AB90- Company code

Accounting Flow
1.
2.
3.
4.
5.
6.

Business transaction
Journal- Business transaction is recorded
General ledger and post entries
Trial balance Balance of G/L
Profit &Loss account
Balance sheet

Golden Rules Accounting

Real- DR- What comes in / CR- What goes out
Nominal- DR- All the expenses and losses / CR- All gains and income
Personal- DR- the receiver / CR- the giver

1. Salary paid for 10000 via cash

Salary a/c DR 10000
To Cash account
2. Mobile bill paid via bank RS15000
Mobile Bill DR 15000
To Bank 15000
3. Rent paid via cash 12000
Rent DR 12000
To Cash 12000
4. Commission paid via bank 3000 and via cash 4000
Commission paid DR 7000
To bank account 3000
To Cash account 4000
5. Interest received via bank 9000
Bank a/c DR 9000

To Interest received 9000

6. Commission received via cash for 8500
Cash a/c DR 8500
To Commission received 8500
7. Goods sold for 6000 to Ram and received money via cash
Cash a/c DR 6000
To Goods a/c 6000
8. Good purchased for 9000 from Shyam and paid via bank
Goods DR 9000
To Bank a/c 9000
9. Goods sold to MR Ram 9000 on credit- Credit Sales Invoice- 9001
Ram a/c DR 9000
To Goods-CR 9000
10.Goods purchased from Shyam for 7000 on credit
Goods DR 7000
To Shyam 7000
11.Received money from Ram 6000
Cash DR 6000
To Ram account 6000
12.Received money from Ram for 3000
Cash DR 3000
To Ram account 3000
13.

Goods purchase on credit from MR X for 8500

Good a/c DR 8500

To MR. X
14.Paid Mr.x 8500 via bank
MR.X- DR 8500

To bank a/c 8500

Assets
Liabilities
Income
Expenses

Credit Sales Process

Mr.X- DR
1000- -500 customer

- Accounts receivable- Reconciliation account-

To Credit sales account

Payment -

800 transactions- 150 customers- 50 not paid

Cash DR
To MR.X CR-

Accounts receivable

Credit Purchase Process

Credit Purchase account DR
To MR.Y

Accounts Payable

MR. Y DR
To Cash account

Sales of furniture
Cash a/c DR
To Furniture

Accounts payable

SAP
Systems Applications Products In data Processing
SAP- ERP
ERP- Enterprise resource planning

MM
PP
SD
FI
HR
MM+PP= MRP1MM+PP+SD= MRP2
MM+PP+SD+FI= SAP
MM+PP+SD+FI+HR= SAP

Functional- MM PP SD FI HR
Technical- BASIS ABAP
FI
Financial accounting- External reporting purposeGeneral Ledger
Accounts receivable
Accounts Payable
Bank
Asset accounting

CO- Controlling
Internal reporting purpose- Management accounting + Cost accounting
ABC
P1- 10
P2-20
P3-30
36000 USD
FI-Salary a/c DR 36000
To Bank account
Co- P1- 10/60*36000=6000
P2- 12000
P3- 18000
Cost center
Profit center
Internal orders
Product costing
CO-PA
FI-MM- Purchase cycle
ReportsMonth and year end
New G/LEnterprise Structure
Organizational Units
Client-Business Area- CCA
TATA CompanyTCS Company code
TATA Steel

TATA Motors

Business Area
Delhi
Mumbai
Bangalore
Chennai
DEV
Sandbox-110
Golden Client- 100- Transport request- TR
DEV TEST-120
QA
UAT/TEST-900
PRD
PRD Client-900
Consolidated Business Area
Delhi + Mumbai = North CBA
Bangalore + Chennai= South CBA
Credit Control area- Client level
CCA1-100000- TCS- TM
CCA2-200000-TS
Definition
1.
2.
3.
4.
5.

Define
Define
Define
Define
Define

Company
company code
Business area
consolidated BA
Credit control area

Assignment
1. Assign company code to company
2. Assign company code to credit control area
3. Assign business area to consolidated BA

Financial accounting global settings

Variant- Client level
Define- Give name
Instruction- Rules
Assign1.
2.
3.
4.
5.
6.
7.

Define Fiscal year variant

Assign company code to fiscal year variant
Define posting period variant
Open and close posting period variant
Assign company code to posting period variant
Define field status variant
Assign company code to field status variant

Fiscal year variant

Financial year=
Classic G/L- One FSY- for reporting and posting
New G/L- one FSY for posting purpose
We can have two FYS- For reporting purpose
16 Periods= 12 posting periods + 4 Special periods (Adjustment)
JAN-DEC
DEC29- Advance- 5000 USD- JAN 2014 to DEC-2014- 1000
JAN- 20-2015- IT- 6000 USD

JAN
FEB
MAR
APR
MAY
JUNE
JULY
AUG
SEP

K4
1
2
3
4
5
6
7
8
9

2014

APR
MAY
JUNE
JULY
AUG
SEP
OCT
NOV
DEC

V3
1
2
3
4
5
6
7
8
9

2014

OCT
NOV
DEC
JAN
FEB
MAR
APR

10
11
12
13
14
15
16

2014
SP
SP
SP
SP

JAN
FEB
MAR
APR
MAY
JUNE
JULY

10
11
12
13
14
15
16

2015
SP
SP
SP
SP

Types FSY
1. Year independent- The number and start and end dates for the
periods are same every year.
a. Calendar year- JAN to DEC
b. Non-Calendar year- Do not follow JAN to DEC
2. Year specific- Periods can vary from year to year

100- company codes

40- India- V3
60- US- K4
Posting period variant
1. PPV- Name
2. Open and close posting periods
V3- 1-2014 to 12-2015 13-2015 to 16-2015
K4- 1-2014 to 12-2014- 13-2014- 16-2014
1-2014 to 1-2014
2-2014 to 2-2014
DEC12- 2013 or FEB2-2014
3. Assign company code to posting period variants
Field status variant
Field status groups- Manages the fields of G/L Posting
Required
Optional

Suppress- HIDDEN
41 Field status groups
G001G005G067G004-

General
Bank
Reconciliation account
Cost accounts

Salary a/c DR- G001

To bank-G005
Value date- G001- Suppress
G005- Required
WE ALWAYS FROM STANDARD
1. Define Field status variants
2. Assign the company code to Field status variants
Documents Principle
Document type
Interval

Document number

SA
1-99999
DA
199999

01
14

100000-

DR
DZ
KA
KR
KZ
AA
S- General ledger
D- Customer
K- Vendor
A-Asset

A-Document, R- Invoice document, Z- Payment document

F-02- SASA- 01 1-99999

100000-199999
40- 400000-4999999
External- user has to give the document number from the intervalInternal- System will automatically,
Tolerance group
JA A, B, Cn
SA E & F
TL Z
Give upper limits for
Document posting
Open item posting (Outgoing and Incoming payments)
Discount
Company code
General ledger accounting
Chart of Account- Client
Length and language G/L account
Length
Min-1- 1,2,3,4,5,6,7,8,9
Min- 2- 1,2,3,4 - 99
Min- 3 - 1,2,3,4 ------ 999
4- 9999
Max-9 - 999 999 999
Language- EN
Types of COA
Operative- daily transaction- Mandatory
Group Consolidation purpose- Optional

Country- IT purpose- country specific Optional

Cost element- Controlling- Manual / Automatic
1. Define Chart of account- Operative - 6 -999 999
2. Assign company code to operative COA
3. Define Account Groups
Balance Sheet
1. Asset
2. Liabilities

1- 99999
100000-199999

Profit & Loss

1. Income
2. Expenses

200000-299999
300000-399999

It manages the fields of G/L creation

Required
Optional
Suppress- HIDDEN
Display
4.Define retained earning account
Transfer the balance of P&L account to Balance sheet
Profit- Add to capital
Loss- Deduct from capital
X- G/L account
G/L accountX- Laptop- Retained earning G/L account- Liability group
Y- Mobiles- Retained earning G/L account- Liability group
Laptop
Mobiles
While creating Profit and loss account5.Creating G/L accounts- FS00

P&L

or B/S

If it is P&L- Income or expenses

If it B/S- Asset or liability
6.Posting of G/L account- F-02/FB01/FB50
F-02/FB01Posting keys- 40- DR- G/L
50- CR- G/L
FB50- DR or CR
7.G/L line item report- FBL3N
8.G/L balance report- FS10N

Documents
1. Original document
2. Reference document- Templatesa. Sample- daily posting- only document- when Sample document is
created no posting to G/L account.

Carriage Inward DR 6000

700000

To bank account 6000

1.
2.
3.
4.
5.
6.
7.

Create sample document number range

Create the sample document template
Post with the template
Edit
Display
Display changes
Delete

b. Recurring