copa is a reporting tool.

costing based copa and accounting based copa.

copa use combination of characteristics and value field.
Steps:-
[Link]
[Link]
[Link] analysis

The custom characteristics that you are creating must start with WW.
5 characters

SE38- ABAP Editor initial screen.

SM37- Simple job selection or job overview.

DOUBT - WITHHOLDING TAX SETUP

Withholding tax:-
SPRO>> Financial Accounting>> financial accounting global setting>> withholding
tax>> withholding tax or extended withholding tax>> basic setting>> INDIA
folder(for tax withholding settings related to india)
--Create business place in INDIA folder.
Withholding tax shows basic functionality and extended withholding tax shows
advanced functionality evolved over time.

Withholding tax keys:-

Off setting keys Name
194C TDS on contractors
194I TDS on Rent

Recepeint types:- Whether the vendor is a company,partnership firm or individual.

Go out of basic settings and Go to Calculations.

--In India withholding tax is applicable on the invoice or payment whichever is
earlier.
India follows gross amount in base amount calculations.
Tick on Post Wtax indicator.

Go to company code folder in calculations.

After that go to postings in calculations and then accounts for withholding tax and
then accounts for withholding tax to be paid over.
****[J1INEMIS]-To generate or view reports.

Document splitting:-
Splitting of one line item into two parts based on profit centre,cost centre,
business areas etc.
FB60- vendor invoice

Priority of operation by the system:- passive>> Active>> Zero balance

Active document splitting:- At the time of invoice, vendor line items gets splitted
on the basis of expense line items.

vendor -1000INR
Expense 600 PC1
Expense 400 PC2
Vendor -600 PC1
Vendor -400 PC2
Expense 600 PC1
Expense 400 PC2

Passive document splitting:- At the time of payment, Bank GL accounts get splitted
on the basis of invoice line items.

Bank -600 PC1

Bank -400 PC2
Vendor 600 PC1
Vendor 400 PC2

Zero balance document splitting:-

Expense Dr 1000 PC1

Expense Cr 1000 PC2
Zero balance Cr 1000 PC1
Zero balance Dr 1000 PC2

Used in inter cost centres or inter profit centres transactions.

[KE53]- used for creating profit centres

[KS03]- used to display cost centres

[KS01]- used to create cost centres

Configuration related to document splitting:-

financial accounting>> general ledger accounting>> business transactions>> document
splitting

First activate document splitting.

In simulate you cant see the splitted information. For viewing it you have to click
simulate general ledger.
Each and every GL has to be assigned to item category and each and every document
type has to be assigned to business type and variant.

If you want to see the GL at profit centre level use report

[FAGLL03]

Carry forward the AP/AR balances to next year:-

SAP easy acces>> accounting>> financial accounting>> accounts receivable>> periodic

processing>> closing>> carry forward.

[FD10N]- transaction code for customer balances.

To create or copy company codes:-

SPRO>> enterprise structure>> definitionn>> financial accounting>> edit,copy,delete

or check company codes.

Validation and substitution:-

[GGB0]- change validation.

3 levels of validations
1. Document header
2. Line item
3. Complete document

3 steps in validation:-

1. Prerequisite: for which scenarios the check will be performed.

Comapany code = 'ABC1' AND Document type = 'SA'
2. Check
Reference <> '' i.e. reference field is not equal to blank
3. Message: it is triggered when check is failed.

[OB28]- For activating validation.

[GGB1] - Substitution
[OBBH] - for activating substitution

Only two steps in substitution:-

1. Prerequisite
2. Substitute

In substitution we have 3 options:-

1. Constant
2. Exit(ABAP)
3. Field to field

** Validation is more important than substitution because validation include

substitution.

[BKPF]- header table

[DOUBT]
Fixed Asset Accounting:-

1. Acquisition of asset
2. Capitalize asset
3. Depreciation
4. Retirement of asset
4. Transfer of asset

To start using asset accounting we have to perform the following steps first.
1. Configuration
-> Create chart of depreciation- Depreciation areas
SPRO>> Financial accounting>> Asset accounting>> Organisational structures.

Create accounting principles:-

SPRO>> financial accounting>> global settings>> Ledgers>> Ledger>> Parallel
accounting

In S4 HANA it is mandatory that if you are using any additional currencies

you have to create separate depreciation areas for those currencies.
Create depreciation area in the define depreciation areas and select the
'posting in the general ledger' as 'area doesnot post'.

To tell the system that depreciation area 2 is for some other currency
 Go to asset accounting>> General valuation>> currencies>> Specify the use of
parallel currencies>> Define depreciation areas for foreign currencies.

Tick IdAPC and IdntTrm to tell the system to copy the values from
depreciation area 1.
Assign the depreciation area to company code.

-> Create asset classes

-> Create number ranges.

Purpose of depreciation areas- These are required for calculating depreciation

according to different legal requirements.

1. Configuration data
2. Master data
3. Transactional data
4. Reporting

In asset accounting we have to tell the system which fiscal year is our last fiscal
year.

[FAA_CMP]- Make settings for company code.

Provide the highest fiscal year according to the closed fiscal year.

[AS01]- Create asset

[F-90]- Asset invoice

Along with depreciation area 1 maintain the depreciation area 2 or else it will
show error.

[FAGLGVTR]- Balance carry forward

Check the period control in the 'Define calendar assignment'.

[OA84]- Period control rules.

*** Check the deactivation key in the 'determine depreciation areas in th asset
class'.

1. Acquisition of asset
Document type AA
Asset ac dr.
Technical clearing ac cr.

Document type KR
Technical clearing ac dr.
Vendor ac cr.

2. Capitalize asset

3. Depreciation
Document type AF
Depreciation(P/L) dr.
Accumulated depreciation ac cr.

4. Retirement of asset
Net book value= Acquisition value - Accumulated depreciation

Customer dr
revenue clearing account cr.

Asset ac cr.
Accumulated depreciation dr.
Loss on asset sales dr.
Revenue clearing ac dr.

5. Transfer of asset

For assignment of CO object for depreciation:-

You have to maintain below mentioned setting in T-Code ACSET. The cost center
will automatically get picked up from the asset master while executing depreciation
run.

KOSTL Cost Center * Generic Trans. Type Depreciation Run

[OKB9]- Default account assignment

*** Please verify the cost element category in FS00

Accruals and Deferrals:-

Accruals- These are the expenses that are already incurred but we have not yet
booked in the system.
Revenues- services already provided but revenue will be collected at a
later date.

Defferals- invoice received but expense has not been incurred yet.
Revenues- Revenue has been received but services will be provided at a
later date.

Accrued expense at the end of f. year:-[FBS1]

Expense dr. 1000

Outstnding liability cr. 1000

Reversal at the begininig of new f. year:-[F.81]

Outstanding liability dr. 1000

Expense cr. 1000

When the vendor send invoive:-

Expense dr. 1000

vendor cr. 1000

Periodic activities- Monthly:-

1. Provision- Accruals/Deferrals
2. Closing/opening of accounting periods.
3. Balance carry forward.
4. Foreign currency valuations.
5. Financial statement(BS/PL)- FSV- Financial Statement Version

[F.01]- Generate financial statement.

Structure the financial statements as per the diff. legal requirements:-

SPRO>> financial accounting>> general ledger accounting>> master data>> gl

accounts>> financial statement structures.

Prepare financial statements:-

Create items

1. Balance sheet
>>Asset
-Fixed assets
-Current assets
>>Liabilities
-Fixed liabilities
-Current liabilities
2. Profit and loss
>>Revenues
-Operating revenues
-Non operating revenues
>>Expenses
-Operating expenses
-Non operating expenses

Material Ledger:- In SAP S4 hana material ledger has to be activated TECHNICALLY.

1. Material valuation in multiple currencies.[Assign currency types and define

material ledger types- SPRO- controlling]
a)Company code currency-10
b)group currency-30 it is defined at client level. [SCC4]- display clients
c)hard currency-40 currency maintained at a country level.
SPRO>> net weaver>> general settings>> set countries

***Visit production startup of material ledger [CKMSTART] to execute the program.

***ERROR- Material ledger master data cannot be created for valuation area.

[SM37]- show all background processes or job over views.

2. Material valuation in multiple valuation.{Group, Profit center(Transfer

pricing), legal}

3. Actual costing: It is normally req. in case of manufacturing companies.

[MM01]- Create material.

[MM03]- Material display or material master
2 types of price control:-

Standard price = 100 USD

Purchased 10 units @ 110 USD each Total= 1100 USD but materials will be valued at
1000 USD due to standard pricing 100 USD is variance.

1. Standard
Benefits- We can monitor and control the variances.
Disadvantages- Material is not valuated at the correct price.

2. Moving average
Benefits- Material is valuated at the correct price.
Disadvantages- We cannot monitor and control the variances.

To solve these disadvantages actual consting is used.

Actual costing-[Periodic unit price] Valuate the material at standard price
throughout the month, at the period end activity system will move the variances to
stock/consumptions.

During the period:- 100USD

Period end:- Variance of 100 will be booked to stock/consumption.

Define and assign plant and valuation area:-

SPRO>> org structure>> define>> logistics general

Assign>> logistics general

Valuation Area config:-[general ledger related]

SPRO>> financial accounting>> general ledger accounting>> periodic processing >>

valuate

Material ledger technical config:- It is activated at plant level and if it is

activated for one plant it has to be activated for others.

spro>> controlling>> product cost controlling>> actual costing/material ledger>>

assign

customer as vendor:-

config of business partner grouping to vendor account grouping:-

SPRO>> Cross application components>> master data synchronization>> customer/vendor

integration>> business partner setting>> setting for vendor integration>> field
assignment for vendor integration>> assign keys>> Define number assignment to
direction BP to vendor.

To integrate vendor with customer open customer in bp and assign vendor account to
it.
then go to vendor BP account and assign customer number in vendor general data and
tick on clearing with customer in the company code data.

same thing to be done with customer data.

Tick on clearing with vendor.
and provide the vendor number.
In post going payments click on other accounts.
If you are using a document type where posting for customers is not allowed you
have to go to [FBKP] and allow the posting for customer as well or else it will
show errors.

If you see the error that item category is not allowed in accounting transaction go
spro extended document splitting and verify the transaction and variant in classify
the document types after that define the document splitting rule.

Bank reconcillation statement:-

steps to create BRS:-

1. Create new bank account
2. Configure BRS
3. Execute BRS.

We need atleast 3 Gl accounts.

1. For green or matching transactions.
2. For red vendor payments mismatched transactions.
3. For red customer payments receipt mismatched transactions.

Incoming and outgoing accounts are normally treated as clearing accounts.

Creation of operating bank or bank setup has 3 steps:-

1. Creation of bank key [FI01]

2. Creation of house bank [FI12]
3. Creation of house bank accounts. [FIORI]

For issues relating to house bank keys please check the SAP ABAP.
and process the country related checks.

ABAP platform>> General setting>> set countries.

For each branch of bank we have to create individual bank keys.

[SM12]- To unlock the pages or settings locked by different users.

Tolerance Group:-

In SAP, a tolerance group defines the limits for financial transactions, such as
the maximum amount a user can post, discounts allowed, and differences during
payments. It essentially sets the "tolerance" for deviations in transactions,
saving time and effort for users by automatically accepting minor differences.
There are different types of tolerance groups, including those for employees,
vendors, and customers, each with specific purposes.

Types of Tolerance Groups:

[Link] Tolerance Groups: Determine the maximum document amount an employee is

authorized to post.
[Link]/Customer Tolerance Groups: Set the maximum amount of differences or
percentage that SAP will automatically accept without generating errors, according
to Archon Solutions.
[Link] Tolerance Groups: Control the maximum difference between the invoice and
payment amounts.
[Link] Tolerance Groups: Often used to manage differences between the invoice
and the goods receipt document in material management.
Payment terms:-

In SAP, payment terms define the agreed-upon conditions for invoice payment between
a company and its business partners (customers and vendors). These terms specify
the payment period, any discounts offered for early payment, and other relevant
information. They are crucial for managing cash flow and maintaining healthy
business relationships.

Installment Payment:-

Terms of payment for installments are composed of individual terms of payment ,

with one payment term for each installment. When you post an installment, the total
amount is split up into individual items for each installment and each installment
is calculated with the relevant payment term. For information about how to maintain
terms of payment, refer to the Implementation Guide for Accounts Receivable and
Accounts.

Cash Discount:-

In SAP, a cash discount is a percentage deduction offered on an invoice amount if

the payment is made within a specified period. It's essentially an incentive for
early payment. This discount is typically configured in SAP's payment terms and
automatically applied when a customer pays within the defined discount window.

Document splitting:-

In SAP, document splitting allows for a more granular view of financial data by
dividing financial documents into multiple line items based on selected dimensions,
such as profit centers or cost centers. This feature enables the creation of more
detailed financial statements for specific segments of the business.

Automatic Payment Program:-

Automatic Payment Program (APP) is functionality of posting accounts payable like

payment to a vendor based on vendor invoices automatically. APP is used to find out
due/overdue invoices and to process a list of customer and vendor invoices to make
payments in one go.

The Transaction code [F110] is for managing automatic payments.

Automatic Payment Program is divided into 4 steps (4 P's) :

[Link]
[Link]
[Link]
[Link]

ODN(Official Document Numbering):-(Similar as bill book)

In SAP, ODN (Official Document Numbering) refers to the sequential numbering of
business documents, like invoices, to comply with legal requirements, particularly
in countries like India, where specific numbering rules apply. This numbering is
crucial for tax reporting and to ensure the correct documentation of transactions.

Steps:-

Maintain Document Classes:-

Execute the Tcode: SM30
Enter the Table/View - V_DOCCLS &click on “Edit” button
Enter the country key as ‘IN’

Assign Document Types to Document Classes:-

Execute the Tcode: SM30.
Enter the Table/View - J_1IG_V_T003_I & click on “Edit” button.
Click on “New Entries” button.
Maintain the entries as per your business needs.

PS: It is recommended to maintain the ODN control as ‘C’ which is w/o Date Control
for country ‘India’.

***In SAP, the "KR" document type signifies a vendor invoice and is commonly used
for posting non-PO based vendor invoices. It's distinct from the "RE" document
type, which is used for PO-based invoices posted through the logistics module. KR
documents are typically booked through Financial Accounting (FI) using transactions
like FB60, F-02, or FB01.

Maintain Number Groups:-

Execute the Tcode: SM30.
Enter the Table/View - J_1IG_V_NUMGRP & click on “Edit” button.
Click on “New Entries” button.
Maintain the number groups.

Maintain Number ranges for Official document

Execute the Tcode SNRO.
Give object name as ‘J_1IG_ODN’ & click on “Intervals” on the tool bar

Assign Number ranges to Business Places:-

Execute the Tcode: SM30.
Enter the following Table/View - J_1IG_V_OFNUM & click on “Edit” button.
Click on “New Entries” button.
Assign the number group to the combination of Company code, Business Place &
Official Document Class.

Billing type:-
In SAP, a billing type determines how a billing document (like an invoice) is
processed, including its numbering, partner roles, and cancellation rules. It's a
key component in SAP's Sales and Distribution (SD) module, influencing various
aspects of the billing process.

Document types:-
Sales & Distribution (SD):
Invoices: Standard customer invoices (e.g., type DR in SAP).
Credit Memos: Credit memos issued to customers (e.g., type DG in SAP).
Debit Memos: Debit memos issued to customers (e.g., type SD in SAP).
Financial Accounting (FI):
Vendor Invoices: Supplier invoices (e.g., document type KZ- payment and document
type KR- Vendor invoice in SAP).
Customer Payments: Receipts from customers (e.g., document type DZ in SAP).
Materials Management (MM):
Purchase Orders: Purchase orders (e.g., document type NB or NS in SAP).
Goods Receipts: Goods received from vendors (e.g., document type WE in SAP).

Document class:-
In SAP Official Document Numbering (ODN), the document class is a crucial
configuration element used to group different document types that share a common
number range. Each document class represents a category of documents, and the
system uses these classes to assign official document numbers, ensuring compliance
with regulatory requirements.

EWAY bill:-
An eWay bill is a digital document detailing the transportation of goods from one
location to another. It becomes obligatory for goods exceeding Rs. 50,000 under the
GST framework and is initiated through the eWay bill Portal, holding validity for a
specified period.
e-way bill is generated on [Link].

Components of eWay bill:-

E-Way bill is divided into two components i.e. Part A and Part B. The person
required to issue eway bill should fill in the following details of Part A:

Details of GSTIN of recipient,

Place of delivery (PIN Code),
Invoice or challan number and date,
Value of goods,
HSN code,
Transport document number (Goods Receipt Number or Railway Receipt Number or Airway
Bill Number or Bill of Lading Number) and
Reasons for transportation

Part B contains transporter details.

For certain specified Goods, the eway bill needs to be generated mandatorily even
if the value of the consignment of Goods is less than Rs. 50,000:
[Link]-State movement of Goods by the Principal to the Job-worker by Principal/
registered [Link] person who is treating or processing the goods belonging
to other person is called Job worker.
[Link]-State Transport of Handicraft goods by a dealer exempted from GST
registration

[Form GST EWB-01]

HSN Code:-
HSN code stands for “Harmonized System of Nomenclature”. This system has been
introduced for the systematic classification of goods all over the world. HSN code
is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide.
It was developed by the World Customs Organization (WCO) and it came into effect
from 1988.

Detailed Steps for GSP Configuration:-

1. Communication Arrangements:
a)Log in to your SAP S/4HANA Cloud tenant and navigate to the "Communication
Arrangements" application.
b)Create a new communication system with a unique ID and description.
c)Define the scenario as SAP_COM_0629 and name the arrangement (e.g.,
SAP_COM_0629_YourTenant).
d)Choose the newly created communication system and set the path part for your
integration flow URL (e.g., /cxf/indiaeinvoice) outbound services.
2. SAP Cloud Integration:
a)Import SSL Certificates: Import SSL certificates from the GSP into your SAP
Cloud Integration tenant.
b)Deploy User Credentials: Deploy NIC user credentials per GSTIN, as provided by
the GSP.
c)Deploy NIC Public Key Certificate: Deploy the NIC public key certificate.
d)Adapt and Deploy Integration Flow: Adapt and deploy the SAP integration flow,
including GSP-specific authentication details.
 e)Client Certificate-based Authentication: Set up client certificate-based
authentication for the integration.
3. GSP-Specific Configurations:
Registration: Register GSP login credentials for e-way bill API access through the
GSP platform.
Security Artifacts: Add security artifacts like keystore entries (certificates and
user credentials) in SAP Cloud Integration.
Test Connection: Test the connection between SAP Cloud Integration and the GSP to
ensure proper communication.
Monitor and Log: Configure monitoring and logging settings to track transactions
and errors.
Additional Notes:
Ensure you have the necessary authorizations (e.g., AuthGroup. Administrator) for
certain operations in SAP Cloud Integration.
Refer to SAP's documentation and SAP Business Accelerator Hub for specific guidance
on implementing the e-way bill integration with GSPs.
The GSP template allows for adaptation of the integration flow to specific GSP
requirements.
You may need to repeat steps 4 (adapt and deploy SAP integration flow) for updated
versions of the integration flow, and steps 1 and 3 (import SSL certificates and
NIC public key certificate) if there are changes from GSP or NIC.

Key Configuration Steps:-

1. Enable E-Invoicing:
a)Within SAP, navigate to "Customizing" and then "Financial Accounting (New)".
b)Go to "Accounts Receivable and Accounts Payable," and then "Business
transactions".
c)Select "Country-specific Settings" and choose your company's location.
d)Click on "Electronic Invoicing" to access the configuration options.

2. Maintain Editing and Deadline Settings:

a)"Maintain Editing and..." allows you to control the ability to delete or edit
electronic invoices in the journal.
b)"Maintain Deadlines" lets you set deadlines for electronic invoice status
changes, flagging invoices as outdated if they haven't been updated within the
timeframe.

3. Configure Incoming Invoice Settings:

a)"Maintain Incoming..." allows you to define rules for automatically linking
accounting documents during the posting session for incoming electronic invoices.
b)You can also select dates relevant to any invoice-matching rules.

4. Integration with IRP and GSTN:

a)Ensure your SAP system is configured to transmit invoice data in the required
format (e.g., JSON) to the IRP.
b)Verify that your system can receive and process the IRN (Invoice Reference
Number) and QR code from the IRP, which must be displayed on the invoice.
c)The e-invoice data will automatically flow into the GSTR-1 and E-Way Bill
portals.

5. E-Document Cockpit/Manage Electronic Documents:

a)Use the "eDocument Cockpit" or "Manage Electronic Documents" app to submit
electronic invoices to the authorities.
b)For some countries, the system can automatically submit documents, eliminating
the manual submission step.
Foreign currency postings:-
In SAP, foreign currency postings involve recording financial transactions
denominated in currencies other than the company code's local currency. SAP handles
these transactions by converting the foreign currency amount to the local currency
using an exchange rate, and it also manages any resulting exchange rate
differences. These differences are typically posted to separate accounts for gains
or losses.

Revenue clearing:-
In SAP, revenue clearing refers to the process of settling open items related to
revenue recognition. This involves using specific General Ledger (GL) accounts,
often referred to as clearing accounts, to manage the difference between recognized
revenue and actual payments received. Clearing is crucial for maintaining accurate
financial records and ensuring that revenue is recognized in the correct period.

Foreign Currency Revaluation:-

Foreign currency revaluation in SAP involves adjusting the value of foreign
currency-denominated assets and liabilities to reflect current exchange rates,
typically done at the end of a financial period. This ensures financial statements
accurately present a company's financial position and comply with accounting
standards.

Configuration:-
[Link] Determination for Foreign Currency Valuation (OBA1):-
In this configuration different GLs are assigned. We have to assigned Realized GL,
Unrealized GL, Balance sheet adjustment GL with the Reconciliation GL based on
maintained revaluation criteria.

[Link] Exchange rate (OB08):-

On the daily basis Currencies rates are fluctuating, that's why we need to maintain
Exchange rate. Using transaction code OB08, we can maintain exchange rates on daily
basis.

[Link] Currency Valuation Run:-

FAGL_FCV is a program which is used for month end postings. This program is
executed on the month end & generated postings gets automatically reversed on the
1st day of the next month. Reversal is automatic because after the month end
reporting, books of accounts must be match with the entered postings.

**Define valuation areas

**Define accounting codes
**Assign accounting codes to valuation areas

SPRO>> General ledger accounting>> Periodic processing>> Valuate>> Valuation

method/ valuation areas