During GR

Material Stock
GR/IR clearing
During Excise Invoice Credit
Cenvat Account
Cenvat Clearing
During Invoice Verification
Cenvat Clearing
GR/IR Clearing
Vendor Payable

Dr.
Cr.
Dr.
Dr.
Dr.

Cr.

Cr.

For Domestic proceurement of Capital Goods

During GR
Material Stock
Dr.
GR/IR clearing
Cr.
During Excise Invoice Credit
Cenvat Account
Dr.
(50%)
Cenvat On-hold
Dr.
(50%)
Cenvat Clearing
Cr.
During Invoice Verification
Cenvat Clearing
Dr.
GR/IR Clearing
Dr.
Vendor Payable
Cr
Subsequent of Capital Goods
Cenvat Account
Dr.
(50%)
Cenvat On-hold
Cr.
(50%)
For Import Procurement of Raw Material
During Customs Duty Clearing invoice
Custom Clearing
Dr.
Custom Payable
Cr.
During GR
Material Stock
Dr.
GR/IR clearing
Cr.
During Excise Invoice Credit
Cenvat Account
Dr.
Custom Clearing
Cr.
During Invoice Verification
GR/IR Clearing
Dr.
Vendor Payable
Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account
Cenvat Clearing

Dr.

Cenvat Clearing
Cenvat Account

Dr.

Cr. For Excise Duty Reversal

through Excise JV
Cr.

During Customs Duty Clearing invoice

Custom Clearing
Custom Payable
During GR

Dr.

Cr.

Material Stock
Dr.
GR/IR clearing
Cr.
During Excise Invoice Credit
Cenvat Account
Dr.
Custom Clearing
Cr.
During Invoice Verification
GR/IR Clearing
Dr.
Vendor Payable
Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account
Cenvat Clearing

Dr.

Cenvat Clearing
Cenvat Account

Dr.

Cr. For Excise Duty Reversal

through Excise JV
Cr.

Accounting entry when the goods are issued through MM and excise invoice is
created (J1IS & J1IV)
During Excise Invoice Creation
Cenvat Suspense Account
Dr.
Cenvat payable
Cr.
For TR6C Challan
PLA Account
Dr.
PLA on hold Account
Cr.
During Fortnightly Utilization
Cenvat payable
Dr.
Cenvat Account
Cr.
PLA Account
Cr.
Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.
Accounting entry in subcontracting reversal / Recredit
For Subcontracting Challan Reversal
Cenvat Reversal
Dr.
Cenvat Account
Cr.
For Subcontracting Challan Recredit
Cenvat Account
Dr.
Cenvat Reversal
Cr.
Accounting entry in SD
For Factory Sale
During Billing Document
Customer Account
Sales Account
Cenvat Suspense Account
During Excise Invoice Creation
Cenvat Suspense Account
Cenvat payable
For TR6C Challan
PLA Account
Dr.
PLA on hold Account
Cr.

Dr.

Dr.

Cr.
Cr.
Cr.

During Fortnightly Utilization

Cenvat payable
Dr.
Cenvat Account
Cr.
PLA Account
Cr. For Stock Transfer through SD
No Accounting entries for Performa Billing Document
During Excise Invoice Creation
Cenvat Suspense Account
Dr.
Cenvat payable
For TR6C Challan
PLA Account
Dr.
PLA on hold Account
Cr.
During Fortnightly Utilization
Cenvat payable
Dr.
Cenvat Account
Cr.
PLA Account
Cr.

Cr.

Goods Issue:
Raw Materials Consumption (P&L)

Dr.

Inventory - Raw Materials (B/S)

Cr.

3. Goods Receipt:
Inventory - WIP / Semi-finished

Dr.

Inventory Change - Production (P&L)

Cr.

4. Consumption of Labor/Machine (CO):

Production Order

Dr.

Cost Center

Cr.

5. Assuming actuals exceed target:

Production Order Variance (P&L)

Dr.

Inventory Change - Production (P&L)

Cr.

Note: Cenvat Suspense Account should be cleared apprpiately using FI JV's.

Internal Order Configuration (FI AA)

Asset Internal Order (PM Integraton)

1- Create Gl-Balance Sheet (FS00)
2- Specify Account determination
3- Assign Gl accounts (AO90)
4- Define Number Range Interval (ASO8)
5- Define Asset Class (OAOA)
6- Define Order Types (Internal Order)
7- Maintain Settlment (Internl Order)
8- Create Asset (As01)
9- Create Internal Order (KO01) (enter Asset in Settlement Rule)
10-Create Purchase Order (ME21N) (Enter Order)
11-Goods Receipt (MIGO)
12-Display Actual Cost Line Item for Order (KOB1)
13-Actual Settlement-Order (KO88)
14-Create Asset (AS01) (For actual Asset transfer)
15-Settlment AUC (AIAB)
16-AUC Settlement (AIBU)
Bank Reco config

Create Bank Master Data - This can be created through T.Code FI01 or you can also
create the house bank through IMG/FA/Bank accounting/Bank account
2. Define House Bank
FBZP setting
3. Set up Bank selection payment programe- IMG/FA/ARAP/BT/AUTOIP/PM/Bank selection
for payment prg.

a. setup all co codes for payment transaction - Customer and vendors

b.setup paying co codes for payment transactions
c.setup payment method per country
d.setup payment method per co code for payment transaction
e.setup bank determination for payment transaction
Please go for Cheque mangement using T code FCHI
(IMG/FA/ARAP/BT/OP/AutoOp/PaymentMedia/CheckManagement) and for void reasons
FCHV. You can create Bank Reconcilliation statement by TC FF67
(SAP/AC/Treasury/CashManagement/Incomings/ManualBankStatement) . Don't forget to
keep the opening Balance as zero. Use FBEA for post process.
All the steps together will lead to (FF67) Bank reconciliation statement.

The configuration is needed for automatically clearing the open item in

the sub accounts, when the bank statement is upladed.
Different banks send bank statment in different formats. You can use a BDC for uploading
the bank statement thorugh FF67 (say using EXCEL sheet)
Electronic bank statement is used when the bank sends the bank statement in MT940, or
MULTYCASH formats. This makes life easy as the bank statement can be uploaded with out
much of manual work. In case of manual bank statement, the transaction details have to be
fed into the system in FF67 txn.
Bank Reco Purpose
1) The purpose of manual bank statement is for bank reconciliation
2) Bank sends bank statment for a period (say, weekly, monthly etc,)
3) In SAP, bank accounts are maintained as sub accouts and main bank account
for example, if the corporate has an account with a bank, the corp creates bank GL accounts
in the following manner
a) a main bank account
b) bank sub GL acounts for, incoming payments, out going payments, bank charges, etc

Day to day bank transactions are posted in the sub accounts. When the manual bank
statement is uploaded, the system clears the sub accounts and the amounts will be
transfered to the main bank account
Ex: Out going payment is posted
vendor a/c Dr.
Bank Outgoing sub account Cr.
Now, bank out going sub account has a credit balance, when the bank statement is
uploaded, the credit balance in the sub account will be cleared and transfered to main bank
account
Bank outgoing sub account Dr.
Main Bank account Cr.
Hope this will clarify your doubts. Feel free to revert in case futher clarifications are needed
New GL:
http://scn.sap.com/docs/DOC-29214
http://www.slideshare.net/RajivKumar31/new-general-ledger-accounting-in-sap
http://scn.sap.com/people/marssel.vilaa2/blog/2009/03/23/new-general-ledger-introduction

1) Parallel Ledger: for different reporting (Leading & Non Leading ledgers)
2) Segment wise reporting (reporting according to verious GAPPS)
3) Document Split: financial statement at Co Code level, for profit center system will
create zero balance for relevant entity (Active Doc Split Splitting a doc, Passive Doc
Clearing & Similar Process)
4) Real time integration b/w FI & CO
Doc Split Stapes
The Steps to follow are:
1.

Classify G/L Accounts for Document Splitting

2.

Classify Document Types for Document Splitting

3.

Define Zero-Balance Clearing Account

4.

Define Document Splitting Characteristics for General Ledger Accounting

5.

Define Document Splitting Characteristics for Controlling

6.

Define Post-Capitalization of Cash Discount to Assets

7.

Edit Constants for No assigned Processes

8.

Activate Document Splitting

In SAP every movement of goods is followed by one movement type and movement
type trigged transaction event keys. G/L account assignment and G/L account assigned to
transaction event key in (OBYC).In Account Determination, we configure relevant to
transactions(BSX,PRD,FRE) in Inventory Management and in Invoice Verification (Invoice
receipt for automatic postings to G/L accounts in Financial Accounting and Cost Accounting.
For Account Determination there are 5 major criteria's are
1.Chart of Account,
2.Valuation Class,
3.Transaction Event Key,
4.Valuation Grouping Code, (Valuation Grouping Code to link multiple valuation areas (say Plants) so that
they have the same Chart of accounts. Its possible to have one valuation group code to three company codes.
because valuation will be differ from one plant to another)

5.Account Grouping Code / account modifier / general modification (subdivide number of

assignments for each transaction key in account determination)

If we wish to post price differences to different price difference accounts in the case of goods receipts for purchase
orders, goods receipts for orders, or other movements, we can define different account grouping codes for the
transaction key.

An account grouping is assigned to each movement type in inventory management which uses the posting
transaction "Offsetting entry for inventory posting".

(for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example,
consumption account, scrapping, expense/income from inventory differences),

Cross Company code:

Configuration
Crate Doc Type with (Inter Co check box active) OBA7
Create GL in both the CC like Inter co clearing
Cross Co Code transction OBYA
Cross Co Code Payment OB60
FBZP
FBU3 to display Doc

Specific business transactions with trading partners

Several business transactions that occur frequently in the various operative applications - as
relating to their trading partner assignments -- are described more closely:
FI/Financial Accounting
Customer or vendor invoice: The trading partner is copied from the customer or vendor
master record and is duplicated in the offsetting entries. Only one trading partner may
occur in the document.
- Invoice receipt against clearing account and transfers with clearing: If you do not post an
incoming invoice directly to an expense account, but instead against a clearing account,
the selection of open items must be restricted to those of a certain trading partner when
posting the transfer later on; the same trading partner is automatically copied onto the

transfer line item.

Customer or vendor payment: You can configure the document type for payments to
allow for more than one trading partner in a payment document. Then, the trading
partner is copied only into the customer or vendor line items.
- Down payments and down payment clearings are always customer- or vendor-related
and are, therefore, handled like the invoices described above.
AA/Asset Accounting
- Asset transfers between company codes: If a fixed asset is transferred to another
company code, two posting documents are required - one for each company code. The
trading partner of each document must be set with the company ID of the other company
code, respectively.
MM/Materials Management
- When receiving goods from an affiliated vendor, the trading partner is taken from the
vendor mentioned on the order for the inventory entry and the goods/invoice receipt. If
invoices are still open on the balance sheet key date, group-internal provisions are
created from the clearing account for goods/invoice receipts. These provisions can later
be eliminated in the Consolidation system using the trading partner assignment.
- Order-related invoice receipts also derive the trading partner from the vendor on the
order and duplicate it into the offsetting entries.
- Material transactions across company codes automatically derive the trading partner
from the company code assignments.
CO/Cost Accounting
- Cross-company code CO settlements are transferred periodically using adjusting entries

to Financial Accounting via the reconciliation ledger. The trading partner is derived from
the company code, which, in turn, comes from the respective CO posting object being
addressed. These are always dual settlements, whereby the trading partner can always
be uniquely identified.

Hi,
For legact assets creation AS91 can used, as you aware.
if you are doing legacy asset transfer in mid of the curr FY, first you need to maintain the
config for the below.
Lets say your FY--JAN-DEC...
Now if you want to tranfer all asset data in the mid of year like on 30.06.2013.
in this case your legacy asset transfer date should be 30.06.2013.
Last closed FY should be 2012.
Last FY and period, in which the last dep was posted in the legacy system will be 06-2013
first step) So create asset masters through AS91 for assets those capitalised before
01.01.2013, here you need to enter APC value and accum dep up to 31.12.2012 in
takeover values tab and enter dep amount, which is calculated and posted in legacy
system for this asset in tis curr FY in field ord dep posted (dep from 01.01.2013 to
30.06.2013). By doing this system will calculated ord planned dep for this asset from
01.07.2013.
2nd step) create assets masters through AS91 for assets those capitalised after 01.01.2013
and on or before 30.06.2013, here you need to manintain the APC transaction values in the
transactions tab with aq tran type 100.
And dep for this asset from cap date to 30.06.2013 will need to enter in field ord dep
posted in takeover values tab, so for this asset also, system will calculate ord dep from
01.07.2013 only.
After uploading all the above steps, you have pas an F-02 entry for opeing balances for
legacy assets. (capitalised <01.01.13)

SWwith off recon indicator for all asset related GL account via OAMK and now pass F-02
entry and after posting again swith on the recon indiacotrs for the asset related GL
accounts.\

http://scn.sap.com/thread/46526
(BSX) Stock A/c of Assembly Dr 100
(FRL) Subcontracting Charges Dr 10
(GBB-VBO) Consumption A/c of Components Dr 10

(WRX) GR/IR Clearing A/c Cr 100

(BSX) Stock A/c of Components Cr 10
(BSV) Change in Subcon Stock Cr (if price difference) 10

If Material is having Price Control as "S" then Price Difference A/c will also in picture.

DR FG Stock/ SC By-Product Stock - 100

CR Change in Stock (FG/ SC By-Product ) - 100
(for finished goods received)

DR Subcontracting Charges -100

CR GR/IR Clg - 100
(for moneys payable to Subcontractor)

DR Consumption (Components) - 100

CR Change in Stock (FG/ SC By-Product ) -100

(material provided to Vendor is now charged to expense)

(5) You do the IV for SC Invoice, and the process is complete.

GBB is for Offseeting entry for Inventory posting.

Offsetting entry is required when using double entry accountnig method when there is no
refernce document.
The various modifiers provided are for further sub division of offsettng entries.
GBB : Offsetting entry for the inventory/stock postings - Mainely for Gain/Loss

With Movement Type 561 in T Code MB1C, you upload the opening balance of stock. This
will pass the entry
Stock Account Dr
To Initial Upload A/c Cr
You need to assign the inital upload a/c to INV under GBB Transaction key in OBYC

Also Take care, when loading Material with Price 'V', Upload total quantity & Total Value,
But for Material with Price control as 'S' , you can upload only Quantity, Std. Price can be
uploaded at the time of Mat. Master itself or later can be done by MR21
http://wiki.scn.sap.com/wiki/pages/viewpage.action?
original_fqdn=wiki.sdn.sap.com&pageId=42697252

Asset Account Entries

Purchase of asset
Asset A/C

(70) Dr

To vendor

(31) Cr

Sales of asset
Customer A/C

(01) Dr 90

Asset Sale A/C

(40) Dr 90

Acc. Dep. on Asset

(70) Dr 5

Asset Sale A/C

(50) Cr 90

Asset A/C

(75) Cr 100

Profit on Asset sale

(50) Cr or Loss on Asset sale (40) Dr 5

Deprecation posting
Depreciation A/C Dr 5
To Acc. Dep A/C Cr 5
scraping of asset
Asset A/C

(75) Cr 100

Acc. Dep A/C

(70) Dr 5

Loss due to Scrapping A/C

(40) Dr 95

transfer of an asset
ABUMN----->Asset transfer within Company Code
70 Asset debited in NEW Business Area

75 Asset credited in OLD Business Area

70 Acc. Dep debited in OLD Business Area
75 Acc. Dep credited in NEW Business Area
ABT1N------>InterCompany Asset Transfer
OLD

Company Code 75

OLD Business Area

Asset A/C

Credit

OLD

Company Code 70

OLD Business Area

Acc. Dep

Debit

OLD

Company Code 40

OLD Business Area

Asset sale A/C

Debit

NEW

Company Code 70

NEW Business Area

Asset A/C

NEW

Company Code 50

NEW Business Area

InterCompanyClearing

Price Difference account in SAP

Material = MAP = Loaded to Stock account
Material = STD = Hit PRD account
If Material master has price control 'V'
1. GR : BSX Stock acc get debited as per PO Price. 100
WRX GR/IR Clearing account credited. 100

2. IR : If there is no difference in PO Price & IR Price,

Vendor account get credited 100

WRX GR/IR account get debited. 100

3. IR : If there is difference in PO Price & Ir price,

Debit
Credit

Vendor account as per IR price get credited 110

WRX GR/IR account get debited as PO price 100

BSX Stock acc get debited for the remaining diff amount (If full stock is
available) i.e. 10

PRD Price difference account get debited for the remaining diff amount (If no stock
is available) i.e 10

(OR) Both BSX & PRD will get debited if half stock is available) 5 5

If Material master has price control 'S'

1. GR : BSX Stock acc get debited as per Material master price. 10

WRX GR/IR Clearing account credited. 10

PRD Price difference account get debited if there is difference in Material master
price & PO price. 5

2. IR : If there is no difference in PO Price & IR Price,

Vendor account get credited

WRX GR/IR account get debited.

3. IR : If there is difference in PO Price & Ir price,

Vendor account as per IR price get credited

WRX GR/IR account get debited as PO price

PRD Price difference account get debited for the remaining diff amount
irrespective of stock availablility, i.e, no BSX

http://www.erpgreat.com/materials/inventory-posting-to-price-differences-account.htm

You are faced with the following situation: Price control MAP V / PO price 10$. Warehouse
stock = 0/GR of 50 pc/GI = 10 pc/Invoice for 50 PC @ 20$. What is posted at the time of
Invoice receipt?
GR/IR:500 / stock:400 / price differences:100 / to vendor liability:1000
or
GR/IR:1000/ to vendor liability:1000
GR/IR:500/stock:400/price differences:100/to vendor liability:1000 is correct posting.
As Stock of 40 is still vailable , the Difference amount will get posted to the Inventory
account,.
Credit Vendor - 1000
Debit GR/IR - 500

Debit Inventory - 400

Debit Price difference - 100
The difference of 400 will be adjusted in the 40 Qty. As the Stock is not available only 40 is
available, the difference of the 400 is posted into the Inventory account & the remaining
amount will be posted to
Cost (price) differences account under PRD.
The GR/ IR will be 500 only, this value will be picked up based on the PO only.
GR is posted with material price 50. So GR/IR clearing account is credited with amount 500
and stock account is debited with amount 500.
Now consider that all the 50 quantity is issued before IV. It means stock is not available. In
this case even if you change material price during IV, there is no stock available where you
can load the difference. In this case, GR/IR clearing will be debited with same amount 500
(It is just a clearing account and is values are nullified at the time of IV). Vendor should get
amount 1000. The difference amount 500 will go to Price difference account.
Now if 10 quantities are issued, 40 quantities are available on which you can load the
amount. So 40 x 10 = 400 will be loaded on material (i.e stock account is debited with
amount 400), GR/IR will be debited with 500 and difference 100 will go to price difference
account.
Foreign currency valuation in sap
http://wiki.scn.sap.com/wiki/display/ERPFI/Foreign+Currency+Translation
Foreign currency valuation is to be done for preparing the financial statements at a key
date.
Documents posted in foreign currencies have to be converted to company code currency for
preparing the company financial statements.
Your company financial statement can include only those transactions which are posted in
company codecurrency.
Hence all the posings which are open items and items which are posted in GL accounts with
foreign currency have to be valuated in company code currency.
Valuation is performed at the exchange rate on the valuation date.
In that way gain or loss is calculated and posted to exchange rate gain/loss accounts.

Foreign currency valuation FAGL_FC_VAL is used to valuate the foreign currencies to the
particular local currency and post the differences to either exchange loss or gain as maintained in
OBA1 Foreign currency translation translates the foreign currency to local currency with out
calculating the gain or loss derived from exchange. Parallel currency are valuated in
FAGL_FC_TRANS . This is for your information.
Currency Translation
Use
You can translate your account balances from local currency into group currency. The translation is performed in accordance
with FASB 52 (US GAAP) or IAS.

Configuration
IMG- Financial Accounting- General Ledger Accounting -Business Transactions -Closing - Valuating - Foreign
Currency Valuation - Define Valuation methods
In this you define the rule to how valuation happen
2.Prepare automatic postings for foreign currency valuation - OBA1
Here the gain and loss account assigned to accounting key KDB and KDF for automatic posting.

If there is a Unrealised loss.

Unrealised loss A/c...............Dr.

To Balance Sheet Readjustment A/c......Cr.

If there is a Unrealised Gain.

Balance Sheet Readjustment A/c......Dr.

To Unrealised Gain A/c.....................Cr.

If there is a Realised Loss.

Realised Loss A/c......Dr.

Vendor A/c.................Dr.

To Bank A/c.......................Cr.

If there is a Realised Gain.

Vendor A/c..........Dr.

To Bank A/c....................Cr.
To Realised Gain A/c.......Cr.
http://scn.sap.com/thread/1729235

Basic of Standard Costing

http://scn.sap.com/docs/DOC-48908 - Part I

http://scn.sap.com/docs/DOC-49167 - Part II

http://scn.sap.com/docs/DOC-49425 - Part III

http://scn.sap.com/docs/DOC-49880 - Part IV

SAP Audit

The key features of SAP Audit Management include:

Fully mobile enabled and easy to access on multiple devices and platforms
Full coverage of the audit roadmap, including planning, preparation, execution,
report, and follow-up
Flexible Audit Universe that provides a single source for audits, and monitors audit
requests globally
Powerful working paper management
Global monitoring of findings and follow-up on the progress of actions
Powerful search function
Clear and intuitive user interface design that improves user experience and boosts
efficiency

In SAP Audit Management, the auditing process is divided into five phases:
planning, preparation, execution, reporting, and follow-up.

SD-FI Integration
http://scn.sap.com/thread/747848

the system automatically posts the various prices and discounts and freights to the
respective GL accounts through the account keys.

The account key is assigned to the respective GL account. Also in the pricing procedure we
have a column called as account key(second last column). There we assign the account key.
For eg., in Std SAP for basic price we have acct key ERL, for discounts ERS, for Output tax
MWS, for freight ERF, etc. These account keys are basically defined by the FICO consultant
and then the SD consultant assigns the respective account keys against the respective
condition type in the pricing procedure.
The customer group is nothing but the grouping of various customers like wholesaler,
retailer, subsidairies, etc. This is basically useful while maintaining pricing like for X group
basic price is 10Rs, for Y group it is 15Rs. like that. Similarly material group is a grouping of
materials like Ball pens, ink pens, gell pens, etc.
KOFK: KOFK is used whenever we are posting the document where a cost is involved that
can be checked via the Requirement class in the Sales order in the Procurement step. In the
requirements class there is "E" in account assignment category & hence you have to use
KOFK

Product Costing
What is Work Center
Configuration for GL / Vendor / Customer
Asset Accounting ASFO only to Non Leading Ledger
Asset Sale Entry
Bank Length to increase

Work Cente
An organizational unit that defines where and when an operation must be performed.
The work center has an available capacity. The activities performed at or by the work center are valuated by charge
rates, that are determined by cost centers and activity types. Work centers can be:
Machines

People
Production lines
Groups of craftsmen
Cost center
An organizational unit within a controlling area that represents a defined location of cost incurrence.
The definition can be based on:
Functional requirements
Allocation criteria
Physical location
Responsibility for costs
Service Tax
If your service tax is NON-DEDUCTIBLE, during posting your service tax amount will be posted to respective G/L
account.(for example,in case of material procurement service tax amount will be posted to Inventory account)
60% of service tax will be credited to vendor and 40% will payable by
company direct to the authorities and a credit of service tax will go to
the service tax credit gl.
Means if 12.36% is service tax
service dr 100/service tax credit dr 12.36 ( Balance sheet account assets side)
vendor cr- 107.42
service tax payable -cr 4.94( Balance sheet account current Liability side)
Service Exp. A/c Dr. 100.00(Exp. GL)
Service Tax-Input Credit A/c Dr. 12.00(Current Assets)
Edu. Cess-Input Credit A/c Dr .24(Current Assets)
SHE Cess-Input Credit A/c Dr. .12(Current Assets)
To Vendor A/c 107.42(Current Liabilities)
To Service tax Payable A/c 4.80(Current Liabilities)
To Edu. Cess Payable A/c .09(Current Liabilities)
To SHE Payable A/c .05(Current Liabilities)

Funds Management

http://www.scribd.com/doc/132972333/SAP-Funds-Management-Configuration-FM
RCA - Foreign currency valuation
for 1 perticulare GL
Documents posted in foreign currencies have to be converted to company code currency
all the posings which are open items and items which are posted in GL accounts with foreign
currency have to be valuated in company code currency
Inculding Bank GLs

MAINTAIN FINANCIAL MANAGEMENT AREA:

ASSIGN FINANCIAL MANAGEMENT AREA
Assign company code to financial management area
Integration of other components

FUNDS MANAGEMENT GOVERNMENT

Activate Global Funds Management Functions
Define global parameters
Assign Fiscal Year Variant to FM Area

MASTER DATA
Fund center
Create/Change Hierarchy Variant
Assign Hierarchy Variant to FM Area

ALLOCATIONS TO ACCOUNT ASSIGNMENTS

Select Derivation Steps
Define Account Assignment Derivation

BUDGETING AND AVAILABILITY CONTROL (FORMER BUDGETING)

Set Up Budget Profiles
Assign Budget Profile to FM Area
Budgeting (former budgeting)
Number Ranges

AVAILABILITY CONTROL SETTINGS

Define Tolerances for Availability Control

Define Specific Tolerances for Availability Control

FUNDS MANAGEMENT-SPECIFIC POSTINGS

Costing
BOM Routing

Basically As you are aware BOM contains child parts of the parent material.
Routing defines how you are going to produce. ie operations,

If routing has say 3 operation steps you will define in the operation details where u will produce (work center) and
time taken for each operation. Also you can maintain tools(PRT) for those operation and inspection datas(inspection
time).

Next details in work center(which you are assigning in operation. In work center you will maintain the link between
activity type and cost center. Activity type is for example labor hour. In costing KP26 transaction a link will be
established for activity type and cost center and corresponding cost.
If you are using work center X having activity cost as 100 Rs/Hour. The system will calculate depending upon the time
mentioned while confimation the cost.
Hope this will help how routing,BOM and cost are linked.

Business area: When company has different area of operation like different product lines or different different
region and they want financial statements for each of there area of operation along with company code wise financial
statements then we go for Business area.
Profit center: Profit center accounting we use to evaluate profit or loss for a particular area. The main aim of Profit
Center Accounting is to determine profit for internal areas of responsibility
The essential difference between a profit center and a business area is that profit centers are used for
internal control, while business areas are more geared toward an external viewpoint.

Business area and profit center can be used together because two of them are serving different purposes.

Business area will have many profit centers. For example Vehicle is a business area in a company. Vehicle
can be cars and Bikes etc. Here Vehicle is business area and Cars and Bike are profit centers. In broad Vehicle is a
profit center. But as it has sub areas those are profit centers. So profit centers cannot be replaced with business area
and vice versa. We can replace business area by Profit centre, only condition is that it should be in same controlling
area. The business area is more like a business unit of a company. You can have multiple profit centers within a
business area.

Main distinguish factor is that distribution and assessment in possible in profit center but not in business
area.

One more distinction is that Business area need not be attached to any organization structure. But profit
centers can be created only under the controlling area.

Business area can be across controlling area.

Business area concept is used for making stragic decisions by the management whereas the primary
purpose of profit center accounting is responsibility accounting.

In Accounting a profit center is an area or department from where the management wants to find
out the return on investment so in SAP
business areas are just segregation of business transaction origins
So, a certain business area can have more than one profit center within it. Both have their unique
uses and both have their unique features.
Primary cost elements are like materail costs, personnel costs, energy costs... where a
corresponding GL account exists in FI..to allow costs to flow...
Secondary cost elements are like production costs, material overheads, production overheads,
they can be created and administered in only CO. These are used in internal cost allocation,
overhead calculation, settlement transactions., it does not flow to FI...

Primary cost Element-It captures the actual data which is posted in G.L Accounts. To Create a primary cost
element, g.l account is mandatory. The Data which contains in Primary cost element is an actual data.
Secondary Cost Element- It is for the Assessment. Allocation of funds. No need of the g.l account to create
Secondary cost element

Secondary Cost element is used for Allocation or Distribution purpose.

When any expenses booked under a Primary cost element and the same has to be distributed to different cost
centers, then the Secondary Cost elements will be used to collect cost from Primary.

What is a Costing Sheet?

Costing sheet contains control parameters for all aspects of overhead calculation.
The costing sheet contains the following elements:
Calculation base
The calculation base consists of a group of cost elements to which overhead is applied according to the same
conditions. This process involves assigning individual cost elements or cost element intervals to a calculation base. In
other words, the calculation base determines to which cost elements overhead is applied together.

Overhead rates (Percentage Based or quantity based)

Overhead rates are applied to the calculation base either as a lump sum per quantity unit or as a percentage of the
direct costs. You also specify the validity period and the conditions under which the overhead should be calculated.
The system calculates the overhead amount either as a percentage or based on the quantity.
The conditions under which overhead is to be applied are defined in condition tables.
Example:We want to calculate 5 % overhead on Material and 4% on wages. But the condition is that, it should be
only calculated for plant XX00.

Credit Keys
By defining the credit key you are crediting the cost center and debiting the product or the production order. The
credit on the cost center happens with the overhead cost element which is mentioned while defining the credit key.
You can also define what percentage of the overhead is to be allocated as fixed costs.
The costing sheet integrates all elements of overhead costing defined above such as calculation base, overhead
rates and the credit key. The above costing sheet is then assigned to a valuation variant which is a component of
costing variant.

What is a Cost component Structure?

The cost components breaks down the results of the standard cost estimate into factors such as raw materials,
packing material, material overhead, salaries and wages, production overheads, depreciation and other costs.

The Statistical Key Figure (SKF) is used as the basis (tracing factor) for making allocations
(assessments/distributions). They are the statistical data such as number of employees, area in square
meters, etc. You will make use of a SKF when you are faced with a situation where it is not possible to
use any other conventional method or measure to arrive at the share of costs to be allocated to cost
centers.
Suppose that you are incurring a monthly expense of USD 5,000 in the cost center cafeteria, the cost of
which needs to be allocated to other cost centers. You can achieve this by the SKF. Imagine that you want
this to be allocated based on the number of employees working in each of the other cost centers such as
administrative office (50 employees) and the factory (200 employees). You will now use the number of
employees as the SKF for allocating the costs.
In SKF allocation, you have the flexibility of using two different SKF Categories; namely, Total value or
Fixed value. You will use fixed values in situations where the SKF does not change very often, as in the
case of the number of employees, area, etc. You will use total values in situations where the value is
expected to change every now and then, as in the case of power use or water consumption and the like.

1. First Go to FTXP, create a new Tax code and it should be Input in nature.

2. Go to FV12...maintain % for Tax Conditions, now first decide Wether it is Deductable or Non Deductable in Nature.

Suppose u want to maintain VAT

Used JVRN for Vat - Non deducatable & JVRD for Dedutable

For VAT, Go to FV12, select JVRN or JVRD as per our requirement .....select Tax Classification.....

maintain the % of the VAT..

For JVRD, Go to OB40, maintain G/L acct for JP5

3. For service Tax, maintain JSRT as told above.

1) Check calculation Procedure

1) Access Sequences JTAX, TAXJ, USTX, JST1 (Sequence - Plant/Vendor/Material,
Country/Region/PlntRegion etc)
2) Define Condition Types (BASB (Base), JSRT (Service), JVRD(VAT)
3) Define Procedure: entire calculation
Account Key (VS1, VS2) OB40 assignment of GLs
2) Assign country to calculation procedure
Indicator: Tax not deductible
Input Tax check also (VST) for Output tax (MWS)
Based on business a tax code designed/created as Non-Deductable or Deductable.The concept behind Nondeductable tax code is the amounts related on taxes add to inventory account and concept behind Deductable tax
code is the amounts related on taxes post to an separate G/L account(amounts related on tax NOT add to inventory
account).
In your case, during posting a document with tax code-if you are not getting a separate entry with a different G/L
account, then check following.
1. How tax condition maintained for a tax rate with your tax code with tax condition type(FV11)
2. Check properties of tax condition type and which account key assigned to that tax condition type in your tax
procedure(OBYZ).
3. Now check which Posting Indicator assigned to account key (OBCN)

4. Check any G/L account assigned accounting key (OB40) in case of Deductable purpose and if tax is NonDeductable in nature , then no G/L account assignment required.
Automatic bank reconciliation

http://scn.sap.com/docs/DOC-50621