Created by: Shubha.S.

Hulyalkar

Exercises on FICO module

You are the SAP FICO consultants for a MNC intending to implement SAP
FICO module. You are required to configure the settings at clients place based
on the details provided below. While re-engineering is encouraged, care must be
taken to adhere to basic accounting principles rather than compromising the
same for benefits of the package.
Prepare a excel sheet with several sub sheets as attached that will form
part of your configuration document.
The company xxxx01 is a MNC Which produces Computer hardware and
is headquartered in Bangalore India. It has branches in Two other cities in India
and 1 branch each in US, UK FRANCE AND GERMANY. Give a suitable Name
to your Company and choose your cities. The co. codes have their country
currency as local currency and the group currency is INR.
All the companies use a common chart of accounts.
The Chart of accounts has to be prepared by you with all the necessary
groupings and requirements of a normal manufacturing organization. It is
presumed that there will be Inter company transactions.
Create all the necessary GL accounts for your transactions. Remember to
create Reconciliation accounts and all accounts necessary for taxation and
integration purposes. Ideally there should be a minimum of 10 accounts under
Expense heads and appropriate No. of accounts in other groups. (hint: copy of
sap standards is encouraged).
The US branch does not carry out any manufacturing activities but is only
involved in outsourcing materials for Indian Branch.
All the companies use Calendar year as their fiscal with 3 special posting
periods. At any point of time only 6 posting periods are open. The No. range and
FSVs supplied by system can be used by and large. Create additional No.
ranges if and when felt necessary.
Create a Cash journal for each company code. Create suitable No. of
Income and expense heads (business transactions) with modifiable account Nos.
Each co. code maintains accounts with two commercial banks and there
are two sub accounts in each bank as follows
.
1. Collection account
2. Payment account
.

Created by: Shubha.S.Hulyalkar

Each of these sub accounts post to a separate GL account for banks.
Products of the company are sold to its customers through Distribution channel
situated in Bangalore. Create the finished good called Chip in the system and
deliver the same to a customer created by Sales department. You can use the
Pricing procedure for product catalog with 3% discounts and Freight to be
decided manually. Generate the necessary entries from the invoice made in
Sales department.
Raw material (imagine the item !!) is procured from ABC and company at an
appropriate rate. Create the necessary PO and generate GR/IR entries and take
the item to stock of raw materials.
There is a common controlling area assigned to all the co.codes. Create the
required controlling area and create three groups of cost centers to meet the
requirements of Direct, Indirect and Logistics cost centers. Create cost centers
under these groups to meet the requirements of a hardware manufacturing
company.
Create cost element groups to meet the needs of cost allocation explained below.
Create a distribution cycle to transfer the salary group of costs to the direct
departments in a percentage proportion as you feel fit.
Create a Assessment cycle to transfer the costs under Material and Power
groups through secondary cost elements Material and Power.
Create statistical key figure headcount and demonstrate its use by moving
welfare expenses collected in indirect department to the direct departments.
Pass the following Initial entries
Shareholders capital of Rs. 90000000 subscribed by shareholders
Remit the same to your bank account.
Taken a loan from your Bankers of Rs.30000
Prepare a Account assignment model for monthly salary deductions.
Prepare a Recurring entry for payment of Rent of Rs.15000 of the premises. Run
the same for 3 periods.
Settings in AR / AP

Create two Customer groups namely Sold to party and Employees.

Create a new term of payment with 20 days credit and a discount of 1% if
paid within 10 days.
Create 5 Customers in each company with different payment terms
including the newly created term..

Created by: Shubha.S.Hulyalkar

Create 2 invoices for each customer for with date of posting ranging from past 6
months.
Rs. 120000, 50000,
65000, 95000,
32000, 9500,
6450, 25365,
25300, 78000
Account receipt of first invoice in full for all the Customers,
Receive 50% of second invoice for all the Customers through cheques
Deposit all the cheques in the house bank
Create a standard Dunning procedure with 5 levels and generate dunning
notices for all the customers in arrears. Make sure that 5 levels cover at least 3
periods.

Create two Vendor groups namely Veng and Employees

Create 5 vendors with different payment terms

Create 2 invoices for each vendor for in Indian co.code.

Rs. 80000 58000, 60000 70000, 25300 78000, 45000 25000, 69800
25450.
Post an invoice in each foreign co. code with imaginary figures.
Create a Automatic payment procedure in the Indian co. code. This is the paying
company code while all other co. codes are Sending co. codes. Create two
payment methods in India namely C and W for cash and Bill of exchange
payments. Take care to enable the foreign payments, limits and currencies.
Make a payment run covering all the open payable items of all the vendors of all
the co.codes. Note down and resolve if any exceptions are raised.
Pay first invoice in full for all the vendors through automatic payment procedure.
Pay 50% of second invoice for all the vendors

Fixed Assets
Create the following assets in your company, Use appropriate Asset classes and
depreciation keys.
Class
Factory building

Value INR
1000000

Life
50 years

CNC machines 1-5

200000 each

5 years

Office Equipments say

Fans ceiling. 1-10

1000 each

10 years

Created by: Shubha.S.Hulyalkar

Vehicles scooters 2 nos

30000 each

5 Years

Acquire all the above assets through vendor 3,4,5,

Depreciate plant and machinery for two posting periods
Retire a CNC machine by selling it to vendor 2 for Rs.150000
Transfer one to the scooters to the other branch in India.
Prepare a balance sheet and Profit and loss account using financial statement
version INT and transport the same to xls type and save on the Desktop.