Fi configuration

SAP General Ledger
Configuration
SAP R/3 ENTERPRISE ECC6
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TABLE OF CONTENTS

1. INTRODUCTION 6

2. COMPANY CODE CONFIGURATION 8

2.1 Define Company 8

2.2 Creating a Company Code in SAP 10

2.3 Assign Company Code to company 15

2.4 Create Chart of Accounts in SAP 17

2.5 Assign Company code to Chart of accounts 20

2.6 Define Business Area 22

2.7 Define Account Group 25

2.8 Define Retained Earnings Account in SAP 28

2.9 Maintain Fiscal Year Variant 31

2.10 Assign Company Code to a Fiscal Year Variant 33

2.11 Define Posting period Variant 36

2.12 Open and Close Posting Periods 38

2.13 Assign Posting period Variant to Company code 41

2.14 Create document number ranges for company code 44

2.15 Copy document number ranges to fiscal year 48

2.16 Define document type and assign document number range 51

2.17 Enable Fiscal Year Default 52

2.18 Enable Default Value date 53

2.19 Maintain Field Status Variants 54

2.20 Assign Company Code to Field Status Variants 58

2.21 Screen variants for document entry 59

2.22 Define Tolerance Groups for Employees in SAP 61

2.23 Assign User/Tolerance Groups 66

2.24 Maximum Exchange Rate Difference 68

2.25 Check Company Code settings in Global parameters 70

2.26 Define Additional Local currencies (Optional) 74

2.27 Define Additional Local currencies for Ledgers (Optional) 79

2.28 Check Calculation Procedure 84

2.29 Assign Country to Calculation Procedure 89

2.30 Define Tax Codes for Sales and Purchases 91

3. CREATING G L ACCOUNT CODES IN THE CHART OF ACCOUNTS 99

3.1 Create GL account in Chart accounts and company code 99

4. CONFIGURATION FOR GL AUTOMATIC CLEARING: - 106

4.1 Automatic Clearing 106

4.2 Define Tolerance Groups for G/L Accounts 109

4.3 Assigning accounts for GL Clearing Differences 111

5. CONFIGURATION FOR FOREIGN CURRENCY VALUATION 114

5.1 Define Valuation methods 115

5.2 Assign GL accounts for Foreign Currency valuation 120

6. CONFIGURATION FOR REGROUPING POSTINGS 126

6.1 Define Adjustment Accounts for GR/IR clearing 126

7. CREATING BALANCE SHEET AND PROFIT AND LOSS ACCOUNT 131

7.1 Define Financial Statement Version (FSV) 131

8. FI INTEGRATION WITH OTHER MODULES 152

8.1 Integration with Overhead Cost Controlling 152

8.2 Integration with Materials Management 154

8.3 Integration with Sales and Distribution 172

1. INTRODUCTION

Let’s get started. First we will go through a bit of introduction
about the SAP Finance Module before we grind in further:

SAP FI(Financial Accounting) is the basic module and very
important module in SAP. SAP FI module receives postings from
various other modules such as MM(Materials Management) , SD (
Sales and Distribution) and HR(Human Resource) through various
integration points. All the posting from the aforesaid modules are
posted real-time to FI module. FI module feeds in data to CO
modules such as Cost Center Accounting, profit center accounting
and the Profitability Analysis Module. SAP FI module is geared for
external reporting ie legal reporting, tax reporting.

Let’s also touch base on some other organizational structures,
which are important

a) The plants created in the logistics (General) module must be
assigned to the company code. That means all transactions taking
place in the plants are posted to the attached company code in SAP
FI.

b) The purchasing organization created in the MM module is
attached to the Company code.

c) The sales organization created in the SD module is attached to
the company code.

d) A company code created is assigned to the Controlling area.

To help you understand the SAP terminologies we will go through a
relevant example which will help you configure the system more
effectively.

In this SAP training, we will configure a company code 1100 (ABC
Ltd) located in USA. The currency in USA is USD; therefore the
currency of the company code will be USD. We consider the
reporting period in that country as Jan to December. We will also in
this document cover briefly the FI - MM integration, FI- SD
integration.

The parent company of ABC Ltd is located in Germany. Therefore
ABC Ltd is required to report figures in EURO. We would therefore
need to configure parallel currencies to have such reporting
possible.

2. COMPANY CODE CONFIGURATION

Let us discuss the company code configuration in the below steps.

2.1 Define Company

Menu Path

IMG  Enterprise Structure  Definition  Financial Accounting
Define Company

In the SAP scenario, functions involved in consolidation of financial
accounting are based on companies. A company can comprise of
one or more company codes.

We will create a company 1100 to which we will assign our
company code.

Click on and update the following: -

2.2 Creating a Company Code in SAP

A balance sheet and profit & loss account can be extracted for a
Company code which is the basic organizational unit in SAP FI
(Financial accounting)

Company code is the bare minimum structure required for a SAP
system. We will create company code 1100 (XYZ Ltd.) which is
located in country USA.

For configuring Company code we will use the following path on the
SAP application screen:-

Menu Path

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

Transaction Code

(SPRO)

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.

 Define, copy, delete, check company code

Double click on Edit Company Code
data

Whenever you select the second option Edit Company Code data
you have to configure all the subsequent assignments manually.

When the first option is selected all the configuration and tables get
copied automatically along with assignments. In the cases of
rollouts this option can be selected.
In the Copy option you need to click on to copy a company code
from an existing company code. You can copy from existing
company code delivered by SAP.

A four-character alpha-numeric key as the company code key can
be selected. This key identifies the company code and must be
entered when posting business transactions or creating company
code-specific master data, for example.

With the help of following SAP tutorial material we will cover the
Financial Accounting configuration from its roots and rather than
copying it from a prevailing SAP company code.

Click on and Update the following required fields:

Ideally, In a SAP system the company code should be always
kept numeric.

Country:

This field is for the purpose that where the concerned company
code is located and the balance sheet and income statement which
will be prepared according to that particular country’s law. In our
present case the company is located in USA, so we have selected
the country id US (USA).

Currency:

This field represents the local reporting currency of the country. In
this case it is USA (US Dollars) since the company is located in
USA.

Click on Address and update the following fields

Click

Click to save entry.

In this way company code 1100 is created in SAP

2.3 Assign Company Code to company

Menu Path

IMG  Enterprise Structure  Assignment  Financial
Accounting  Assign Company code to company

Assign company code 1100 to company 1100 in SAP.

2.4 Create Chart of Accounts in SAP

Menu Path

IMG  Financial Accounting  General Ledger Accounting  G/L
Accounts  Master Records  Preparations  Edit Chart of
Accounts List

Transaction Code
(OB13)

The Chart of Accounts is a variant which contains the structure
and basic information about the general ledger accounts.

We have to create one chart of accounts for each company code in
SAP. This chart of accounts is assigned to the company code. One
chart of accounts can be used by more than one company codes.
These imply that the general ledgers of these company codes can
have similar GL structure.

Under here we will define just a chart of accounts code in SAP. The
GL codes are not defined here.

Click on and update the following fields

We can have controlling integration i.e.
a) Manual creation of cost elements or
b) Automatic creation of cost elements.
It is preferable to have manual creation of cost elements in SAP
Financial Accounting.

We have to keep in mind that whenever we create a GL code
(expense or revenue account) in Financial Accounting, at the same
time we have to create the cost element (type 1 or 11) in the
Controlling module of SAP system.
This allows cost to be flown from FI to CO on a cost object in
realtime.


This way USCA chart of accounts is created in SAP.

2.5 Assign Company code to Chart of accounts

Menu Path

Accounts  Master Records  Preparations  Assign Company
Code to Chart of Accounts

Transaction Code
(OB62)

Assign USCA in the Chrt/accts field to company code 1100.


Thus Company code 1100 is assigned to USCA chart of
accounts in SAP.

2.6 Define Business Area

Menu Path

Define Business Area.

In order to organize and manage different divisions or segments,
e.g. geographically or product wise etc. in better way in SAP, they
can be defined and maintained as Business Areas which helps to
serve the internal as well as external reporting.

(For example this can help you to serve a report as required by the
Segmental Reporting as required by the International Accounting
Standards – 14)

Click on and update the following fields.

2.7 Define Account Group

Menu Path

Accounts  Master Records  Preparations  Define Account
Group

Transaction Code
(OBD4)

Since a chart of accounts contains many types of accounts, all
these accounts can be bundled into different account groups.

Those accounts which have got similar kinds of business functions
can be clubbed together under one account group. For example,
one can have an account group for cash accounts, one for expense
accounts, one for revenue accounts, and one for other balance
sheet accounts, etc.

Moreover we can control the number range and the creation of the
GL codes within the specified number range.

We can copy from the account group delivered by SAP for INT chart
of accounts or we can create new account group required as per
customer requirement.

To copy from other account group we need to mark the chart of
accounts in the following manner: -

Thereafter click on the copy icon and change the Chart of
accounts description to USCA.

If you want to create from scratch in SAP you need to click on
and update the following fields.


This way Account groups are created for chart of accounts
USCA in SAP.

2.8 Define Retained Earnings Account in SAP

Menu Path

Accounts  Master Records  Preparations  Define Retained
Earnings Account

Transaction Code
(OB53)

We have to 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.

We must have minimum one retained earnings account.

The system carries forward the balance of the P&L account to the
retained earnings account in SAP at the end of a fiscal year. We can
define one or more P&L statement account types per chart of
accounts and assign them to retained earnings accounts.

We have to update chart of accounts USCA in the given field

Update the following fields

Enter X in P& L statmt

Enter the account code for Retained earnings account.

Click

We will get a message “Account not created in chart of accounts
USCA”, ignore it by pressing enter.


In this way Retained-earning account is created for chart of
accounts USCA in SAP. We need to create this GL code later on at
the GL code creation stage.

We can create multiple retained earnings accounts in SAP, where in
We need to enter different key such as Y or Z and different GL
codes.

We also create another retained earnings account with a key Y and
GL code 315095 – Retained earnings account (Local – Parent)

This retained earnings account is required to carry on the difference
between the local reporting and parent reporting. For example:- As
per the local law the depreciation is calculated at 10% Straight line
method (works out to 20000 USD) whereas as per the parent
companies reporting the depreciation rate is 15% SLM (works out to
22000 USD). Thus the depreciation calculated will be different for
local and parent. Thus the profit reported will be different and the
profit carried forward to the balance sheet will be different.
In a SAP system we can take care of this difference which has
occurred due to the different methods of calculating depreciation by
creating different GL codes.

Example:
The local depreciation is posted to GL code 460001 Depreciation
Local 2000 USD

The depreciation for the parent is posted as a difference between
local and parent (22000 USD – 20000 USD = 2000 USD) to GL code
460002 Depreciation local – parent 2,000 USD

The GL code 460001 is mapped to retained earnings account X and
the GL code 460002 is mapped to retained earnings account Y in
SAP.

2.9 Maintain Fiscal Year Variant

Menu Path

IMG  Financial Accounting  Financial Accounting Global
Settings  Fiscal Year  Maintain Fiscal Year Variant (Maintain
Shortened Fiscal Year)

Transaction Code
(OB29)

We can define the following characteristics for a fiscal year variant
in SAP.

To separate business transactions into different periods, a
fiscal year with posting periods has to be defined.

The fiscal year variant defines the number of posting periods a
fiscal year can have, along with the special periods we need,
this helps the system is to determine the posting periods when
postings are done.

When defining the fiscal year, we can choose out of the following
options:

 The fiscal year is the calendar year
In this case, we must only select the Calendar year field.

 the fiscal year is not the same as the calendar year and is not
year dependent
In this case, we first enter the number of the posting periods
in the Number posting per. field. To define the posting periods,
select our 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.

 The fiscal year is not the same as the calendar year and is
year-dependent.

We can enter the number of posting periods in the field
Number posting periods and select the field Year-dependent. To
define Our posting periods, select Our fiscal year variant and
select Periods on the navigation screen. The system asks for
which calendar year Our year-dependent fiscal year variant is
valid. We then enter the month and day of the period end for
each of Our periods, and the periods themselves.

We 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, We can
use the standard fiscal year variant V3 in SAP

We can copy and create new variants, but we should keep
in mind that it should start with Z as the starting
character.

In our example we will use the standard fiscal year variant K4

2.10 Assign Company Code to a Fiscal Year Variant

Menu Path

Settings  Fiscal Year  Assign Company Code to a Fiscal Year
Variant

Transaction Code
(OB37)

The company code 1100 needs to be assigned to a Fiscal Year
variant. This controls which periods the company code will post
data.

Assign company code 1100 to K4 fiscal year variant in SAP.


Thus Company code 1100 is assigned to fiscal year variant K4 in
SAP.

2.11 Define Posting period Variant

Menu Path

Settings  Document Posting Periods  Define Variants for Open
Posting Periods

To separate business transactions into different periods, a
posting period variant has to be defined so that transactions
entered or posted are reflected in specific periods only.

For this firstly we need to define opening posting period.

Here, we 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.

In our example we will have posting period variant which is
identical to the company code i.e. 1100

Click on and update the following fields.


Thus posting period variant 1100 is created.

2.12 Open and Close Posting Periods

Menu Path

Settings  Document Posting Periods  Open and Close Posting
Periods

Transaction Code
OB52

Here we specify for each variant which posting periods are open for
posting in SAP. Two intervals are available for doing this (period 1
and period 2). For every interval, enter a lower period limit, an
upper period limit and the fiscal year.

We close periods by selecting the period specifications so that the
periods to be closed are no longer contained.

We can copy the settings from existing company codes delivered by
SAP as follows:-
Select the area

Replace all 1000 with 1100


Thus posting periods time intervals for various account types are
created for variant 1100 in SAP

Standard Account Types in SAP are as follows:-
(We can have more number of Account Types depending upon the
nature of the activities)

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

2.13 Assign Posting period Variant to Company code

Menu Path

Settings  Document Posting Periods  Assign Variants to
Company Code

The posting period variant 1100 needs to be assigned to company
code 1100

Assign 1100 to company code 1100


Thus posting period variant 1100 is assigned to company code 1100
in SAP.

2.14 Create document number ranges for company code

Menu Path

Settings  Document Document Number Ranges  Define
Document Number Ranges.

Transaction Code
(FBN1)

We have to create the number ranges for each and every document
type.

For each number range created for the document type we can
specify the following,

a) a number interval from which document numbers are selected
b) the type of number assignment (internal or external)

One or more document types can be assigned to each number
range. The number range becomes effective via the document type
specified in document entry and posting.

Number ranges for documents are company code-dependent. We
must therefore create the number ranges for each company code in
which the document type is used, namely with the same number
range key.

The number intervals must not overlap. If We use year-dependent
number ranges, We can specify the same interval with the same key
several times for different "to- fiscal years" (the limit up to which a
number range is still valid). If we want to define number ranges,

which are independent of the to-fiscal year, enter 9999 in the to-
fiscal year field.

For sample documents, use a number range with key X2, for
recurring entry documents with key X1. These keys may not be
used for other number ranges.

To copy from another company code:-
Click on copy and update the company to be copied from 0001
and company to be copied to 1100.

Click

We get the following message:-

The number ranges are not transported automatically. It is
advisable that we manually maintain number ranges in each
system (quality, production).

To manually create number range proceeds as follows:-

Click on

Click on and update the following fields:-

Then click on the button

Similarly enter number key 01 to 99, X1 and X2 with no overlaps in
the number range. Number range, which is used for depreciation

posting, should be defined with tick on.


These way Document number ranges are created for company code
1100. These number ranges are year dependent. For company
codes posting the number ranges should be defined as year
dependent.

We have to keep in mind that the number intervals are not included
in the customizing request they need to be transported manually.
Click on Interval  Transport

2.15 Copy document number ranges to fiscal year

Menu Path

Settings  Document Document Number Ranges  Copy to
Fiscal Year

Transaction Code
(OBH2)

Every year we need to maintain the number ranges in Financial
Accounting for our company code. This can be done by copying
number ranges from earlier fiscal year.

Update the following:-

2.16 Define document type and assign document number range

Menu Path

Settings  Document Document Header Define Document
Types

Transaction Code
(OBA7)

Standard document types can be used which is already existing in
the SAP system.
We have to make sure that the number ranges are correctly
assigned to the document types

Here 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 one
number range for several document types.

Document types are valid for all clients. We specify a number range
key for each document type. We create the desired number range
intervals for each number range key based on the company code.
This means that We can specify intervals of different sizes for the
same number range.

2.17 Enable Fiscal Year Default

Menu Path

Settings  Document Default Values for Document Processing
Enable Fiscal Year Default

Here We determine that a fiscal year is proposed during document
display and for document change functions in SAP. The system
uses the year which was last used by the user in the work session.
This option is only useful for company codes working with year-
dependent document number ranges.
Click the check
box


2.18 Enable Default Value date

Menu Path

Settings  Document Default Values for Document Processing
Default Value Date

When entering line items in SAP, We may need to enter a value
date. In this activity We can determine, per company code, whether
the CPU date is defaulted as the value date.

Click on Propose value date check box


2.19 Maintain Field Status Variants

Menu Path

Settings  Document Line Item  Controls  Maintain Field
Status Variants

Field Status determines the appearance of each screen along with
the fields inside that screen.

We can control the status of a field in the following order and
manner,

S  Suppress (We can’t view or operate the field)
D  Display (We can only view the field)
R  Required (The field must be present)
O  Optional (The field is open for display and operation)

We can define and edit field status variants and groups. We group
several field status groups together in one field status variant. We
assign the field status variants to a company code in the activity
Assign Company Code to Field Status Variants . This allows us to
work with the same field status groups in any number of company
codes.

We can also define and process field status groups. We 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 We enter in the reconciliation accounts
affects postings to the related customer or vendor accounts. We
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 1100. The field status variant 1100 can be attached
to all the group company codes of XYZ Ltd.
Select the SAP standard variant

Click on Copy

And change the field status variant from 0001 to
1100


Thus field status variant 1100 is created.

2.20 Assign Company Code to Field Status Variants

Menu Path

Settings  Document Line Item  Controls  Assign Company
Code to Field Status Variants

Here, we assign the company codes in which we want to use
identical field status groups, to the same field status variant.
Assign company code 1100 to field status variant 1100.
Enter field status variant 1100


2.21 Screen variants for document entry

Menu Path

Settings  Document Line Item  Controls  Screen Variants for
Document Entry

We determine the screen variant dependent on the company code.

The screen variant, which we specify for each company code,
addresses special screen appearance for documents for several
specific functions in SAP.

For Example: In an USA company code, for example, a screen with
fields for withholding tax is required when entering a vendor item.
We therefore have to select a special screen variant for US company
codes.

Select the option, which is required.

In our example we will select the standard version only

The screen variant field is already blank, so no need of saving entry.

2.22 Define Tolerance Groups for Employees in SAP

Menu Path

Settings  Document Line Item  Define Tolerance Groups for
Employees

The tolerance groups can be defined as predefined limits in
amounts or percentages by which receivables may be underpaid or
overpaid.

In the SAP system we can specify in advance various monetary
limits for our employees with which we determine:

a) the maximum document amount the employee is authorized to
post
b) the maximum amount the employee can enter as a line item in
a customer or vendor account
c) the maximum cash discount percentage the employee can
grant in a line item
d) 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 we 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.

We 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. We can then enter amount
limits and tolerances per employee group and company code.

We 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.

We can also specify tolerances for clearing procedures depending on
Wer 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 1100.

We can use existing tolerance group from the sample company
code.

Select company code

and click on Copy

and replace company code 0001 with 1100.


Double click on 1100 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 per
open item to the above given limit.

The permitted payment difference for revenue and expense is
511.29 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.

2.23 Assign User/Tolerance Groups

Menu Path

Settings  Document Line Item  Assign User/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.

2.24 Maximum Exchange Rate Difference

Menu Path

Settings  Document Document Header Maximum Exchange
Rate Difference  Define Maximum Exchange Rate Difference per
Company Code

Exchange rate difference can be defined as the amount arising
where a foreign currency amount is translated at different exchange
rates.

Here, we can define for each company code, a maximum difference
between exchange rates for postings in foreign currency.

For this, we mention that how much the exchange rate entered
manually in the document header may differ in terms of percentage
(%) from the one stored in the system.

If an exchange rate or the local and the foreign currency amount
were entered manually during document entry, then a comparison
is made with the exchange rates stored in the system. If any
deviation occurs and it exceeds the percentage rate specified here,
then a warning appears.

Update 10% in Max. exch rate dev


When We are done with this basic configurable settings required for
Financial Accounting we can see all this settings and assignments
as shown below,

2.25 Check Company Code settings in Global parameters

Menu Path

Settings  Company Code Enter Global Parameters

Transaction Code
(OBY6)

Here we can see overall view of all the configurable settings and
assignment done previously above.

We can also configure the earlier assignments done through this
menu.

Double click on 1100 company code.

Click on the check box if We want the
following:-

When items in foreign currency are cleared in local currency, the
local currency amount stored in the document is used as the
amount to be cleared.

Click on the check box if We want the following: -
The cash discount amount is deducted from the base amount used
for calculating taxes on sales/purchases.

Click on the check box if We want the following:
-
Tax on sales/purchases is not included in the base amount used
for calculating cash discount.


The Company Code 1100 is now configured for General Ledger
(GL) posting in SAP.

2.26 Define Additional Local currencies (Optional)

In total we can have 3 currencies for a company code.

We can have 2 more parallel currencies for a company code in
addition to one defined above.

To configure parallel currencies for a company code the path is:-

Menu Path

Settings  Company Code  Multiple Currencies  Define
Additional Local Currencies

In this case, we can choose between:

 Group currency

Group currency is the currency which is specified in the client
table or which is to be entered there.

 Hard currency
Hard currency is a country-specific second currency which is
used in countries with high inflation.

 Index based currency
Index-based currency is a country-specific fictitious currency
which is required in some countries with high inflation for
external reporting (for example, tax returns).

 Global company currency
Global company currency is the currency which is used for an
internal trading partner.
For the additional currencies, define the following data:

 Currency type
The currency type specifies the role of the additional currency.
An example of this would be the group currency.

 Exchange rate type for translation
The exchange rate type determines which exchange rate stored
in the system is used for calculating the additional amount
fields. As with the local currency, We can use the exchange
rate type M (average exchange rate) or any other exchange rate
type.

 Base currency for translation
The amounts in the additional currencies can be calculated
based on the document currency or on the local currency.

 Date for translation
For translating amounts, the exchange rate can be determined
according to the translation date, the document date or the
posting date

Additional activities:-

The group currency must be stored in the client definition which
can be seen using transaction code SCC4

Click on

Update the following: -

Enter the second and third currency

Here we can select valuation 1 & 2 only if the following
conditions are met:-
1) Controlling area has been assigned to the company code
2) A currency and valuation profile is defined in the
controlling area
3) The currency and valuation profile is active which has the
group and profit center valuation view
Selecting 1 and 2 leads to a greater volume of data, which will
require 2 additional ledgers to store the data.

We can instead of 1 and 2 select 0 legal valuation.

Click on Save

2.27 Define Additional Local currencies for Ledgers (Optional)

Menu Path

Settings  Company Code  Multiple Currencies  Define
Additional Local Currencies

Here, we can choose between:

Since we have selected valuation 1 and valuation 2 in step 22 we
have to configure 2 additional ledgers

Double click ledger 0

Click on Ledger  Create

Change from legal valuation to group valuation

Click on

System automatically created a ledger for profit center valuation L3.

Maintain the text for the same

Double click

2.28 Check Calculation Procedure

Menu Path

IMG  Financial Accounting Financial Accounting Global
Settings  Tax on Sales/Purchases Basic Settings  Check
Calculation Procedure

Calculation procedure for tax on sales and purchases defines the
rules that how to calculate tax on sales and purchases.

Tax procedures are available in SAP for most of the countries.

Here since country for our Company Code is USA and Tax
procedures are already available in SAP for USA we will see the
following,

In case a tax procedure is not defined for any country proceed as
follows:-

Select

Click

Change the existing description

Click on

Select

Double click

2.29 Assign Country to Calculation Procedure

Menu Path

Settings  Tax on Sales/Purchases Basic Settings  Assign
Country to Calculation Procedure

Here 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 India.


Click on

2.30 Define Tax Codes for Sales and Purchases

Menu Path

Settings  Tax on Sales/Purchases Calculation Define Tax
Codes for Sales and Purchases

Transaction Code
(FTXP)


Click


Click



Follow the menu path as shown below and click on Automatic
posting

Click on


Click on

Click twice

Click on

Now We can see the that for transaction ESE GL Account 119905
has been Assigned.

Click

Click on

3. Creating G L account codes in the Chart of accounts

3.1 Create GL account in Chart accounts and company code

GL – General Ledger

Menu Path

SAP menu  Accounting  Financial Accounting  General
Ledger Master Records Individual Processing

Transaction Code
FS00 – Centrally (6 Tabs)
OR
FSP0 - In Chart of Accounts (3Tabs)
FSS0 - In Company Code (3Tabs)

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.

This way there are 2 methods of creating GL codes in SAP:-

1) One step creation – Here We create both the chart of accounts
view as well as the company code view in one step
2) Two-step creation – We first create the chart of accounts view
in the first step. In the second step we create the company
code view.

We will see the GL code creation using the one step creation:-

Click on and enter the following

Click to save GL Code

Below screen shows creation of RM consumption GL a/c.

4. Configuration for GL Automatic clearing: -

4.1 Automatic Clearing

Menu Path

IMG  Financial Accounting  General Ledger Accounting
Business Transactions Open Item Clearing  Prepare Automatic
Clearing

The program for clearing clears the open items that are grouped
together if their total balance assigned equals to zero in local and
foreign currency.

We can enter the criteria for grouping an ledger account's open
items for automatic clearing.

The following standard criteria has to entered properly,

a) Account type
b) account number or a number interval

We can also enter a further five criteria.

We 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 USCA


The account type is D for debtors K for creditors and S for General
Ledger.

The first criterion specified is the assignment field for account
types.

These 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 also select EBELN
(purchasing document)

Click

4.2 Define Tolerance Groups for G/L Accounts

Menu Path

Business Transactions Open Item Clearing  Clearing Differences
 Define Tolerance Groups for G/L Accounts

Tolerance groups define the limits for each ledger account clearing
within which differences are accepted and automatically posted to
predefined accounts.

These predefined groups can be assigned in the general ledger
account master record.

Click on


Click on

4.3 Assigning accounts for GL Clearing Differences

Menu Path

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

Here We define the accounts to which these differences should
be posted.

We can define the limits within which differences are accepted
for G/L account clearing.

Enter chart of accounts USCA

Click on to save the rules

Click on to update the posting keys


Click

And update GL code 470706, which is clearing difference account
(G/L). It is an expense account

Click

5. Configuration for Foreign currency Valuation

Here, 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

5.1 Define Valuation methods

Menu Path

Business Transactions Closing  Valuating  Foreign Currency
Valuation  Define valuation methods

Transaction Code
(OB59)

Foreign Currency Valuation can be defined as a procedure for
determining at a key date the value of the current assets and
liabilities posted in foreign currency.

Assets and liabilities are valuated using the unit account method of
valuation which means that the individual open items are valued.

If this is not possible (because the account is not managed on an
open item basis) the balance of the account is valuated instead.

Here, for unrealized gains or losses we define the 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 mention the
required valuation method.

M is the average rate of any foreign currency.
SAP uses exchange rate type M to value all foreign currency items.

Various valuation methods are provided by the SAP.

We can create our own key starting with Z.

SAP provides following valuation methods: -

Let us create our own valuation methods.

Click on


Relevant for open items

Exchange rate type B is Bank selling and Exchange rate G is bank
buying rate.

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 parameter then the open items are
valuated at the acquisition price. This way the valuation difference
is set to zero. The old valuation method is reset. The account
determination is reversed: The revenue that arises is posted to the
expense account.

Exchange rates are types are attached to the valuation method.

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.

Let us configure another valuation method for Bank Balance:

Click on

5.2 Assign GL accounts for Foreign Currency valuation

Menu Path

Business Transactions Closing  Valuating  Foreign Currency
Valuation  Prepare Automatic Postings for Foreign Currency
Valuation

Transaction Code
(OBA1)

Exchange rate difference in foreign currency balances e.g. bank
accounts held in foreign currency

Double click on KDB Line

Enter Chart of accounts USCA

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.
472002 Unrealized Exchange Gain/Loss – Trade

E/R gains: We need to enter the revenue GL coded for Unrealized
Foreign exchange gain. The loss on revaluation is unrealized and
will be automatically reversed in the next month e.g. 472002
Unrealized Exchange Gain/Loss – Trade. We can have a separate
account or the same account.

Exchange rate difference in open items e.g. Accounts
Receivable and Accounts Payable

Double click on KDF Line

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

Enter chart of accounts USCA in the pop up

Click on and update the following:-

119020 is the GL code for Account Receivables trade 3rd parties

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.

The SAP System supports two valuation areas in parallel. This
account is used during valuation of the first valuation area.

The first valuation area reflects the local view of the Company code,
the second valuation area takes the corporate policy for the
valuation into consideration.

6. Configuration for regrouping postings

6.1 Define Adjustment Accounts for GR/IR clearing

Menu Path

Business Transactions Closing  Regrouping  Define
Adjustment Accounts for GR/IR Clearing

Transaction Code
(OBYP)

Whenever we receive goods that have not been invoiced yet or
whenever we receive invoices for goods that have not been delivered
yet, it is posted to the goods receipt/invoice receipt (GR/IR) clearing
account.

The goods receipt/invoice receipt (GR/IR) clearing account is a
provision account.

Here 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 BNG



Reconciliation account: Enter the GL code 219914 i.e. GR/IR
clearing account (Goods Receipt/Invoice receipt)

Adjustment account: Enter the GL code 219915 i.e. GR/IR
correction account

Targ. Acct: Enter the GL code 119522 GR/IR Invoiced but goods not
yet received

Click Save

Double click GNB

Enter chart of accounts USCA if the pop up comes


Reconciliation account: Enter the GL code 219914 i.e. GR/IR
clearing account (Goods Receipt/Invoice receipt)

Adjustment account: Enter the GL code 219915 i.e. GR/IR
correction account

Targ. Acct: Enter the GL code 219916 GR/IR Shipped not invoiced

Click Save

7. Creating Balance sheet and Profit and Loss account

7.1 Define Financial Statement Version (FSV)

Menu Path

Business Transactions Closing  Documenting  Define
Financial Statement Versions

Financial Statement Versions means a hierarchical positioning of
G/L accounts and this positioning can be based on specific legal
requirements for creating financial statements.

We can create number of financial statement versions for the chart
of accounts, one for the local reporting, and one for parent
reporting. In each version we can group the GL codes differently as
required for the reporting purpose. We define FSV because we need
to represent our balance sheet and profit and loss account in a
particular manner.

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 the version
which we have created for our company code.

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.

Other way, 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

And then click on

We will cover here Creating FSV from scratch.

Click on

Give the code for the FSV e.g. USCA and name for the version.

Give the maintenance language code e.g. EN (for English)

If the item keys are required automatically then We need to select,
else deselect it.

Enter the chart of accounts USCA

Click on

Click on

The above nodes are created automatically:-

P+L Result gives profit and loss in income statement

Net result: profit profit carried forward to balance sheet
Net result: loss Loss carried forward to balance sheet

Position the cursor on the node USCA and then

Click on

Update the following information and click the continue button

Thereafter click and click on
and then click on and click on Reassign

Select subordinate

Similarly assign the various nodes to the respective elements which
should finally look like this.

Double click on and update the
following

Thereafter change the description of item
by double clicking and updating the following information

Rename everything to look like this

To create further nodes below Assets proceed as follows:-

Position the cursor on and click on
and update the following information

After updating Wer FSV will look like this

Create further nodes as follow under Current assets

Under Cash & Cash Equivalents create further nodes 11000 Petty
cash and 11100 Bank – Current accounts.

After creating all the above nodes the FSV configuration will appear
like this

Now we will see how to assign GL accounts to the the node
Bank – current accounts

Place the cursor on the node and click on
and update the bank GL codes

D and C are debit and credit balance of the account.

After assigning the accounts FSV will look as follows:-

Here assuming that if this bank account is an overdraft account i.e.
Bank balance can become a debit or credit balance. In case bank
balance becomes credit i.e. negative then it should be regrouped to
the liabilities side of balance sheet under current liabilities.

We will similarly create the various nodes under liabilities which
appear as shown below:-

Now to regroup the balance from Bank – Current assets node to the
current liabilities node we proceed as follows:-

Position the cursor on item in Bank -Current
accounts on Current asset side and click on Select , the bank
accounts get highlighted as follows:-

Thereafter position the cursor on the
in bank overdraft under current
liabilities and then click on Edit  Debit/credit shift  Define

Click since 114500 should be debit and 2114500 node should
be credit

The display will appear as follows:-

The item should be placed
under Shareholder's Equity. To do so proceed as follows:-

Position the cursor on and
click on Select and position the cursor on

and click on Select .
Thereafter click on the item and click on
Reassign and select subordinate

Similarly, We need to create various node under Income statement
and assign GL account codes to each of the lowest level node.

Finally after assigning GL code to each node, we need check the
non assignment of GL codes to our company code.

Proceed as follows:-

Click on

And update company code 1100

This step will give We list of accounts not assigned to the various
nodes

After assigning the non assigned GL codes to various nodes The
FSV is ready to be used by company code 1100.

8. FI Integration with other modules

8.1 Integration with Overhead Cost Controlling

When a reconciliation ledger is implemented in the CO, We need to
define this account. Postings will happen from the controlling
module to the FI in order to balance FI.

Scenario:-

Let’s assume controlling allocations has happened between 2
company codes. Since allocation has taken place in the controlling
module, there will be no corresponding posting in FI in both the
company codes.

In order that posting happens in both the company codes in FI, We
need to configure this setting.

Menu Path

IMG  Financial Accounting  General Ledger Accounting 
Business Transactions  Integration  Overhead Cost Controlling
 Define Accounts for Overhead Cost Controlling

Transaction Code
(OBYB)

Enter chart of accounts USCA and Click on Save
Enter GL code 450020 Reconciliation Ledger Adjustment Account

8.2 Integration with Materials Management

In this topic we will learn how the integration within FI MM, and SD
takes place .We will also learn how accounting entries are posted
automatically and how do we configure them?

There are certain simple things We need to understand to know
how this integration happens.

First all Materials in SAP should have a material master.

This material master has various views right from Basic views to
Purchasing views, production, sales and distribution and
accounting and controlling views. We will not get into the detail of
Material master at this stage but it would suffice for us to
understand that Material Master is the heart of all integration.

In the accounting view of Material master amongst other values we
have a Valuation Class field. This Valuation class is the vital link
which ensures that Accounting documents are posted
automatically. Every material will have a valuation class field.

We can go to transaction code mm03 put any material no and click
on Accounting 1 view on which We will find the Valuation Class
field.

Examples of Valuation Class could be Finished Goods,Semi
Finished goods, Raw Material etc

The combination of this Valuation Class+ the Movement
Type(which I have defined below) helps in determining the Gl
accounts. Read this statement twice to understand how gl accounts
are automatically updated

What is a Movement Type?

All Material movements in MM happen with respect to a Movement
Type.

For eg Goods receipt is defined with movement type 101
Goods issue to production order is defined with movement
type 261
Scrapping of goods is defined with movement type 551
Goods delivered to the customer with movement type 601
Initial upload of stock is defined with movement type 561

SAP helps us to have different gl accounts for the various
movements for the same material by linking this movement type to
a transaction key. So where do we do we go and fit in all the
different Gl accounts which we require?

Before we get into that let us take an example of a movement type
and see how Gl accounts are automatically updated. If We are with
me till now lets move ahead. If not I suggest We read the above page
once again. All right lets get going dear friends.

Quick recap.

Material Master->Valuation Class-Movement Type-Transaction
key.
Stick in all the gl accounts at this place. How we do this will see
very shortly.

Let us now 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:-

Menu Path

IMG  Materials Management  Valuation and Account
Assignment  Account Determination  Account Determination
Without Wizard  Configure Automatic Postings

Transaction Code
(OMWB)

Or

Transaction Code
(OBYC)

As We see above the second column contains all the Transaction
keys where We need to stick the Gl accounts. So lets see for the
goods receipt transaction what do we do.

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.

For the GR/IR account We need to update the WRX transaction key
with the GL code GR/IR account.

A very important point from now on. Every accounting entry with
respect to a material will have a impact on the inventory. So one
side of the posting (either a debit or a credit) will always be taken
from the BSX field We have defined above. The second side of the
posting will be determined based on Wer movement type which in
the above case was a GR/IR.

If We understood example 1 We will understand all the other
examples. As the methodology of finding Gl accounts is the same.

So dear friends if We want to learn SAP quickly We should learn
how the things are integrated and not go through reams of material
and keep on studying. Understand those vital areas and We will
learn quickly. Alright lets move on

We will go through more examples below:

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

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

.
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.

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

6) When goods are scrapped:-

Movement type use 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

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:-

Menu Path
IMG  Materials Management  Valuation and Account
Assignment  Account Determination  Account
Determination Without Wizard  Configure Automatic Postings

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

Further we will also select Account check

Here we select, whether we want check of referenced G/L accounts
in the company code. Currently we will not select this.

Click

Click


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
VBR.

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

8.3 Integration with Sales and Distribution

FI – SD account determination:-

All Billing transactions happening in the Sales and distribution
module will result in FI postings.

All accounting entries with respect to the billing will have one side
of the account as a Customer or receivable and the other side to be
a revenue account

Example:

Customer –Dr
To Revenue Account- Cr

We have to bear in mind that the customer account gets picked up
from the customer master data . All we need to do is to configure
the revenue account or the discounts and surcharges

Where and how do we do this?

We make the allocation for each of these through access sequences.

Access sequence is nothing but SAP’s terminology of
determining the Gl accounts. SAP provides the following six
ways of determining the Gl accounts in SD.

 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.

Menu Path
IMG  Financial Accounting  General Ledger Accounting 
Business Transactions  Integration  Sales and Distribution
Prepare Revenue Account Determination
or

Menu Path
IMG  Sales and Distribution  Basic Functions  Account
Assignment/Costing Revenue Account Determination  Assign
G/L Accounts

Transaction Code
(VKOA)

The account determination in SD happens through an access
sequence which can be seen in the below table.

The system goes about checking for the gl account(which we will
stick in here We will see more of that later) from more specific
criteria to less specific criteria.

Thus We can maintain different GL codes for each combination
of the above table entry.

This is how SAP will determine the revenue account:

It will go through first table entry CustGrp/Material grp/ account
key. If any Gl account is maintained here the system will then go to
the transaction data of the particular billing document and see
whether such a combination of Customer group and material group
exists if it does it will pick that relevant Revenue account and post

the accounting document . Iif it does not it moves to the next
combination in the table which is Customer group/account key and
so on and so forth

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.

The last option it checks is account key entry

We will now maintain the Gl account for the combination of
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

That’s it . The system will look into this table see this combination
and if the relevant combination exists in the transaction it will debit
the customer account and credit this account 800000.

As simple as it is. So basically the FI-Sd integration is for picking
up the revenue accounts or the discounts and surcharges.

The account key determines whether it is a revenue or a surcharge
or discount. Examples of some are given down below:

Various account keys are available

Let us now maintain for the table entry account key. And post to a
different GL code.

Click on

And update the following information

App: V (Sales/distribution)
Cond type: KOFI (Account determination)
Chrt/accounts: USCA
SOrg: Sales organization
Act Key: ERL
GL account no: 810203

Click on Save

So We are done.

It is also useful to know a bit of the configuration of the Sales and
Distribution.

The account keys are attached to the condition type in the sales
pricing procedure.

Let us see the sales pricing procedure.

Menu Path
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.

NOTE: Transaction Codes are an important and integral part of the
whole SAP functioning. Once you get acquainted with the SAP
configuration, Transaction Codes will help you to function or
maneuver in faster and accurate manner.

Here are two tips in relation to Transaction Codes,

1) How to search the menu path for a particular Transaction
Code

a) Type Search_sap_menu in Menu field and execute

b) Enter the Transaction Code in the search text entry and enter.

You will get the menu path for a particular Transaction Code,
sometimes there might be more than one menu paths available out
of which you have to choose the right one according to our
requirement.

2) How to search for a Transaction Code

a) Type SE16 in Menu field and execute

b) Enter table name TSTC and enter.

c) Enter a search word along with *,

e.g. FS* which will give you all the transactions starting with FS
and text of that transaction in the last column of that report.

So for example if you are searching for GL creation but you only
know that it starts with F or FS but not the whole transaction than
in the above statement you can find out the transaction as required
by you i.e. FS00

So that’s it then my dear friends. I hope you enjoyed reading it. All
.
our packs are shipped thru FedEx and reaches you in three
days time. One more thing this configuration pack is compatible
with version 4.7, version 5.0 and 6.0 So you really do have to worry
about the version at all.. We have taken care of that… Also all
future version changes will be provided as free updates to you. So
you can sit back relax and play the music …. Get the SAP FICO
Complete Configuration pack right now and join the elite league of
thousands of successful SAP FICO consultants.

Prosperity and Success Be On To You .

☼☼☼☼☼☼

SAP General Ledger
Configuration
SAP R/3 ENTERPRISE ECC6
Published by Team of SAP Consultants at
SAPTOPJOBS
Visit us at www.sap-topjobs.com

Copyright 2009-11@SAPTOPJOBS

All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form, or by any
means electronic or mechanical including photocopying, recording
or any information storage and retrieval system without permission
in writing from SAPTOPJOBS.

Fi configuration

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