Matériel

© 2016 sapficoconsultant.com. All rights reserved.
No part of this material should

be reproduced or transmitted in any form, or by any means, electronic or
mechanical including photocopying, recording or by any information storage
retrieval system without permission in writing from www.sapficoconsultant.com
“SAP” is a trademark of SAP AG, Neurottstrasse 16, 69190 Walldorf, Germany.

SAP AG is not the publisher of this material and is not responsible for it under
any aspect.
Warning and Disclaimer
While every precaution has been taken in the preparation of this material,
www.sapficoconsultant.com assumes no responsibility for errors or omissions.
Neither is any liability assumed for damages resulting from the use of the
information or instructions contained herein. It is further stated that the publisher
is not responsible for any damage or loss to your data or your equipment that
results directly or indirectly from your use of this product.
www.sapficoconsultant.com Page 2 SAP New GL Simple Finance

TABLE OF CONTENTS
1 Creating company code and its various assignments ............................... 6
1.1 Creating company code ...................................................................... 6
1.2 Maintain Fiscal Year Variant ............................................................. 10
1.3 Assign Company Code to a Fiscal Year Variant ............................... 12
1.4 Define Posting period Variant............................................................ 13
1.5 Assign Posting period Variant to Company code .............................. 14
1.6 Open and Close Posting Periods ...................................................... 16
1.7 Define Field Status Variants .............................................................. 20
1.8 Assign Company Code to Field Status Variants................................ 25
1.9 Define Tolerance Groups for Employees .......................................... 26
1.10 Assign Users to Tolerance Groups ................................................... 29
1.11 Define Company (Trading Partner) ................................................... 31
1.12 Assign company code to company.................................................... 33
1.13 Create Chart of accounts .................................................................. 34
1.14 Assign Company code to Chart of accounts ..................................... 38
1.15 Define Account Group ....................................................................... 39
1.16 Define Retained Earnings Account ................................................... 40
1.17 Create Additional sort keys ............................................................... 41
1.18 Enter Global Parameters ................................................................... 43
1.19 Define Translation Ratios for Currency Translation ........................... 46
1.20 Enter Exchange Rates ...................................................................... 48
1.21 Define Worklist for Exchange Rate Entry .......................................... 49
1.22 Assign Exchange Rate to the Worklist .............................................. 50
1.23 Define Document Number Ranges for Entry View (FBN1) ................ 51
1.24 Copy document number ranges to fiscal year (OBH2) ...................... 64
1.25 Define Document Types for Entry View (OBA7)................................ 67
1.26 Define Document Number Ranges for Entry View ............................ 73
1.27 Copying Company Code ................................................................... 80
1.28 Prepare Cross-Company Code Transactions.................................... 94
2 Ledgers ................................................................................................... 99
2.1 Define Accounting Principles............................................................. 99
2.2 Define Settings for Journal Entry Ledger......................................... 101
2.3 Define Ledger Group ....................................................................... 113
2.4 Assign Accounting Principle to Ledger Groups ............................... 116
2.5 Define Document Types for Posting in Controlling .......................... 117
2.6 Define Document Type Mapping Variants for CO Business
Transactions.................................................................................... 119
2.7 Check and Define Default Values for Postings in Controlling .......... 124
2.8 Define Ledger for CO Version ......................................................... 125
2.9 Define Document Types for Entry View in a Ledger........................ 127
2.10 Create GL account in Chart of accounts and company code .......... 134
3 Document splitting ................................................................................ 151
3.1.1 Classify G/L Accounts for Document Splitting ............................. 153
3.1.2 Classify Document Types for Document Splitting ....................... 158
3.1.3 Define Zero-Balance Clearing Account ....................................... 162
3.1.4 Define Document Splitting Characteristics for General Ledger
Accounting ............................................................................................ 165
3.1.5 Edit Constants for Nonassigned Processes ................................ 166

3.1.6 Activate Document Splitting ........................................................ 168
4 Profit Center in New GL ........................................................................ 172
4.1 Define Profit Center Standard Hierarchy in Controlling Area........... 172
4.2 Define Standard Hierarchy .............................................................. 173
4.3 Specify Time-Dependent Fields for Profit Centers .......................... 181
4.4 Create Dummy Profit Center ........................................................... 182
4.5 Define Segment .............................................................................. 182
4.6 Define Profit Center ......................................................................... 183
4.7 Assign Default Profit Center to Accounts ........................................ 189
5 Allocation .............................................................................................. 191
5.1 Define Field Usage for Distribution .................................................. 191
5.2 Define Field Usage for Assessment ................................................ 196
5.3 Create Actual Distribution (FAGLGA31) .......................................... 203
5.4 Create Actual Assessment (FAGLGA11) ........................................ 212
6 Define accounts for splitting price differences....................................... 219
7 Define accounts for splitting the Cost of Goods Sold ............................ 227
8 Tax Settings Sales / Purchase configuration ........................................ 236
8.1 Check Calculation Procedure .......................................................... 236
8.2 Assign Country to Calculation Procedure ........................................ 242
8.3 Define Tax Codes for Sales and Purchases (FTXP) ....................... 244
8.4 Assign Company Code to Document Date for Tax Determination .. 255
8.5 Specify Base Amount ...................................................................... 256
8.6 Define Tax Accounts (OB40)........................................................... 257
8.7 Assign Tax Codes for Non-Taxable Transactions ........................... 259
9 FI Integration with other modules.......................................................... 261
9.1 Integration with Materials Management........................................... 261
9.2 Integration with Sales and Distribution ............................................ 293
10 Foreign Currency Valuations ............................................................. 299
10.1 Create Exchange rate type for closing ............................................ 299
10.2 Configuration for Foreign currency Valuation .................................. 301
10.3 Define Valuation methods ............................................................... 301
10.4 Define Valuation Areas.................................................................... 314
10.5 Check Assignment of Accounting Principle to Ledger Group .......... 315
10.6 Assign Valuation Areas and Accounting Principles ......................... 315
10.7 Prepare Automatic Postings for Foreign Currency Valuation .......... 317
10.8 Define Account Determination for Currency Translation ................. 322
11 Configuration for regrouping postings ............................................... 324
11.1 Define Adjustment Accounts for GR/IR clearing.............................. 324
12 Creating Balance sheet and Profit and Loss account........................ 328
12.1 Define Financial Statement Version (FSV) ...................................... 328
13 Configuration for GL Automatic clearing ........................................... 338
13.1 Automatic Clearing .......................................................................... 338
13.2 Define Tolerance Groups for G/L Accounts..................................... 342
13.3 Assigning accounts for GL Clearing Differences ............................. 343
14 Set Company Code to Productive ..................................................... 345
15 Appendix ........................................................................................... 346
15.1 Delete G/L Account (OBR2) ............................................................ 346
15.2 Delete Chart of Accounts (OBY8) (Only for knowledge).................. 348

Configuration Scenario:
Universal Group of companies (Parent company) is a multinational company
with companies across the world with base in India. The company has
decided to implement SAP Simple Finance (S/4 HANA) for its subsidiaries in
USA and in India. Universal Group of companies has common chart of
accounts. The Parent company wants the accounts to be prepared based on
April to March year end i.e. April to March with IFRS reporting. The Group
reporting should be in INR. There could also be a future reporting requirement
in local companies to have the functional currency in some countries. There
will be intercompany transactions between the 2 company codes, so the need
to set up Intercompany settings between 2 company codes.
Universal Ltd. USA has a local reporting requirement under the US GAAP.
Based on the above requirements we need to configure the following within

Simple Finance.
Create company code 6600 – Universal Ltd for USA.

Company code currency 6600 - USD
Create company code 6650 - Universal Ltd for India.
Company code currency 6650 - INR
Parallel currencies to be implemented Group reporting and Global company
currency reporting (in case of functional currency requirements).
Common chart of accounts – INT
Ledger 0L (Group view) reporting period – April to March for group reporting
Ledger Y1 (additional ledger) for local reporting
Ledger Y2 (additional ledger) – appendix ledger for management

reporting

1 Creating company code and its various assignments
1.1 Creating company code
Company code is the basic organizational unit in FI (Financial accounting) for

which a balance sheet and profit & loss account can be drawn. We create
company code 6600 (Universal Ltd.) which is located in country USA.
For doing the configuration we use the following path on the SAP application
screen:-
SAP Menu  Tools  Customizing  IMG  SPRO - Execute Project 
Configuration for all the modules will be done here. The above path will
not be referred henceforth; we will directly refer to the IMG node.
SAP Customizing Implementation Guide  Enterprise Structure  Definition

 Financial Accounting  Edit, Copy, Delete, Check Company Code

Double click on Edit Company Code
By selecting the second option Edit Company Code data we have to manually
configure all the subsequent assignments.
By selecting the first option all the configuration and tables get copied
automatically along with assignments. This option should be selected in case
of rollouts where the new company codes are created by referencing an
existing company code.
In the Copy option we need to click on to copy a company code from an

existing company code. We can copy from existing company code delivered
by SAP.
We can select a four-character alpha-numeric key as the company code key.

This key identifies the company code and must be entered when posting
business transactions or creating company code-specific master data, for
example.

We will cover the FI configuration from scratch and not copying
configuration from an existing company code.
Click on and update the following fields:

The company code can be kept numeric or alpha numeric.
Country: The country where company code is located and the balance sheet
and income statement which will be prepared according to that country law.
Here the company is located in USA so, we have selected the country id US
(USA).
Currency: It is the local reporting currency of the country. In this case it is

USD since the company is located in USA.
Click on Address and update the following fields

Click
Click to save entry.
Thus company code 6600 is created in SAP.
1.2 Maintain Fiscal Year Variant
SAP Customizing Implementation Guide  Financial Accounting (New)

Financial Accounting Global Settings (New) Ledgers  Fiscal Year and
Posting Periods Maintain Fiscal Year Variant (Maintain Shortened Fisc.
Year)
You can define the following characteristics for a fiscal year variant in SAP.
How many posting periods a fiscal year has, how many special periods
you need, how the system is to determine the posting periods when
posting.
When defining your fiscal year, you have the following options:
• Your fiscal year is the calendar year

In this case, you must only select the Calendar year field.
• Your fiscal year is not the same as the calendar year and is not year
dependent
In this case, you first enter the number of your posting periods in the
Number posting per. field. To define your posting periods, select your
fiscal year variant and select Periods on the navigation screen. On this
screen, enter the month and the day of the period end and the period in
each case.
• Your fiscal year is not the same as the calendar year and is year-
dependent.
Enter the number of your posting periods in the field Number posting
periods and select the field Year-dependent. To define your posting
periods, select your fiscal year variant and select Periods on the
navigation screen. The system asks for which calendar year your year-
dependent fiscal year variant is valid. You then enter the month and
day of the period end for each of your periods, and the periods
themselves.
You can use the standard fiscal year variant K4 in SAP where the
financial accounting year corresponds to January to December.
In case the financial accounting year is April to March, you can use the
standard fiscal year variant V3 in SAP
You can copy and create new variants, but bear in mind it should
start with Y or Z as the starting character.
In our example we will use the standard SAP fiscal year variant
V3 (April to March)

1.3 Assign Company Code to a Fiscal Year Variant

Posting Periods Assign Company Code to a Fiscal Year Variant
The company code 6600 needs to be assigned to a Fiscal Year variant. This
controls which periods the company code will post data.

Assign company code 6600 to V3 fiscal year variant in SAP.
Thus Company code 6600 is assigned to fiscal year variant V3 in SAP.
1.4 Define Posting period Variant

Posting Periods Posting Periods  Define Variants for Open Posting
Periods
In this activity, you can define variants for open posting periods.

In the standard setting, a separate variant for posting periods is defined for
every company code. The name of this variant is identical to the company
code name. Every company code is allocated to this variant with the same
name.
Thus in our example we will have posting period variant which is identical to
the company code i.e. 6600
Click on and update the following fields.
Thus posting period variant 6600 is created.
1.5 Assign Posting period Variant to Company code

Posting Periods Posting Periods  Assign Variants to Company Code
The posting period variant 6600 now needs to be assigned to company code
6600.

Assign posting period variant 6600 to company code 6600
Update the following:-
Thus posting period variant 6600 is assigned to company code 6600 in SAP.

1.6 Open and Close Posting Periods

Posting Periods Posting Periods  Open and Close Posting Periods
In this activity you specify for each variant which posting periods are open for
posting in SAP.
New in Simple Finance

Three intervals are now available for doing this (period 1, period 2 and period
3). For every interval, enter a lower period limit, an upper period limit and the
fiscal year.
You can specify separately G/L account number ranges (as well as sub ledger
accounts). To do this, you specify the subledger account type, such as D or K,
and the corresponding reconciliation account.
In this way you can, for instance, close postings for customer accounts, but
allow postings for vendors and GL accounts.
You can use period intervals 1 and 2 for all normal posting processes in
regular and special periods. For period interval 1, you can enter a group of
authorized users. This means that, for month-end or year-end closing, for
example, you can open posting periods for specific users only. Period 1
interval should be used for special periods because authorization can only be
managed here.
Period interval 3 is used for postings from Controlling (CO) to Financial

Accounting (FI).
• If you do not make an entry for period interval 3, the check on these
postings is made from the real-time integration against period intervals
1 and 2.
• If you make an entry for period interval 3, the check on these postings
is only made against period interval 3.
You can copy the settings from existing company codes delivered by SAP as
follows:-

Notice the posting period variant pop up is also new in Simple Finance,
which means this table will not be locked when multiple users are using
it.
Click

Select the area
Click the Copy button.

Replace all 0001 with 6600
Used to control posting from CO to

FI real time integration postings
Click
Thus posting periods time intervals for various account types are created for
variant 6600 in SAP
Various account types in SAP are:-

A – Assets
D – Debtors
K - Creditors
M – Material
S - GL

1.7 Define Field Status Variants
IMG  Financial Accounting (New) Financial Accounting Global Settings

(New) Ledgers Fields Define Field Status Variants
You can define and edit field status variants and groups. You group several
field status groups together in one field status variant. You assign the field
status variants to a company code in the activity Assign Company Code to
Field Status Variants . This allows you to work with the same field status
groups in any number of company codes.
You can also define and process field status groups. You must define a field
status group in the company code-specific area of each G/L account. The field
status group determines which fields are ready for input, which are required
entry fields, and which are hidden during document entry. Bear in mind that
additional account assignments (i.e. cost centers or orders) are only possible
if data can be entered in the corresponding fields.
Field status variant 0001 is entered for company code 0001 in the standard
SAP software. Field status groups are already defined for this variant.
The field status group you enter in the reconciliation accounts affects postings
to the related customer or vendor accounts. You cannot enter a field status
group in the customer or vendor accounts. Field status groups are determined
for customer and vendor accounts from their respective reconciliation
accounts, via the G/L account number in their master records.
There are other factors, besides the field status group itself, which have an
influence on the field status. Among these are:
The field status defined for the posting key.
The status "optional entry field" was assigned to posting keys 40 and 50 in the
standard system. These are the standard posting keys for G/L account
postings. The "optional entry field" status has no effect on the field status.
Copy the Standard Field status variant 0001 to create new field status variant
6600. The field status variant 6600 can be attached to all the group company
codes of Universal Group. Since all the company codes within the group
should have same posting flow the field status group 6600 can be assigned to
all the group company codes.
Alternatively you could also create new field status variants for each new
company codes being rolled out.

Select the SAP standard variant
Click on Copy
And change the field status variant from 0001 to

6600

Click on Copy all

Click
Thus field status variant 6600 is created.

1.8 Assign Company Code to Field Status Variants

Financial Accounting Global Settings (New) Ledgers Fields Assign
Company Code to Field Status Variants
In this activity, you assign the company codes in which you want to use
identical field status groups, to the same field status variant.
Assign company code 6600 to field status variant 6600.

Enter field status variant 6600
1.9 Define Tolerance Groups for Employees
IMG  Financial Accounting (New)  General Ledger Accounting (New) 

Business Transactions  Open Item Clearing  Clearing Differences 
Define Tolerance Groups for Employees
We need to predefine various amount limits for our employees with which we
determine:
• the maximum document amount the employee is authorized to post
• the maximum amount the employee can enter as a line item in a

customer or vendor account
• the maximum cash discount percentage the employee can grant in a

line item

• the maximum acceptable tolerance for payment differences for the
employee.
Payment differences are posted automatically within certain tolerance groups.

This way the system can post the difference by correcting the cash discount
or by posting to a separate expense or revenue account.
In this respect you define:
• the amounts or percentage rates up to which the system is to

automatically post to a separate expense or revenue account if it is not
possible to correct the cash discount or
• up to which difference amounts the system is to correct the cash

discount. In this case the cash discount is automatically increased or
decreased by the difference. Using tolerance groups.
You can also additionally differentiate these settings by company code. Since
the same rules usually apply to a group of employees, enter the values for
employee groups. You can then enter amount limits and tolerances per
employee group and company code.
You can also define tolerances without specifying a tolerance group. Leave
the field Grp empty in this case. The stored tolerances are then valid for all
employees who are not allocated to a group. There must be at least one entry
for every company code.
You can also specify tolerances for clearing procedures depending on your
customers or vendors. The lower limits from the customer/vendor
specifications and employee group are taken in each case during clearing.
In our example we will define a blank tolerance group for company code 9100.
You can you use existing tolerance group from the sample company code.
Select company code 0001
and click on Copy

And replace company code 0001 with 6600
Click .
Double click on 6600 line item

The cash discount per line item for a user is 5% and he can post amount per
document to the above limits. Further the user can post per open item to the
above given limit.
The permitted payment difference for revenue and expense is 100 USD or 10
% whichever is lower.
Thus this is a blank tolerance and applicable to all user ids. If the company
wants to control posting per user id in a company code, then a tolerance
group needs to be defined e.g. ZMGR, ZEXE, ZSUP, ZCL and each groups
will have different limits.
The user ids in the next step have to be assigned to the tolerance group.
1.10 Assign Users to Tolerance Groups

Business Transactions  Open Item Clearing  Clearing Differences 
Assign Users to Tolerance Groups
The users have to be assigned to the tolerance group.
Click on

And update the user id and the tolerance group
In our example we have created a blank tolerance group therefore there is no

need to assign user to tolerance group.

1.11 Define Company (Trading Partner)

 Financial Accounting  Define company
Customizing object : V_T880
In the SAP system, consolidation functions in financial accounting are based

on companies. A company can comprise one or more company codes.
A company is also called as a Trading partner.
We will create a company for our company code 6600.
The trading partner is updated in the intercompany customer and

intercompany vendor master in the general view in the control tab as shown
below

The trading partner is updated in all the FI line items posted to the above
Customer. This helps in intercompany balance elimination during
consolidation.
Click on and update the following: -
Click on Save
Click on and update the following for company 6650 for Universal
India.

Click on
1.12 Assign company code to company
IMG  Enterprise Structure  Assignment  Financial Accounting 

Assign Company code to company
Customizing object : V_001_Y
Assign company code 6600 to company 6600 in SAP as shown below

Click on Save
1.13 Create Chart of accounts

G/L Accounts  Master Data G/L Accounts  Preparations  Edit Chart of
Accounts List (OB13)
For each company code in SAP, you have to specify one chart of accounts for
the general ledger. This chart of accounts is assigned to the company code. A
Chart of accounts can be used by multiple company codes. This means that
the general ledgers of these company codes have identical GL structure.
Here we define just a chart of accounts code in SAP. The GL codes are not
defined here.

You can create a new chart of accounts by clicking on
Normally each client creates its own chart of accounts, for simplicity let us use
the INT chart of accounts.
Double click on

Notice that the GL account length is 6 digits.
Let us change the maintenance language to English

Click to save changes

1.14 Assign Company code to Chart of accounts
SAP Customizing Implementation Guide  Financial Accounting (New) 

General Ledger Accounting (New) Master Data  G/L Accounts 
Preparations  Assign Company Code to Chart of Accounts (OB62)
The company code created by us needs to be assigned to a chart of

accounts. Let us assign our company code to INT chart of accounts.
Assign INT in the Chrt/accts field to company code 6600.

Thus Company code 6600 is assigned to INT chart of accounts in SAP.
1.15 Define Account Group

Master Data  G/L Accounts  Preparations  Define Account Group
(OBD4)
In order to organize and manage a large number of G/L accounts better in

SAP, they are arranged in account groups.
The accounts of an account group normally have similar business functions.
You could, for example, have an account group for cash accounts, one for
expense accounts, one for revenue accounts, and one for other balance sheet
accounts, etc.
Further you can control the numbering and restrict the creation of the GL
codes within the specified number range.
Here you can copy from the account group delivered by SAP for INT chart of
accounts or you can create new account group required as per customer
requirement.
Let us use the standard account group applicable for INT chart of accounts.
Note that there is a new account group called as Secondary

cost/Revenues.
You could also copy and create new account groups if required for your chart
of accounts.

1.16 Define Retained Earnings Account

General Ledger Accounting (New) Master Data G/L Accounts
Preparations  Define Retained Earnings Account (OB53)
You assign a retained earnings account to each P&L account by specifying a

P&L statement account type in the chart of accounts area of each P&L
account in SAP.
At the end of a fiscal year, the system carries forward the balance of the P&L
account to the retained earnings account in SAP. You can define one or more
P&L statement account types per chart of accounts and assign them to
retained earnings accounts.
Update chart of accounts INT in the given field
The retained earnings account is defined with X
Enter X in P& L statmt

Enter the account code for Retained earnings account.
Click
You will get a message “Account not created in chart of accounts YCCA”,
ignore it by pressing enter.
You need to create this GL code later on at the GL code creation stage.
The company code is now configured for General Ledger (GL) posting in
SAP.
1.17 Create Additional sort keys
IMG  Cross-Application Components Master Data Synchronization 

Customer/Vendor Integration Settings for Financial Accounting Account
Management  Determine Standard Sorting for Line Items
In this configuration, we determine rules by which the system fills the

Assignment field during document entry. Data can be transferred to the field
from the document header or from the line item. The field contents determine
the standard sort sequence for the line items. Every rule is stored under a
freely assignable key.
This sort key is updated in the GL account master records. This key is
proposed for the account when entering a business transaction.
Standard sort keys are available and sufficient; let us see the configuration of
SAP standard sort key 014.

Double click

1.18 Enter Global Parameters
IMG  Financial Accounting (New)  Financial Accounting Global Settings

(New)  Global Parameters for Company Code Enter Global Parameters
Here we can make various global specifications for the company code. In
addition, we can look at the most important specifications of the company
code at any time in the overview.

Double click

Update the Maximum exchange rate deviation to 10% and check the check
box for propose fiscal year, define default value date and no forex rate diff.
when clearing in LC.
We can also see other configuration assignments for company code 6600
here.
Click on

1.19 Define Translation Ratios for Currency Translation
SAP Customizing Implementation Guide  SAP NetWeaver  General

Settings Currencies Define Translation Ratios for Currency Translation
Here we enter the translation ratios for currency translation. These are
updated for each exchange rate type and currency pair. We can also specify
whether we want to use an alternative exchange rate type for specific
currency pairs.
Click

Click on

Click on
1.20 Enter Exchange Rates

Settings Currencies Enter Exchange Rates
Exchange rates are required to:
• Translate foreign currency amounts when posting or clearing or to

check an exchange rate entered manually
• Determine the gain and loss from exchange rate differences
• Evaluate open items in foreign currency and the foreign currency

balance sheet accounts
Click on

Click on
1.21 Define Worklist for Exchange Rate Entry

Settings Currencies Define Worklist for Exchange Rate Entry
Here we can create a worklist for entering and editing exchange rates.
Users receive authorization to enter exchange rates at the worklist level.

It is possible for two or more users to edit two or more worklists in parallel, as
the lock applies at the worklist level during editing.

Click on
Click on
1.22 Assign Exchange Rate to the Worklist

Settings Currencies  Assign Exchange Rate to the Worklist
Here we assign all exchange rates to a worklist that needs to be entered at

the same intervals and linked to same authorizations.
Click on

Click on
1.23 Define Document Number Ranges for Entry View (FBN1)

(New)  Document Document Number Ranges  Documents in Entry
View  Define Document Number Ranges for Entry View
Here we define the Accounting document number ranges for entry view

To copy from another company code:-
Click on copy and update the company to be copied from 0001 and
company to be copied to 6600.
Click

You get the following message:-
Click

The number ranges are not transported automatically. It is advisable that you
manually maintain number ranges in each system (quality, production).
Update company code 6600
Click on

The number range copied from standard is valid till infinity i.e. 9999 so we
need to make it valid for each year.
Use Menu Path:-

View  Copy to Fiscal Year

Click

Now again come back to Menu Path:-

View  Define Document Number Ranges for Entry View

Click on

Delete each interval valid for year 9999

Click

Likewise delete all the entries for year 9999
The number range id 03 with external tick is assigned to document type AF

(Depreciation posting document). This is valid in case of Classic Asset
Accounting.
For New Asset Accounting in Simple Finance the external tick should be
unchecked.

The external tick seen above is now removed for New Asset Accounting
Depreciation number range id 03 assigned to document AF (Depreciation
posting document type) as seen below.

Click on .
Thus Document number ranges are created for company code 6600. These
number ranges are year dependent.
1.24 Copy document number ranges to fiscal year (OBH2)

View  Copy to Fiscal Year
Every year you need to maintain the number ranges in FI for your company
code. This can be done by copying number ranges from earlier fiscal year.
This can be done using transaction code OBH2.


Click
Click

1.25 Define Document Types for Entry View (OBA7)

(New)  Document Document Types Define Document Types for Entry
View
Existing SAP Standard document types can be used. The only thing to ensure
is that the number ranges are correctly assigned to the document types
In this activity we create document types for customer, vendor and general
ledger business transactions in Financial Accounting. Document types
differentiate business transactions and control document filing.
We specify a number range for each document type. Document numbers are
chosen from this number range. We can use also one number range for
several document types.
Document types are valid for all clients. You specify a number range key for
each document type. You create the desired number range intervals for each
number range key based on the company code. This means that you can
specify intervals of different sizes for the same number range.
Under Define Document Types for Entry View, we make the document
type settings for postings in the entry view that affect all ledgers
(Leading and Non-leading ledger) and for postings to the leading ledger.

If you only work with one ledger (the leading ledger), proceed as
follows:
Define for all postings the document types in the entry view. Also assign
a number range to the document types.
If you work with a leading ledger and with non-leading ledgers,

proceed as follows:
Since the majority of postings has the same effect in all ledgers, define in
this IMG activity the document types for the entry view for postings that
affect all ledgers. Also assign a number range to the document types.
In the case of postings that do not have the same effect on all
ledgers, proceed as follows:
• Postings only for the leading ledger:

Define a separate document type for these postings. Assign a unique
number range to this document type.
• Postings for non-leading ledgers:

You make these settings under Define Document Types for Entry View
in a Ledger.
Example:
Document Type Z1, Closing Postings, Number Range 91

We will create document type Z1 for Non leading ledgers
Click on
Click on
Now update the document type Z1 in the field reverse document type

Click on
Click

Update the Document type description as shown below:-
Click on

1.26 Define Document Number Ranges for Entry View

(New)  Document Document Number Ranges Documents in Entry
View Define Document Number Ranges for Entry View
Here we define the document number ranges for the documents in the
General Ledger view.
Number ranges for documents in the General Ledger view may only be
issued internally by the system. Do not set the External Number
Assignment indicator for any of your ranges.
Click

Click

91 number range id will be used for document type Z1 in ledger Y1
Click on

Click on
Click on
Click and update no. range id 98 which will be used for doc type AA in
ledger Y1

Click on
Click and update no. range id 99 for document type DR in ledger Y1

Click on

Click and update Number range 95 for document type AF Depreciation
posting in ledger Y1.
Click on
Click and update number range 97 for document type UE (Data transfer)

Click on
1.27 Copying Company Code
IMG  Enterprise Structure Definition  Financial Accounting Edit,

Copy, Delete, Check Company Code
We now need to create the company code 6650 (Universal India Ltd.) so we
copy the settings from our company code 6600 which we created earlier.
Double click

Click on
From: Denotes the reference company code 6600 from which the settings are
to be copied
To: Denotes the target company code 6650 to which the settings are to be
copied.

Click

Important Note: As a practice we should not copy the GL account
company code data into the new company code, reason being the bank
accounts and company code specific accounts created in co. code 6600
will not be relevant for co. code 6650. GL accounts are manually loaded
for each company code separately. Hence No should be selected.
We are just copying it for a faster set up.
Click

Click

Click since INR is the local currency for co. code 6650.

Update INR as the currency

Click on to see the details of this message, which notifies the financial
management area, is not copied. Financial management area was not created
by us and hence we can ignore this message

Note: Number range should never be copied from another company code.
The number ranges are manually created in each company code in each
system i.e. Development, Quality and Production Systems.
Click on

The company code 6650 is now created.
We need to now edit the company code data by clicking the back button.

Double click
Double click

Change and update the following:-
Also update the detailed address
You will have to now create field status variant, posting period variant for this
company code which will be 6650 and assign it to the company code 6650.
Similarly you will have to also check all other settings for company code 6650
Assign company code 6650 to company 6650 as seen below:-

Click on
1.28 Prepare Cross-Company Code Transactions
IMG  Enterprise Structure Definition  Financial Accounting Edit,

Copy, Delete, Check Company Code
A cross company code transaction can only be posted if there are no tax
implications on the postings between the 2 company codes. If there are tax
implications then the cross company code postings cannot be used. Ideally it
should be used for company codes located within the same country.
This configuration will enable us to post cross company code transactions as

shown below
For example:-
Company code 6600 is booking expense on behalf of company code 6650.
1) The Vendor Invoice is booked in company code 6600 as follows:-
Co. code Account Debit Amount Credit Amount

6600 Vendor 100000 5000 USD
6650 Research exps. 5000 USD
When the above document is saved an intercompany transaction is

automatically posted between the 2 company codes as follows:-
In co. code 6600

6600 Vendor 100000 5000 USD
6600 Customer 6650 5000 USD
In co. code 6650

6650 Vendor 6600 5000 USD
6650 Research exps 5000 USD
Let us proceed with the configuration of inter company.

Posting key 01 for customer(receivable) and Posting key 31 for

Vendor(payable)
Click on

Click to ignore the warning messages since the intercompany customer and vendors have not
been created so far.
Click to ignore

Click to ignore
Click to ignore
Click on again
2 Ledgers
2.1 Define Accounting Principles

Financial Accounting Global Settings (New)  Ledgers  Parallel
Accounting  Define Accounting Principles
Here we define our accounting principles. We then assign the desired ledger
group to the accounting principles.
Some of the accounting principles already available as below

Let us create a local accounting standard
Click on
Click on
We use the accounting principle IFRS GAAP (management reporting) and

ZLOC for local reporting.

2.2 Define Settings for Journal Entry Ledger

(New)  Ledgers  Ledger  Define Settings for Journal Entry Ledger
Only one ledger can be designated leading ledger. All company codes are
assigned to the leading ledger
There are two types of ledger:
• Standard: A standard ledger contains a full set of journal entries for all
business transactions.
• Appendix: The appendix ledger is a new concept in Simple Finance.

The appendix ledger is assigned to a standard ledger and inherits all
journal entries of the standard ledger for reporting. Postings made
explicitly to an appendix ledger are visible in that appendix ledger but
not in standard ledger. This concept is useful to avoid duplication of
journal entries if many business transactions are valid for both the
ledgers and only a few adjustments are required in the appendix ledger
at month end.
0L is the Leading Ledger.
Select 0L

Double click
Update the group currency
Note: This can be updated once the controlling area is defined and the group
currency is assigned therein. Group currency must be updated in the client
currency definition and can be seen using transaction code SCC4.
Update the global currency,
Note: This can be updated once the company is defined and assigned to our
company code.

: This is a new indicator that the account
approach is used in the company code settings for the ledger. This helps to
provide additional information when assigning more than one accounting
principle to a combination ledger and company code.
Click on
Double click

Click on

The Accounting principle IFRS is assigned for leading ledger.
Click on
Click and come to the main screen
Let us now creating the Non leading ledger (Y1) for local reporting
Click on

Click on

Click
Select the ledger Y1
And Double click

Click on
Double click

Click on
Click on

Let us now create an appendix ledger Y2.
Click on
We update the Base Ledger as 0L
Click on

Select
Double click

Double click
Click
Double click
Click on

Update the following
Click on
2.3 Define Ledger Group

(New)  Ledgers  Ledger  Define Ledger Group
A ledger group is a combination of ledgers for the purpose of applying the

functions and processes of general ledger accounting to the group as a
whole.
When posting, for example, we can restrict the update of individual postings to
a ledger group so that the system only posts to the ledgers in that group.
We can combine any number of ledgers in a ledger group. In this way, we
simplify the tasks in the individual functions of General Ledger Accounting.
When a ledger is created, the system automatically generates a ledger group
with the same name. In this way, we can also post data to an individual ledger
or access it when using functions where we can only enter a ledger group and
not ledgers.
We can change the name of the ledger group that was taken from the ledger.
We only have to create those ledger groups in which we want to combine
several ledgers for joint processing in a function.

.
Representative Ledger of a Ledger Group

The system uses the representative ledger of a ledger group to determine the
posting period and to check whether the posting period is open. If the posting
period for the representative ledger is open, the system posts in all ledgers of
the group, even if the posting period of the non-representative ledgers is
closed. Each ledger group must have exactly one representative ledger:
If the ledger group has a leading ledger, the leading ledger must always be
identified as the representative ledger.
If the ledger group does not have a leading ledger, we must designate one of
the ledgers as the representative ledger. If the ledger group has only one
ledger, this ledger is then the representative ledger. If the ledger group has
more than one ledger, the system checks during posting whether the
representative ledger was selected correctly. This check is based on the fiscal
year variant of the company code:
We do not want to group the ledgers; therefore we do not do any

configuration here. But we see the existing ledger groups create
automatically by system while creating the ledger.
Select
Double click

Select Y1
Double click
2.4 Assign Accounting Principle to Ledger Groups

(New)  Ledgers  Parallel Accounting  Assign Accounting Principle to
Ledger Groups
You assign the desired ledger group to your accounting principles.
This one is already assigned

Click on
Click on
2.5 Define Document Types for Posting in Controlling

(New)  Ledgers  Integration of Controlling with Financial Accounting 
Define Document Types for Postings in Controlling
Note: This is a new configuration step in Simple Finance.
With Simple Finance, Controlling business transactions use document types.
Here we can create different document types for postings in Controlling. SAP
has provided the new document type CO as an example.

This document type is used for:-
1) We can use for the manual reposting of primary costs within
controlling
2) Any postings coming from CO to FI (CO-FI real time integration
postings) will be posted with this document type.
.

2.6 Define Document Type Mapping Variants for CO Business
Transactions
IMG  Financial Accounting (New) Financial Accounting Global Settings

Define Document Type Mapping Variants for CO Business Transactions
This is a new configuration step in Simple Finance.
Here we define a mapping variant that maps CO business transactions to

document types. This mapping must be done for all CO business transactions
that do actual postings.
Document types can be specified on the following levels:-

- Company code via different document type mapping variant
- Controlling business transactions

- Normal posting and cross company postings can have separate
document types per business transaction as well.
Select
Click

And update the following:-

Click
Click

Click on
Now select Z000000001
And double click

Notice that the document type CO is assigned to all the CO Business
transactions.
2.7 Check and Define Default Values for Postings in

Controlling

Check and Define Default Values for Postings in Controlling
This is a new configuration step in Simple Finance.
Here we define default values for use in CO business transactions.

This is useful when user interfaces do not allows entering a document type or
a ledger group for posting purpose.
If we do not enter a default ledger group, all CO postings will be done to all
G/L ledgers which is the standard setting as well.

Click on
We are not updating a default ledger group and as such the postings will flow
to all ledgers.
Note: Normally 0L (Leading ledger) is assigned as the Default Ledger Group
Click on
2.8 Define Ledger for CO Version

Define Ledger for CO Version
Here we define a ledger that represents Controlling. A ledger that contains all
postings of actual data that is relevant to Controlling.
This is done by assigning the version 0 to a ledger. We do this on a company
code level, but we have to use the same ledger for all company codes.

The current restriction is that the version 0 must be assigned to the leading
ledger for all company codes that are assigned to a Controlling area.
Note: This setting can only be done once controlling area settings are in
place.

2.9 Define Document Types for Entry View in a Ledger

(New)  Document Document Types Define Document Types for Entry
View in a Ledger
Here, we specify the document type for postings to non-leading ledgers.
Set up a separate document type for these postings. Assign a unique number
range to this document type for each ledger.
GL and AA Entries which are getting posted in the non leading ledger through
separate document types needs to be updated in the Non Leading Ledger
So for example we will need to maintain the following document types:-
KR – Vendor Invoice
DR – Customer Invoice
AA – Asset posting
AF – Asset depreciation posting
UE – Data transfer
For a specific posting into the non leading ledger let us create and assign the
document type Z1 for closing postings with number range 91
By segregating the ledger-related postings (here, for the non-leading ledgers)

in a separate number range, we ensure the contiguous assignment of
document numbers at the ledger level for each number range.
Within a ledger group, the representative ledger determines the document
types and number ranges applied. For this reason, we cannot perform this
IMG activity for a ledger group.
If we use a ledger group to make account assignments for postings, it is only
possible to verify that document numbers are assigned contiguously at the
ledger level for the representative ledger.

Click
Click on
Click on
Click twice
Update the ledger Y2
Click on

Click on
Click on

Click on

Click on

Click on
Click on

Click on

2.10 Create GL account in Chart of accounts and company
code
The GL Code in SAP has two segments:-
1) The Chart of accounts segment – The chart of account segment is at

client level. Any company code wishing to use the GL code can extend
it and create a company code view
2) The Company code segment – A company intending to use the GL
code from chart of accounts has to create the company code view so
that it can post to the GL code.
Thus there are 2 methods of creating GL codes in SAP:-
1) One step creation – Here you create both the chart of accounts view as
well as the company code view in one step
2) Two-step creation – You first create the chart of accounts view in the
first step. In the second step you create the company code view.
3) We will see the GL code creation using the one step creation:-
Path on SAP menu

SAP menu  Accounting  Financial AccountingGeneral LedgerMaster
Records G/L Accounts  Individual Processing FS00 – Centrally
Click on and enter the following

Click on

Click on

Click to save GL Code
Let us create a GL code for Vendor
Click on and Update the following:-
Click on

In the above screen we select Recon. account for acct type as Vendors.
No line item display is required, since line items are managed in the Accounts
Payable module.
Click on

Click on
Similarly you can create GL code for Customers, the only thing different you
need to do is update Recon. account for acct type as Customers
Let us now create a GL code for Asset

Click on

Here in the Recon. account for acct type select Assets
Click

Click on
Note: In Simple Finance the GL account and cost elements have now been
merged, so cost element category needs to be selected in the GL account.
Cost element creation transaction codes such as KA01 are no longer valid in
Simple Finance. This GL account can only be created once controlling area
settings are done.
Let us now create a GL code for P & L item i.e. an expense account.

The account type: Primary Costs or Revenue must be selected
The Account group: P& L Statement Accounts must be selected
Click

For expense accounts the cost element category is 1
For revenue accounts the cost element category is 11
For sales deductions accounts the cost element category is 12.
Click

Click on
Click to create a secondary cost element (Assessment cost element)

Account type: Secondary costs Account group: Secondary Costs/Revenues
Click

Select Cost element category 42 - Assessment

Click on

SECC – Secondary costs is a new field status group for secondary costs and
must be selected.
Click on
Thus both primary and secondary cost elements now have to be created
through transaction code FS00 (Create GL accounts)

Likewise you need to maintain various settings for each GL account.
3 Document splitting
Document splitting procedure can be used to split up line items for selected
dimensions (such as receivable lines by profit center) or to effect a zero
balance setting in the document for selected dimensions (such as segment).
This generates additional clearing lines in the document. Using the
document splitting procedure is the prerequisite for as well as an
essential tool for drawing up complete financial statements for the
selected dimensions at any time.
We can choose between displaying the document with the generated clearing
lines either in its original form in the entry view or from the perspective of a
ledger in the general ledger view.
For document splitting to be possible, the individual document items and the
documents must be classified. Each classification corresponds to a rule in
which it is specified how document splitting is to occur and for which line
items.
SAP delivers a set of standard rules that should usually prove sufficient. If not,
we can define our own set of rules and adapt these according to our needs.
Example
Example 1: Invoice
Suppose a vendor invoice containing the following items is entered:
Account Segment Debit/Credit Amount

Payables Credit 100
Expense 0001 Debit 60
Document splitting then creates the following document in the General Ledger
view:

Payables 0001 Credit 60
Payables 0002 Credit 40
Example 2: Payment
The payment for the above vendor invoice then contains the following items
when entered:

Bank Credit 95
Payables Debit 100
Cash discount recd Credit 5
Document splitting then creates the following document in the General Ledger
view:

Bank 0001 Credit 57
Bank 0002 Credit 38
Payables 0001 Debit 60
Payables 0002 Debit 40
Cash discount recd 0001 Credit 3
Cash discount recd 0002 Credit 2

3.1.1 Classify G/L Accounts for Document Splitting

General Ledger Accounting (New)  Business Transactions  Document
Splitting  Classify G/L Accounts for Document Splitting
Customizing object : V_T8G17
Each business transaction that is entered is analyzed during the document

splitting procedure. In this analysis, the system determines for each line item
whether it is an item that remains unchanged or an item that should be split.
In order that document splitting recognizes how the individual document items
are to be handled, we need to classify them. We do this by assigning them to
an item category. The item category is determined by the account number. In
this IMG activity, we need to assign the following accounts in the system:
Revenue account
Expense account
Bank account/cash account
Balance sheet account
The classification of all other accounts is known to the system, so we do not
have to enter them here. We can enter an account interval since the system
recognizes SAP-specific classifications and does not allow SAP settings to be
overwritten by our own settings.
The following item categories are included in the system:
• Customer
• Vendor
• Cash discount offsetting
• Asset
• Material
• Expense
• Revenue
Item categories are included in the standard SAP System.

Click on

Click

Click

Technical clearing account is a new system requirement in New Asset
Accounting and needs to be classified as Fixed Assets.
Click on
3.1.2 Classify Document Types for Document Splitting

Splitting  Classify Document Types for Document Splitting
Every business transaction that is entered is analyzed during the document

splitting process. In this process, the system determines which splitting rule is
applied to the document. In order that the system can determine the splitting
rule, we must assign a business transaction variant to each document type.
To ensure that a splitting rule is used appropriately, the relevant documents

must meet certain requirements. These requirements relate in particular to
certain item categories that either must or must not be available. This
information is specified for each business transaction variant and is checked
against the current document during posting. If the document does not meet
these requirements, the system rejects the posting.
The accounting transaction 0200 (customer invoice), variant 0001 (standard),
is delivered. In this accounting transaction, the following item categories are

allowed: customer, value added tax, withholding tax, expense, revenue,
exchange rate differences, and company code clearing.
With the document types delivered in the standard system, SAP delivers a
classification for document splitting. This classification is a proposal that we
need to check against how our document types are organized. We need to
check whether the classification or assignment to a business transaction
variant produces the desired result in document splitting.
SAP includes business transactions in the standard system. The item

categories that are allowed for each accounting transaction are also defined.
Accounting transaction variants are also included. These are additional
limitations of the accounting transaction.
We cannot define additional business transactions. However, we can define

our own business transaction variants to the standard business transactions.
Document splitting is essentially controlled by the document type. We should

therefore ensure that the documents used for business transactions are
assigned uniquely in document splitting to a business transaction variant and
in this way to a splitting rule.
We may therefore be required to introduce more document types.
Example:
The document type SA is assigned to business transaction 0000 Unspecified

Posting with variant 0001.
In the methods delivered, no splitting rules are defined for the business
transaction variant Unspecified Posting (with the exception of company code
clearing). If an account assignment is expected in these documents, it has to
be specified for all lines. This means that the system does not project any
account assignments to non-assigned lines due to the absence of a splitting
rule.
However, this document type is generally used for a large variety of business
transactions that would also have to be treated differently in document
splitting. In such cases, it is necessary to define additional document types
and to assign them to the specific variants.

Standard SAP Setting as seen below:-
Click on

Update the following in document type Z1 for document splitting
Click on

3.1.3 Define Zero-Balance Clearing Account

Splitting  Define Zero-Balance Clearing Account
For account assignment objects for which we want to have a zero balance
setting, the system checks whether the balance of account assignment object
is zero after document splitting.
If this is not the case, the system generates additional clearing items. In this
activity, we have to create a clearing account for these additional clearing
items.
Select
Double click

Click
Click on

Click on

3.1.4 Define Document Splitting Characteristics for General
Ledger Accounting

Splitting  Define Document Splitting Characteristics for General Ledger
Accounting
Here we specify for which characteristics we want to perform document

splitting in General Ledger Accounting.
We can define the following:
 Whether we want to apply a zero balance setting for the characteristic

 Whether we want to use a partner field to document a sender/receiver
relationship in the clearing lines generated additionally in the document
 Whether we want the characteristic to be a required entry field
(whereby the system only accepts postings when this field can be filled
with a value from the document splitting)

Click on
3.1.5 Edit Constants for Nonassigned Processes

Splitting  Edit Constants for Nonassigned Processes
Here we define default account assignments (for example, a default segment)

for specific line items in processes for which it is not possible to derive the
correct account assignments at the time when the document is posted. This is
the case if the required information is not yet available when the posting
occurs.
Example
The segment can be used as an example of an account assignment: For a
cash receipt from a customer that is posted to a house bank account, it is not
immediately known which invoices are to be paid by this cash receipt.
Step 1:
Since no additional information is available at the time of posting, the account
assignment must be made to a default segment.
Account Segment Amount
Checking Account Default 2000

Cash Receipt Default -2000
Step 2
The cash receipt account is then posted against the customer (with clearing of
the customer). In this way, the correct segment(s) can be determined from the
cleared invoice.
Account Segment Amount
Cash Receipt 0001 2000
Customer 0001 -2000
Step 3
Finally, both items on the cash receipt account are cleared against each
other. Since both positions are assigned to different segments, corresponding
clearing items must be generated on the cash receipt account.
If a zero balance is required for a segment, additional line items that set the
document balance per segment to zero are generated on a clearing account
defined in Customizing. These clearing items reflect the correction of the
segment information on the checking account. However, it is no longer
possible to determine the correct checking account. This could be ambiguous
in more complex cases than this example. It is therefore useful to assign the
clearing account in the balance sheet to the checking accounts.
Generally this is not the case always and therefore we do not do any
configuration here.

3.1.6 Activate Document Splitting

Splitting  Activate Document Splitting
Here we activate document splitting. The splitting method used is that

delivered by SAP as standard, which contains the splitting rules for the
different business transactions. If this splitting method does not meet our
requirements, we can first define and then select our own method in

Customizing for document splitting. We do this under Extended Document
Splitting  Assign Splitting Method
.
The activation then applies for the entire client. We can explicitly exclude
individual company codes from document splitting. This means, however, that
we are then no longer able to create any cross-company-code transactions
containing company codes that have divergent settings for document splitting
Click
Click

Click
Automatically method 12 gets selected.
Inheritance is useful in offsetting accounts where profit center is not explicitly

entered by a user.
For example:-
Expense a/c debit with Cost center (profit center)
Cr Cash a/c
The Cash a/c inherits the profit center from the expense line item
automatically.

Click on
Deactivation of document splitting can be done at company code level

4 Profit Center in New GL
4.1 Define Profit Center Standard Hierarchy in Controlling
Area

General Ledger Accounting (New)  Master Data  Profit Center  Define
Profit Center Standard Hierarchy in Controlling Area
Here we specify for each controlling area the name of the relevant standard
hierarchy for organizing the profit center master data.
On saving, the system creates the standard hierarchy automatically.

Click on
4.2 Define Standard Hierarchy

General Ledger Accounting (New)  Master Data  Profit Center  Define
Standard Hierarchy
The standard hierarchy is a tree structure for organizing all the profit centers
belonging to a controlling area. In the standard hierarchy, there are two types
of node as structure elements:
• Profit centers can be assigned directly to an end node.
• Summarization nodes do not themselves contain profit centers.

Instead, they summarize other nodes (end nodes or summarization
nodes).


Click on
Click on
Click on

Click on Save
Click on
Click

Click on
Click on
Click on
Click on

Click on
Click on
Click

Click on
Click on

Click on

4.3 Specify Time-Dependent Fields for Profit Centers

General Ledger Accounting (New)  Master Data  Profit Center  Specify
Time-Dependent Fields for Profit Centers
The settings delivered with the standard SAP system should be sufficient.
The SAP system stores a separate master record for each period of validity if
the time-based fields differ in the two periods. Note that this method of
storage can lead to very large data volumes. Consequently, we should only
define the most important fields as time-based.
Select the fields we wish to define as time-based. If we check off the flag next
to a field, that field will be defined as time-based in the master data table (the
content can differ for different time periods).

4.4 Create Dummy Profit Center

General Ledger Accounting (New)  Master Data  Profit Center  Create
Dummy Profit Center
The dummy profit center is updated in data transfers whenever the object to
which the data was originally posted (cost center, order, and so on) is not
assigned to a profit center. This ensures that the data in Profit Center
Accounting is complete. We can later send the data on the dummy profit
center to the other profit centers using assessment or distribution.
We do not create any dummy profit center since we have switched on

profit center as mandatory characteristic in the configuration step
Define Document Splitting Characteristics for General Ledger
Accounting.
4.5 Define Segment

 Financial Accounting  Define Segment
Here we define our segments.
The segments can then be entered in the associated record of a profit center.
The segment is then derived from the assigned profit center during posting.
Click on

Update the following
Click on
4.6 Define Profit Center

 Financial Accounting  Define Profit Center
Profit center can also be created from the application menu using
transaction code KE51 (Path: Accounting  Financial Accounting  General
Ledger  Master Records  Profit Center  Individual Processing  KE51 -
Create
Note: We cannot create a profit center unless a controlling area is

configured and assigned to our company code. Proceed to configure
controlling area 6600 and then come back to create profit center.
A segment can be combination of various profit centers. Thus a single

segment can be assigned to multiple profit centers.

Double click
In case we get a pop up for Controlling area update 6600.

Click on

Update the segment as shown above

Click on to activate the profit center.
Click
Double click
Click

Click to activate profit center

4.7 Assign Default Profit Center to Accounts

General Ledger Accounting (New)  Master Data Profit Center  Assign
Default Profit Center to Accounts (Tcode:FAGL3KEH)
Here we can enter a default profit center for each company code and account
interval.
This profit center is derived under the following conditions:
 No profit center is specified in the posting
 A profit center cannot be derived from the cost element (such as on the
basis of the cost center or the order)
This means that derivation is only useful for P&L and balance sheet accounts
in cases where the profit center cannot be derived or specified.
We should only enter default profit centers for accounts that are not
intended for document splitting.

Click on

The above GL code is a Petty Cash account.
Click on
5 Allocation
5.1 Define Field Usage for Distribution

General Ledger Accounting (New) Periodic Processing Allocation 
Define Field Usage for Distribution

Here we define which table fields are used as sender or receiver fields for the
distribution. We also define whether single values, intervals of values, or
sets can be entered in the relevant field.
We must enter the company code as a single value at the cycle level so that
the allocation is processed without any problems.
A cross-company code distribution is not possible is within New GL. The

allocation must always take place within a company code.
Double click

Double click

Double click


Click on
In transaction FAGLGA31 the cost center will now appear as follows as sender and receiver.
5.2 Define Field Usage for Assessment

General Ledger Accounting (New) Periodic Processing Allocation 
Define Field Usage for Assessment
Here we can define which table fields are used as sender or receiver fields for
the assessment. We also define whether single values, intervals of values, or
sets can be entered in the relevant field.
We must enter the company code as a single value at cycle level, so that the
allocation is processed without any problems.
A cross-company code assessment is not possible within New GL. The

allocation must always take place within a company code.

Double click

No cost center is available in the assessment cycle below

Because of this setting below, double click on Cost center


Click on

5.3 Create Actual Distribution (FAGLGA31)

General Ledger Accounting (New)  Periodic Processing  Allocation 
Create Actual Distribution
Here we define rules for clearing data on the appropriate accounts in actual.
We define the rules in the form of cycles.


Change and update the following:-
Click and update the following: -

Click

Click

Click and update the following: -
Click

Click

Click on
5.4 Create Actual Assessment (FAGLGA11)
SAP Customizing Implementation Guide  Financial Accounting (New)

General Ledger Accounting (New)  Periodic Processing  Allocation 
Create Actual Assessment

Here we define rules for clearing data in planning. We define the rules in the
form of cycles.
Unlike during distribution, the original data is not updated on either the sender
side or the receiver side. Instead, assessment uses one or more assessment
accounts set up specifically for this purpose.
We need to create one gl code and designate it as assessment GL

account
Click


Click and update the following:-
Click and update the following:-

Click

Click on
Click on Cycle  Check  Formal Check

6 Define accounts for splitting price differences
SAP Customizing Implementation Guide Financial Accounting (New) 
General Ledger Accounting (New)Periodic Processing
IntegrationMaterials Management  Define Accounts for Splitting Price
Differences
This is a new configuration step in Simple finance
When the costs of producing materials are valuated based on standard prices,
production variances can occur on production orders where there are
differences between the actual costs and the target costs. These production
variances are calculated in Product Cost Controlling (CO-PC) and are split
into different variance categories. Depending on the reason for the
differences, the system calculates the production variance, for example, price
variances, quantity variances, lot-size variances, and scrap.
With the settlement of the production orders, we can post the production
variances to Financial Accounting (FI) and Profitability Analysis (CO-PA). The
amount settled to CO-PA can be settled to different variance categories so
that after settlement we can display the single-variance categories in different
value fields in costing-based CO-PA.
The amount settled to FI is shown as one total amount on a G/L account for
price differences. This account is defined in the account determination
settings for material movements. The variance categories and therefore the
reasons for the variances can normally not be reflected in this FI posting.
With this customizing activity, we can define the FI posting to show the
different variance categories for each cost element on different G/L accounts
allowing us to show, for example, in our income statement, the reasons for the
production differences.
In account determination for material movements, we have defined the G/L

account 231500 for price differences. We refine this setting by creating a
splitting scheme as follows:

Click on

Click on

Select
Double click

Click on
Take a drop down in the field Cost element category

Click on
Click
Click on

Click
Likewise update all of the following:-

Note: We have to create various GL codes for posting the price
difference to various GL codes.
Set default indicator to any of the above lines, if any of the relevant price
categories are not found system will post to this default gl code
Click on
Double click on

Click on
Click on
7 Define accounts for splitting the Cost of Goods Sold

SAP Customizing Implementation Guide Financial Accounting (New) 
General Ledger Accounting (New)Periodic Processing
IntegrationMaterials Management  Define Accounts for Splitting the Cost
of Goods Sold
This is a new configuration step in Simple finance
By default, the cost of goods sold is posted to a single COGS account as

defined in the account determination settings for material movements. The
standard cost component split for the sold material is not reflected in the
posting. This breakdown is reflected in the costing based CO-PA in the
various value fields.
In Simple Finance we can refine the settings for COGS postings to split the
COGS amount and post it to different accounts according to the cost
component elements that are used in the Product costing component
structure.

Click on
Define a splitting Scheme as shown below:-
Click on

Select the splitting scheme as shown below
Double click
Click on

893010 is the COGS account which is originally posted and is assigned in

transaction code OBYC in transaction key GBB and general modification key
VAX
Product costing cost component structure
New GL accounts created to break down the COGS values
Default set in case it is not able to get a breakdown of the cost component
structure to GL code 400100.
Click on
Double click on
Click on

Click on
Create GL codes as follow for the New COGS

8 Tax Settings Sales / Purchase configuration
8.1 Check Calculation Procedure

(New)  Tax on Sales/Purchases Basic Settings  Check Calculation
Procedure
Tax procedures are available in SAP for most of the countries.

Double click

Scroll down to check the tax procedures for USA

Select the tax procedure
Double click

Various account keys are assigned to the tax condition types as seen above

For US Vertex is generally used for calculating taxes.
8.2 Assign Country to Calculation Procedure

(New)  Tax on Sales/Purchases Basic Settings  Assign Country to
Calculation Procedure
In this step we assign the calculation procedure created in the earlier step to
the country. The country is the country of the company code.
In our case the country of the company code is USA.

8.3 Define Tax Codes for Sales and Purchases (FTXP)

(New)  Tax on Sales/Purchases Calculation Define Tax Codes for
Sales and Purchases
We will see 1 tax code for purchases (input tax):-
V0 – 0%
V1 – 10 % deductible
V2 – 10 % non deductible
Click

Click

Click on


The account key (transaction key) is created here

Transaction code is OBVU
Double click VS1

Note:
The field Not deductible is switched on.
Posting indic. 2 Separate line item for tax
Let us see the configuration of transaction key NVV
Double Click on

NVV is not deductible
Posting indic. – 3 (Distribute to relevant expense/revenue items)
Let us see the configuration of Acct key MWS
Double click

Let us see AR tax code

8.4 Assign Company Code to Document Date for Tax
Determination

(New)  Tax on Sales/Purchases  Calculation  Assign Company Code to
Document Date for Tax Determination
Here we specify whether the baseline date for determining the tax
percentages should be the posting date (default date) or the document date.

The system usually takes the posting date for this purpose. However, if we
want the system to determine tax percentages on the basis of the document
date, we must configure the system accordingly at this point.
We do not want document date, so we do not select this setting.
8.5 Specify Base Amount

(New)  Tax on Sales/Purchases  Calculation  Specify Base Amount
Here we specify whether cash discounts are deducted from the base amount
used for calculating tax on sales/purchases for each company code. If the
cash discount amount should not be included in the base amount for tax
calculation, select the TaxBaseNet indicator (tax basis is net value).
We do not want tax base as net, therefore we do not select this.

8.6 Define Tax Accounts (OB40)

(New)  Tax on Sales/Purchases  Posting Define Tax Accounts
Here we assign tax accounts to the transaction keys
Double click

Click on

8.7 Assign Tax Codes for Non-Taxable Transactions

(New)  Tax on Sales/Purchases  Posting Assign Tax Codes for Non-
Taxable Transactions
Here we define an incoming and outgoing tax code for each company code, to
be used for posting non-taxable transactions to tax-relevant accounts.
Transactions posted like this are, for example; goods issue delivery, goods
movement, goods receipt purchase order, goods receipt production order,
order accounting.

Update the following tax codes:-
Click on

9 FI Integration with other modules
9.1 Integration with Materials Management
Any transaction in MM with the respect to material movements happens with a

movement type. Each Material movement such as goods receipt against
purchase order, goods issue to production order, scrapping of goods, transfer
of goods, goods issue for sale, initial stock upload, has a Movement type
defined in the system.
Thus the various account assignments (transaction keys) are linked to an

MM movement type.
In the Material master we have various views such as the Basic view,
purchasing view, Sales view, MRP view, Quality view, the Accounting and
the costing view.
In the Accounting view of the Material master we update the valuation class.
Each material type will have a certain valuation classes. The valuation class
will determines the GL codes for the stock postings.
Let us understand the linkages of valuation class first:-
Group Together Valuation Areas
IMG  Materials Management  Valuation and Account Assignment 

Account Determination  Account Determination Without Wizard 
Group Together Valuation Areas
Here we group together valuation area (Plant) to a valuation grouping code.

This step is necessary if we want to assign GL accounts based on valuation
area. This helps us in having different GL codes for each valuation area.
You can have separate valuation grouping code per plant in case you want to
have different GL codes to be posted plant wise.
We use the sap standard valuation grouping code 0001 for our plant 6600.

Click on
Now valuation grouping code 0001 is active for plant 6600, company code
6600 for chart of accounts INT.
Define Valuation Classes

Define Valuation Classes
Here we define which valuation class will be allowed for a material type.
Valuation class is a group of materials with the same account determination.

Several valuation classes are generally allowed for one material type. A
valuation class can also be allowed for several material types.

Click

These are the standard account category references available
Click
Click

Here we define the Valuation class and link it to the account category
reference.
Click
Click

Here Material type is linked to account category reference.
Thus we have now understood how valuation class is linked to a

material type.
All the account assignment is done to the valuation classes defined above.

The relevant valuation classes for our configuration are as follows:-
Material type Material type Valuation class Account

description category ref
ROH Raw Material 3000 0001
VERP Packaging 3050 0004
HALB Semi-finished 7900 0008
product
FERT Finished product 7920 0009
HAWA Trading goods 3100 0005
Let us understand a few MM transactions and its accounting integration:-
1) 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:-
Inventory of Raw Material Debit
GR/IR (Goods Receipt/Invoice Receipt) Credit
The GR/IR is a provision account in SAP.
The configuration to be done for this entry is as follows:-

Configure Automatic Postings (OMWB)
Or
Type in transaction code OBYC

Click

We 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.
Valuation modif. - Should be selected if the valuation grouping code is active

in the Materials Management module and if separate GL codes are desired
plantwise. Even if it is not required currently, still it is a better option to select.
Double click

Click on
For Raw Material update valuation class 3000

For Packing Material update valuation class 3050
For Semi finished goods update valuation class 7900
For Finished goods update valuation class 7920
For Trading goods update valuation class 3100
Click on
For the GR/IR account we need to update the WRX transaction key with the
GL code GR/IR account.
Double click

Click on

Generally GR/IR accounts are not maintained per valuation class.
Click on
2) When Raw material is issued to the production order.
Movement type used for posting the above transaction is 261 – Goods issue
to order
The accounting entry generated in the system is:-
Raw material consumption Debit
Inventory of Raw Material Credit
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 we need to update general
modification VBR with the Raw Material consumption account.
Click on

Click on
3) When Initial stock is uploaded for Raw Material
Movement type used for posting – 561 (Initial stock upload)
The accounting entry generated is as follows:-
Inventory of Raw Material Debit
Stock data takeover account Credit
The transaction key GBB needs to be updated. General modification Key

BSA needs to be updated with the GL code Stock data takeover account
Double click

Click on
.
4) When goods receipt is made for finished goods against a production
order
Movement type used for posting – 101(GR agst prod order)
The accounting entry generated is as follows:-
Finished goods Debit
Change in Finished goods Credit

In transaction key BSX for the valuation class finished goods we attach the
Finished goods GL code.
For change in Finished goods we update transaction key GBB and general
modification key AUF.
Click on
5) When goods issues are posted for sales:-
Movement type used for posting – 601
Accounting entry posted:-
Cost of goods sold Debit
Inventory of Finished goods Credit

For cost of goods sold transaction key GBB is updated with general
modification key VAX
Click on
6) When goods are scrapped:-
Movement type used for posting – 551
Accounting entry posted:-
Raw material scrapped Debit
Inventory of Raw Material Credit

The Raw Material scrapped account is attached to transaction key GBB and
general modification key VNG
Click on
7) When goods issued to sampling for Quality
Movement type used is 331
Raw Material consumption Debit
Inventory raw material Credit
Raw Material consumption account is attached to GBB and general

modification key VQP is used.

If we noticed lot of account modifiers in transaction key GBB are used in
various movement type. It is difficult to remember the standard account
modifiers. In that case we can also use the Simulation mode. This helps us
in identifying what are the general modification (account modifiers) used in
GBB:-
Use the following path:-

Configure Automatic Postings or
Transaction code: OMWB

We can select the application area as follows:-
Thus we can do a simulation for Inventory management movements or also a

simulation for invoice verification transactions.
Let us do a simulation for Inventory management movements.
Now we select the input mode

Here we can select the input of material number or input of valuation class.
We will select the input of valuation class, as it easier to enter valuation class
rather than material number. But if we want to be more specific we can select
the input of material number.
Click
Click

Update the movement type 331
Double click so that it becomes blue

Click
Now here it shows the offsetting entry posting and the required account
modifier. In this case the general modification required is VQP.

Thus simulation helps us in finding the general modification required for
transaction key GBB and the general modification for transaction key PRD
(price difference).
Let us now check the general modification key required for movement type
601 for finished goods.

Double click

Click
Here we notice that general modification key required for 601 is VAX

9.2 Integration with Sales and Distribution
We require a sales organization configured to do the configuration

steps.
All Billing transactions happening in the Sales and distribution module will
trigger FI postings.
In this step, we allocate the G/L accounts for the revenue account
determination. We make the allocation for each of the access sequences.
In this case, we specify a G/L account depending on the following terms:
• Application (key for the Sales and Distribution application)
• Account determination type
• Chart of accounts (from the FI System

• Customer account assignment group
• Materials account assignment group
• Account key
The allocated accounts are used to post revenues, surcharges and discounts
automatically.

General Ledger Accounting (New) Periodic Processing Integration 
Sales and Distribution Prepare Revenue Account Determination or
SAP Customizing Implementation Guide  Sales and Distribution  Basic

Functions  Account Assignment/Costing Revenue Account Determination
 Assign G/L Accounts or
The transaction can also be accessed by typing in transaction code VKOA

from SAP Easy Access screen.
The account determination in SD happens through an access sequence which

can be seen in the table. The system goes about checking for account from
more specific criteria to less specific criteria.
Thus we can maintain different GL codes for each combination of the
table entry.
Thus it will go through first table entry CustGrp/Material grp/ account key. Any
configuration maintained here the system will go about checking details in the
transaction data for the combination of Custgrp/Material grp/ account key.
Customer grp is maintained in the Sales view of the customer master.
Material grp is maintained in the Sales view of the material master.
Account key is maintained in the pricing procedure for that condition type.
In case the first criterion is not fulfilled, system goes to the next table entry
and checks for Customer grp/ account key combination.
In case the second criteria is not fulfilled by the transaction data the system
goes and check the next table entry Material grp and account key.
Finally it will check the last table entry account key.

We will maintain configuration for Material Grp/account key
Double Click
AAG is the material grp. We maintain this since we want it to post to a

different GL code as Sales 3rd parties.
Click on
Click on
Various account keys are available

Click
The account keys are attached to the condition type in the sales pricing
procedure.
Let us see the sales pricing procedure.
IMG  Sales and Distribution  Basic Functions  Pricing Pricing

Control  Define And Assign Pricing Procedures

Double click
Select
Double click
Here we see that account key ERL and ERS is attached to various condition
types.

Click

10 Foreign Currency Valuations
10.1 Create Exchange rate type for closing
SAP Customizing Implementation Guide  SAP NetWeaver General

settings Currencies  Check Exchange Rate Types
Exchange rates for different purposes for the same date are defined in the
system as exchange rate types. It is not possible to delete existing entries.
When posting and clearing documents, the system uses the exchange rate
type "M" for foreign currency translation. This exchange rate type must be
contained in the system.
The standard system includes the exchange rate types for the bank buying
rate (G), bank selling rate (B), and average rate (M).

Let us create 3 exchange rate types for closing revaluations:-
3) Group Closing exchange rate – CLOS

4) Local Closing exchange rate – ZLOC
5) Functional Curr. Closing exchange rate - ZFUN
Local closing exchange rate configured: If there is a specific requirement in

the country to valuate at a specific exchange rate at month end.
Similarly functional currency exchange rate.
Click on

Select Indicator: Calculation allowed with inverted exchange rate. This is
useful in the case of a missing exchange rate entry in the system for the
required translation from one currency into another; the inverted exchange
rate relationship may also be used. E.g. If the translation of USD into EUR is
missing, then the translation takes place by means of entry for translation of
EUR into USD
Ideally this should we switched on for the currency type M so inverse

calculation happens.
Click on
10.2 Configuration for Foreign currency Valuation
In this configuration we define the specifications required for the valuation of

foreign currency balances e.g. Bank accounts holding foreign exchange and
Open items in foreign currency e.g. Customers and Vendors
10.3 Define Valuation methods

General Ledger Accounting (New) Periodic Processing Valuate  Define
Valuation Methods
SAP uses exchange rate type M to value all foreign currency items. M is the
average rate of any foreign currency.
In this step, we define our valuation methods for the open items. With the
valuation method, we group specifications together, which we need for the

balance and individual valuation. Before every valuation run, we specify the
required valuation method.
SAP provides various valuation methods. We can create our own key starting
with Y or Z.
Let us create our own valuation methods.
Click on

Relevant for open items
Click on
In the valuation procedure various configuration options are available
The valuation is only displayed if the valuation

difference between the local currency amount and the valued amount is
negative that is an exchange loss has taken place. The valuation is carried
out per item total.
The valuation is only displayed if, as a

consequence, the new valuation has a greater devaluation and/or a greater
revaluation for credit entries than the previous valuation. The valuation is
calculated per item total.

If we select this procedure, revaluations are also taken into
consideration.
If we select this method system only does a revaluation if

applicable but does not do devaluation where there is exchange loss.
If we select this field, the account

balance/group balance in the relevant foreign currency is used to determine
the exchange rate type. This is relevant for account balance revaluation
A document type SA is attached to the valuation method.
Double click
Click on

Let us configure another valuation method for Bank Balance:
Click on

Double click
Click on

Click
Similarly let us create valuation method for local valuation for foreign currency
revaluation.
Click on

Click on

Click on
Similarly create for local valuation for Bank

Double click
Click on

Click on
Similarly create valuation for functional currency

10.4 Define Valuation Areas

General Ledger Accounting (New) Periodic Processing Valuate  Define
Valuation Areas
Here we define our valuation areas for the closing operations. With the
valuation areas, we can report different valuation approaches and post to
different ledgers/accounts. We can save the valuation result separately for
each document item and use it for other closing operations (such as sorted
lists).
We will create 3 valuation areas:-
ZG- Group
ZL – Local
ZF – Functional currency
Click on

Click on
10.5 Check Assignment of Accounting Principle to Ledger

Group

General Ledger Accounting (New) Periodic Processing Valuate  Check
Assignment of Accounting Principle to Ledger Group
Here, we assign the desired ledger group to our accounting principles.
Click on
10.6 Assign Valuation Areas and Accounting Principles

General Ledger Accounting (New) Periodic Processing Valuate  Assign
Valuation Areas and Accounting Principles
Here we assign the desired accounting principles to our valuation areas. We

can use the valuation area for the reclassification or sorted list of payables

and receivables and for foreign currency valuation. We can use the valuation
area to apply in these reports the different valuation requirements of the
accounting principles.
Click on
Click on

10.7 Prepare Automatic Postings for Foreign Currency
Valuation
General Ledger Accounting (New) Periodic Processing Valuate 
Foreign Currency Valuation  Prepare Automatic Postings for Foreign
Currency Valuation
Exchange rate difference in foreign currency balances e.g. bank accounts

held in foreign currency
Double click on KDB Line
Enter Chart of accounts INT

Here we will enter the following
Exchange rate difference key: Can be kept blank or we can enter a key with
4 digit e.g. 0001. In case we create this exchange rate key then the same has
to be updated in the GL code of the foreign currency account i.e. control data
tab which has the field exchange rate difference key. Only when it is attached
the system will revalue the foreign currency account.
Expense account: We need to enter the expense GL code for unrealized

foreign exchange loss. The loss on revaluation is unrealized and will be
automatically reversed in the next month e.g. 230000 Unrealized exchange
loss.
Click on

E/R gains: We need to enter the GL code for Unrealized Foreign exchange
gain. The loss on revaluation is unrealized and will be automatically reversed
in the next month e.g. 280000 Unrealized exchange gain.
Exchange rate difference in open items e.g. Accounts Receivable and

Accounts Payable
Double click
Here we will enter the GL code for Accounts receivable or Accounts

Payable (the reconciliation account). We can enter different GL codes
for each currency code and currency type. Alternatively if we do not
want different GL codes for each currency we can keep them blank
Click on

Click on

140000 is Accounts Receivable
160000 is Accounts Payable
Loss: Here we enter the GL code for exchange loss, which is realized
Gain: Here we enter the GL code for exchange gain, which is realized.
Val. loss 1: Here we enter the GL code for unrealized exchange Loss on
revaluation of open items i.e. accounts receivable and accounts payable
Val. gain 1: Here we enter the GL code for unrealized exchange gain on
revaluation of open items i.e. accounts receivable and accounts payable
Bal.sheet adj.1 : Here we enter the GL code to which the receivable and
payables adjustment is posted during foreign currency valuation of open
items.

10.8 Define Account Determination for Currency Translation
General Ledger Accounting (New) Periodic Processing Valuate 
Foreign Currency Valuation  Define Account Determination for Currency
Translation
Here, we define account determination for the currency translation. We use

our financial statement version as a basis

Click on

Click on
11 Configuration for regrouping postings
11.1 Define Adjustment Accounts for GR/IR clearing
SAP Customizing Implementation Guide  Financial Accounting

(New) General Ledger Accounting (New) Periodic Processing
Reclassify  Define Adjustment Accounts for GR/IR Clearing

The goods receipt/invoice receipt (GR/IR) clearing account is a provision
account, and is posted to whenever we receive goods that have not been
invoiced yet or whenever we receive invoices for goods that have not been
delivered yet.
In this activity we define the numbers of the adjustment and target accounts
for the automatic postings for the GR/IR clearing account.
Transfer postings have to be made at the balance sheet date to reflect the
goods invoiced but not delivered and the goods delivered but not invoiced.
Transaction code F.19 analyzes the GR/IR clearing account and posts
adjustments entries for outstanding amounts to adjustment accounts. It makes
the offsetting entry to the account for goods delivered but not invoiced or to
the account for goods invoiced but not delivered (target account).
Double click

Update the following: -
Reconciliation account: Enter the GL code 191100 i.e. GR/IR clearing account
(Goods Receipt/Invoice receipt)
Adjustment account: Enter the GL code 191199 i.e. GR/IR correction account
Targ. Acct : Enter the GL code 191101 GR/IR Invoiced but goods not yet
received
Click Save

Double click

Update the following: -
Reconciliation account: Enter the GL code 191100 i.e. GR/IR clearing account
(Goods Receipt/Invoice receipt)
Adjustment account: Enter the GL code 191199 i.e. GR/IR correction account
Targ. Acct : Enter the GL code 191102 GR/IR Shipped not invoiced
Click Save
12 Creating Balance sheet and Profit and Loss account
12.1 Define Financial Statement Version (FSV)

SAP Customizing Implementation Guide  Financial Accounting
(New) General Ledger Accounting (New) Periodic Processing
Document  Define Financial Statement Versions
We define the versions we need to create a balance sheet and profit and loss
statement. We can create number of financial statement versions for wer
chart of accounts one for the local reporting, one for parent reporting. In each
version we can group the GL codes differently.
We can define versions for a specific chart of accounts, for a group chart of
accounts, or without any specific assignment.
We then determine the financial statement items for wer version.
We assign groups of accounts to the items at the lowest levels of the

hierarchy. We can select the criteria that determine which items the accounts
are displayed in. For example, accounts or groups of accounts can be
assigned to particular items based on their balance.
Alternatively, we can also assign functional area intervals at the lowest level
of the structure, instead of account intervals. Either account intervals or
functional area intervals can be assigned to a financial statement item. We
must explicitly define financial statement versions to which functional areas
are assigned as such. We do this by setting the "Fun.area allowed" indicator.
This financial statement version can then also be used by the notes to
financial statement in the G/L account information system.

Click on or to start creating FSV from scratch. In case we want to
copy from existing FSV we need to position the cursor on the FSV as source
FSV e.g. and then click on and update the following parameters

Select
Click

And then click on
Double click

Click on

Similarly create another FSV for local reporting

Click

Click on
Double click on

Change the maint. Language from DE to EN as follows:-

Click on
13 Configuration for GL Automatic clearing
13.1 Automatic Clearing
IMG  Financial Accounting (New)  General Ledger Accounting (New)

Business Transactions Open Item Clearing  Prepare Automatic Clearing
In this activity we enter the criteria for grouping an account's open items for
automatic clearing. The clearing program clears the open items that are
grouped together if their total balance equals zero in local and foreign
currency.
We must enter the following standard criteria:
• account type
• account number or a number interval
We can also enter a further five criteria.

We can select these five additional criteria from the fields in table
BSEG or BKPF. If possible, we should choose fields that are also
contained in table BSIS (G/L accounts), BSID (customers), or BSIK
(vendors).
Automatic clearing is required for GR/IR clearing accounts and Bank

accounts; further automatic clearing is also required for Vendors and
customers

Select the existing entries in SAP
Click on enter the chart of accounts INT

The accttyp is D for debtors K for creditors and S for General Ledger
The first criterion specified is the assignment field for account types.
This criteria’s can be selected based on the individual company requirements.
The GRIR account can be cleared using the criteria Purchasing document
and line item therefore select EBELN (purchasing document)
Click
Further maintain GRIR account as follows with Purchase order and

purchasing document number

Now change S to end at 190000
Click on
Take a drop in field Criterion 1 and select EBELN (Purchasing

document)

Similarly take a drop down in field Criterion 2 and update EBELP (Purchasing
document item) and for the rest of the items in the GL update ZUONR.
Click on
13.2 Define Tolerance Groups for G/L Accounts

Business Transactions Open Item Clearing  Clearing Differences 
Define Tolerance Groups for G/L Accounts
For G/L account clearing, tolerance groups define the limits within
which differences are accepted and automatically posted to predefined
accounts. The groups defined here can be assigned in the general ledger
account master record.
SAP Standard is a blank tolerance; we will also create a blank tolerance.

Select
Click
Click on
13.3 Assigning accounts for GL Clearing Differences
IMG  Financial Accounting (New)  General Ledger Accounting (New)

Business Transactions Open Item Clearing  Clearing Differences 
Create Accounts for Clearing Differences

For G/L account clearing, define the limits within which differences are
accepted. In this activity we define the accounts to which these differences
should be posted.
Click on to save the rules

One is an expense and other income account
238050 - Expense for allowed differences/G/L clearing

299050 - Gain from allowed differences / G/L clearing
Click
14 Set Company Code to Productive

Financial Accounting Global Settings (New) Global Parameters for
Company Code Set Company Code to Productive
Here we set the productive indicator for the company codes which has gone
live. The productive indicator prevents data within the company code from
being deleted by the programs for deleting test data.
This indicator should be turn on only after our company code goes live.

We are still in the process of configuration and will not switch this on.
This marks the end of the SAP New GL Configuration in Simple Finance.
15 Appendix
15.1 Delete G/L Account (OBR2)

Preparation for Productive Start  New Installation  Delete Test Data 
Delete Master Data  Delete G/L Account
This program is used to delete G/L account master data. Remember you can
use this program only in the test phase.
Please do not try deleting, since the GL codes created earlier

will be deleted.
You can only delete master records of accounts that do not contain any
transaction data.
The program does not delete the chart of accounts section of a G/L account if
the account is also a primary cost element in Controlling. You need to delete
the cost element in cost element accounting.

Click

We are just demonstrating the execution of the program in test mode.
15.2 Delete Chart of Accounts (OBY8) (Only for knowledge)

Preparation for Productive Start  New Installation  Delete Test Data 
Delete Master Data  Delete Chart of Accounts
You can delete a chart of accounts with all accounts and all definitions made
for the chart of accounts.
Please do not try deleting, since the GL codes created earlier

will be deleted.
The chart of accounts should not be used in the Sales and Distribution,
Controlling, Asset Management then it will not be deleted.

In FI the chart of accounts, should not be assigned to a company code.
Click


Matériel

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Matériel

Uploaded by

Copyright:

Available Formats

© 2016 sapficoconsultant.com. All rights reserved.

No part of this material should

“SAP” is a trademark of SAP AG, Neurottstrasse 16, 69190 Walldorf, Germany.

Warning and Disclaimer

www.sapficoconsultant.com Page 2 SAP New GL Simple Finance

www.sapficoconsultant.com Page 3 SAP New GL Simple Finance

www.sapficoconsultant.com Page 4 SAP New GL Simple Finance

Based on the above requirements we need to configure the following within

Create company code 6600 – Universal Ltd for USA.

Common chart of accounts – INT

Ledger Y1 (additional ledger) for local reporting

Ledger Y2 (additional ledger) – appendix ledger for management

www.sapficoconsultant.com Page 5 SAP New GL Simple Finance

1.1 Creating company code

Company code is the basic organizational unit in FI (Financial accounting) for

SAP Menu  Tools  Customizing  IMG  SPRO - Execute Project 

SAP Customizing Implementation Guide  Enterprise Structure  Definition

www.sapficoconsultant.com Page 6 SAP New GL Simple Finance

In the Copy option we need to click on to copy a company code from an

We can select a four-character alpha-numeric key as the company code key.

www.sapficoconsultant.com Page 7 SAP New GL Simple Finance

Click on and update the following fields:

www.sapficoconsultant.com Page 8 SAP New GL Simple Finance

Currency: It is the local reporting currency of the country. In this case it is

Click on Address and update the following fields

www.sapficoconsultant.com Page 9 SAP New GL Simple Finance

Click to save entry.

Thus company code 6600 is created in SAP.

1.2 Maintain Fiscal Year Variant

SAP Customizing Implementation Guide  Financial Accounting (New)

• Your fiscal year is the calendar year

www.sapficoconsultant.com Page 11 SAP New GL Simple Finance

SAP Customizing Implementation Guide  Financial Accounting (New)

www.sapficoconsultant.com Page 12 SAP New GL Simple Finance

Click to save entry.

Thus Company code 6600 is assigned to fiscal year variant V3 in SAP.

1.4 Define Posting period Variant

SAP Customizing Implementation Guide  Financial Accounting (New)

www.sapficoconsultant.com Page 13 SAP New GL Simple Finance

Click on and update the following fields.

Click to save entry.

Thus posting period variant 6600 is created.

1.5 Assign Posting period Variant to Company code

SAP Customizing Implementation Guide  Financial Accounting (New)

www.sapficoconsultant.com Page 14 SAP New GL Simple Finance

Update the following:-

Click to save entry.

www.sapficoconsultant.com Page 15 SAP New GL Simple Finance

SAP Customizing Implementation Guide  Financial Accounting (New)

New in Simple Finance

Period interval 3 is used for postings from Controlling (CO) to Financial

www.sapficoconsultant.com Page 16 SAP New GL Simple Finance

www.sapficoconsultant.com Page 17 SAP New GL Simple Finance

Click the Copy button.

www.sapficoconsultant.com Page 18 SAP New GL Simple Finance

Used to control posting from CO to

Click to save entry.

Various account types in SAP are:-

www.sapficoconsultant.com Page 19 SAP New GL Simple Finance

IMG  Financial Accounting (New) Financial Accounting Global Settings

www.sapficoconsultant.com Page 20 SAP New GL Simple Finance

And change the field status variant from 0001 to

www.sapficoconsultant.com Page 21 SAP New GL Simple Finance

www.sapficoconsultant.com Page 23 SAP New GL Simple Finance