Sap Fico Transaction Code by Demo

Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO
Consultant Ademola Oduyemi
Process Enterprise Structure
Description/Task
Transaction code
Effect in FICO Enter company, company name, address. 2
1) Define a Company (T. Code 0X02) Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi
2) Define, Copy Delete Company Code
(T. Code EC01)
Company is the smallest organizational unit for which individual financial statement can be drawn according to the relevant commercial law. Company code is the smallest organizational unit for which complete, selfcontained set of accounts can be drawn up for external reporting purposes When you copy from an existing company code the it copies the following :Definition Global parameters Customizing tables (approximately 315) General ledger accounts (if desired otherwise you can create on your own) Account determination Fiscal year variant determines the posting periods to be used by client, it should be configured to meet the clients fiscal year. SAP allows a max of 16 Posting periods each fiscal year. 12 of which are regular, the remaining 4 are special posting periods which are used for things such as posting audits or tax adjustments to a closed fiscal year. Having 4 special period gives a lot of flexibility, you may want to use one special period for each quarterly and year end audit and tax adjustment. Year Independent: If each fiscal year of a Fiscal Year Variant uses the same number of periods, and the
3) Create Fiscal Year Variant
(T. Code OB29)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi
Process
General ledger Configuration Description/Task Transaction code 1. Copy Chart of (T. Code OBY7) Accounts
Effect in FICO Generally, each

SAP-delivered Chart of Account has a corresponding financial statement version already created. Make sure you select the financial statement version that goes with your COA. Financial statement version is used by SAP to form a s companys standard balance and P/L statements. One or more Chart of Accounts can be created per Client, but a Company Code can be assigned to only one Chart of Accounts. A Chart of Accounts may have many Company Codes assigned to it. Give COA name, description, length of GL account number
2. Create Chart Accounts
of (T. Code OB13)
3. Assign Company Code (T. Code OB62) to Chart of Accounts (T. 4. Create an Account (T. Code OBD4) Group
Examples are Asset Liabilities
Profit (Revenue) Loss (Expenses).
Account group contain a number interval specified by a lower and upper limit that controls the numbering for the G/L account Account group determines which fields you can configure on the G/L master record. At a minimum it is necessary to have at least two account groups. Unlike other number intervals, G/L Account interval number ranges can overlap. The field status for account groups controls the field that can be configured in the company code setup of G/L accounts. SAP gives the possibility of utilizing multiple retained earning accounts (Each G/L account would be assigned to one retained earning account) It is used in relation to an income account. This controls additional account assignments. It is important that field status of accounts mesh with
5. Define Retained T. Code OB53) Earnings Account
6. Field Status Variant and (T. Code - OBC4) Field Status Group
field status group of the posting keys or movement types. It is always advisable to keep as many field as possible optional, and make only the important fields required or suppressed. Field status determines the status of every document entry field for G/L account. For ex: will text be required, suppressed or optional etc. Thus it determines the screen layout of the G/L accounts. There are a series of such rules which are grouped under field status group for each category of G/L account. Field status groups are assigned on the the respective G/L master records. The field status groups are collected under one field status variant. This field status variant is assigned to the company code. No postings can be made until this is done. Since the sub-ledgers (AR, AP) do not have a field status group, differentiation is made mainly by different posting keys. Therefore there are a
lot of posting keys for sub-ledgers. On the other hand in G/L accounts diffrerentiation is made by field status groups. Therefore only two posting keysi.e. 40 & 50 are needed for G/L posting.
7. Assign field status (T. Code - OBC5) group to company code 8. Define Posting Keys (T. Code OB41)
9. Define Types
Document (T. Code OBA7)
This determines whether a line item entry is debit or credit as well as the possible field status for the transaction. Modifying the SAPdelivered posting key is not recommended. PstKy 40(Debit)/50(Credit) are the most commonly used in financial entry postings. Different document types are used for different transactions throughout the system. The document type tells you instantly what sort of a business transaction is in question. The document type determines which accounts that particular document can be posted to. It also controls number range assigned to it and required document header.
EG SA..1---999
10. Define Tolerance (T. Code OBA4) Groups for Employees
Maximum Document amount the employee is authorized to post Maximum amount the employee can enter as line item in a customer or vendor account. Amount Per Document eg.10,000,000 Amount per open item account item 1,000,000 Cash Discount per line item 5% Permitted Payment Differences
11. Maximum Exchange Rate Difference 12. Check Company Code (Code OBY6) Global Parameters 13. Define Additional (T. Code FS00) Local currencies (Optional) 14. Define Currencies Parallel (T. Code-OB22)
Examples of currency types: global currency hard currency index currency Target users of parallel currencies: Companies having reporting
requirements.
highly inflated countrys companies multinational companies
15. Assigning accounts for (T. Code -FS00) GL Clearing Differences 16. Enable Business Area Balance Sheet 17. Creating General (T. Code FS00) Ledger Account Master Record Centrally 18. Edit G/L Centrally (T. Code-FS05) 19. Display G/L Account Line items 20. Change G/L Account Line Items 21. Blocking a GL Account 22. View a General Ledger Document 23. To change a General Ledger Document 24. To change Line Item in a Document 25. Display Central G/L Account Changes 26. Display G/L Account Balance 27. Display G/L Balance Carry Forward 28. To See the List of GL Accounts / Chart of Accounts 29. General Ledger Document Posting (T. Code-FBL3) (T. Code-FBL4) (T. Code FS00) (T. Code FB03) (T. Code FB02) (FB09) (T. Code- FS04) (T. Code-FS10) (T. Code-F.16) Transaction Code (S_ALR_87012328) (T. Code F-02)
SA, 40 Dr(expense or liabilities) account) ,50 Cr (Revenue or asset)
30. G/L
posting
Single (T. Code FB50)
Held Documents Parked Documents
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi screen Transaction 31. G/L Total records (T. Code GD13) Display 32. Holding a Document (T. Code FB11) 33. Parking Documents (T. Code F-65)
Parking a document allows a document to be reviewed and approved by an individual other than the user before it is posted. Information on Parked Documents is available immediately and can be used for reporting purposes before it is actually posted. They do not update financial statements Only certain fields, such as the Posting Key and Account Number, are required entry fields. They are validated when the document is parked Authorizations can be configured to allow certain users to park documents only, while others can both park and post documents. When a Parked Document is saved, no financial accounting entries are posted. No balance checks are made; however, the line item can be
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viewed in Account Display. When a Parked Document is saved, a message containing the Document Number is displayed. Since these numbers are assigned in the same way as the standard document posting function, the posted document will retain the parked documents number. When posting several Parked Documents via a list, the system issues a list that details each Parked Documents disposition with details should the system not be able to post a document. If a Parked Document is not able to be posted, the list can be used to facilitate correction. A batch input session can be created from the list to subsequently post the Parked Documents.
34. Changing Park (T. Code FBV2) Documents 35. Deleting Parked (T. Code FBV0) Documents (FBVO)
Sample Documents
36. Sample Document (T. Code F-01) Transaction Code
Parked Documents can be deleted. The document number, however, can no longer be used for other documents Parked Documents can be posted either individually or via a list. A Sample Document is a
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model document that can be copied into a new posting; it is like a template that is stored in the system. Once a Sample Document has been created and saved, only the amounts can be changed. Line Items cannot be added into the sample document itself. To accommodate new line items, a new Sample Document must be created that contains all of the desired Line Items; however, line items can be added to a FI document that is referencing a sample document. When posting a document, only one Sample Document can be used at a time. It is accessed by its Document Number in the Document Entry Screen by utilizing the Post with reference function. Sample documents have a separate number range. When you create a sample document, the system stores the document but does not update any transaction figures. Characteristics of a sample document:
Only the amounts can be changed
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Line Items can not be added to the Sample Doc itself Only one can be used in an actual posting document Does not have to be a balanced entry Uses a special Document Type (X2)
40 Dr cash acc,50 Cr Exp acc
Recurring Entries
37. Changing the Sample (T. Code FBM2) Document 38. Display the Sample (T. Code FBM3) Document 39. Deleting Sample (T. Code F.57) Document 40. Recurring Entries (T. Code FBD1)
Recurring Documents are business transactions that are repeated regularly, such as rent or insurance expenses. The following data never changes in Recurring Documents: Posting Keys Accounts Line Item Amounts Doc typ SG or KR, (40 Dr Exp), (50 Cr Rev) The posting date is determined by either the run date or the
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run schedule. When creating a recurring document, the valid time period must be defined. The document does not update the transaction figures. It is a basis for creating accounting document. The system uses the recurring entry original document as a reference. It is not accounting document and therefore does not affect the account balance. With a recurring document postings can be made periodically or on a specific date. For period postings, specify the first and last day of execution as well as the interval in months. Cross company code transactions can not be posted with the recurring entry program. The system defined number range for recurring documents X1
41. Define Number Ranges for Recurring Documents 42. Creation of different run schedule Recurring Document
(T. Code FBN1) (T. Code OBC1)

To schedule a Recurring Document, the validity period must
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be defined within which the Recurring Document should be run. Then, there are two ways to set the exact dates that the information held in the Recurring Document will be posted: Specify the posting frequency by entering the day of the month and the period in months between postings. Alternatively, a run schedule can be configured that defines the calendar dates on which the system is to post the entry.
43. Enter Run Date for (T. Code OBC2) Recurring Documents 44. Execute Recurring (T. Code F.14) Document
Settlement Period
01/01/current FY 01/31/current FY Batch Input Session Name eg DGREC Execute (F8) The system displays the message Session DGREC was created
45. Change/Update Recurring Document
(T. Code FBD2)
46. Display Recurring (T. Code FBD3) Document 47. Delete Recurring (T. Code F.56) Document
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 48. View Recurring (T. Code F.15) Document 49. Executing Recurring (T. Code-SM35) Entry Batch Session
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The batch input session will post the Accounting Documents and update the scheduling information in the Recurring Documents, such as the number of documents posted, the next date when a new document will be created from a recurring entry, etc.
Clearing
50. Outgoing Payments (T. Code F.07) 51. Incoming Receipts (T. Code F-06) 52. How to clear Line items (T. Code F-03)
Only G/L Accounts that are open item managed can be cleared. The net value of all selected line items must be zero (or within the tolerance) For automatic clearing posting, certain items can not be cleared A)noted items B)statistical postings C)withholding tax items
53. Post with clearing 54. Automatic Clearing
(T. Code-F-04) (T. Code-F.13)
In it, the user only specifies the account to be cleared. The system then selects open line items with matching amounts and Assignment Numbers and clears them automatically. The system will also
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generate this document header if open items are cleared by running the clearing program. If the clearing date is not specified then the date on the clearing document will default to the most recent date of either the Document Date or Posting Date of the documents that contain the line items selected for clearing.
55. Account Display (T. Code FS10N) 56. Permit Negative Postings 57. Define Reason Codes (T. Code- OBBE) 58. Reversal Document (T. Code - FB08) Transaction Code
Types of reversal Negative postings / Standard reversal In order to reverse a document make sure that the original document contains no cleared line items. If the document does contain cleared items, then these items must be reset before reversal can take place. A new document number is created for the reversal document. Documents can also be reversed if : The document contains only Customer, Vendor, or G/L Account line items.
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The document was posted in FI (not SD or MM). All values in the original document, such as Cost Centers and Business Areas are still valid. If a reversal date is not specified, the system reverses the document using the posting date of the document to be reversed.
Financial statement version
59. Maintain GR/IR Clearing Account 60. Analyze GR/IR Account 61. Create FI Account Assignment Model 62. Automatic Account Determination 63. Maintain FI Configuration Automatic Posting 64. Financial Statement Version
(T. Code MR11) (T. Code F.19) (T. Code FKMT) (T. Code FBKP) (T. Code-OBXM) (T. Code OB58)
This groups together income/ balance sheet account statement format Only assign group number if you are using the consolidation functionality of SAP. SAP allows for only one Financial statement version for a single COA. Allows you to define your own individual checks for specific fields when a business transaction
Validation and Substitution
65. Create/Change Validation
(T. Code GGB0)
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is being processed. Validation consist of three part prerequisite, check, message The system checks any combination of specified criteria (e.g., an Account/Cost Center combination) for validity before posting a document A Validation can consist of up to 999 steps; therefore, you can validate against any number of Boolean statements before the data is posted
66. Create/Change (T. Code GGB1) Substitutions 67. Activate Validations & (T. Code GGB4) Substitutions 68. Profit and Loss (T. Code F.50) Adjustment
G/L Interest Calculation G/L Interest Calculation 1. Interest Types Calculation (T. Code OB46)
Interest can be calculated on G/L or customer account, applying a particular interest rate for a specified period of time. 1) Account Balance Interest calculation: Applied to entire balance for a
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specified period of time. 2) Calculation of interest on arrears: Applied to individual items of account receivables and payables. A certain interest rate is applied to the items that are still open or unpaid at a specified date. Click on new entries Give name to interest ID, Name , calc type Can create two types a) Balance interest Calculation type(S) (Name IntId: KB) b) Item interest Calculation type (P). (Name IntId: KI)
2. Prepare for Balance (T. Code OBAA) Interest Calculation
3. Prepare
interest
on (T. Code OB82)
Click on new entries :Enter the bal interest indicator(KB)/(KI) :Enter frequency period :Enter settlement day(e.g 10). :Enter calendar type(g) Interest determination (e.g. tick month end indicator) :Select balance plus interest check box and save Click on new entries
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Arrears calculation
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4. Define Interest (T. Code OBAC) Reference Rate
:Enter the Arrears interest indicator :Select open item /item cleared with a payment :Calendar type(G/J) :Transfer day(2) :Tolerance days(1) : Only cal interest on debit items. Reference interest rates are the key by which specific interest can be assigned to specific period: Examples of reference interest rate include LIBOR, Fed Rate, etc. :Enter text In this you specify how the interest rate is determined for each interest indicator. You can make this specification dependent on currency and a validity date. For each indicator we have to specify debit interest rate and credit interest rates ,so that you can apply different interest rates for debit items and credit items for G/L acc. Enter int cl indicator (e.g. bd1/bd2/Id1/Id2) Sequential number (01/02) e.g db>cr db>dr di>cr
5. Define time Dependant (T. Code OB81) Terms(Assigns reference interest rate to interest indicator)
di>dr
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premium:5 amount from(blank)
6. Enter Interest Values
(T. Code OB83)
Enter: Reference Rate Eff from (29.06.2006 Interest: 7,88

Prior to this make sure that you have created two accounts Interest received (revenue) Interest paid (expenses) Click on account button
7. Prepare GL Account (T. Code OBV2) Balance Interest Calculation
8. Interest Run
Calculation (T. Code F.52)
Enter COA, GL, Company codE Calculation period, Select Check box post interest settlement, Select execute.
9. Run session
(T. Code SM35)
G/L Exchange Rate G/L Exchange Rate 1) Define Additional Local Currencies 2) Check Exchange Rates Types 3) Define Translation Ratio for Currency Glbl settings, cocd multiple currencies (T. Code OB07) (T. Code OBBS)
The Translation Ratio is used to make simplify the
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Translation
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management of extremely large/small exchange rates that may exceed the capabilities of the standard exchange rate Normally it is a good idea to keep the translation ratio at 1:1, because this is how most exchange rates are quoted Enter the detail of all 3 types and save The Currency Translation Ratio identifies the relationship of the units of one currency to the units of another. It enables SAP to process exchange rates that would normally exceed the maximum allowable exchange rate of 9999.99999. The relation between currencies have to be maintained per exchange rate type and currency pair in the translation factors. This usually has to be performed only once. Because inflation can dramatically change the relationship between currencies,
4) Specifying Translation Ratios
(T. Code GCRF)
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5) Enter Exchange Rates
(T. Code OB08)
translation factors can be maintained on a time-dependent basis Exchange Rates identify the relationship between two currencies (e.g., on January 1st, 1999, one USD was equal to 22.694 RUB). The exchange rate is limited to the following extremes (0.00001 9999.99999) Rates can be updated as often as needed, either manually or through the use of an outside interface from Reuters or any other service that provides foreign currency exchange rates Enter exchange rate, validity date from, from currency, direct quotation, target currency and save. Example Xb gbp=1,50 direct quotation All R/3 applications and functions process exchange rates using the direct quotation as well as the indirect quotation. Whether the exchange rate is defined or communicated using
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the direct or indirect method of quotation depends on the market standard or the individual business transaction. The use of indirect quotation is neither application nor country-specific - it affects all the components in which exchange rates are used. The direct quotation is also known as the price notation: The currency value is expressed in the local currency per unit of foreign currency. The indirect quotation is also known as the volume notation: The currency value is expressed in units of the foreign currency per unit of the local currency. Example: local currency: EUR, foreign currency: USD - direct quotation: 1 USD = 0.92000EUR One unit of foreign currency USD costs the displayed number of units of local currency - indirect quotation: 1 EUR = 1.08696 USD For one unit of the local currency EUR you will receive the displayed number of units of the foreign currency. For each currency
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pair you can define either the direct quotation or the indirect quotation as the standard notation for the exchange rate. If the exchange rate you enter does not have the same quotation as the standard quotation set up here, the exchange rate is highlighted to show this Maintaining exchange rates is an on-going task. To reduce maintenance, R/3 offers several tools. For each exchange rate type one of the following tools can be used: Inversion (of the tools available, inversion is the oldest and is seldom used today)s Base Currency Exchange Rate Spreads Note: Just one of these three tools can be used per exchange rate; however, for different exchange rate types different tools can be used. Furthermore: the program RFTBFF00 maintains the exchange rate table automatically by
uploading an input file in multicash-format.
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Another option for transferring exchange rates is offered by the program RFTBDF07, which uses a data-feed interface to transfer data in realtime, if the external data-feed supports real-time exchange rate supply. With Remote Function Call (RFC), a direct connect is set up directly between an external system and a SAP System. You can find information on the file format, data suppliers, file structures and so on in the documentation for this program.
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FX Valuation FX Valuation Define Valuation Method (T. Code OB59)

You must define parameters for valuation procedure and ER determination. If valuation is carried out for an Acct, which is managed in Open item mgt, you must define the ER gains and loss Acct for each reconciliation in sub ledger Acct. Example of Valuation method is Strict lowest cost principle Lowest cost principle
Prepare Automatic Posting for (T. Code OBA1) Foreign exchange Valuation Assign exchange rate (T. Code FS00) difference key in loan account Create G/L account for exchange rate gains and loss Foreign currency valuation (T. Code F.05)
Foreign currency is valuated by balance Evaluation Key Date=Date of
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valuation Valuation Method= Strict lowest cost principle Lowest cost principle Valuation in Curr.Type= Company code currency Creating postings=Yes or No No If not activated (no), a test run is carried out. Under Selections: Activate Valuate G/L Account Balances When foreign currencies are valuated, all the OPEN ITEMS that were posted in a foreign currency are valuated: The valuation is based on the individual open account items in a foreign currency, that is, each open account item in a foreign currency is valuated individually. The accounts that are valuated are listed in the Customizing documentation. Fixed-Term and Foreign Exchange Transactions: Fixed deposit accounts (open item management) in foreign currencies
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are valuated in SAP FI-TR.
Taxation Sales and Use/ Purchase Tax

Tax on sales and Purchases Tax on sales and purchases are levied on every sale transaction in accordance with the principles of VAT. This applies to input and output tax. Input tax is calculated using the net invoice amount and is charged by the vendor. Output tax is calculated using the net price of products and is charged by the customer. Base Amount Tax is calculated from expense or revenue, which is a base amount. A base amount may includes cash discount or not. If it includes it is a net base amount otherwise it is gross amount. It varies from country to country. To determine the base amount, whether to include cash discount or not, set the indicator in basic settings of taxes on sales / purchases in SAP reference IMG guide (company code global settings).
Define Condition Types
Menu Path >SPRO >Financial Accounting >Financial Accounting Global Settings >Tax on Sales and Purchases >Basic Settings >Check Calculation Procedure
Click on New Entries Enter condition type name (Base amount) Condition class (Taxes) Calculation type (percentage) Condition category (Tax) Access sequence(if not selected might give rise to issues when defining tax code) Under changes which can be made Select item condition check box
>Define Condition types >
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Check calculation (T. Code OBQ3) Procedure
Assign Country
to Tax Define tax codes (T. Code FTXP) for sales / purchases
(T. Code OBBG)
The calculation procedure determines for which amount the individual condition types are to be calculated. This can be the base amount or a subtotal. The calculation procedure groups different types of taxes i.e., input tax and output tax. It also determines the posting rules for taxes. It consists of steps. For each step, specify condition type, from level, to level and posting key. Steps 1. Select TAXGB and click on copy as button. 2. Enter procedure name and description 3. Press enter key. 4. Then the system will give you a message 5. Click on copy all button From my experience, it is advisable not to change the Tax Codes are used for the following reasons: a) verify the amount of tax. b) calculate the amount of tax. c) calculate additional tax portion d) verify the tax type e) determine the G/L account f) show tax correctly on tax forms The tax code contains the tax rates. Tax rates are assigned to the tax types (e.g., A/R Sales Tax ), which are included in the tax procedure. A tax code may have several tax rates entered for different tax types but usually only one tax rate is entered
Steps
1. In the tax code box, enter your

own tax code e.g. DI (Input tax Demo corp)
2. 3.
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4.
Enter tax type (e.g. input tax) Check: Tick the box Reporting country(GB)
Note: Firms may have many tax codes for input tax because of different tax rates. In such case you have to define for each tax rate, a tax code separately and assign account for each tax code.
Define Accounts (Account
Tax (T. Code OB40)
Determination)
Click on out put tax, enter COA Check the tax code box Click on save Click on accounts button In the tax code field >Enter input tax code (RI) and In the account field >Enter purchases account In the tax code field >Enter input tax code (RO) and In the account field >Enter Sales account
Specification in the General Ledger Assign
(T. Code FB02)
Tax (T. Code OBCL) Codes for Non Taxable Transactions Withholding Tax(TDS) Define Withholdin g Tax Type for Invoice Posting
This is used for service charges, professional charges, contract payments, salary payments, Insurance commission. Whenever you make payments in respect of the above you have to deduct the TDS from these amounts and pay to the tax authorities to meet the statutory obligation. TDS is deducted while posting invoice or while making payment. There we need to define two
withholding tax types. 1. 2. Invoice Posting Payment Posting
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Withholding tax is calculated and posted to the appropriate withholding tax accounts at different stages, depending on the legal requirements in each country. As a rule, withholding tax is posted at the same time that the payment is posted, in other words the outgoing payment (Accounts Payable) or incoming payment (Accounts Receivable), is reduced by the withholding tax amount. Step 1. Enter withholding tax type and description.
In the base amount section Select Gross Amount radio button.
In the rounding rules section The first radio button will be selected automatically 2. Select post w/tax amount check box In the accumulation type section Select no accumulation radio button
In the control data Select all the radio buttons
In the base amount section Select Withholding tax code level
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In the withholding tax amount Select Withholding tax code level
3. Save Create Posting Define Withholdin g Tax Codes Define Formulas for calculating withholdin g Tax
In this activity create a formula for calculating withholding tax for difference range of amounts. To apply this formula for calculation withholding tax you to select the check box in the withholding tax code, to activate the formula. Click on new entries Withholding tax type Withholding tax code Withholding tax country Valid from date and save. You can create this for both the types (payment posting & invoice posting) Click on new entries Enter Cocd/withholding tax types Enter W/Tax Type Enter W/Tax Code Description Base amount percentage Post indicator >1 W/Tax Rate > Percentage % and save
W/Tax
Type for Payment
Assign Withholdin g Tax type to Company Code Activate
Click on position button Enter company code Press enter key
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Extended Withholdin g Tax Assign W/Tax (T. Code XK02) Code in the Vendor Record Posting Withholding Tax Master
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Activate Ext. W/Tax check box and save
Prior to this, make sure that you have Created a General Ledger Master Record as TDS Payables (Taxes) (FS00) It is a liability account and balance sheet account Select debit / credit check box Select withholding tax type check box Select withholding tax codes check box Enter withholding tax type Enter withholding tax code Press enter key Save
Tax Interface configuration Tax Interface configuration

Tax calculation and reporting is performed by an external tax system. The external tax system (3rd party tax package) performs tax calculation based on its own jurisdiction codes. The external tax system communicates with R/3 through the SAP Tax Interface System. In order for SAP Tax Interface System to work with an external tax package, the third party software package must be installed at the customer site. In addition to this, the appropriate version of SAPs certified tax partners API (Application Programming Interface) must also be installed at the customer site.
Establish Physical Destination
(T. Code SM59)
Communications between R/3 and a sales/use tax package are established using SAP RFC (Remote Function Calls). You must create an RFC destination that specifies the type of communication and the directory path in
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which the tax package executable or shell scripts program is installed. You must set up the RFC destination as a TCP/IP communication protocol. The destination name is user defined. Enter RFC Destination: eg. TaxWare_Maxtax Technical Settings Connection types :TCP/IP Application Server :Program/Taxware/salestax/avp.sh RFC Destination: eg. Vertex_Maxtax_Unix Technical Settings Connection types :TCP/IP Explicit host Program/Verterx/verrfc Set up Gateway Gatewayhost e.g 207.105.66.132 Gateway service e.g. Sapgw02 There are two recommended methods to define the directory path: SAP and Tax Software Package reside on the same server If R/3 and the external tax package are to reside on the same server, click Application Server to select as the program location. In the field Program, the external tax packages executable or shell script program, along with the directory path in which it was installed, must be specified. Click Save. SAP and Tax Software Package reside on different servers If R/3 and the external tax package were to reside on different servers, then this would be an explicit communication setup. Click Explicit host. In the field Program, input the external tax packages executable or shell script program along with the directory path in which it was installed. In the field Target Host, enter the host name of the server where the external tax package resides. Click Save.
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Test Connection
(T. Code -SM59)
If necessary, set up the correct SAP gateway host and gateway service. This setup is frequently an area of concern. An understanding of the directory path is of utmost To test the connection between R/3 and the external tax system, choose the Test connection button in the upper left-hand corner of the screen. If any error occurs, verify that: 1. The connection type is TCP/IP. 2. Program location and host name are correctly specified. 3. The directory path and the name of the executable program are correct. 4. The gateway host and service name is correctly specified 5. The external tax package has been installed correctly and is the correct version. 6. The external tax packages API for the R/3 tax interface is installed correctly and is the correct version. 7. The R/3 RFC libraries are the correct version. 8. The correct permissions are set for the user account. 9. The user has read/write authority. If this test fails, halt the installation! This test must be successful in order for R/3 to communicate with the external tax package. If the connection is successful, also verify that the external tax package installed supports the R/3 4.6 version of the API. You do that by going to: System Information Function List Check if the following functions are listed: RFC_CALCULATE_TAXES_DOC
RFC_UPDATE_TAXES_DOC RFC_FORCE_TAXES_DOC
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RFC_DETERMINE_JURISDICTION
Testing the external system tax data retrieval
(T.Code SE37)
Testing the external system tax data retrieval In order to test the external tax system, dummy RFC-enabled function modules were created in R/3 to simulate the external tax RFC functions. The RFCenabled function modules can be tested with the R/3 Function Builder Test Utility. Testing can be done for: 1. Jurisdiction code determination 2. Tax calculation 3. Tax update 4. Tax forced update It is imperative to perform these tests and check its results before continuing with further configuration. These tests might also be useful to resolve customer problems. Timeout during allocate" / "CPI-C error CM_RESOURCE_FAILURE_RETRY " It was not possible to connect to the remote machine. See the chapter "Configuring the communication" for details. Short-dump: "Start of TP failed" / "CPI-C error Please verify if the program name in the destination has been set up correctly. See the chapter "Configuring the communication" for details. Short dump: "Function is not available" You probably don't have a version
of the external tax package that supports the R/3 4.6 release. See the chapter "Configuring the communication" for details.
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The export parameters indicate an error (RETCODE>0). Check your input parameters. These errors are never R/3 errors! If necessary, consult you external tax package vendor or the manual 1 of the external tax system. No error occurs, but nothing comes back. Don't forget to enter the destination of the RFC target system.
Activating the Tax Interface System Step 1 Define Tax procedure to a country Step 2 Activate External Tax Calculation
(T. OBBG)
Each country can have only one tax procedure. 1 External Tax System ID (ExID): Define an ID for the active external tax system. For example :( External Tax Interface. 2 RFC Destination: 3 Interface Version (Int. Version) The External Tax Document is the entity name for tax relevant information for one particular document. This information is to be updated into the external audit register file for legal reporting purposes. An External Tax Document is created when a SD, MM or FI document is successfully posted to accounting.
Configuring the External Tax Document
Step 1 Define Number ranges for external tax documents Step 2 Activate External Tax Document
(T.CodeOBETX)
The Active flag controls if an External Tax Document can be updated into the external tax audit file
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Defining the tax jurisdiction code structure
(T Code OBCO)
for legal reporting purposes. This flag is read during the SD, MM and/or FI document posting process. If this flag is not set, the tax information will be lost and there will be no External Tax Document updated to the external audit This configuration step is required by SAP tax calculation engine. SAP tax calculation engine needs to know how a jurisdiction code is structured as well as if tax should be calculated /posted by line item. Although these concepts have no meaning for external tax calculation, it influences the relevant input data passed to the tax interface system for tax calculation and postings.
Customizing Master Data Tax Classifications (SD) Step 1 Define tax category by departure country (SD) Step 2 Customer master configuration (SD) Step 3 Material master configuration (SD) (T.CodeOVK1 )
A tax category has to be defined by departure country. Allowable departure country is the plants country and/or the company codes country. The tax category allows tax classification to be entered in the customer master and material master This configuration defines the possible tax classifications for the tax category in the customer master on the billing screen. The A/R material tax classification indicator is also used as a key in automatically determining the tax code within SD (see Setting up SD condition records). Multiple tax classifications may need to be set up for special tax rules and regulations based on material. These tax classification indicators are user defined, and point to user defined tax codes Tax codes can be automatically derived
(T.CodeOVK3)
T.CodeOVK4)
Customizing
40 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi from material, plant and account Master Data Tax assignment for purchasing transactions Indicators (MM)
The tax code can be overwritten within the purchase order (item details) and the invoice verification document. The A/P material tax classification indicator is used as a key to automatically determine the tax code within purchasing. Multiple tax classifications may need to be set up for special tax rules and regulations based on material. These tax classification indicators are user defined, and point to user defined tax codes
Step 1 Set tax indicator for material
(T.Code OMKK)
Step 2
Define tax classification indicators for plant (MM)
(T.Code OMKM)
Step 3 Assign tax (T.Code classification indicators to plant OMKN) (MM) Step 4 Define tax (T.Code classification OMKL) indicators for account assignment (MM) Step 5 Assign tax classification indicators for account assignments (mm)
(T.Code OMKO)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Sales & Use tax calculations require Step 6 location information to properly Maintaining determine where consumption of Master Data (SD) tangible personal property occurred.
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This information in the form of tax jurisdiction codes is stored on the master records. A tax classification indicator is also stored on some master records. The customer master jurisdiction (representing the ship-to location) and the taxability indicator assist in determining the tax. The plant master record contains a tax jurisdiction code identifying the ship-from location. The material master record has a material tax classification indicator that along with the customer tax classification indicator automatically determine the tax
Step 1.A Maintain Customer Tax Jurisdiction Code Step 1B Maintain Customer Tax Classification
V-03 or V-09 / VD02 or XD02 V-03or V-09 / VD02 or XD02
Address, Control data
Address, Control data and Billing
Step 2 MM01 create Maintain material / MM02 master tax change classification (SD) Step 3 Maintain plant master jurisdiction code (SD) (T.Code OX10)
The jurisdiction code relevant to a plants location must be maintained on the plant master record. This code provides the external tax system with the ship-from location for A/R and the ship-to location in A/P.
Maintaining
Master data must be maintained to
42 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi provide ship-to and ship-from location Master data information for procurement of goods (MM)
and services within the MM and FI modules. The ship-to location represents where the consumption of goods and services occurs for sales and use tax calculations. The ship-from location is required to correctly calculate sales and use tax in certain jurisdictions. Also, the tax classification of the material must be maintained. This provides the taxability determination for the purchasing of goods and services.
Step 1 Maintain plant master jurisdiction code (MM) Step 2 Maintain Cost Center master jurisdiction code (MM) Step 3 Maintain Vendor master jurisdiction code (MM)
The location of a cost center can also represent the ship-to location.
KS01 create / KS02
MK01 create / The location of a vendor provides the MK02 change ship-from location.
Step 4 MM01 create Maintain material / MM02 master tax change indicator (MM)
The tax classification indicator on the material master provides the taxability of the material for all purchasing transactions. This indicator and the ship-to and ship-from jurisdictions provide the information necessary to calculate the sales or use tax. Screens: Purchasing
Setting up tax codes
43 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Step 1 Tax code properties have to be set first Maintain tax code (T.Code during tax code creation in order to properties FTXP ) define it as input/ output tax, sales/use Step 2 Maintain tax code (T.Code condition FTXP ) record(s)
tax, etc. Tax code condition records are stored in condition table A003. The plants country (SD) or the company codes country (MM) along with the tax code, which was automatically determined from the SD/MM condition records, are used to read the tax condition records stored in table A003. The tax code also be entered and changed manually in both MM and FI. Tax procedure also determines the G/L (tax liability) accounts to which the tax amounts are to be posted to accounting. In order for the tax procedure to determine the desired G/L (tax liability) accounts per tax code, it makes uses of three interconnected concepts: 1. Accounting key 2. Process key 3. Transaction key Each condition type amount - calculated during the tax procedure execution can be posted to the desired G/L account. This is accomplished by the accounting key, which is assigned for each relevant condition type in the tax procedure TAXUSX. Check for each tax code the corresponding accounting key for all active condition types using transaction FTXP.
Step 3 Maintain tax accounts
(T.Code FTXP )
Step 1 Accounting key/Process Key
(T.Code OBCN )
Accounting key is equal to process key. The process key defines through the posting indicator if a tax liability account can be assigned for a tax code or if tax amounts are to be distributed to
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the expense Only the process keys, which have the posting indicator unequal to 3 is also transaction key.
Step 2 Transaction Key
(T.Code OB40 )
The transaction key defines the tax liability account and posting keys for line items that are created automatically during posting to accounting. Transaction keys (or account keys) are defined for each chart of accounts. Good receipt and goods issue transactions are non- Sales & Use tax relevant transactions. However, due to design reasons, tax code and jurisdiction code is required. Therefore, it is enough to assign the exempt tax codes and a dummy jurisdiction code that has no purpose in taxation.
Step 3 Set dummy jurisdiction code for non-tax relevant transactions
(T.Code OBCL )
Setting up SD condition records Configuring Tax Per Document Max Tax
VK11 create / VK12 change
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Process
Description/Task Create Bank Change Bank Display Bank Display Bank Changes Create House Bank
Bank Accounting Transaction code FI01 FI02 FI03 FI04 FI12
Effect in FICO
Enter Bank country: GB Bank key e.g. 140821
Make sure you have created g/l Bank account Each house bank can have several different bank accounts linked to it. Each house bank is tied to a company code. House Bank is identified by a unique bank key Due to the fact that theres been a rise in the number of bank mergers, some firm find it necessary to set up for one single banking institution two house banks within one company code. As one is used for Paper transaction and another for electronic transaction. Enter House bank id (alpha
num) Bank key (6 digits)
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Create G/L Account for 1) Check issued out(clearing acc) 2) Outgoing Wire Transfer 3) Interim Postings 4) CheckReceived(clearing acc) 5) Main Bank Account
For checks issued out based on checks cleared in the bank account the following entry will be passed automatically. (DR Cheque issued out CR Main bank account) For checks Received based on checks cleared in the bank account the following entry will be passed automatically (CR Cheque Received DR Main bank Enter Paying company code House Bank Account ID Click on Change status to maintain check lots Enter the reason for example Incorrect check printing. 1)Create Account Symbols eg Acct=main bank/Txt= Acct=Bank chrg/Txt= Acct=Wire trn/Txt= 2) Assign Accounts to Account Symbols (Assign acc symbol to G/L account) 3) Create Keys for Posting Rules e.g Y101= Main Bnk Acc Y102= Confirmed
Define Check lots (final step in configuring AP bank account
FCHI
Define Void reason Code G/L Account Cashed checks Global Settings for Electronic Bank Statement
FCHV FF.3
cash Y103= 4) Define Posting Rules
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Here you will now assign the key created for posting rules to the various account symbols and specify whether it will be a debit or credit and to which posting area, whether bank or a sub ledger posting. The posting rules represent posting transactions typical of the bank statement, such as: Incoming check Credit memo Debit memo Check received: You debit the Main Bank Account (i.e. Money coming in) Posting type: Clear: Debit(40) main bank account, credit check in Posting type 5 : Post to G/L Account) Check Issued Out: DR Check Out CR(50) Main Bank Doc type SA Post key 50 Posting type 4 (Clear debit G/L acct). Interim Posting: DR(40) Main Bank CR(50) Interim Posting Doc type SA
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Posting type 1(Post to G/L account Out going Wire transfer: DR Wire Transfer CR(50) Main bank Doc type SA Post key 4(Clear debit G/L acct). Bank Charges: DR(40) Bank Charges CR(50) Main Bank Doc type SA Posting type 1(Post to G/L account 5) Create Transaction Types E.G. Z_76 zitra electronic bank 6) Assign External Transaction Types to Posting Rules : Assign bank details, for which the account statements are to be imported , to a transaction type. All the house bank accounts at a particular bank are usually assigned to the same transaction type. Highlight the transaction type you created, then double click on it Click on new entries. Give external numbers to
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correspond with G/L account/posting rules defined. Assign Bank Accounts to Transaction Types
Import Electronic Bank Statement Manual Bank Statement 1 Create and assign business transaction Define Posting Keys and Posting Rules for Manual Bank statement Define variant for manual bank statements
FF.5
Enter transaction type(e.g. CHIN) Enter Posting rule Enter text description
2 3
Select SAP01 Double click on SAP01 Go back to the previous screen, then click on copy icon , copying from SAP01 to your variant of which you define now e.g. ZDEMO. Then position the cursor on , delete doc number, customer match code, foreign currency, foreign currency amt. Then double click on allocation amount. Then double click on Bank Charges, but change if from 13 to 6 Click on the Check Icon, and then you get a msg, Variant .. is correct
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Change description of variant Click on activate icon
Check deposit
Create Account Symbol e.g. Checkdp=incoming check Assign Accounts to Account Symbol Account Mod=+ Currency=+ Create Keys for Posting Rules Zchq= Direct Check
Define Posting Keys and Posting Rules for check deposit
Create and Assign Business Transaction Define Variant for Check Deposit
Bank Accounting>biz trans>check deposit>define posting keys and posting rules for check deposit Bank Accounting>biz trans>check deposit>Create and assign business trans Bank Accounting>biz trans>check deposit>define variant for check deposit
Define Posting Rules ZCHQ Dr Psky 40, Account Symbol= Checkdp Document type=DZ Posting Type =8
Put the cursor on SAP01 and click on the copy button. Take you to From SAP01 Variant to your defined Variant. Takes you to a different screen Change accordingly by double clicking on
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the possible fields and then ,changing the input number. Click on save
Manual Bank Statement Process Manual Bank Statement Post Process Electronic Bank Statement Post Electronic Bank Statement Edit Cash Management Position Pmts Cash Position Cash Create G/L account for Cash Journal Journal.
FF67 FEBA FEBP FF6A FF7A Img>FA>Bank accounting>Biz Trans>Cash Journal
The cash payments for small amounts to employees or vendors can be done using the cash journal. Wherever small payments are received from customers, the cash journal incoming postings will be made. GL Code must be on post automatically. I f you want several cash journal in different currencies, make sure that balance in local currency is not set and that the account currency is same as company code currency. Sort key: doc no fiscal year, Field status: G001 Post Automatically: Keep local currency only Line item display The cash journal supports posting of cash receipts and payments. You can: Have a separate cash
journal for each currency.
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Post to customer, vendor and general ledger accounts Use business transactions (instead of usually required postings keys & accounts) to post the data. Define your own business transactions. Document type Sk
Define for Document type Maintain Number Range for cash journal document
You can run several cash journal with different currencies in one cash Journal G/L account. If you want to run several cash journal in the same currency in one company code, you have to select different cash journal G/L account. Cash Journal entries are saved locally in the cash journal subledger, but postings are automatically calculated and displayed on GL, Vendor and Customer accounts.
Set up Cash Journal Access Cash Journal Post Cash journal
(T. Code FBCJ)

Switch to the relevant transaction type: Cash receipts, Cash payments, Choose a business transaction code or create a new one,
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Enter all required data (amount, Cost Centre, Vendor / Customer account etc.) Save or Post your transaction, Print cash journal document
Set up print parameter for cash journals

Check lot will determine the check number that is used on payments. SAP does not allow the user to void a check without a valid void reason. You must at least have one reason.
Define check lots
FCH1
Define check void reason EDI Partner Profile Bank statement processing
FCHV WE20
Processing of electronic bank statement consists of two phases: You need to import the bank data into the system (sometimes it is necessary to transfer the file into a format readable by SAP before), Run the post processing transactions - clear and post the items that have not been posted automatically. The transfer program (for example: MultiCash) uses the bank data to generate two files for further processing, STATE.TXT and ITEM.TXT. STATE.TXT contains bank statement header information and ITEM.TXT contains the transaction information. Using this format, a number of bank statements can be imported simultaneously. For the import, you need to enter the format, along with the two file names, and stipulate the type of further processing. The system then automatically makes the postings to the bank account, bank clearing account, customer account, and, if required, vendor account, along with the payment clearing. You have two options here: Immediate posting create a batch input session, then run it.
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi We propose to use MT940 format file for Electronic Bank Payments. PAYMENT TERMS Maintain Terms of Payment (T. Code OBB8)
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Payment Terms are conditions established between business partners to settle the payment of invoices. The conditions define the invoice payment due date and the cash discount offered for early settlement of the invoice. R/3 is delivered with typical payment term keys; however, new payment terms can be defined in configuration. Payment terms enable the system to calculate a cash discount and invoice due date. In order to perform this calculation, the system needs the following three data elements: Baseline Date: The date from which the due date is derived. Cash Discount Periods: The period during which the discount is allowed to be taken. Cash Discount Percentage Rate: The rate used to calculate the discount value. Payment terms can also be configured for installment plans. In this case, each installment may have a different payment term assigned to it.
Maintain terms of payment for installment payments
(T. Code OBB9)
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Dunning Dunning IMG>BizTrans>Dunning Defining Dunning Area T Code OB61

Dunning Areas is a organizational units with in the company code. The dunning area can correspond, for example, to a profit center, a distribution channel, a sales organization or a business area. The individual dunning areas can use different procedures or the same dunning procedure. The dunning areas with the required dunning procedures are to be entered into the customer or vendor master record if you use different dunning procedures. Otherwise, the system uses the standard dunning procedure. The dunning area is then entered in the line item. The system enters the dunning area into the master record automatically with the corresponding data.
Define Dunning Keys Define Dunning Block Reasons (optional)
( T Code OB17) ( T Code OB18)
Reasons for not dunning a particular line item or a particular Customer or vendor.
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Define Dunning Procedure
(T. Code FBMP)
Dunning block reason defined at customer master for excluding a particular customer or it can also enter for a line item while entering line item Besides the main configuration, there are five other segments to be configured for dunning as dunning procedures. In the configuration we will define main screen
Dunning interval days, days between the dunning levels - No of dunning levels - Total due items from dunning level , total of due item from the defined dunning levels. 1 - Min days in arrears (acct); These minimum days in arrears have no influence on calculating the days overdue. - Line item grace period ; Grace periods per line item which are taken into consideration during determination of the due date for the dunning run. Here you maintain Dunning Level Dunning Charges Dunning Minimum Amount Dunning txt Special G/L indicator.
Define Dunning grouping (T Code OBAQ) Define Interest (T Code OB42)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Rates(optional) Assign Dunning (T. Code XD02) Procedure to Customer / Vendors Accounts Define Correspondence (T. Code OB77) Types Assign Company Codes to Correspondence company Codes Assign Programs for (T. Code OB78) Correspondence Types Dunning Run (T. Code F150)
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Process Basic AP Settings
Accounts Payable Core Settings Description/Task Transaction Effect in FICO code Example of which could be: Define Account Groups (T.Code One-Time Vendor(OTVD) with Screen Layout OBD3)
Create Number Ranges for Vendor Accounts Document Types for Number Ranges Assign Number Ranges to Vendor Account Groups Create Tolerance Group for Vendors Define cash discount base for Incoming Invoices Define Accounts for Cash Discount Taken
(T .Code XKN1) (T. Code OBA7) (T. Code OBAS) (T. Code OBA3)
Special Vendor(SPVD) Goods Supplier(GOSL) Domestic Supplier(DOML) Regular Vendor(REGV) Example Vendor(REGV)1-999 Note! Number range must not overlap
(T. Code OBXU)
Prior to this make sure youve created G/L accounts for 1Reconciliation 2 Cash Discount Taken(Revenue) (DR) Enter COA Save rules first
Define Accounts for Lost (T. Code Cash Discount OBXV)
Enter COA Save rules first Enter (tick) for debit and credit 2) Cash Discount Lost (Expenses)(CR) e.g 01>wrong entry>Entry made wrongly 02>Negative postings>Posted Negatively
Define Reason Codes
(T. Code OBBE)
Define Accounts for
(T. Code
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Prior to this make sure youve Over payments / Under OBXL) created G/L accounts for Over Payments
In the account are determined based on field, click on Debit/Credit as well as Reason Codes. Credit Cash Under Payment Debit Cash Over Payment. Prior to this make sure youve created G/L accounts for Bank Charges.
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payment(Dr)/Underpayment (Cr)
Define Accounts for Bank Charges Define Dunning Procedure Create Vendor Master Record
(T. Code OBXK) (T. Code FBMP) (T. Code XK01/FK01)
Enter COCD & Account group Click enter Then give details of the company you want to create. Bank key= six number Bank account=eight number Vat = 11 digits Eg GB226789829
Copy Vendor Master Record
(T. Code FK15)
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AP Business Transactions Invoice Posting Direct Trans Code: F-43 Invoices AP Processes Enter Vendor Invoices Trans Code: FB60
30 cr vendor acc,40 debit expense acc Posting an invoice received from a vendor will: Create the Invoice Receipt Document. Update the Material master record when appropriate. Update Purchase Order History when appropriate. Post entries to the appropriate G/L Accounts. Update the Vendor Account (sub-ledger). When the Vendor Invoice is posted, a debit is posted to the GR / IR Clearing Account (and cleared) and a credit is posted to the Vendor Account (subledger). At the same time, a credit is posted to the appropriate G/L Reconciliation Account (Accounts Payable Account) assigned to the Vendor. 30 cr vendor acc , 70 debit asset , trans type 100 for external asset acquisition 21dr vendor , 50 cr expense acc In case where a Your firm is overcharged by a vendor. For this reason your company receives a credit memo which can be deducted from the original invoice. In vendor credit memo the R/3 system defaults the document type KG
Direct Invoice Posting to Trans Code: F-43 an Asset Credit Memos Trans Code: F-41
Enter Vendor Credit Memo Trans Code: FB65
Display Document
Trans code: FB03
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Change A Document Trans code: FB02 Display Document Trans code: Changes FB04 To park an invoice Trans code: F-63 To park a credit memo Trans code: F-66 Change Parked Documents Trans code: FBV2 Change Parked Document Trans code: Header FBV4 Display a Parked Trans code: Document FBV3 Display Changes to a Trans code: Parked Document FBV5 Delete Parked Documents Trans code: FBV0 Post Parked Documents : Trans code: FBV0 Reversal of Individual Trans code: Documents FB08 Vendor down payment Trans code:F-47 Post Vendor down Trans code:F-48 payment Post Manual Outgoing Trans code:F-53 Payment Post Debit for Manual Trans code:F-31 outgoing payments Mass Reversal of Trans code: F.80 Documents Create Posting for Trans code:F.14 Recurring Entries Cr gr/ir acc Post Goods Receipt Trans code: Dr expense account MIGO/MB01 Change Goods Receipt Trans code: MB02 Display Goods Receipt : Trans code: MB03 Reverse (Cancel) Goods Trans code: Receipt MBST Goods Return : Trans code: MB01 Cr Vendor Acc Invoice Verification Trans code:
Debit gr/ir Acc
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Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi MIRO Display Invoice Trans code: Verification Documents MIRO . Reversal of Individual Trans code: Logistics Invoice MR8M Documents Process Automatic Clear F.13 Vendor transfer post/ F-42 without clearing Manually Clearing Vendor Trans code: F-44 Line Items Display / Vendor Change Trans code: Line Items FBL1N Reset Vendor Cleared Trans code: Items FBRA Display Vendor Initial (T. Code Screen FK03) View Vendor Account (T. Code Display (line items) FBL1N) Display /Change Vendor (T.Code-FK10N) Account Balance Display Report (T. code- F.98) AP Payment Run Payment Run Maintain Payment Program Trans code: FBZP
The systems take into account in a payment run Payment method specifications in the IMG.
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Specifications in the vendor master records Information in the documents(incoming invoices) Specifications made when maintaining the payment run parameters.
63 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Perform Automatic Trans code: F110 The payment run considers the following dates Payment Run for Checks: a)Customer due date Maintain Header Data b)Vendor due date
c)Documents entered date The payment run: Posts payment documents. Clears open items. Supplies data for the payment media print programs. The actual Payment Run can be started immediately or scheduled to run at a later date and / or time. The Payment Run is executed in batch mode. Every payment run of the payment program is identified by two fields: Run Date=Todays date Identification= The run date does not have to be the actual date when the program is executed but this is recommended. Its main purpose is to help identify the program run. The field Identification is used to differentiate between program runs that have the same run date.
Posting date =todays date Doc ent up to=todays date Customer item due by=todays date+ 7days Company code= Payment Mthd= Value date=Today+30days Click on additional Log Activate the following
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Due Date Check, Payment Method Selection in All Cases, Line items of the payment documents Choose Printout/Date Medium.(YOU MAY SKIP)
Click on Proposal Icon

Click on the start immediately check box
Click on the Green tick box Click on enter Go to the main menu> edit>payment>schedule program>click on it Select start immediately check box Click on the green tick button Press the enter key Go to Edit>payments>payment list>click on it The Payment Program selects Open Items to be paid depending on the following: Date of the Payment Run Next Posting Date
While editing the parameters, an Additional Log can be requested for test purposes. If the Proposal Payment Run does not pay certain Open Items, the
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reasons are detailed in this log. On the basis of this information, the user can decide how to resolve the
situation Copying the Parameters of a Previous Check Run: Posting a Manual Payment aka Hot Checks Posting a Manual Partial Payment of Open Line Item Reprint Checks (Includes Voiding Old Check To Print Checks from the Spool Cancel Payment / Void Checks Display Check Register Display Check Display Payment Document Perform Vendor Balances Inquiry Create Manual Check Information Payment List Trans code: F110 Trans code: F-58. Trans code: F-58 Trans Code: FCH7 Trans Code: SP01 Trans Code: FCH8 Transaction Code: FCHN Trans Code: FCH1 Trans Code: FCH2 Trans code: FK10N FCH5 S_P99_4100009 9 Doc Type KZ
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi AP Procurement Process Procurement Process 1
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Create Requisition Change Requisition Display Requisition Individual release of Purchase Requisition Collective release of Purchase Requisition List Requisition (General) List Requisition (Acc. Ass) Request for quotation Requisition For Quotation, list display by collective number Outline Agreement / Term Contract Outline agreements, list display by general criteria Change Outline Agreement Display Outline Agreement by Material or Service Release Contract(Outline Agreement) General Evaluation of An Outline Agreement (OA) To Print Contract: Create Purchase Order (Known vendor) Create Purchase Order (Unknown vendor) Change Purchase Order General Evaluation of a Purchase Order Release Purchase order Display Purchase Order
ME51 ME52 ME53 ME54 ME55 ME5A ME5K ME41 ME4S
Doc type NB
Doc type NV
ME31/ME31K ME3K ME32K ME3M ME35K ME80RN ME9K ME21N ME25 ME22 ME80FN ME28 ME23N
Doc type NB
No Accounting Impact
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Display Purchase order ME2L by Vendor Display Purchase order ME2N by PO number Display Purchase order ME2K by Account Assignment Display Purchase order ME2N by Open items Report Purchase order ME2N Purchasing Order MCE1 Analysis Info record per vendor ME1L Purchasing Order Price ME1P history 5
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Goods Receipt for PO
MIGO
Debit Inventory Acc Credit GR/IR acc The posting of a Goods Receipt results in the following: A Material Document is created (stock quantity is increased).An Accounting Document is created (G/L Accounts are updated).Purchase Order history is updated. When a Goods Receipt is posted, a debit to the stock account and a credit to the GR / IR (Goods Receipt / Invoice Receipt) Clearing account is posted 101 Good receipt
Cancellation of Goods Receipt
MIGO
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi The Vendor Invoice gets Invoice verification/Post MIRO/MR01 included in the Purchase Document
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Order history to update the status of the Purchase Order Line Item. A Debit is posted to the GR / IR Clearing Account to reverse the original entry. An open item (credit) is created in the Vendor Account (sub-ledger) with a corresponding credit to the appropriate Reconciliation (G/L) Account defined in the Vendor master record. The open item represents the payable to the vendor and remains open until a vendor payment is processed
Change Invoice Document Delete Invoice Document Display Vendor Display Vendor Line Items 7 Payment
MR2M MR5M XK03 FBL1N

The payment on account transaction results in the following entry on the Funds balance sheet DR Vendor Number (recon xxxx) CR 101005 Inter-company cash As you will note, the balance against the vendor is a debit (reverse of the normal). In order to settle this item, upon receipt/entry of the invoice into SAP, the following entry will occur: DR GL Expense Account/Inventory
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account CR Vendor Number (recon xxxx) For a purchase order the entries will be as follows: GoodsReceipt: DR GL Expense Account/Inventory account CR GR/IR Clearing (xxxxx) Invoice Verification: DR GR/IR Clearing (xxxxxx) CR Vendor Number (xxxxxxx) The vendor account (open items) must be manually cleared, a process that normally is automatically performed as open items are paid. If you fail to do complete this procedure, the vendor account will not be cleared and will retain a debit balance with no offsetting entry. After payment, the desired balance in any vendor account should be zero.
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Account Receivable Basic Settings Process Description/Task Create Account Groups Create Number Ranges for Customer Accounts Assign Number Ranges to Customer Account Groups Define Document Types Transaction code Effect in FICO (T. Code OBD2) (T. Code XDN1) (T. Code OBAR) (T. Code OBA7) (T. Code FS00)
Create General Ledger Account Accounts Receivables Define Accounts for (T. Code OB09) Exchange Rate Differences Create Accounts for Bank (T. Code OBXK) Charges Customers Create General Ledger (T. Code FS00) Account Customer Down Payments Received
Account group Liabilities, sort code 031 or 026 , reconciliation account customers, GO67 double click on Acct type D and SPL. GL A
In the recon. Acct field (Enter GL Account - Accounts Receivables) In SPl. GL Account field (Enter GL Account Customer Advances / Down
Create General Ledger (T. Code FS00) Account Reconciliation Create Reconciliation for (T. Code OBXR) Down Payments
Payments)
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Create Customer Master Record Change A Customer Master Record Centrally
(T. Code XD01) (T Code: XD02)
Display a Customer Master Record Centrally Display Changes to a Customer Block/Unblock Customer Mark Customer for Deletion Create Tolerance Groups for Customers Create Tolerance Groups for Employees Invoice & Payment Create Customer Invoice
(T Code: XD03) (T Code: XD04) (T Code: XD05) (T Code: XD06) (T. Code OBA3)
(T. Code - F22/FB70)
PstKey 01 = (Debit Customer Invoice), PstKey 51 Credit Revenue Account Document Type: = Customer Invoice
Define Accounts for Cash (OBXI) Discount Customer Payment (T. Code F-28) Receipt
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Post Incoming Payment (T.Code-F-28)
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You can use this to process under payment, over payment (difference needs to be credited to customer account) and Overpayment (the difference is due to a late fee the paper invoice doesnt show the late fee therefore neither does the open item in the system).
Dedit the Main bank account(Pst ky 40) Credit the Customer Account Pst ky 15) Invoice Payment
Post Customer Down Payment Unblock Invoice for Payment Enter Customer Credit Memo
(T.Code-F-29)
PstKey40 Debit Bank Account, Pst Key 19 Credit Customer
(T.Code- FBL5N ) (T. Code F-27)

Credit memos are used to reduce the amount of a customer's debt (a credit is applied to the customer's account reducing the total amount due) caused by events occurring after the receivable was set up. Document Type: DG = Customer Credit Memo Pst Key: 11 (Credit Memo Credit Customer) Account: Enter Customer Number. Post Key: 40 Debit Entry (Account: General ledger revenue account A customer may be issued a credit memo for numerous reasons such as inadequate
Create Customer Credit Memo
(T. Code FB75)
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goods, damaged goods, etc. Regardless of the reason, the credit memo posting is similar to other standard document postings within the SAP R/3 system. The basic document entry requirements are the same, in accordance with certain configuration settings. Once posted, the credit memo is applied against the customer a account balance, and subsequently offsets future billings.
Returned checks
(T. Code F-02)
When a check is returned from the bank, the transaction is posted to the Customer with the use of Special GL indicator R. This result in the amount being recorded to the balance sheet account xxxx (Please note that a valid customer account must be created prior to posting any invoice or returned check item.) Pst Key: 09 = (Special G/L Debit), Account: Customer Number,Sp. G/L R (for returned Check), Post Key: 50 = Credit Entry Account: Cash account-Local Depository Account The need to post a payment and print a refund check without running the payment program for credit memos. This process is used if
Payment with Printout Accounts Receivable
Customer Transfer
(T. Code F.21)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Posting without Clearing Account Receivables
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you need to transfer a value from one customer to (usually) another customer. Since this transfer happens without clearing you run this transaction without selecting open items and therefore the amount you are transferring out is not dependent on any prior postings to that customer PstKey12 (Reverse Invoice) for a Customer/Credit against the first account PstKey 01 (Invoice) for a Customer/Debit against the second account
Customer Displays Customer Master Data Comparison Customer Balances View Customer Line Items Display Customer Balances Change Customer Line Items Customer Account Analysis Create Evaluation Customer aging report Report Selection (T. Code F.2D) (T. CodeS_ALR_87012172) (T. Code- FBL5N) (T. Code FD10N) (T. Code FB09) (T. Code FD11) (T. Code F.29) (T. Code: F.99)
Account Clearing
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Clearing
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Clearing is the process of matching open debit entries with open credit entries within the same account. The system assigns a Clearing Number to the matched items. The system is able to post a line item and clear it against an open item or items in one transaction (Post With Clearing).
Customer Account Clearing Manual Clearing of Open Items Automatic Clearing /G/L Account
(T. Code F-32) (T. Code F-32) (T. Code F.13)

the user only specifies the account to be cleared. The system then selects open line items with matching amounts and Assignment Numbers and clears them automatically. The system will also generate this document header if open items are cleared by running the clearing program. If the clearing date is not specified then the date on the clearing document will default to the most recent date of either the Document Date or Posting Date of the documents that contain the line items selected for clearing .
Resetting Cleared Items Assign and Clear Open Items Edit Assigned Open Items
(T. Code FBRA) (T. Code FB15) (T. Code FB17)
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Correspondence Correspondence Account (T. Code: FB12) Statements/Request Correspondence Maintain Correspondence (T. Code: F.64) Delete Correspondence (T .Code: F.63) Request Print Letters (Customer): Bulk Printing of Account Statements Reprint Quarterly Account Statement (T .Code:F.65 ) (T .Code:F.27 ) (T .Code:F.61 )
Document Maintenance Documents Display/ Searching for Documents Changing Documents .Display Documents Changes Post/ Deleting Parked documents Reversing Documents (T. Code: FB03) (T. Code: FB02) (T. Code: FB04) (T. Code: FBV0) (T. Code: FB08)
Recurring Entries (e.g. Standing Order)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Recurring Entries(e.g. Standing Order) Recurring Entry Change Recurring Entry Create Posting Documents from Recurring Entries List Recurring Entry (T. Code: FBD1/F.15) (T. Code: FBD2) (T. Code F.14) (T. Code F.15)
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Sales Cycle Sales Cycle 1 Create Inquiries (T. Code VA11)

Inquiry: A document created in the Sales & Distribution module that records information about products possibly desired by a prospective customer The following activities can be executed in an Inquiry: Automatic pricing Manual availability check A typical business transaction within a sales and distribution department generally begins through contact with the customer. The sales representative maintains this contact through regular visits, telephone conversations or by organizing a mailing campaign. Or The customer enquires for a product/service or
Change Inquiries Display Inquiries Create Quotations
(T. Code VA12) (T. Code VA13) (T. Code VA21)
Quotation: A document created in Sales & Distribution, which
records the response to an inquiry.
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The following information can be recorded in a Quotation: Material Number Price Alternative Items As a result of this contact, the customer becomes interested in a product. To obtain more information, he/she then submits a request for quotation (RFQ) regarding the product (referred to as a material in R/3) and its price. The sales representative responds to this RFQ and creates a quotation. This may involve negotiations about discounts and other conditions. For the RFQ document, the system determines the price for a specific material quantity. However, the system does not check to see if that material is available. If the RFQ document for a desired quotation already exists, the data from that RFQ can be copied into the quotation. The quotation document contains a binding price listing for the quantity of the requested material and the time period during which the price will remain in effect. Simultaneously, an availability check is being run which determines when, and how much of, the desired material can be delivered.
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Change Quotations (T. Code VA22) Display Quotations (T. Code VA23) Create Sales Orders (T. Code VA01) Sales Order: A document
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created in Sales & Distribution that records the material number, quantity, price and delivery date of a product to be purchased by a customer. Should the customer then decide to buy, this will result in an order. An order can be generated from the quotation as a follow-up function. The data from the quotation is copied into the order during this process. You achieve the same result when you create an order and use an existing quotation as a reference. Both of these procedures can be used for all document types that may be used as references for the order. the document types are: a RFQ, a quotation, an existing order, a contract or scheduling agreement and an invoice. There are also different types of documents within order processing. The document type that is used most frequently is the standard order. Aside from this, there are also the document types that result from outline agreements being made. When you close an outline agreement with a customer, you determine the time period during which the customer will accept the product. There are two types of outline
agreements. One is the
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scheduling agreement, in which the individual components of the order are determined along with their delivery dates. The other type is the contract, which only covers the acceptance of a total quantity within a designated time period. The release order then causes individual deliveries to be made in the form of standard orders. There may be times, however, when you would like to make use of a quotation where the validity has already expired, or when you wish to combine items from several quotations into a single order. A Sales Order is a contractual agreement between a Sales Organization and a customer concerning goods to be delivered or services rendered. Information in a Sales Order includes the following: Customer Number Material Number Order Quantity Price Delivery Date Sales Orders can be created with reference to: a Quotation another Sales Order a Contract a Billing Document
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When a Sales Order is processed, the system can automatically execute the following functions: Credit Checking Pricing Material Availability Checking Transferring requirements to Materials Requirements Planning (MRP) Shipping Point and Route Determination Pricing details in the Sales Order include the amounts that will eventually be posted to the General Ledger for Cost of Goods Sold and Revenue
Change Sales Orders Display Sales Orders Create Delivery Note With Reference to Sales Order) Without Order Reference
(T. Code VA02) (T. Code VA03) (T. Code VL01N) (T.Code VL01NO)
The Delivery Note is a document created in the Sales & Distribution module that initiates the shipping activities associated with delivering materials to a customer. The Delivery Note serves as a basis for: Picking the material Creating Shipping Documents Transportation Billing Delivery Notes contain the following information: Material Number Actual Quantity
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Delivered Picking Information (from where the Material is sourced) Billing Status No financial accounting transaction is recorded when a Delivery Note is created. he material quantity that is to be delivered to a customer on the requested date is fixed in the item. However, only those quantities of the material which are confirmed in a scheduled delivery, which can be thought of as a schedule line, can be taken in the delivery. As soon as an item is entered, the system runs a check to determine if the order quantity will be available by the desired date. A Goods Issue is a document, posted in the Sales and Distribution module, that is used as the source document for recording changes in stock levels associated with delivering materials to customers and for recording the financial impact of such transactions in the General Ledger. Shipping activities must already be completed before a Goods Issue can be posted for a delivery. After a Goods Issue has been posted, no quantity changes can be made to the Delivery Note. Goods Issue for a Sales Order:
Create Good Issue - Outbound Delivery Single Document
(T. Code VL02N)
Reduces warehouse stock
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Contains information used in automatic account assignment such as the Movement Type (used to identify the transaction as a Goods Issue) and the Plant from which the material was shipped. As a result of a Goods Issue, integration to the Financial Accounting module occurs with the automatic creation of an Accounting Document containing the following accounting entries: Debit to the Cost of Goods Sold G/L Account Credit to the appropriate Inventory G/L Account Debit to the Cost of Goods Sold G/L Account Credit to the appropriate Inventory G/L Account
Create Good Issue -Collective Processing Via Outbound Delivery Monitor Create Good Issue -Schedule Background Processing Create Good Issue -Cancellation/Reversal Create Billing Document
(T. Code VL06G ) (T. Code VL23) (T. Code VL09) (T. Code VF01)
The Billing Document is a document, posted in the Sales & Distribution module, that supports the creation of Customer Invoices, Credit or Debit Memos, and the recording of the financial impact of these transactions in the General
Ledger.
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The Billing Document Type identifies what Billing Document is being created in the system. Billing Documents in the Sales & Distribution module include: Order-related Invoice Credit Memo Debit Memo Billing Documents are created by referencing Delivery Notes. Some of the creation scenarios include: Creating individual Billing Documents for one Delivery Note. Creating individual Billing Documents for two or more Delivery Notes. Billing Document Types are automatically proposed based on the Sales Document on which they are based. As a result of a Billing Document, integration to the Financial Accounting module occurs with the automatic creation of an Accounting Document containing the following accounting entries: Debit to the Customer Account (sub-ledger) and the appropriate G/L Reconciliation Account assigned to it. Credit to the appropriate G/L Revenue Account.
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Debit to the Customer Account (sub-ledger) and the appropriate G/L Reconciliation Account assigned to it. Credit to the appropriate G/L Revenue Account
Change Billing Document Display Billing Document Billing due list Cancel Billing Create Incoming Payments
(T. Code VF02) (T. Code VF03) (T. Code VF04) (T. Code VF11) (T. Code F28/F-06))
Customer payments can be received directly and entered in the system manually, or they can be processed through a Lockbox. When the Accounts Receivable Department receives payment from the customer, the Accounts Receivable account is cleared (with a credit) and a Debit posting is made to the Cash account for the same amount
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Special G/L Transactions Bills of Exchange Process Bills of Exchange Description/Task Create General Ledger Accounts Bills Discounting Accounting Link between Sundry Debtors and Bills of Exchange Transaction code (T. Code FS00) Effect in FICO
Account type (Asset) Select Customers (Recon. Acct type for Acct. Type), Select line item display and Sort key 031 Account type (Liabilities) Sort Code 001 Only balance in local currency FSV (GO67) Select D & W and double click on it. In the Recon. Acct field (Enter Accounts Receivables Account) In the Special GL field (Enter BOE Receivables Account) and save
(T. Code FS00)
(T. Code OBYN)
Link between Bank C/A, Sundry Debtors Account & Bank Bills Discounting
(T. Code OBYK)
In the Bank Acct field (enter bank sub account) Usage (discounting) In the Special GL field (W) In the Customer Recon. Acct field (enter Accounts Receivables Account) In the bank sub account for liabilities field (Enter Bills discounting Account) AND SAVE
Customer Sales Invoice Bills of Exchange Receipt
(T. Code F-22) (T. Code F-36)
Dr Bills Receivable Account Cr Accounts Receivable / Customer Account
Bills of Exchange (T. Code F-33) Discounting Reverse Contingent (T Code F-20) Liability
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi View Customer Wise / Due wise Bills of Exchange Bill Charges and (T. Code OBYH) Account Determination or Assignment
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Please make sure that you have created GL Accounts for Collection Charges, Discount Charges and assign these accounts to the relevant transaction keys. Go to menu bar item edit Copy Rules In the Dialog Box From = INT To = Your Company Code
Select each item of description and assign General Ledger Account for each transaction key. Bank Discount Charges BDS / Bank Collection Charges BIK Bank of BOE Tax BWS / Revenue from Discount Charges DSK Revenue from Collection Charges INK / Revenue from BOE Tax WST
Prepare BOE Charges Statement
(T. Code OB73)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Special G/L Transactions down Payment to Vendors Down Payment to Vendors Creating a General (T. Code FS00) Ledger Account - Down payment to vendors Account type(Liabilities) Sort code: (vendor number) Reconciliation (Vendor) FSV( G026)
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Define alternative (T. Code OBYR) Reconciliation account for down payments
In the Recon. Account field, Enter Accounts Payables Account In the special GL Account, Enter Reconciliation Account (Vendor Advances / Down Payments) Press Enter key and save
Posting Down Payments Display Change Line Items (FBL1N) Posting Vendor Invoice Down Payment Clearing ( Clearing Vendor Normal Items Vendor Statement of Accounts Request for Correspondence / Statement Maintain Request / Correspondence
(T. Code F-48) (FBL1N) T. Code F-43 T. Code F-54 (T. Code F-44) (T. Code OB78 (T. Code FB12) (T. Code F.64)
Special G/L Transactions Down Payment from Customer
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Down Payment from Customer Create G/L Account (Advances from Customers) Link the advances from Customers (G/L) to sundry Debtors (AR/GL Acc-Reconciliation) Define alternative reconciliation Down Payment Receipt Enter sales Invoice Transfer of advance amount from customer to normal account by clearing GL Account (F-39) Open Item Account Clearing Reset Cleared Items
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(OBXR) (F-29) (F-22)
(F-44) (FBRA)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Credit Management Credit Management Overview of Credit Management: Define Credit Control Area Assign Company Code(s) to Credit Control Area Define Customer Credit Groups Define risk categories Define Credit Rep Groups. Define Credit Rep as an employee Associate partner role with Credit Rep Group Define default values for new customer Additional texts for the Credit Manager Tables Model Transfer Change View Specify Data Volume for A/R Info System: Overview Change View A/R Info System Select Evaluations: Overview Define Background Job T. code F.31 (T. code OB45) (T. code: OB38 (Transaction Code OBVU (T.Code OB02) (T code OB02) (T code: PA40) (T. code: OB51) T code: OB45 (T code F.30 reports) (T. Code FY01) (T. Code OBAN) T. Code OBAJ) (T. Code F.29)
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Process
Description/Task
Asset Accounting Transaction code
Effect in FICO
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset Accounting
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Copy Reference Chart of Depreciation
(T. Code EC08)
Key figures that directly affect fixed assets include the capitalization ratio and the fixed-assets-to-net-worth ratio. COD is created at client level Specification of individual depreciation area are grouped together in a Chart of depreciation Theres a special COD for each country, which takes the depreciation regulations applying to that country into account Copy from OGB-> Chart of Depreciation Your
Specify description of Chart of depreciation Copy / Delete (T. Code Depreciation Area OADB)
Each depreciation area within the Chart of depreciation makes use of different valuation types. Valuation types are used to stipulate criteria for calculating the value of an asset. Depreciation area could be either one of the following :01 Book depreciation (Local Currency) :02 Cost-Accounting Depreciation (Mgt Reporting) :30 Group Reporting GBP (Group IAS Reporting) CONFIG Go to Edit from the main menu > Selections > Select All (F7) Click on it Deselect 01 (Book Depreciation) You have actually selected only 01 (Book Depreciation)
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But the system will select 30 by itself ENTER DELETE
Assign chart of (T. code OAOB) depreciation to your company code Valuation Type
Each company code is allocated to one chart of depreciation, and several company codes can be allocated to the same chart. Valuation types are used to stipulate criteria for calculating the value of an asset. Each Depreciation area within the Chart of depreciation makes use of different valuation types. The valuation type could include the parameters which control the normal depreciation for each of the assets.
How to maintain asset class How to maintain asset class How to maintain asset class How to maintain asset class
Specify Account Determination Create Screen Layout Rules Define Number (T. Code AS08) Range Intervals Define Asset Classes (T. Code OAOA
The minimal classification of asset classes is determined by legal requirements. The same types of assets are allocated to the same asset class. Examples of asset class are Buildings, Plants and equipments, Office equipment, Trade marks, Furniture, low value asset, asset under construction.
Select the existing screen layout and Click on copy as button
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The allocated asset number is also determined by the asset class. Asset class also controls the account determination for the postings of G/L accounts. (Value of assets belonging to the same asset class is then transferred to the same main G/L accounts The function of asset class includes:
1. Account number assignment. 2. Screen Layout. 3. Number allocation 4. Definition of default values Example of the type of information assigned within ach of the asset classes are: Suggestions concerning the depreciation process 1. 2. Expected useful life Valuation basis
Config Enter new entries Specify : Acc det,scr lyt, base unit, number range, etc Inventory data (tick include asset)
Create G/L accounts in FI
(T.Code FS00)
Create G/L accounts in FI a. Acquisition/Production of Asset (Buildings) b. Sale of asset (Sales of Buildings) c. Profit on sale of asset (Profit on Sale of Buildings) d. Loss on sale of asset
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(Loss on Sale of Buildings) e. Retirement / Scrapping f. Depreciation (Expenses) g. Accumulated Depreciation Account (Accumulated Depreciation on Buildings) H. Special Depreciation Using FS00 Enter GL Account Number Company code Select account group (Assets) Select balance sheet accounts radio button Enter short text Long text and Click on control data Select only balances in local currency check box Select line item display check box Sort key (018) And click on create / bank / interest button Filed status group G007 Save Using the above method please create the following general ledger master records Sale of BuildingsOther assets (Account Group Income) Only balances in local currency Sort key 018 Field Status Group G052 (Accounts for Fixed Asset Retirement) Accumulated Depreciation on BuildingsOther assets (Account Group Assets) Reconciliation Account
(Select) Sort Key 018 Field Status Group G007
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Profit on Sale of Buildings Other assets (Account Group Income) Sort key 018 Field Status Group G001 Loss on Sale of Buildings Other assets (Account Group Income) Sort key 018 Field Status Group G001 Depreciation on Buildings Other assets (Account Group Expenses) Sort key 018 Field Status Group G001 Scrapping on Buildings Other assets (Account Group Expenses) Sort Key 018 Field Status G018
Integration with General Ledger GL Accounts
Menu Path >SPRO >Financial Accounting >Asset Accounting >Integration with the General Ledger> Assign GL Accounts > Click on the process button
Highlight and double click acquisition In the acquisition Acquis. and production costs field > Enter GL Buildings Account In the Retirement Account Assignment Clearing Account revenue from asset sale field >Enter GL Account (Sale of Buildings A/C) In the gain from asset sale field >Enter Gain on Sales of Buildings Account In the Loss from Asset Sale field >Enter Loss on sale of buildings account In the loss made on asset retirement w/o reven. Field >enter scrapping on buildings account Highlight and double click
Depreciation
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In the ordinary depreciation account assignment Enter accumulated depreciation on buildings account in the first field Enter depreciation on buildings in the second field and save
Deactivation of Tax Depreciation and Consolidated Depreciation in Asset Classes
(T. Code OAYZ)
Select your Asset Class and The calculation stipulations for each of the valuation aims are grouped into one Depreciation area. Double click on depreciation areas Activate deactivate button of 01 Book Depreciation Give layout rule is 2000 (select from the list) The Depreciation areas trade balance sheet and the balance sheet for tax purposes are responsible for valuing fixed assets within the scope of trade and tax laws. Company interests can be taken into account within the scope of the depreciation area cost accounting. For example, company specifications concerning the depreciation periods, the calculation of replacement values and the calculation from imputed interest can be carried out here. Select buildings Or other assets Double click on Logical Field Groups Select 2 (Posting Information) and Double click on Field Group Rules
Define Screen Layout Rule for Asset Master Data
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Make 10 Capitalization date as required field Select check box for Main number and sub number Save
Create Screen Layout (T. Code AO21) for Asset Depreciation Areas
Select 2000 from the list and Double click on Field Groups Rules
Specify Document Type for Posting of Depreciation
(T. Code FBN1 /OBA7)
Make Depreciation Key as required entry Select Main Number and Sub Number check boxes and save Click on Define Document Types Click on position button Select AF(Doc Type) and double click on it (Number range 04) Enter company code, highlight company code and click on posting rules. Select 01 Book Depreciation and Click on details button Select Monthly Posting Radio Button and save
Specify Intervals and Posting Rules
(T. Code OAYR)
Specify Rounding Off Net Book Value
(T. Code OAYO)
Select your company code and double click on Rounding Specifications Select 01 book depreciation Click on automatic calculated depreciation Click on rounding whole number.
Define Base Method
Base Method Type of depreciation (ordinary or special depreciation) we have to specify treatment of end of depreciation.
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Base methods are valid in all charts of depreciation. You assign base methods to depreciation keys. Normally the base methods supplied by SAP are sufficient and it not recommended for creating new methods to use. Activities Enter a technical name and a description for the base method. Maintain the base method. It is particularly important to enter a depreciation type and the depreciation calculation method. For multi level base method choose EXPLICIT [0012] method, so that the system does not calculate depreciation, and therefore no errors. After changing key, remember to activate. In AW01N to see the depreciation of second year comparisons. Click on process button Select 0014 and Click on copy as button Change the name as RB01 (Base method for RECO) and save
Click on New Entries Enter Declining Balance Method Name Description of the Method is Minimum / Maximum Percentage Method and save
Define Decline Balancing Method
(T.Code AFAMD)
E.g. 10%min 12.5% max declining method MAX %=12,5% Min%=10% Define Maximum Amount Methods
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi In this Define Multi Level (T. Code level Method AFAMS) assign
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step, you define multimethods. You then them to depreciation keys. Each level represents a validity period for a given percentage rate. Activities 1. Maintain the multi-level methods and their descriptions. 2. Enter the characteristics of the multi-level methods. Depreciation -> Depreciation Methods -> Declining MultiPhase Depreciation Depreciation -> Calculation Methods -> Multi-Level Method Enter Chart of Depreciation Press enter key Enter name to Multilevel Method Description as 10% for RECO Validity Start >from ordinary depreciation start date Save and go back Select your method (R01) and double click on levels In the Acquisition Year >Enter 9999 In the years field >Enter 999 In the periods field >Enter 000 In the base value field >01 (Acquisition Value) In the percentage field > 5% and save
Define Period Control (T. Code Methods -AFAMP)
Period control function determines the start and end of depreciation calculation at the time of acquisition and retirement, transfer and subsequent acquisition. Click on New Entries Period Control Method Period control method of the depreciation key for calculating depreciation or imputed interest
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Period control: Acquisition Period control used for acquiring transactions (in the year of capitalization). Period control: Acquisition in the following year Period control used with subsequent acquisitions. Period control: Retirement Period control used with retirements. Period control : Transfer Period control used with transfer postings. In the Period Control Method field > Enter 006 as name of the method In the description >Enter 01/06/06/06/06 In the acquisition field >01 (Prorate at period start date) In the acquisition in following year field >06 (At the start of the year) In the retirement field > 06 (At the start of the year) In the transfer field >06 (At the start of the year) Save . The depreciation key (Valuation key) controls the depreciation method used. E.g. Straight line, Reducing Balance. You can use a SAP standard depreciation Key (LINR) across all the depreciation areas. This is for straight line depreciation calculation pro-rated per period for acquisition and disposal You maintain depreciation keys by assigning calculation methods to them. You can divide the duration of depreciation into several phases. When you enter a changeover method for one of these phases, the system changes over to the next phase as soon as the event specified in the changeover method has occurred. The system then uses the depreciation calculation that is specified in the calculation method for this phase.
Maintain Depreciation (T.Code Key) -AFAMA)
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Enter Depreciation Key(Linr) and description Select Period control according to fiscal years check box Select depreciation to the day check box
Manual Depreciation Definition Depreciation area (T. Code - OAYZ) Create Asset Master (T. Code - AS01) Record
Time dependent data is all data which can be altered during the useful life of an asset. Example is the cost centre to which the asset concerned is allocated. In Asset Master You will enter fields such as :Asset Class description :Account determination(from asset class) : Serial number (The serial number enables the manufacturer to uniquely identify the asset. The manufacturers serial number maybe required when making inquiries of the manufacturer. :Capitalized on (could be first day in the month of invoice receipt or on project go live) :Cost centre :Vendor :Depreciation key :Useful life
Change Asset Master Block Asset Master Record Delete Asset Master Record
(T. Code - AS02) (T. Code - AS05) (T. Code - AS06)

Before an asset can be deleted, it must have a zero net book value (NBV). SAP also requires a one-year minimum retention for assets with transaction postings.
Display Asset Master (T. Code - AS03) Create Sub Asset (T. Code AS11) Master
An asset sub-Master is created when an item associated to the original asset is purchased that increases the value of the asset and allows the asset to do something it could not do before. Or if the additional purchase will increase the recommended useful life of the asset. A sub-number is
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset Explorer/ Sub Asset with Values Change Asset Fiscal Year Asset Balances Asset History sheet Process Asset Depreciation Asset Documents Document Reverse Display Documents Change Document Asset Postings Acquisition (T. Code AB08 ) (T. Code AB02) (T. Code AB03) (T. Code AW01N) (T. Code AJRW) (T. Code AR01)
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also created for the sales tax paid for a vehicle purchase
This is required for balance sheet, and is produced on the basis of the defined asset classes.
(T. Code AFAB)
Asset Acquisition (T. Code F-90) from external vendor
Asset must be capitalized and a start date for the depreciation must be determined. The document type is determined by the type of entry, in some case it is a creditor invoice with the abbreviation KR Pstky 31 Cr Vendor PstKy 70 Debit Asset Account
To reduce Asset cost
Asset Acquisition w/Autom. Offsetting Entry Clearing Offsetting Entry Acquisition from in house production From Affiliated Company Credit memo in Invoice Year
(T. CodeABZON) (T. Code F-91) (T. Code ABZE) (T. Code ABZP) (T. Code ABGL) A credit memo must be
applied to correct the cost of an asset that was capitalized in the system during the current year. credit memo reduces the acquisition and production costs of an
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asset and, essentially, represents the opposite of an invoice for a purchased asset. It is possible to post the credit memo when posting an external acquisition, either integrated with a vendor, or to a clearing account. This document describes the process for posting the credit memo to a clearing account. When credit memos are received for a fiscal year that is already closed, the system cannot correct the depreciation posted in the closed fiscal year. Therefore, the accumulated depreciation for the closed fiscal year must be corrected manually using a Write-Up transaction to complete this activity.
Credit memo in Next (T. Code ABGF) A credit memo reduces the acquisition and production Year
costs of an asset and, essentially, represents the Opposite of an invoice for a purchased asset.
Capitalization
Post capitalization
(T. Code ABNAN)
(This transaction is used to post values to an asset that was acquired in a prior fiscal year. Asset is capitalized by the first accrual posting, normally when an invoice is received.
AUC
Create Asset Shell Distribute AUC Settle AUC
(T. Code AS01 (T. Code AIAB) (T. Code AIBU)
DR Real Estate CR AUC
Asset Exchange 1 2
Create New asset Create Purchase Requisition
(T. Code -AS01) (T. Code- ME51)
Complete the purchase requisition, purchase order, goods receipt, invoice receipt
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and vendor payment transactions using the normal processes for all purchased assets. Book all postings to the NEW asset number; do NOT charge anything to the old asset.
Change Requisition close each line item Requisition Approval Create Purchase Order Change Purchase Order - delete (trash can) Purchase Order Approval Goods Receipt
(T. Code -ME52) (T. Code -ME54) (T. Code -ME21N) (T. Code -ME22N) (T. Code -ME28) (T. Code -MIGO) Sometimes PO is allocated to Supplier number
When goods are delivered, the Good received department enters a delivery note into the system. A posting is then entered into the good received stock. In the invoice verification module, the invoice is entered together with the delivery note. This initiates an adjustment posting from the goods received stock and at the same time sets up a record in accounts payable. After the transfer, the old asset will have a net book value of zero
Invoice Payment/Verification.
(T. Code -MIRO)
Transfer the old asset to the new asset Change status of old asset
(T.Code-ABUMN)
4 Asset Exchange (Even) 1 2
(T. Code -AS02)
Create New asset Transfer the old asset to the new asset
(T. Code -AS01) (T.Code-ABUMN) After the transfer, the old
asset will have a net book value of zero
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 3 Process Asset Transfer Transfer within Company Code Intercompany Asset Transfer Display Transfer Asset Asset Disposition (Scrapping) 1 (T.Code ABUMN) (T.Code ABT1N) (T. Code -AS03) Change status of old asset (T. Code -AS02)
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Asset retirement by scrapping
(T.Code-ABAVN)
This transaction is used to retire an asset that is no longer useable; damaged/scrapped, missing/stolen and/or sold. This transaction is also used to reduce the value of an asset. Upon completion of this transaction, the Status in the asset master record is changed to indicate the retirement, using transaction AS02. This would result in the asset being de-activated in the asset register, and the loss if any being transferred to the P&L
2 Sale to Unknown Customer 1
Change status of old asset
(T. Code -AS02)
Asset retirement (with (T.Code-ABAVN) revenue) by sale to unknown customer Change Status of old asset (T. Code -AS02)
The result of this posting would be as follows CR Asset Cost DR Accumulated depreciation CR/DR Loss/Gain in the P&L
2 Sale to Unknown
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Customer 1 2 3 4 Asset retirement (with (T.Code-ABAVN) revenue) by sale to known customer Change status of old (T. Code -AS02) asset Create AR Master Record (Customer) Enter Transaction (T. Code XD01/FD01) (T. Code F-92)
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Change the status to Sold to Customer.
This will create a receivable in the customer account together with the relevant postings in the asset register and P&L.
(Sale to Employee) 1 2 3 4
Asset retirement Change status of old asset Create AR Master Record (Employee) Enter Customer Invoice(Employee)
(T.Code-ABAVN) (T. Code -AS02) (T. Code XD01/FD01) (T. Code FB70)
Change the status to Sold to Employee.
debit the customer (employee) and credit account xxxxx Revenue from Asset Sale. This transaction will credit the G/L asset reconciliation account, to debit accumulated depreciation and to debit/credit a gain/loss account for the difference. The gain or loss is the difference between asset cost and accumulated depreciation
Gift to Employee
1 2 Lost, Stolen, Damaged 1 2
Asset retirement Change status of old asset
(T.Code-ABAVN) (T. Code -AS02)
Change the status to Gift to Employee.
Change the status to Lost, Stolen or Destroyed.
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi 3 Asset being purchased As a result of Insurance Settlement 1 2 3 Enter Invoice (T. Code FB70)
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debit the insurance company and credit account xxxxxx Insurance Settlement
Create New asset Post Value to Asset Enter Invoice
(T. Code -AS01) (T. Code FB70)

credit the customer (insurance co.) and debit the appropriate cash account where check is deposited.
Manual Adjustment. (The asset was booked some time ago, and you unbook the asset and expense in the current period 1
General G/L Posting
(T. Code F-02)
credit the asset and debit the proper expense account depending on the nature of the expense. Change the status to Reversed Asset in Error.
2 3
A charitably loaned (Asset is returned to the owner) 1 General G/L Posting (T. Code F-02)
Credit the account (investment) and debit the original liability account (F02). Neither side of the transaction is budget-relevant
2 3 Asset sale to a (Non Customer) 1 Asset Trade-In Procedures
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset retirement (T.Code-ABAVN) Change status of old (T. Code -AS02) Change the status to Returned to owner. asset
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Asset sale without customer
(T.Code-ABAON)
This process will take place when a current asset is being traded-in to purchase a new asset.
1 2 3
Asset retirement Create New asset Purchase New Asset Via Purchase Order/ Direct Invoice
(T.Code-ABAVN) (T. Code -AS01) (T. Code -ME51, ME52,ME54, ME21N,ME22N, ME28,MIGO, MIRO. F-43 (T. Code F-02)
Pstky 31 Cr Vendor Pstky 70 Dr Asset

If the old asset had a net book value a journal entry must be completed to adjust the value of the new asset.
Journal Entry
Retirement of Asset (To be used as a Trade-in on A New Asset) 1
Asset retirement
(T.Code-ABAVN)
Retire the current asset without revenue. The asset is retired without revenue because we never receive actual money for the asset Dr Accumulated Depreciation
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Cr Asset Acquisition Acquisition of New Asset from Trade-in 1 2
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Create New asset G/L entry
(T. Code -AS01) (T. Code F-02)
Once the new asset master record has been created and the purchasing process completed, the monetary value of the new asset will be the purchase price of the new asset plus the amount received for the old asset. A manual journal entry will need to be made to adjust the value of the new asset. If the net value of the old asset is zero, no adjustment is necessary. This is the general Journal voucher entry for manual adjustment. Dr Asset(New) Cr (Loss Account)
Asset Explorer Display Asset Values Asset Balances
(T. CodeAW01N ) (T. Code-AW01 ) (T. Code-AR01 )

This transaction allows you to pull up a list of assets to view acquisition value, book value and accumulated depreciation value. It also allows you several different viewing options, individual asset or groups of assets, e.g. asset history, asset acquisition, asset retirement, etc.
Asset Report Asset Retirements Asset Transactions S_ALR_87012052 S_ALR_8701204 8
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Asset Acquisitions S_ALR_87012050 directory of un posted S_ALR_87012056 assets Recreation of the Log for a Depreciation Posting Run Asset Accounting Log for Depreciation Run (T. Code-AFBP)
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account group and per depreciation area) o The planned annual depreciation The depreciation posted up to this period The depreciation to be posted in this period this list also identifies Assets with errors and the reason for the error Accounts that are not defined Procedure
Posting Depreciation Run Depreciation Run (T. Code-AFAB)

This is normally carried out as part of month end processing. You enter the company code, fiscal year, type of depreciation run.
Asset Clearing Asset Clearing Year End Closing Year End Closing (T. Code-AJAB)
Year-end closing program, you use the year-end closing program to close the fiscal year for one or more company codes from an accounting perspective. Once the fiscal year is closed, you can no
(T. Code-F-03)
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longer post or change values within Asset Accounting (for example, by recalculating depreciation). The fiscal year that is closed is always the year following the last closed fiscal year. You cannot close the current. PERFORM THE FOLLOWING BEFORE RUNNING ASSET ACCOUNTING YEAR-END CLOSING PROCEDURE: Determine the company codes that are to be closed. In Asset Customizing, check what the last closed fiscal year was (Accounting _ Financial Accounting _ Fixed Assets _ Periodic Processing _ YearEnd Closing _ Undo _ Entire Company Code). If you want to make corrections in a fiscal year that is already closed, you can reset to the last closed fiscal year here. Check hether all low value assets have been capitalized. If LVAs(Low Value Assets) were collected in a profit and loss account,the balance from this account must be capitalized to an asset. Settle all assets under construction that were completed in the fiscal year you want to close. Start the program for recalculating depreciation, in order to include any possible changes in the depreciation terms for assets in the fiscal year to be closed Run the last regular depreciation posting run. If the depreciation amounts changed since the last regular posting run, you can start additional posting run. You can start additional Posting
Runs for Special Periods.
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Run reports on the current asset values. Analyze, whether these values meet the requirements
Open New Depriciation Area 1 Assign Financial Statement Version to company code and deprecation area Make Depreciation Key default available for change by Screen Layout Assign Tax book to Asset Classes Change name of tax book (optional) Specify rules for value takeover T-code OAYN
T-code AO21
Drill into screen layout rule, then check Asset class to maintain at the asset class level
3 4 5
T-code OAYZ T-code OADB T-code OABC

(Deselecting Ident (for identical) here allows adjustment postings to book 10 only)
Specify depreciation area applicability for transactions
menu path: Asset Accounting (Lean Implementation) Depreciation Areas Specify Allowed Depreciation Types for Depreciation Areas Make tax book applicable for all activities used by book 01
Set Transfer of Depreciation Terms
T-code OABD
(Deselecting Ident (for identical) here allows different depreciation schedules to book 10 vs.
book 01)
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Create Tax Adjustment Transaction Types for book 10 Copy 100 to Z transaction type Restrict to Book 10 T-code AO73 T-code OAYA T-code AFBN
9 To Post Asset that has not been posted in a closed Fiscal Year 1
Post-Production: Activate on existing asset base
2 3 4
Reverse fiscal year closed by following the 'Reverse Year-end Closing' procedure. Open the accounting fiscal year Post the fixed asset acquisitions in the reopen fiscal year. Repeat depreciation run for the last period of that closed fiscal year. Repeat depreciation run for the last period depreciation run of the current fiscal year. Closed fiscal year by following the 'Yearend closing' procedure.
T-code OB52
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Closed the accounting T-code OB52 fiscal year
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FI-MM/SD Integration FI-MM Material Master

Material master has various views right from Basic views to Purchasing views, production, sales and distribution and accounting and controlling views. In the accounting view of Material master amongst other values we have a Valuation Class field. This Valuation class is the vital link which ensures that Accounting documents are posted automatically. Examples of Valuation Class could be Finished Goods,Semi Finished goods, Raw Material The combination of this Valuation Class+ the Movement Type(which I have defined below) helps in determining the Gl accounts. Read this statement twice to understand how gl accounts are automatically updated . All Material movements in MM happen with respect to a Movement Type. For eg Goods receipt is defined with movement type 101 Goods issue to production order is defined with movement type 261 Scrapping of goods is defined with movement type 551 Goods delivered to the customer with movement type 601 Initial upload of stock is defined
To view valuation class (accounting 1 view )
(T. Code MM03)
Movement type
with movement type 561
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MM Transaction
Good Receipt of Raw Material against a purchase order
(T.Code OBYC)
SAP helps us to have different gl accounts for the various movements for the same material by linking this movement type to a transaction key. Goods Receipt of Raw Material against a purchase order:Movement type for goods receipt against purchase order is 101. The accounting entry posted is as follows:Debit Inventory of Raw Material. You need to update the BSX transaction key with the GL code Inventory of Raw material account. Double click BSX and select Valuation modif. and valuation class. Credit GR/IR (Goods Receipt/Invoice Receipt) For the GR/IR account you need to update the WRX transaction key with the GL code GR/IR Movement type used for posting 101(GR agst prod order) Debit Finished goods In transaction key BSX for the valuation class finished goods we attach the Finished goods GL code. Credit Change in Finished goods For change in Finished goods we update transaction key GBB and general modification key AUF. Raw material is issued to the production order. Movement type used for posting
Goods receipt ( made for finished goods against a production order)
Good issue
(T.Code OBYC)
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the above transaction is 261 Goods issue to order Debit Raw material consumption Credit Inventory of Raw Material The transaction Key GBB needs to be updated. GBB key is used for various offsetting posting entries. Within GBB transaction there are various account grouping (general modification). In this case you need to update general modification VBR with the Raw Material consumption account. Movement type used for posting 601 Debit Cost of goods sold transaction key GBB is updated with general modification key VAX Credit Inventory of Finished goods Movement type use for posting 551. Debit Raw material scrapped The Raw Material scrapped account is attached to transaction key GBB and general modification key. Credit Inventory Material Movement type 331 Debit Raw consumption. of Raw
Goods Issue (Posted for sales)
(T.Code OBYC)
Goods scrapped (T.Code OBYC)
Goods issue (sampling for quality)
(T.Code OBYC)
Material
Raw Material consumption account is attached to GBB and general modification key VQP is Credit Inventory raw material
117 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Movement type used for posting Initial stock (T.Code OBYC) 561 upload
Debit Inventory of Raw Material The transaction key GBB Credit Stock data takeover account The transaction Key BSA
To help identify the identifier in GBB Transaction Key
(T.Code OMWB)
STEP 1 Go to options>simulation>application area Select: simulation for Inventory management movements. STEP 2 Go to options>simulation>input mode Select :the input of material number or input of valuation STEP 3 Go to options>simulation>account check Select :No check of referenced G/L accounts STEP 4 Click on simulate STEP 5 Select :Valuation class(e.g.3000), Movement type(e.g. 261). STEP 6 Double click on GL ORDER for example, so that it becomes blue. STEP 7 Click on Account Assignments. Now here it shows the offsetting entry posting and the required account modifier. In this case the general modification required is VBR. Thus simulation helps us in finding the general modification required for transaction key GBB
FI-SD
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi All Billing (T.Code-VKOA)
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transactions happening in the Sales and distribution module will result in FI postings. All accounting entries with respect to the billing will have one side of the account as a Customer or receivable and the other side to be a revenue account Eg Debit Customer Credit Revenue Account You have to bear in mind that the customer account gets picked up from the customer master data. All we need to do is to configure the revenue account or the discounts and Sub charges. You make the allocation for each of these through access sequences. SAP provides the following six ways of determining the Gl accounts in SD.
1) Application (key for

the Sales and Distribution application) 2) Account determination type 3) Chart of accounts (from the FI System 4) Customer account assignment group 5) Materials account assignment group 6) Account key The account keys are attached to the condition type in the sales pricing procedure.
Pricing Procedures
IMG >Sales and Distribution>Basic Functions>Pricin g >Pricing Control Step 1 Define And Click on Maintain pricing Assign Pricing procedure
Step2
119 Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Highlight what ever procedure, Procedures
and double click on control
Controlling General Controlling

Maintain Controlling (T. Code OX06) Area (Enterprise) Maintain Controlling (T. Code OKKP)
Enter Company Code Enter Name
Area (Controlling)
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In the Assignment Field > Select Controlling area same as company code In the currency setting Select 10 (company code currency) Enter fiscal year variant Give a name to cost center standard hierarchy and then System will give a message Click on Yes button and save Enter fiscal year In Activate Components Cost centers >Component Active Select AA Activity Type Check box Order Management >Component Active Commitment Management >Component Active Profit Analysis >Component Active The Reconciliation ledger is used to reconcile the change in values that affect the balance sheet with data in the Financial Accounting module. When a controlling area is created, it is immediately active.
Select Check Box Profit Center Projects Sales Orders Cost Objects Real Estate Management and save
Maintain
Number (T. Code KANK)
Every transaction initiated
Ranges for Controlling Documents
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in the CO module generates a document. Examples of transactions in CO are planning primary costs, or making an assessment of actual costs Each document created in the system has a number. These numbers can be assigned manually (i.e. externally by the user) or internally by the R/3 system. Transactions, and therefore document numbers, are organized in the R/3 system in Number range groups. A range of document numbers is assigned to each group, so that documents relating to a particular type of transaction are easily recognized by their numbers.
Enter Company Code and Click on Groups Select COIN and From the Main menu >Go To >Insert enter the name of txt as well as number range e,g 1-49999 press enter, then it shows you your number range, however , sometimes coin does not get assigned, there fore, you would have to assign it by checking the box which is assigned to your number range and the double click on COIN, which then turns blue, and then you right click then select maintain
button . you then get a msg COIN CO through to FI.
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Postings
Maintain Operating (T. Code KEP8) Concern Maintain CO Versions (T. Code OKEQ)
Select 0 Version and double click on Controlling area settings Enter controlling area Click on Settings for fiscal years Please make sure that all check boxes of all the years have to be selected and do not select any check box for version locked. Save
Create GL Account for (T. Code FS00) Raw Material Controlling Account
Cost Element Accounting Cost Element Accounting Activate Reconciliation Ledger (T. Code KALA)
The reconciliation ledger is a tool used to portray transaction figures in
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controlling in summarized from. In the reconciliation ledger, controlling data is totaled and valuated. It shows you the data in all controlling applications for a cost element as well as totals for company codes, business areas, object type, and object classes and so on. The reconciliation ledger has the following task It reconciles controlling with financial accounting It provides an overview of all cost incurred The reconciliation ledger contains information about data flows : Which business transaction causes the data flow Between which object type, object classes Between which company codes, business areas and functional areas The SAP R/3 system summarizes information about which costs were incurred on which object (cost center, orders and so on). It also summarizes data for object of the same object type, company code, business area, object class and functional area. Postings in the reconciliation ledger are differentiated according to the following criteria and creating a total. Account (cost element) Company code Business area Functional area Origin (subdivision of the cost element) Object type (cost center, internal order, project and
so on) Object class
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Activate the reconciliation Ledger in your controlling area at the start of a new posting period. If necessary, repost for previous periods in your controlling area to do so choose reconciliation ledger > Repost
Assign reconciliation document type to CO Maintain the CO FI automatic account assignment configuration Reconciliation Posting Assign Reconciliation Ledger Number range Create (Primary Cost Element)
(T. Code OKKP) (T. Code OBYB)
(T. Code OK13) (T. Code KA01)

Before creating Primary cost make sure that they are created in the GL accounts Sort code: Posting date Field status: G004 cost They are those which are created from FI general Ledger Accounts and impact the financial accounts eg. Traveling expenses, consumption account in fact any Profit and Loss GL account The integrated nature of the R/3 System means that you need to create expense accounts in Financial Accounting with corresponding primary costs elements in Controlling.
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This ensures that you can reconcile expenses in FI with primary costs in CO.
Before you can create primary cost elements in CO, you first need to create them as G/L accounts in FI. All primary elements can directly. cost post
To be able to post to a primary cost element, you require a costcarrying object (such as a cost center) to identify the origin of the costs. Examples of primary cost elements are material costs and salary costs Primary cost elements are for actual costs You only create primary cost elements if the chart of accounts contains the corresponding G/L account. The R/3 system uses the name from the master data for G/L accounts in FI for the cost element. However, you can change this name in CO. Configuration In the cost element field press F4 and
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select the account you want to make as cost element Enter valid from/ to and Press enter key The period of validity should begin on the first day of the current fiscal year. Only then are backdated postings possible.
Create (Secondary Cost Element)
(T. Code KA06)
They are those which are created only in controlling and do not affect the financials of the company. It is used for internal reporting only. The postings to these accounts do not affect the Profit or Loss of the company. These are used to record internal value flows like activity allocations, assessments and settlements. Secondary Cost elements are created in and for CO for the purpose of Allocation of Costs within CO. for example IF you want to debit one cost object and Credit another cost object. The Carrier of such transaction would be the Secondary cost element Secondary cost elements are posted indirectly. Secondary cost elements are created for all specified cost
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elements, and the name is taken from the cost element category. The following categories exist for secondary cost elements: 21 Internal Settlement: Cost elements of this category is used to settle order costs to objects in controlling such as cost centers, pa segments etc. 31 Order/Results Analysis: When you create a cost element, you must assign a cost element category. This assignment determines the transactions for which you can use the cost element. For example, category 01 (general primary cost elements) is used for the standard primary postings from Financial Accounting or Materials Management. it is always helpful to segregate the secondary cost elements from primary by using distinct account number ranges for each Cost Elements Default Settings Create a Batch Input Session (T. Code OKB2) (T. Code OKB3) Enter controlling area Valid from Valid to Session name Batch input user Click on execute button.
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Then you can see the list of the GL Accounts will become cost elements but make sure that you have to each and every account and change the field status group from G001 to G004 then only you will be able to use them as cost elements Note! Check for cost elements that have been accidentally included. Once master dater has been created in the system, it will exist until validity period expires. Execute Session Batch Input (T. Code SM35) Whatever the name you have given in the create batch input session will appear in this process. Select the process and Click on process executable button. Once you click process button on
A small window appears then Select display errors only and click on process button.
You can run the batch job online or in the background , but for performance reasons, it is recommended that the program be run in either background or display error only mode.
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Create Groups
Cost
Element
(T. Code KAH1)
Correct any fallout or errors after processing. When running a batch online, you can correct any errors as they appear. A cost element group is always created with reference to a chart of accounts. The one that is used is determined by the controlling area in which you are working. The group can be used in all controlling areas that work with the same chart of accounts.
Displaying the cost elements in cost center groups
(T.Code KAH3 )
Cost Centre Accounting

Cost Centre Accounting
Maintain cost centre categories
(T. Code OKA2)
Cost centers can be organized around many different criteria. They can be based around areas of responsibility,
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or according to physical or accountingcharacteristics. Something to remember is that, a new cost centre would absorb the settings that are configured here; any future changes to a category will not have a retroactive impact on previously created cost centres. To affect, an existing cost centre, you must make desired changes manually
Define time- based field for cost centre Create Cost Centers
(T. Code OKEG) (T. Code KS01)

Cost center is an organizational unit & area of responsibility. It is a cost object where cost is collected. There is only one standard hierarchy for each controlling area. Each new cost center must be assigned to an end node of the standard hierarchy. Enter Cost Center Name,Validity date Press enter key Please make sure that you select from the list AND do not select Numeric values only Characteristics values can be selected. Enter cost center name and description Person responsible (optional) Department Cost center category (SELECT FROM THE
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LIST) Hierarchy area (will be displayed automatically) Business area Currency and . Remember, cost centre should be assigned to the lowest node on the standard hierarchy, if you attempt to enter master at summary level, SAP will stop the assignment with an error.
Create Cost Center Groups Field Status Variant Run Cost Center Reports
(T. Code KSH1) (T. Code OBC4) (T. Code S_ALR_87013611)
Enter name to Cost Center Group and Press enter key Enter Controlling Area Fiscal year From period to period Plan Version (automatically appears) but make sure that it will be 0 version Enter cost center group or value (any cost center you want to take the report for) Cost element group or Value Enter cost center or cost center group Enter cost element or cost element group Posting date from /to Display variant >1SAP (select from the list) Enter Cost element name Cost Center > 555 or any Valid from /to Click on Master Data on the tool bar Enter for example, Name > Cafeteria Description >Canteen Expenses Element Category >43 (select from the list) and save Similarly you can create Telephone Expenses / Bank Charges / Medical expenses The performance of a cost
How to see cost center wise data
(T. Code KSB1)
Create Secondary Cost Element
(T. Code KA06)
Create Activity Types
(T. Code KL01)
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center must be measured in order to make an internal performance allocation. Measurement units, such as direct labor hours, quantities or number of units, are used. Activity Type is nothing but an activity, which involves in operations expenditure for example telephone expenses, machinery repairs, procurement expenses etc. Typical examples of activity types for cost centers are machine hours, administrator hours, CPU minutes or units produced. Working with the complete costs of a cost center from an actual or planned activity, a price can be calculated for each activity type. You can assign one activity type, multiple activity types, or no activity types to a cost center. Enter Activity type name and description Valid from/to and click on Master data Enter Name and description > Labor charges Enter Cost center category Choose Activity types. For an activity type, you must first specify whether or not an allocation is possible. Choose allocation cost field(secondary cost)
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The entry made in the Activity type category field will also indicate the allocation status of the activity type. The activity category that is given here must correspond to the specification made above regarding allocation. The value 1 stands for normal activities, which can be cleared between cost centers. That means that a credit will be posted for the submitting cost center, and a debit will be posted for the receiving cost center. Non-clearable activities are required if a cost center does not submit any service or activity to another center, but would like to determine its labor utilization rate internally. Direct labor minutes, however, are clearable activities. Finally, the secondary cost element is entered in the Cost element field. It will be used to develop the internal cost allocation for the activity. The Activity price indicator determines which procedure Will be used to determine the price scale with which this activity type will be cleared. Statistical key figures are used in the R/3 system for analyses and evaluations. They can also serve as base values for assessment or cost distributions. For example, it is possible that the costs for a
Create Statistical Key Figures
(T. Code KK01)
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telephone system, or basic telephone charges, might be divided up between individual cost centers. Examples of statistical key figures are surface area, space, number of employees, work centers or telephone units. The standard for the distribution would be a statistical key figure - in this case the number of phones in a particular cost center. Key figures defined as fixed values are valid as of the posting period, and in all subsequent posting periods of the fiscal year. E.g. number of telephone calls Examples of fixed values include surface area (in square meters) and space (in cubic meters). Fixed values remain constant over a long period of time They can, of course, also be changed. The new value is then used from the point in time when it was changed, and onwards for all following periods. Key figures defined as Totals values are valid only in the posting period in which they are entered. Examples of summarized values include number of employees, number of work centers or number of telephone units These Total values are not carried over to the
following periods.
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Summarized values can vary from period to period. Enter Name. In the Stat. Key. Fig. UN field >Select % or any other measurement unit. Select total or fixed values radio button and Save Note: The statistical key figures are not automatically updated from Controlling to Profit Center Accounting. You have to carry this out manually in Profit Center Accounting by calling up the appropriate report.
Assign Transactions to Statistical Key Figures General Postings
(T. Code KANK) (T.Code F-02)

For example Debit (40) > Canteen Expenses (select from the list) Amount > 5000 Text > payment of canteen expenses Credit (50) > Bank or Cash Amount > 5000
Create General Ledger (T. Code FS00) Accounts Distribute expenses to (T. Code KB31N) other Cost Centers
Enter Document Date and posting date Document text Screen variant (01SAP Cost center) will be appeared automatically In the receiving cost center field (enter the cost center to which the expenses have to allocated using the percentage rates). In the statistical Key figure field >enter the SKF through which we can
allocate the expenses.
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In the total quantity field > Enter the percentage rate In the text field > Enter the text and save Please make sure that you will be assigned the number range to Process RKS before you come to enter statistical key figures
To see the balance in service cost center Display the cost center hierarchy Display the cost center hierarchy along with the master data Displaying the cost elements in cost center groups) Maintain Automatic Assignment
(T. Code OKB9)
Automatic account assignment is used only for actual postings if, for example, cost element 459000 is to be posted in company code US01, an order from the controlling area will be proposed for the account assignment (e.g., order number 10000082) You can now find out about the BArin column by clicking on it, otherwise click on "Continue". The cost accounting object can be entered in the columns for a cost center, an internal order or a profit centre. Actual postings include, amongst other things, repostings of costs and revenues, internal activity allocations, and statistical key figures.
Setting Up screen Variant
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Unlike with periodic allocations, each transaction in this process is entered manually. A large amount of information must be entered. For activity allocation, for example, you must enter the sending cost center, the activity type, the amount and unit of activity, the receiving cost center, a receiver order or other cost accounting object. To facilitate this, the R/3 System provides screen templates which only contain those fields that are needed to enter your current transaction. If these screens do not meet your needs, you can design others in Customizing. Procedures like these, which are repeated, can be automated. Some preparations are required to make this possible. The following questions must be answered: Which cost managing objects allocate your costs and Which cost accounting objects are the receivers? Which expenses or activities are to be allocated? Which criteria or keys/codes should be used for the allocation? You must also indicate if
Period Allocations
138
the sending and the receiving cost center must be iteratively processed.
1)Periodic Reposting
(T. Code KSW5)
In Cost Accounting, at the end of an accounting period There are periodic allocations which must be carried out. These are: Reposting which are credited to clearing cost centers. But the reference to the original document remains intact. Periodic Reposting allows for any CO object to be sender or receiver. Due to the method in which they post, both periodic reposting and distributions will allocate primary cost only
Config In the screen for creating header data for periodic reposting there is an additional option: as well as the object currency and the transaction currency, you can also include the consumption data. The assessment cost element is not included in the segment data because the cost element remains intact during a primary cost reposting. To make this work, the cost element that is to be posted must be entered without fail.
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For reposting, orders can still be used as senders.
Repost Line Using FI (T. Code KB61) Document Assign Process RKU1 (T. Code KANK) to Controlling Area Manual Re postings of (T. Code KB11N) Costs
Reposting are only performed in Controlling and have no effect on Financial Accounting. However, if an incorrect cost element was posted, the reposting must be done in Financial Accounting.
Manual Re postings of Costs :Display (T. Code KB13N) Manual Re postings of (T. Code KB14N) Costs: Reverse Planning Department (T. Code KP06) Wise Periodic Allocation 2 (T. Code KA06) Create Assessment Cost Element Similar to Create Secondary Cost Element
Because assessment allows you to settle both primary and secondary cost, a new type of cost element called an assessment element must be created. The assessment element is a secondary cost element used to post both the sender and receiver during processing. The cost element category should be 42.
Determine Assessment Receiver types Define Assessment
(T. Code KCAU) (T. Code KSU1)

In the Cycle field, you must give the new cycle an identification code. It can be up to six characters in length. Press Enter. If this were a new cycle, you would need to indicate when the period of validity ends and provide descriptive text about the cycle. The object- and the transaction currency could
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be included in the procedure and also if a separate document should be created for each of them. Be aware that this would greatly increase the volume of data. A segment can be attached to a cycle, hence you click on the ATTACH SEGMENT Every segment in a cycle should be given a meaningful name and some descriptive text. You must specify a assessment cost element Sender and Recvr The sender and the receiver of the assessment can be more closely defined in the Allocation characteristics field group. Receiver Factors Tracing
For the tracing factor in this case, you may consider actual or planned costs and consumption, statistical key figures and activities. The tracing factor can be restricted to individual cost elements, statistical key figures or activity types. The sender and receiver relationships and the corresponding distribution rules are stored in R/3 as Cycles. It is generally sufficient to define one cycle for reposting, distribution, assessment, and indirect activity allocation for the entire controlling area.
Create Cycle
Assessment (T. Code S_ALR_87005742)
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Breaking down into several cycles that are processed in sequence can be very practical, if, for example, you would like to clear departments within the company independently. A cycle is divided into segments. A segment contains the senders and receivers who are subject to the same allocation rules. Cycles are generally created and maintained in Customizing. However, this can also be done in the application. Using an assessment cycle, we will learn how to create and maintain cycles.
Procedure of creating Assessment Cycle. In the Cycle field, you must give the new cycle an identification code. It can be up to six characters in length.
Assessment Cycle Run Assign Process Called RK1U (Actual Overhead Assessment) Periodic Allocation 3 Distribution Specify receiver type for distribution Define Distribution
(T. Code KSU5)
Distributing primary costs. When this is done, the reference to the original document is removed.
(T. Code KSV1)
Enter Distribution ID as well as starting Date
Press Enter
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Enter Text Description of Distribution. In the header data there is the consumption data as well as the object currency and the transaction currency. As with reposting, but unlike with assessments, Segment data does not include an assessment cost element because the cost element remains intact through the distribution. As with assessment, only cost centers may be used as senders.
Periodic Allocation 4
Indirect Activity Allocation
Indirect activity allocation, i.e., the allocation of quantities and the retroactive identification of an activity quantity. With the indirect activity allocation, be aware of the following distinctive features.
Define sender and receiver categories for Indirect activities Define activity types for indirect activity allocation Create actual Indirect Activity Allocation
(T.Code KCAL) (T.Code KL01) (T.Code KSC1)

In the screen for creating header data for indirect activity allocation, there is no option for iterative processing. Only the output quantity from a single activity type can be included in the activity allocation. With regards to the segment, you can see that only sender rules on
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quantity are available for indirect activity allocation. The sender is always a cost center in connection with an activity type. Therefore, you must always enter at least one cost center and at least one activity type. Furthermore, one cost center can clear several activity types, and several cost centers can clear one activity type - or a combination of the two is also possible. In SAPs Controlling, imputed costs are irregular costs (e.g., vacation bonuses) which are spread out over all posting periods throughout the fiscal year. The complete expense is posted in Financial accounting. In cost accounting, the expense is spread out over the periods that it affects, e.g., over all 12 periods in the year. The affected cost centers are debited in cost accounting. At the same time an imputed cost object is credited. The imputed cost object can be a cost center or an internal work order. A costing sheet must be setup to carry out the imputed cost calculation automatically. It contains the rules for the calculation. All imputed costs for a controlling area are
Period allocation costing Percentage method
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grouped into a costing sheet. There is only one valid sheet for each controlling area at any given time. The cost elements whose posted values form the basis for the imputed cost calculation are stored in the so-called base conditions. In the additional conditions, you should define the percentage that should be added to the base condition values. In the actual cost system, the imputed costs are determined on the basis of amounts that have actually been posted.
Periodic Report
Cost centre>info sys> standard report.
There are a number of standard reports for Cost Center Accounting that comes with the system. For example, cost center reports or cost element reports are often used to compare actual values with planned or target value The reports are always assigned to a client. If the original delivery client was customized to meet company-specific needs, the standard reports are already available but not activated But if a new client is set up, the standard reports must be imported. This can be done when the client is created, or later using an import feature. Click on the Standard reports node to open the next hierarchical level. You can use the Import standard reports feature to import selected standard
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Specify report language (T.Code GCRS)
145
reports from client 000 The Report language feature can be used to specify the language in which the Report Writer should generate the report. The report will always be displayed in this language. When generating reports, the data from the SAP database is prepared for analysis through the report. First you come to a dialog box that offers both Processing modes. When it is going to take some time to generate, it is a good idea to select background processing. If you are only generating one report, you can select online processing. If you select online processing, this gives a list of all reports/report groups in the client, all the report groups are selected again. Assuming you want to generate report group Area: Cost Centers, you deselect everything. then you select the required report group Then you click on generate button. In the status bar you see a message that the report group is being generated. It also shows the progress of the generating process
General report
(T.Code OKB6)
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Profitability Analysis Profitability Analysis

Profitability Analysis is used to present a company's operating profit and show the sources of this profit. A company might want to compare the operating profits from products that were procured against the operating profits from products that are manufactured in-house. Often, analyses of sales statistics on products, customers, and target revenues are not enough to evaluate a company's success adequately. There are two types of PA
Cost based
147
Costing-based profitability analysis is used as a fast evaluation tool for Sales Controlling. In costing-based profitability analyses, data can be transferred at two different points: when the order is received, or when the invoice is posted. Valuation is performed using costing-based estimated values. Account based Account-based profitability analyses, on the other hand, are always reconciled with Financial Accounting, but are available at a much later stage than costing-based profitability analyses In account-based Profitability Analysis, different valuation bases can be used The costs of the sales volume and revenue deductions are transferred using the account-based estimated value. The product costs are transferred when the goods issue is posted. The revenue and revenue deductions are transferred to Profitability Analysis when the revenue is posted. This means that it is not possible to transfer data when the order is received.
Data Flow in PA
When data is transferred from the Sales and Distribution system, the
148
appropriate operating concern is identified from the company code and the controlling area. A line item is generated in Profitability Analysis for each item in the order or billing document. This line item is passed on to Profitability Analysis along with all the characteristics that have been defined in Profitability Analysis, and those contained in the order In account-based Profitability Analysis, a line item is passed on in the same way for each item, and cost or revenue element
Maintain Characteristic
(T. Code KEA5)
If you want to look at the characteristics for a specific operating concern, you choose the option. Chars from Operating Concern. Or Select All Characteristics If otherwise. You can define your characteristics If the characteristic's ID begins with the letters WW, (Max of four to five digits) it means that it was defined by the user (in other words, it was not predefined in the system) Sometimes, Characteristics such as sales order and company code, which the system always takes into account, do not appear in the list So you would have to create
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi (T. Code KEA0) Maintain value fields
149
If you want to look at the Fields for a specific operating concern, you choose the option. Fields from Operating Concern. Or Select All Characteristics If otherwise. You can define your Fields If the Fields ID begins with the letters VV(Max of four to five digits) it means that it was defined by the user (in other words, it was not predefined in the system) Sometimes, Characteristics such as sales order and company code, which the system always takes into account, do not appear in the list So you would have to create In order to use Profitability Analysis (CO-PA), you have to define operating concerns. An operating concern is an organizational unit in Financials. The structure of an operating concern is determined by analysis criteria (characteristics) and the values to be evaluated (value fields).
Maintain Operating Concern
(T. Code KEA0)
1.) Define attributes (Attributes, controls the time frame buckets in which CO-PA is updated). Attributes are Fiscal year variant: this should match that of the controlling area, once set, it cannot be changed unless it is change to a FYV that has more posting
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period than the original Fiscal Year Variant assigned. Currencies: COPA stores values in only one currency By maintaining the attributes, you make an operating concern "known. 2). Create Data Structure STEPS 1. Click on process button and press enter key Then the following message will appears click YES button 2. Then enter the name for operating concern and description Select costing based check box And click on create button (data structures) Save. When you click the save button again you click on create data structures button (left side bottom ) You can select When the below screen appears, Click on Activate Icon (left side top)
Data structure controls which characteristics or value fields will be used in the operating concern Note! Once a characteristic is included in Operating Concern, and is posted to, it is next to impossible to delete the characteristics. Value fields are what exactly stores the values (relating to both currency
151
and quantity. A value field should group similar types of currency transactions (eg. Revenue , Sales discount, COGS) into one bucket, unlike characteristics , there are no fixed value fields , you must choose each value field you would like to use
Set Operating Concern Assign Controlling Area to Operating Concern
(T. Code KEBD)
>Enterprise Structure >Assignment >Controlling >Assign controlling area to Operating Concern >
(T. Code KE4I)
SD uses condition to represent different activities when creating a billing document. The conditions are given values based upon the configuration of each condition type. You would need to work closely with the SD team to determine what condition types they are using. e.g. KF00 -Outgoing Price,RB00- Sales Discount or PTBLInvoice Amount. The +/- field allows you to change the natural sign of the incoming value into COPA. Example of Quantity Value fields are BRGEW- Gross Weight FKLMGBilling Quantity in SKU(Stock keeping unit FKIMG-Invoiced Quantity. The quantity field you use depends on your business
Mapping of SD Condition Types to Value Fields
Mapping of SD (T. Code KEN1) Condition Types to Quantity Fields
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Activate Analysis
Profitability (T. Code KEKE)
requirements. The quantity fields are also used in calculation to determine profitability by sales quantity. Enter controlling area and fiscal year Press enter key In the active status field press F4 Select status 2 (component status active for costing based analysis) and save Select FI and double click on Assignment Lines Select 10 >Direct Costs from FI and Select 60 >PRD Material Ledger Single Level And double click on SOURCE button Assign cost elements by using Cost Accounts or Cost Element Groups and in the source area select the check box Costs / Revenues Save And double click on Value Fields Click on new entries In the quantity / value field (select quantity field from the list) and in the value field field (select ABSMG (for sales quantity) and save.
Direct Postings from FI / (T. Code KE12) MM
Define Number Ranges (T. Code KEN1) for Actual Postings
Enter Operating concern Click on change intervals button Go back Click on Maintain Groups Then the following screen appears Select Order Re Projects and Change interval Insert interval Save
Execute a Report on
Profitability Analysis Report Overview Define Number Ranges for planning Data (T. Code KE3M) (T-.Code - KEN2)
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In this step, you define a number range for updating plan line items in each of your operating concerns. In profit planning, the system automatically assigns a number, which lies within your selected interval. Since the system does this automatically, the indicator "Ext" is not checked off. Prerequisites You must have system authorization for maintaining number ranges. You need to have defined the operating concern completely. Actions Define a number range. Notes on transporting You transport number range objects as follows In the initial screen, choose Interval -> Transport. Note that all intervals for the selected number range object are deleted in the target system first. After the import, only the intervals you export are present. The number statuses are imported with their values at the time of export. Dependent tables are not transported or converted In the first step, you specify an ID and a description for the planning layout. Click on create button.
Define Planning Layout
154
It Takes you to a new Planning Layout, Here, you specify the first characteristic that is to be included in the planning layout. You specify the product characteristics.
Maintain Versions (0) Assign Quantity Fields
(T. Code KES1) (T.Code KE4M)
Profit Centre Accounting
155
Profit Centre Accounting
The Profitability Analysis is used in the SAP R/3 system for the internal analysis of units which, for the most part, can be defined by the user. This analysis is geared towards the market, or in other words, products, product groups, customers, customer groups and markets.
Maintaining Standard Hierarchy
T.Code KCH2
A so-called standard hierarchy is defined in the SAP R/3 system to which all profit centers have to be assigned. The standard hierarchy can, therefore, be referred to as a complete group of profit centers.
Maintain
Controlling
(T. Code OKE5)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Area for Profit Center Create a Dummy Profit Center (T. Code KF59)
156
. This is the default profit centre for the entire controlling. There can be only one dummy profit centre per controlling area
Create Profit Center Assignment of Profit Center to Cost Center Create General Ledger Master Record Create a Revenue Element Maintain Automatic Account Assignment of Revenue Element Maintain Documents Types for Profit Center Accounting Define Number Ranges to Local Documents Choose Additional Balance Sheet Accounts
(T. Code KE51) (T. Code KS02) (FS00) (T. Code KA01) (T. Code OKB9) (T. Code GCBX) (T. Code GB02) (T. Code 3KEH)
Click on new entries Enter in the account from field give the starting account and in the account field last account number available in the list of accounts you have in the company code and save
Derivation Rule for finding the profit center
(T. Code 3KEI)
Click on the create icon, Enter a header E.g. ( Business Area Derivation Rule) Enter from account number to account number > Business area and profit center name and save.
Creation of Center Group
Profit
(T. Code KCH1)
A profit center group is a hierarchical structure of
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profit centers. You can use profit center groups to group profit centers together according to company-specific criteria. Profit center groups are used for reporting, allocations or in various planning functions, where it does not make sense to enter or display data at the lowest level (with a high level of detail). The standard hierarchy is a special type of profit center group. It has to contain all profit centers belonging to the controlling area and reflect the organizational structure of Profit Center Accounting. Before a profit center hierarchy can be built it is necessary to create profit center groups. Profit center groups are the main elements in the hierarchy and without them it is not possible to assign profit centers to a hierarchy Naming convention A profit center group can have a maximum of 10 characters. The standard naming convention below is to be used when creating new groups and hierarchies. Position 1: L for local structure, Z for maintenance by SASC Position 2&3: Company ID 24 Position 4&5: SH for standard hierarchy Position 6:
158
C of cost center hierarchy or P for profit center Position 7&8: ZZ for highest level or business unit ID Position9&10: Running number The Highest node in the profit center standard hierarchy is Z24SHP0000. (0000 = highest level)
Create Profit center group: Structure
Enter( For example ZZ2HT) Type a description against the profit center group and click on to create a node on a lower level. (A node is a branching point in a hierarchy structure. Beneath a node there may be sub nodes) You can create your groups successively in the group structure display. To do so, select the node from which you want to extend the group, and choose Insert at same level or Insert at lower level.
Set control parameters for actual data
(T. Code 1KEF)
This defines how postings will update in PCA environment. Prior to accessing this window, it is important that the proper controlling area is set, as you wont be given the opportunity later. The setting here are maintained by fiscal year. Select new entries Enter fiscal year >This is the period for which the company is to create its balance sheet and inventory. Line item > select this
159
option if you want to write line item documents for each item you transfer actual data.
Set control parameters (T. Code 0KE5) for Actual Data Plan Versions (T. Code OKEQ)
Here make the setting required for updating the actual and plan data. This helps control whether plan data from applications is updated automatically in PCA or if you have to manually transfer the postings. For automatic updates into PCA,you should expect interaction to come only cost centre accounting or internal order accounting. All others are manually transferred. Enter settings for fiscal year and currency. Procedures Highlight 0 plan version Click on setting for profit center accounting. Select new entries Enter fiscal year Select on line transfer check box Select line items check box Exchange rate type M and save
Profit center actual line item
(T. Code KE5Z)
Internal orders Internal orders

Thus internal order is used to monitor costs for short term events, activities. It helps in providing more information than that is provided on the cost centers.
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It can be widely used for various purposes, If used intelligently it is a real handy tool. Internal order is basically a cost object which is used to monitor cost of a time restricted job. There are various types of internal order the common ones being a Real order where you collect costs and settle it at the month end
1. Activate Order Management in Controlling Area 2. Order Master Data: Define Order types
(T. Code
(T. Code KOT2_OPA)
The order type subdivides orders according to their purpose. An order type includes the following administrative information for orders: Is the classification active? Is Commitments Management active? Are revenue postings allowed (an order with revenues can only be settled to a GL-account or a business segment)? Is the plan integration with Cost Center Accounting active? How is the status management being used? Which order layout should the master data display determine? What are the residence times for order archiving? Overview order types: $$
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Internal Order Model Order A001 Accrual calculation order F001 Factory Orders F002 Intra Company orders I001 Internal Order Marketing I002 Internal Order Sales I003 Internal Order Service I004 Internal Order General Admin I005 Internal Order R&D I006 Default order assignment (settlement CCA) L001 Belgian capital expenditure P001 Project support order P002 Asset Rental
P003 FXA Project Control Order: COS P004 FXA Project Control Order: R&D P005 FXA Project Control Order: Marketing/S. P006 FXA Project Control Order:
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Admin R001 Remaining COS order STAT Statistical Internal Order X001 Default order assignment (excl. from CO) An Internal order is created under an Order type. An order type is used for storing various control parameters and various defaults while creating an internal order. It is used for classifying various types of internal orders according to usage for e.g. Real orders for trade fairs, real orders for Capital investment measure, Statistical orders for motor vehicle expenses. The order type is clientspecific, which means that every order type can be used in all controlling areas. A number range is assigned to the internal order type.
3. Maintain Number Ranges for Orders
(T. Code KONK)
Number Ranges Number Range needs to be assigned to the internal order type. Number range can be internal or external. In Internal numbering system automatically assigns a number from the given number range. In external numbering the user has to manually assign the number from the given number range. Procedure Click on the order type
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youve created, click on edit> select element Check the box of the group, then, edit>assign element group, then you will see that it has been assigned, then you save Model orders are not orders in the commercial sense, but serve merely as references for creating "normal" orders. Model orders contain default values for the orders in an order type. The Model order is assigned as the reference order in the order type. When you create a new order, all the fields active in the relevant order type are copied from the model order to the new order.
4. Define Model Orders
(T. Code
(T. Code KOH1) 5. internal order groups
Order groups are used for several purposes: Order planning, reports, settlement, collective processing and surcharges. Since at any time all groups are offered in a specific system, the group name needs to distinguish whether the group is maintained locally or centrally by the SAS (Z*). Reporting groups can be created and changed locally adhering to the above structure. They are not available on the template system.
6. Maintain UserDefined Planner Profiles 7. Maintain Planner Profile
(T. Code
(T. Code OKOS)
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi for Overall Planning 8. Define Budget Profile 9. Maintain settlement cost element (T. Code OKOB) (T. Code KA01 Primary KA06 Secondary)
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Settlement cost elements are used in a specific case to act as the sending and receiving account during settlement. If settlement element is activate within settlement assignment, either a primary or secondary cost element will be needed to facilitate the posting. The receiving object will determine whether you use a primary or secondary element. If the receiver is external to CO, like a G/L account or fixed asset, a primary cost element(22) must be used because of the necessary FI impact. If the receiver is internal within CO, like cost center, a secondary cost element is required (21). This defines which cost elements on the order can be settled. This group of cost element is called the origin. It also determines which cost element will be used to debit and credit the sending order or receiving object.
10. Settlement: Maintain Allocation structure
(T. Code OK06)
11. Maintain Settlement Profile 12. Maintain Number Ranges for
(T. Code
(T. Code. SNUM)
The first step here is to create a group number to which controlling area can be assigned. The second step is to
Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO Consultant Ademola Oduyemi Settlement Documents 13. Orders: Actual/Plan/Va riance Report 14. Orders: Current Period/ Cumulative 15. List Orders 16. List Orders by cost elements 17. List Cost Elements by Orders 18. Activate Order Management in Controlling Area
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assign your controlling area to the new range.
(T. Code (T. Code S_ALR_87012994) (T. Code S_ALR_87012995) (T. Code S_ALR_87012996) (T. Code S_ALR_8701299v) (T. Code okkp)
Year End Closing Activities FI
Select posting period for new fiscal year Carry the balance forward
( (T.Code F.16) If you tick the postings are not performed, they are only displayed. Problems Encountered After I carried out the test run, I was given an error msg which say that Retained Earning account is not specified as a balance sheet account.
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The reason was that I had assigned it as being a P/L account Solution Create a new GL account called it retained earnings under assets. Went into trans OB53 then reassigned the GL account I created as being the new retained earning account. Prepare the balance sheet Periodic Closing> Closing> Regroup>GR/IR Clearing (T. Code F.19) And Periodic Closing> Closing>Valuate> Foreign Currency Valuation (T. Code F.05)
AA MM HR Account Payable
Close the posting period for the old fiscal year Create the Balance S_ALR_87012284 sheet and P/L Statement Balance Sheet / Profit and Loss Statement Post Depreciation Perform inventory and material valuation Post wages and salaries of last posting period.
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Sap Fico Transaction Code by Demo

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Sap Fico Transaction Code by Demo

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Configuring SAP R/3 System Financial Controlling (FICO) (Business Processes & Transaction Codes) Compiled by SAP FICO

Consultant Ademola Oduyemi

Process Enterprise Structure

Effect in FICO Enter company, company name, address. 2

2) Define, Copy Delete Company Code

(T. Code EC01)

3) Create Fiscal Year Variant

(T. Code OB29)

Effect in FICO Generally, each

2. Create Chart Accounts

of (T. Code OB13)

Examples are Asset Liabilities

5. Define Retained T. Code OB53) Earnings Account

Document (T. Code OBA7)

10. Define Tolerance (T. Code OBA4) Groups for Employees

highly inflated countrys companies multinational companies

Single (T. Code FB50)

Held Documents Parked Documents

36. Sample Document (T. Code F-01) Transaction Code

40 Dr cash acc,50 Cr Exp acc

(T. Code FBN1) (T. Code OBC1)

45. Change/Update Recurring Document

(T. Code FBD2)

53. Post with clearing 54. Automatic Clearing

(T. Code-F-04) (T. Code-F.13)

Financial statement version

Validation and Substitution

65. Create/Change Validation

(T. Code GGB0)

2. Prepare for Balance (T. Code OBAA) Interest Calculation

on (T. Code OB82)

4. Define Interest (T. Code OBAC) Reference Rate

premium:5 amount from(blank)

6. Enter Interest Values

(T. Code OB83)

Enter: Reference Rate Eff from (29.06.2006 Interest: 7,88

7. Prepare GL Account (T. Code OBV2) Balance Interest Calculation

Calculation (T. Code F.52)

(T. Code SM35)

4) Specifying Translation Ratios

(T. Code GCRF)

5) Enter Exchange Rates

(T. Code OB08)

FX Valuation FX Valuation Define Valuation Method (T. Code OB59)

Foreign currency is valuated by balance Evaluation Key Date=Date of

are valuated in SAP FI-TR.

Taxation Sales and Use/ Purchase Tax

Define Condition Types

Check calculation (T. Code OBQ3) Procedure

(T. Code OBBG)

1. In the tax code box, enter your

Define Accounts (Account

Tax (T. Code OB40)

Specification in the General Ledger Assign

(T. Code FB02)

In the base amount section Select Gross Amount radio button.

In the control data Select all the radio buttons

In the withholding tax amount Select Withholding tax code level

Type for Payment

Assign Withholdin g Tax type to Company Code Activate

Click on position button Enter company code Press enter key

Activate Ext. W/Tax check box and save

Tax Interface configuration Tax Interface configuration