FICO.

This material is Prepared for our Students only, Our FICO Course is based on this
material.

For More Course details : Visit

http://www.BlessPro.com/
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TABLE OF CONTENTS
1.About SAP and General Concepts
a) SAP Architecture

b) SAP GUI

c) Modules in R/3

d) FI General Concepts

e) Easy Access

f) Implementation Guide(IMG)

2.Accounting Fundamentals
a) Basics of Accounts

b) Nominal a/c

c) Real a/c

d) Personal a/c

e) Sub-Ledger and Reconciliation a/c

f) Case Study for G/L Accounts and Link to FICO Posting Keys

g) Profit and Loss Statement

h) Balance Sheet

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3.Enterprise Structure
a) Client

b) Company

c) Company Code

d) Business Area

e) Functional Area

f) FM Area

4.Financial Accounting Global Settings

a) Fiscal year

b) Posting Period

c) Document Type

d) Posting Key

e) Field status

f) Tolerance groups

5.General Ledger Accounting Configuration

a) Chart of Accounts

b) Account Groups

c) Retained Earnings Account

d) Create G/L Account

e) Document Splitting( New G/L Functionality)

f) G/L Posting
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g) Display G/L accounts

6. Accounts Receivables(Customer Accounts)

a) Account Group

b) No. Range

c) Customer Master

d) Create Customer Invoice

e) Display Customer Invoice

7. Accounts Payables(Vendor Accounts)

a) Account Group

b) No. Range

c) Vendor Master

d) Create Vendor Invoice

e) Display Vendor Invoice

8.Documents and Controls

a) Sample Document

b) Hold Document

c) Park Documnt

d) Reccuring Entries

9.Incoming Payments
a) G/L Tolerance Groups

b) Customer Tolerance Groups

c) G/L Incoming Payments

d) Customer Payments

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10.Outgoing Payments
a) Vendor Tolerance Groups

b) G/L Outgoing Payments

c) Vendor Payments

11.Payment Difference
a) Partial Payment

b) Residual Payments

c) Cash Discount

d) Credit Note

e) Dcoument Clearing

12.Terms Of Payment
13.Special G/L
a) Advances

b) Down Payment

c) Bills of Exchange

14.House Bank
a) House Bank

b) Cheque Payment

c) Bank Charges,

15.Cash Journel
16.Dunning
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17.Automated Payment Program(APP)

18 Financial Statements Version
19.Integration
a) Material Management(MM)

b) Sales and Distribution(SD)

20.CO
a) Cost Elemnt Accounting

b) Cost Center Accounting

c) Profit Center Accounting

d) Internal Order

21.Asset Accounting
a) Chart of Depreciation

b) Depreciation Areas

c) Asset Class

d) Account Determination

e) Screen Layout for Asset Master Data

f) Number Range Interval

g) Integration with G/L

h) Depreciation Key

i) Asset Master Data

j) Asset Document Entry

k) Asset Explorer

l) Depreciation Run

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1.About SAP and General Concepts

a.SAP Architecture
SAP stand for Systems, Application and Products in Data Processing. SAP was founded by five German
engineers in 1972. Today, SAP is the world’s largest Enterprise Resource Planning (ERP ) software
company . SAP is an integrated system. SAP ERP Central Component(ECC) is the heart of the system.

SAP R/3 is the client server version of the software. The “3” in R/3 stands for the three-tiered
client server architecture

R/3 Architecture: R/3 stands for real time three tier architecture. R/3 means three layers are
installed in Different system/server and they are connected with each other.
1) Presentation , 2) Application , 3) Database

b.SAP GUI

Menu Bar:

Standard toolbar: The icons in the standard toolbar are available on all SAP R/3 screens.
Title Bar: To Display title of particular Screens.
Application toolbar shows you which functions are available in the current application.

Command field: You can use the command field to go to applications directly by entering the
Transaction code or Tcode
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Status bar: The status bar displays information on the current system status, for example, warningsor
error messages

c.Modules in R/3:

FI-Financial Accounting, CO-Controlling, SD-Sales & Distrbibution MM-Material Management

PP-Product Planning, QM-Quality Management, PM-Plant Maintanance ,HR-Human Resources,
PS-Project Systems, OC-Office& Communication, IS-Industry Solutions.

FI-Financial Accounting: Designed for automated management and external reporting of

General Ledger(GL),Accounts Receivable(AR),Accounts Payable(AP) and other sub-ledger
accounts with a user defined chart of accounts. Sub modules of FI
General Ledger (FI-GL) ,Accounts Receivable (FI-AR)
Accounts Payable (FI-AP),Bank Accounting (FI-BL) ,
Asset Accounting (FI-AA) ,Special Purpose Ledger (FI-SL)

d.Financial Accounting(FI):provides the following features:

1.Management and representation of all accounting data,All business transactions are recorded
according to the document principle, which provides an unbroken audit trail from the financial
statements to the individual documents.

2.Open and integrated data flow,Data flow between Financial Accounting and the other
components of the SAP System is ensured by automatic updates.Data is available in real time
within Financial Accounting. Postings made in the subledgers always generate a corresponding
posting in the general ledger.

3.Preparation of operational information to assist strategic decision-making within the

organization.
Integration of Financial Accounting with other components:All accounting-relevant
transactions made in Logistics (LO) or Human Resources (HR) components are posted real-time
to Financial Accounting by means of automatic account determination. This data can also be
passed on to Controlling (CO).This ensures that logistical goods movements (such as goods
receipts and goods issues) are exactly reflected in the value-based updates in accounting.
Integration within Financial Accounting:Every posting that is made in the subledgers
generates a corresponding posting to the assigned G/L accounts. This ensures that the subledgers
are always reconciled with the general ledger.
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When using SAP you can use two menu paths : The user menu „SAP Easy Access‟ and
„Implementation Guide‟(IMG).

e.SAP Easy Access :When you log on to SAP the first screen and menu path you are presented
with is the user menu, where end users doing their daily activities. This is where you would use
SAP‟s Document Entry functions like Customer Invoice, jourlan entry, , reports etc.

Click Button to Expand Menu

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f.IMG-Implementation Guide is for configuring the system, Explore IMG is the purpose of this
material. Below is the IMG Display.

For to get IMG , Type SPRO then Press Enter at EasyAccess Screen
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Then Click SAP reference IMG button

You are now at IMG to Start Implementation(You IMG will look like this screen)
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2.Accounts Fundamentals:
Accountancy is the art of communicating financial information about a business entity to users such as
shareholders and managers. The communication is generally in the form of Financial Statements that
show in money terms.

Accounting is defined by The American Institute of Certified Public Accountants(AICPA) as

“The art of recording , classifying and summarizing in a significant manner and in terms of
money , transactions and events which are , in part at least, of financial character, and
interpreting the result thereof”

Accounts are categorized in to

1.Nominal account, 2.Real account and 3.Personal account.
1.Nominal a/c - accounts of expense or losses and incomes and gains.
Rule : Debit expense or losses, Credit incomes and gains
Ex: Expenses – Purchase, Salary, Wages, Interest Paid etc
Income – Sales, Commition Received, Interest Received etc

2.Real a/c - Those related tangible aspects, ex: assets,cash, etc..

Rule: Debit what comes in,Credit what goes out.

3.Personal a/c – accounts of persons and organizations. Ex:Customers, Vendors etc.

Rule: Debit the receiver and Credit the giver

Case Study:
1.Commence Business with Capital:
The owner of the business starts his business by investing $10000. So Bank a/c of Business
receives the owner‟s money( Known as Capital a/c) . Here Bank a/c and Capital a/c are Personal
accounts.

G/L will be

Bank a/c Dr. [Debit the Receiver] [Posting Key 40]

To Capital a/c [Credit the Giver] [Posting Key 50]

Bothe these accounts are G/L accounts . So Posting key 40 for Debit G/L and Posting Key 50 for Credit
G/L

Full Versin will be available to our Students

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Case Company Background:

BlessPro is a New York based Manufacturer of water filters, Water Softeners and water coolers.

3. Enterprise Structure: The first part of Configuration is defining enterprise

Structure, This is to Define Organiozational Structure of your business in the R/3 System

Client : A commercially, organizationally, and technically self-contained unit within an SAP

System. Clients have their own master records and set of tables. The client is the highest level in
the SAP System hierarchy. Specifications that you make, or data that you enter at this level are
valid for all company codes and for all other organizational structures. You therefore only need
to make these specifications, or enter this data once. This ensures that the data is consistent.
Users must enter a client key when they log on to the SAP System. This defines the client in
which they wish to work. All the entries you make are saved per client..The SAP System is
delivered with the clients 000 and 001 - these clients already contain default settings.

2.1 Define Company:[OX15] A company in SAP is represented by 5-character alphanumeric code and
usually represents the enterprise or the group company. A company can include one or more
company code. Company represents Corporate or Group of menu company codes

For Defining a company Either type Tcode /nox15 or Select Define Company from the below
menu (always use /n before Tcode if you are not in EasyAccess Screen)
a. Select Define Company From the IMG
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b. Click

c. Fill the Details :

d. Click Save
e. Click Enter for Transport Request.(Required only if enabled in your system Otherwise
ignore this line ) Transport, we will discuss detail in the latter Session.
f. Click Exit

Now we will Define Company Code. In Our Case Company we have only one Company code,
so Our Company and Company Code will be same.

Full Configuration of FI Enterprise Structure will be available in Full Materials, for a

copy of Full materials Please visit http://www.BlessPro.com/
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4. Financial Accounting Global Settings:

Fiscal Year: Usually a period of twelve months for which a company regularly creates financial
statements and checks inventories. To assign business transactions to different periods, you have to
define a fiscal year with posting periods.

Fiscal Year Variant: Fiscal Year variant defines the number of posting periods and special periods.
FYV also defines Year dependent or Calander Year.

Special Periods:Special posting periods that subdivide the last regular posting period for closing
operations. Irrespective of how you have defined your fiscal year, you can also use special periods.
Special periods subdivide the year-end closing period. They therefore merely divide the last posting
period into several closing periods. This enables you to create several supplementary financial
statements.If you do not need 12 posting periods, you can use the posting periods that are not required
as special periods.

A fiscal year is divided into posting periods. Each posting period is defined by a start and a finish date.
Before you can post documents, you must define posting periods, which in turn define the fiscal year.

Opening and closong Posting periods You define posting periods in your fiscal year variants. You can
open and close these posting periods for posting.

Bpro FiscalYear is Jan –Dec (colander Year), having 12 Posting period(12 months) and 4 special periods
3.1. Maintain Fiscal Year Variant (/nOB29)
IMG:Financial Accounting>Financial accounting global setting>Fiscal year> Maintain Fiscal Year
Variant
We are going to use K4 which is SAP Provided one, so no configuration is required.

Next Assign K4 to company code bpro

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3.2. Assign Company Code to Fiscal Year variant (/nOB37)

IMG:Financial Accounting-Financial accounting global setting-Fiscal year-Assign

a. Click at the bottom of the screen

b. Company BPRO and Click
c. Type k4

d. Save, Press Enter repeatedly if Warning message appears.

e. Exit

Next Define Posting Period Varient: company code BPRO has 12 posting period from Jan to Dec
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5.General Ledger Accounting Configuration

2.Chart of Accounts: This is a list of G/L accounts used by one or several company codes. For
each G/L account, the chart of accounts contains the account number, account name, and the
information that controls how an account functions and how a G/L account is created in a
company code.You can use the same chart of accounts for all company codes.If the company
codes all have the same requirements for the chart of accounts set up, assign all of the individual
company codes to the same chart of accounts. This could be the case if all company codes are in
the same country.In addition to the operating chart of accounts, you can use two additional charts
of accounts.If the individual company codes need different charts of accounts, you can assign up
to two charts of accounts in addition to the operating chart of accounts. This could be the case if
company codes lie in multiple countries. The use of different charts of accounts has no effect on
the balance sheet and profit and loss statement. When creating the balance sheet or the profit and
loss statement, you can choose whether to balance the company codes which use different charts
of accounts together or separately.
Charts of accounts can have three different functions in the system:
1. Operating chart of accounts:The operating chart of accounts contains the G/L accounts
that you use for posting in your company code during daily activities. Financial
Accounting and Controlling both use this chart of accounts.You have to assign an
operating chart of accounts to a company code.
2. Group chart of accounts:The group chart of accounts contains the G/L accounts that are
used by the entire corporate group. This allows the company to provide reports for the
entire corporate group.The assigning of an corporate group chart of accounts to a
company code is optional.
3. Country-specific chart of accounts:The country-specific chart of accounts contains the
G/L accounts needed to meet the country's legal requirements. This allows you to provide
statements for the country's legal requirements.The assigning of an country-specific chart
of accounts to a company code is optional.
The operating chart of accounts is shared by Financial Accounting as well as Controlling.
The accounts in a chart of accounts can be both expense or revenue accounts in Financial
Accounting and cost or revenue elements in cost/revenue accounting.

Chart of accounts segment : The chart of accounts contains basic information about the
accounts. The information for an account is summarized in a chart of accounts segment. It
contains: . Account number,. Name of the account (as short and as long text),. Control fields,.
Consolidation fields.
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6. Accounts Receivables(Customer Accounts)

1.Customer Accounts:Just like general ledger accounts, customer and vendor accounts also
have two segments: One segment at client level, that contains general data. This data can be
accessed throughout the whole organization. A segment at company code level, that contains
company code-specific data. Any company code that wishes to do business with a specific
customer or vendor has to create a company code segment for this customer or vendor. This also
creates a customer or vendor account.
Because the sales and distribution department also stays in contact with a customer and
has to know specific data about this customer, a .sales area segment can be created for
each customer. Any sales area that wants to do business with a customer has to create a
sales area segment first. The sales area segment contains sales area-specific data. A
complete customer account consists of the following three segments: . General data at
the client level, Company code segment,Sales area segment. The account number is
assigned to the customer at the client level. This ensures that the account number for a
customer is the same for all company codes and sales areas.

Account Groups for Customers/Vendors: The number ranges of the accounts,The ststus of the
fields in the master record,If the a/c is a one time customer or vendor.

1.1 Define Account Group with Customer: [OBD2]

Img > Financial Accounting> Accounts Receivable and Accounts payable > Customer Accounts
> Master Data > Preparations for Creating Customer Master Data > Define Accounts Group with
Screen layout(Customers)
a. New Entries
b. Fill Details

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