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 Content

1. General Ledger Accounting

2. Accounts Payable

3. Accounts Receivable

4. House Bank & EBRS

5. Tax Procedure & With Holding Tax (TDS)

6. Foreign Currency Revaluation

7. Controlling

8. MM & SD Integrations

9. Asset Accounting

10. New GL Accounting

11. Technical Topics

1) Validation & Substitutions
2) LSMW
3) Transport Request Process
4) IDOC

12. ASAP Methodology

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 1. Enterprise Structure & GL Accounting

1. Create Company OX15

2. Create Company Code OX02
3. Assign Company Code to Company OX16
4. Create Business Area OX03
5. Create Consolidate Business Area OCC1/OBB6 Used for Regional Accounting
6. Create Functional Area FM_FUNCTION/
7. Create Credit Control Area OB45/OB38
8. Create Segment S_AL0_19000003
9. Create Financial Management Area OF01/OF18
10.Chart of Accounts OB13/OB62
11.Fiscal Year Variant OB29/OB37
12.Posting Period Variant OBBO/OBBP
13.Maintain Posting Periods OB52
14.Field Status Variant OBC4/OBC5
15.Account Group OBD4
16. Retained Earnings Account OB53
17. Posting Keys OB41
18. Document Types and Document Number Ranges OBA7 & FBN1
19. Define Tolerance Group for GL Accounts OBA0
20. Define Tolerance Group for Employees OBA4
21.Define Tolerances For Customer/Vendor OBA3
22.Assign Tolerance Group to Users OB57
23. Maintain Global Parameters OBY6
24. Maintain Controlling Area OKKP
25. Maintain GL Master FSS0 FSP0 FS00
26. Deactivation of Document Splitting SM30
27.Post Incoming Payment F-06 and Post Outgoing Payment F-07
28. GL Master Co Cd level FSS0 / COA – FSP0 / Central Level FS00
29. GL Balances FS10N or FAGLB03 GL Line Item Report FAGLL03
30. GL Posting FB50 or F-02 Double Screen GL Clearing F-03
31.Parked Document FBV0 FBV2 FBV3 FBV4
32.Sample Document FBM1 FBM2 FBM3 or F-01
33.Recurring Document FBD1 FBD2 FBD3
34.Delete Sample or Recurring Document F.56 or F.57

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35.Accrual/Deferral Document FBS2
36.Hold Document Program RFTMPBLU –SE38
37.Define Financial Statement Version OB58
38. Display Financial Statement F.01
39. Copy Chat of Accounts OBY7
40.Transport Chart of Accounts OBY9
41.GL accounts changes at Table level MASS OB_GLACC12
42. Copy GL Master data Co Cd to Co Cd FS15
43. Download List of GLs from SKB1 Table SE16
44. Display the GL accounts at chart of Account Level F.10
45. Delete GL, Vendors and Customers OBR2
46. Automatic cost element assignment to GL OKB2 & OKB3
47. Add Regions OVK2
48.P&L Financial Statement S_ALR_87012270
49.Balance Sheet Financial Statement S_ALR_87012284
50.List of GL Accounts S_ALR_87012333

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 1. Enterprise Structure & GL Accounting
What is Organization Structure?

Operating concern COPA. Which we do link to FI

Controlling area

Legal entity COMPANY CODE

Global Parameters

What is Company Code in SAP?

A company code is the smallest organizational unit to prepare financial statements for
your external statutory reporting and also for internal reporting. It’s a 4 character
alphanumeric code. Creation of company code is mandatory. We need to maintain at least one
company code in a single client.

What is company in SAP?

A company is the organizational unit in SAP FI for which you can draw individual financial
statements, according to the legal requirements of the country where it’s incorporated.

What is Business Area?

Business area is just segregation of business transactions origins. Business area financial
statements can be created for using internally. Business areas are used in external segment
reporting based on the product lines, branches of company.
Business Areas are not much relevant in FI but are much more relevant in CO. A
business area can have more than one profit center within it.
What is Functional Area?

In SAP, functional area is an organizational unit that sorts operating expenses incurred
based on the activities. For example Production, Administration, sales, research &
development, etc.

 If the organization is following cost of sales accounting, it is mandatory to create

functional area in SAP and properly assign in various master data. GL, Cost elements,
Cost center, Order, WBS elements.
 It will allow creating financial statements to meet the US GAAP requirements.

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What is Credit Control Area?
Credit control area in is an organizational element it is used to controls and monitors
credit limits of customers. Relations ship is one to many.

What is FM areas in SAP?

Financial management area it is an organizational unit. It is used for cash management
and funds management of the company. Relation is one to many.

What Is Segment?

Segment is a division or Sub area of the company. We can generate segment level
financial statements for reporting purpose. US GAAP or IAS. It’s a client level.

What is Chart of Accounts?

The list of GL accounts which are used by companies to post business transactions and
to prepare financial statements. The chart of accounts contains the structure and basic
information of a general ledger account. There are types in chart of accounts.

Operational Chart of Accounts

The operating chart of account is used for recording the day-to-day transactions in a
company code. We also call them as the standard chart of accounts. These GL accounts will be
assigned to finance and controlling level. Operational chart of account is mandatory in a
company code.

Country Chart of Accounts

The organization uses this chart of account to meet the countries legal requirements. For e.g.
tax calculation may vary from country to country, so the Country COA helps to prepare the
reports as per the countries legal requirements.

Assignment of a country specific chart of accounts to a company code is optional. You

can establish the linkage by entering the country chart of G/L account number in the alternate
Account number field of GL Master Record.

Group Chart of Accounts

G/L accounts created under a group chart of accounts are used by the entire corporate
group. These G/L accounts are used for consolidation purposes. In GL master Trading partner
is used to prepare consolidated financial statements. This chart of accounts provides

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information or reports at the corporate level or all the company codes of an organization. And
assignment of a group chart of accounts to a company code is optional.

Fiscal Year Variant

Fiscal year is assigned to company code through a fiscal year variant. In the fiscal year
variant posting periods, period texts will be maintained. One fiscal year variant can be
assigned to many company codes. Posting periods drives from FYV.

Year Dependent Fiscal Year

Number of days in a month which are not equal to number of days in a regular calendar
month is known as year dependent fiscal year.

Year Independent Fiscal Year

The number of days in a month which are equal to regular calendar month is known as
year independent fiscal year.

Shortened SAP Fiscal Year

Fiscal year that contains less than twelve months.

A shortened fiscal year could be necessary in Establishment of a company, Changeover from a

calendar year to a non-calendar fiscal year, or vice versa, if an enterprise becomes part of a
new corporate group.

Fiscal year variant must be defined as a year dependent, since it can only apply to a specific
year and must be followed by a complete fiscal year.

Period texts are necessary to maintain “texts against a period with a respective language.”

Posting Period

In SAP, a financial year is divided into posting periods. Posting period represents months
of a fiscal year. Each posting period is defined by a start and a finish date. 12 Normal periods
and 4 Special Periods. You can define up to 366 posting periods in the Special Purpose Ledger.

Special Periods are used post Yearend adjustments and Tax Adjustments

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Posting Period Variant

Posting period variant is helpful to open and close posting period in OB52 T code.
It will controls accounts and periods. We create posting period in OBBO and assign it in OBBP.

Field Status Variant and Filed Status Group 0001 Standard FSV Group

Field status variant allows you to use field status groups.

Field status group control the document entry screen fields, like Business area, cost centre,
profit center, text. It controls which field should suppress, display, optional and required. Field
status group is maintained in GL account master. Every G/L account must be linked with field
status.

ACCOUNT GROUP

Account groups are used to maintain account intervals and segregate G/L account groups.
An account group controls the master data screen fields.
Account group can be created at the chart of accounts level.
Account group helps users to define required fields while creating the master data.
Retained Earnings Account

Retained earnings account is created to transfer the P&L closing balance to balance
sheet at year end. The balance of retained earnings account appears as reserves and surplus in
the balance sheet for the year. If you have defined retained earning account in sap then
system will automatically use it by default. If there is more than one defined then you have to
select it for each profit and loss account while creating a master record.

Retained earnings account is assigned to Chart of Account and not to company code. Retained
earnings account is balance sheet account. We have to create Retained earnings account at
IMG level.

Separate retained earnings accounts are used for parallel financial reporting, it means when
you need to report local GAAP and IFRS or US GAAP at the same time. Several retained
earnings accounts are necessary when the company chooses account based approach for
parallel reporting.

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Change the retained earning account mid-year

I do not see any issues in changing the Retained earnings account since the account doesn't
post in real time. But you can make a transfer posting of balance from OLD account to new
account through FB01 instead of re-running the Carry forward. If not, try running the carry
forward in TEST system and see the results.

POSTING KEYS OB41

Posting keys are helpful for identification of debits and credits. Posting key determines
account type and field status of transaction. It’s two digits numerical key. Posting keys are
applicable for all company codes as it’s configured at client level.

GL 40 50 AP 21 31 AR 01 11 ASSET 70 75

Account types:- S- GL, K-VENDOR, D-CUSTOMER, A-ASSETS, M-MATERIAL, V-CONTRACT

ACCOUNTS, + ALL THE ACCOUNTS

Document Type

 Document types are used to differentiate the business transactions and to classify the
accounting documents.
 Each document type is linked with two digit number and some account types we can
modify those.
 It controls the document number range and document header.
 The standard document types are already restricted to specific account types. However,
you can modify these document types or define your own.
 Document type can be used for Batch Input sessions, evaluation purpose and used for
reversal of entries.
 We can maintain exchange rate type in Document type level.

Document Number Range (BELNR)

It’s defined by document type. The number range is responsible for generate the document
number. The number range is linked to a company code and document type. Document
number range is company code dependent. The number range may be year dependent or
independent. Document number length can be up to ten characters long.

OBH1 To copy the number ranges company code to company code.

OBH2 To copy the number ranges previous fiscal year to current fiscal year
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Internal number assignment - System will allocate the number.

External number assignment – User has to give the number.

Controlling Area

It records and analyses the overhead related activities, Product costing and Profit center
related activities. One company code can have only one Controlling area. One controlling area
can be assigned too many company codes. But chart of accounts and fiscal year must be
similar.

What is Year Shift?

When the fiscal year is not the same as the calendar year, we need to define a
displacement factor for each of the posting periods to correctly identify the number of posting
periods.

 +1 indicates that a fiscal year is later than the calendar year.

 -1 indicates that a fiscal year is before the calendar year.

SORT KEY

Sort keys are used to populate the assignment field in the line item reports. Sort key is
screen layout of 'Assignment Field'. It is helpful to sort the data in line item reports. It is also
helpful for auto clearing. Example GRIR clearing in F.13 Line items with same assignment and
amount will be cleared automatically.

To create sort key OB16 Assignment field length is 18 only.

Sample Document

Sample Documents are used as a reference document to post business transactions. Sample
document will not post any values to GL accounts. We cannot reverse them, since it not
posted in real

Parked Document

We can park the documents for approval purpose and journals ready for post. Parked
document will use regular document number range. It will not post GL when you parked

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Tolerance for GL accounts

Tolerances are referred as payment limitations. It can be an amount tolerance, percentage

tolerance, and debit and credit tolerance. The defined tolerance group can be assigned in the
GL account master record.

Tolerance Group for Employees

The authorization given to the employees for the maximum amount permitted per
transaction in SAP. Tolerance group for employees determines the maximum document
amount the employees is authorized to post, maximum amount can enter as a line item in a
vendor account or customer account and maximum cash discount percentage can grant in a
line item.

Open Item Management

Open item: open item is a transaction which has to be cleared with another transaction.

Open item means the line item is open and it’s not cleared by a clearing transaction i.e.
it’s an unfinished transaction in SAP.

Open Item Managed account means there will be matching debits and credits in a GL
Accounts which can be cleared. For example GR/IR clearing account is an open item managed
account. The Goods receipt documents are to be cleared with invoice receipt documents. In
SAP, Customer Accounts and Vendor Accounts are automatically open item managed.

You should use open item management for clearing accounts:

 GR/IR clearing account

 Bank clearing account
 Payroll clearing account
 Cash discount clearing account
Global Parameters

Global parameters control how a company code behaves in the SAP system, these
parameters influence the way system process the business transactions. Global parameters
are divided in to two categories.

 Accounting organization

 Processing parameters.

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No forex rate diff. when clearing Local Currency

if this field is selected in OBY6, system will not post any forex line item while clearing above
items in INR else system will post difference of 22 USD.

Ext. Co.Code: External company code setting is only application if you are using ALE, check this
field if you are using ALE.

Company Code is Productive: Check this field only when the company code is productive. It is
not possible to delete the data after the company code is in production status.

Processing Parameters

1) Document entry screen variant: The document entry screen variant controls the country
specific screen fields for accounting documents. Blank means Standard.

Credit Control Area: In SAP, credit control area control the credit limits for customers.

What are all Organizational Units to be defined in SAP FI?

 Company
 Company code M
 Business area M
 Consolidation Business area M
 Functional Area M
 Credit Control Area M
 Financial Management M
 Profit Centre M
 Segment

What are the important fields in COA?

 Description
 language
 length of GL account
 Controlling Integration
 Group COA
 Blocked

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What is use of External company code and Global company code in OBY6?

This is only necessary if you are using the document entry function for external SAP
Systems (ICT).

At the time of posting we get around 70 fields for debit only.

 Document Date – The date which is available in source document(Invoice)

 Posting Date – It’s a date when the transaction recorded in the books of accounts.
 Entry Date – It’s a system Date

Interface – Logic used to transfer data from SAP to Middleware

Characteristics for Open Item Management Account

 It should be balance sheet account

 There should be due items in that account
 It will be cleared in the future
After Posting GL document What changes we can do in document?

 Value Date
 Assignment
 Text

Financial Statement Version

FSV is a tool designed for generating financial statements (such as P&L and B/S) to meet
specific legal requirements related to certain items in financial reports (items – Assets,
Liabilities, Incomes, Expenses, and so on)

Recurring Entries: - Recurring entries are business transactions that are repeated regularly for
a specific time period such as rent entries or insurance payments entries etc. The values will be
same and gl coding and line items details will be same for every month for that we can setup a
recurring entry in SAP. FBD1 FBD2 FBD3 F.14 F.56

Can we post directly to reconciliation accounts?

In order to maintain a clean reconciliation with the sub ledger, SAP reconciliation
account can only be updated by the system through the sub ledger. Direct posting to SAP
reconciliation account is prohibited by the system.

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Important Fields in Recurring Document

1. First Run
2. Last Run
3. Interval in months
4. Run Date remaining will be same as normal document Header data and line item data
Co cd Header Text, Doc type, currency, amount GLs PC and CC Line Text.

Activation of Line Item Display for GL account

 Block the GL account in FS00 to prevent further posting

 Execute RFSEPA01 Program in SE38 Give co cd and GL & execute now check report.
 Unblock the GL account in FS00
 After execution of RFSEPA01 program the data will be updated in BSEG Table.

Open Item Management Activation

1. Create GL account without Open Item Management

2. Post Journals and check in FBL3N Green Status
3. Reverse the journals in that GL FB08 or F.16
4. Block and Unblock the GL account in FS00
5. T Code FAGL_ACTIVATE_OP Switch to Open Item Management
6. Job Name FAGL_SWITCH_TO_OPEN_ITEM in SM37
7. Check in FS00 for Open Item management will be selected that GL

In FAGL_ACTIVATE_OP maintain below details

Co Cd/GL/ Switch On Date/ Document Type SA/ Business area/Profit Center 1000/ Segment-
PHAR ---- Execute. 24 Records Green 2 Records Yellow 0 Records Red Status. Run it in Test
mode first.

 RFSEPA02 Switch On Open Item Management

 RFSEPA03 Switch Off Open Item Management

In S/4 Hana use this program to activate and deactivate Open Item management for GL
accounts FINS_ SWITCH_TO_OPEN_ITEM in SE38.

OSS Note will bring this program into your environment.(2745769)

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Group Chart of Account Configuration
1. Create Group Chart of Accounts OB13
2. Assign Group Chart of Accounts to Operating Chart of Accounts in OB13
3. Define Account Groups for Group Chart of Accounts OBD4
4. Define Retained Earnings Account for Group Chart of Accounts OB53
5. Create GL Account for Group CoA in FSP0
6. Assign Group GL Account in Operational GL Account in FS00
7. Post Transaction using Operational GL account FB50
8. Check the Report in F.01 Financial Statement Version
GL, Co Cd, FSV, Select ALV Grid Control, Set Layout in Statement

Country Specific Chart of Accounts Configuration

1. Create Country Chart of Accounts OB13
2. Assign Country Chart of Accounts to Company Code in OB62
3. Define Account Groups for Country Chart of Accounts OBD4
4. Define Retained Earnings Account for Country Chart of Accounts OB53
5. Create GL Account for Country CoA in FSP0
6. Assign Country Specific GL Account in Operational GL Account in FS00 Alternative
account in Control Data.
7. Post Transaction using Operational GL account FB50
8. Check the Report in F.01 Financial Statement Version
GL, Co Cd, FSV, Select ALV Grid Control, Set Layout in Statement

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Global Parameter Fields

 Chart of accounts Business Area Financial Statement

 Fiscal Year Variant Propose Fiscal Year
 Posting Period Variant Define Default Value Date
 Field Status Variant No Forex Rate Difference When clr LC
 Company Tax base is Net Value
 Credit Control Area Discount base is net value
 FM Area Enable Amount Split
 Ext. Company Code Negative Posting Permitted
 Global Company Code Activate Cash Management
 Company code is Productive VAT Registration No

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 2.Accounts Payable
1. Create Vendor Account GroupOBD3
2. Maintain Number Ranges for Vendor Account GroupXKN1
3. Assign Number Ranges for Vendor Account Group OBAS
4. Define Tolerance Limits to Customer & VendorsOBA3 19 15 17 13
5. Maintain Number Range for Accounts Payable DocumentsFBN1 KR KZ KG KA
6. Create Accounts Payable Recon A/C and Material a/c
7. Create VendorsFK01 MK01 XK01 XK04 Changes XK05 Block XK06 Deletion Indicator
8. Invoice PostingF-43 or FB60
9. Invoice payment posting F-53
10.Vendor payment with Cheque Printout for Single Vendor F-58
11. Post Partial Payment Request in F-59
12. Vendor Credit MemoFB65 KG17
13.Customer is Vendor and Vendor is a Customer Select Clearing with Vendor/Customer
14.Vendor Down-payment Configuration OBYR
15. Vendor Down Payment RequestF-47 KA13
16. Vendor Down Payment F-48OBYR
17. Vendor Down Payment ClearingF-54 and Normal Item Clearing F-44
18. Payment TermsOBB8
19. Cash Discount Received OBXU VSK
20. Cash Discount Allowed OBXI SKE
21. Create Payment Terms with InstallmentOBB8
22. Assign Payment Terms with Installment payment Terms OBB9
23.Partial Payment and Residual Payment
24. Inter Company Configuration OBYA
25.Display Intercompany Document FBU3 Reverse FBU8 Doc No + Co.Cd + Fiscal Year
26. All Special GL Transactions FBKP
27.Maintain Bank Charges GL in BSP Transaction OBXK
28.Print Check for those documents which are generated through F-48 &F-58 FBZ5
29.To know payment status to vendor BNK_APP
30.To Monitor the Payment Batch Job BNK_MONI
31.Excise Rate Maintenance J1ID
32.Copy the vendor one company code to another company code XD99

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 2. Accounts Payable
If companies are payable some of the amount to the outside vendors due to purchase of
goods and services is known as accounts payable.

Vendor account group configuration is client level. It is used for all company codes in a
client. Vendor account group number ranges are not company code dependent or year
dependent.

Partial Payment?

Under partial payment process both original invoice amount and payment amount will
be stand as an open item till we cleared the total invoice amount. If business want to show the
original invoice amount, cleared amount and balance amount in single screen we will use
partial payment.

Residual Payment?

Residual payment will clear the original document and a new item will be created when
we made payment less then invoice amount. System will lost the original document number
here.

What is Noted Items/Notional Items?

These are statistical postings for reference. These are single line entries. There will be
no accounting impact. These are reminders of a financial obligation like down payment. Noted
items do not post to any GL account but help full for tracking. Also called as ‘one-sided memo
entry’.

What are the tabs in Vendor Master?

General Data, Company Code Data, Purchase Organization Data.

Vendor bank details are available in vendor master general data

Withholding Tax details are available in vendor master under company code.

In vendor master how many places you maintained payment terms?

Company code data under payment transactions tab (Service invoice)

Purchasing organization under purchasing tab (Goods invoices)

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What is Reconciliation Account?

It is used to transfer the all sub-ledger balances to main ledger. It is an intermediate

account between sub-ledger and main ledger.

PAYMENT TERMS

Payment terms are condition for payments agreed between business partner and
organization to settle the payment of invoices. Conditions likeCredit period for payment, Cash
discount percentage if we pay early, Payment terms are helpful to get due date report.
Payment terms are client level configuration.

Payment terms determine the invoice net due date and cash discount based on Invoice
base line date.

Due Date = Baseline Date + Credit Date

Baseline Date can be Posting Date = Document Date = Entry Date

In Payment terms Sales Text is for 'Customers' only.

What are the Special GL Transactions?

These transactions that logically belong to accounts in the sub-ledger (Customer / Vendor)
but are not to be posted to the corresponding G/L Reconciliation Account defined in the
master record. These transactions are shown separately in the balance sheet.

Base line date

Base line date can be document date or posting date. It’s decides net due date. With the
help of net due date we can know the open item statuswhether it is due or overdue.

NO DEFAULT DATE

If I select no default date as a base line date in payment terms OBB8 configuration, user
has to give manual base line date while posting invoices in FB60, MIRO, FB70 and VF01.

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 AUTOMATIC PAYMENT PROGRAME

Automatic payment program is an important tool in accounts payable with the help of
app configuration we can clear vendor open items automatically based on payment method
and terms of payment. The final output of automatic payment program is post payment entry,
generating of payment file, payment advise note and payment summary.

After execution of payment program we will share the payment file to the banker.
Banker will make the payment to the vendors according to payment file information.

Without doing payment proposal run in F110 we can directly go for Payment Run.

After Execution of F110 Payment Media File will go for BCM approval and then it will store in
AL11.(BCM – Bank Communication Management)

APP STEPS

ALL COMPANY CODE

In this step we will maintain details of paying company code and sending codes and
maximum cash discount information, tolerance days(grace days), special GLindicators like A &
F for down payment and downpayment request.

PAYING COMPANY CODE

In paying company code configuration we provide details of minimum amount of

incoming and outgoing payment, payment advice note form details, sender details(SAP Script
forms), no exchange rate differences, bills of exchange payment and SEPA payment Vendor
(IBAN is required for SEPA payment).

PAYMENT METHOD FOR COUNTRY

In this configuration we maintain payment method for outgoing/incoming payment,

check or bank,posting document types (ZP ZV), and payment medium details if its check
RFFOUS_C if its bank RFFOEDI1. Payment Summary Note. Currencies and countries.

PAYMENT METHOD IN COMPANY CODES

1. Minimum amount
2. Maximum amount
3. Foreign Business Partner allowed
4. Foreign currency allowed
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 5. Customer/Vendor Bank Abroad Allowed
6. Check format details

BANK DETERMINATION

We give input of Bank accounts, GL accounts, ranking order for House banks, currencies,
and available amounts

RANKING ORDER

Ranking order is part of bank determination. It’s mean priority of the banks. Based on
ranking order system will pick the house bank to make payment entry.

PAYMENT METHOD

It refers mode of payment like check or bank transfer. In sap payment method setup is
country level. It controls master data of payment method (vendor master and bank master),
payment medium program details and outgoing payment document type.

NEXT PAMENT RUN DATE

Whatever the overdue items are comes under in between present run date and next run
date those items will be picked up by the system for payment process. Next payment run date
is helpful to get cash discounts.

APP WITH MULTIPULE PAYMENT METHOD

We maintain payment method in 3 levels

1) Vendor master level

2) Invoice level
3) F110 level

In payment method selection process system will give highest priority to vendor invoice. If
vendor invoice has no payment method system will take f110 payment method.

APP WITH MULITIPULE HOUSE BANKS

We maintain house banks in 3 levels

1) FBZP
2) VENDOR MASTER
3) FBZP
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In payment run system will give highest priority to invoice level next vendor master level after
that FBZP.

APP WITH GROUP PAYMENT

1) All invoices must be posted in similar currencies

2) Net due date must be same for all invoices
3) House bank should be same
4) Payment method should be same
5) Partner bank must be same

Pre requisites for grouping payment

1) Don’t Select individual payment in vendor master

2) Don’t select single payment for marked items under payment method in company code.
3) Done select extended individual payment check box in “Payment method for co. code”

PAYMENT FOR DUE DATE

As per payment for due date configuration system will post only one payment
document for all overdue items to that date. We can achieve this by selecting payment per
due day in payment method for company code.
PAYMENT BLOCK

1) F110 Edit proposal

2) FB02
3) FBL1N Mass Blocking
4) XK02 Vendor master company code data --> payment transactions
5) Payment Terms

FREE SELECTION

While running of F110 user wants to exclude invoices from payment run at that time
free selection will be useful.By using the fields like document number BELNR, Business Area
and other fields, we can exclude the invoices.

APP WITH FOREIGN PAYMENT

1) Maintain required currencies in payment method for country. If we don’t take any
currencies here it will allow all currencies for payment.
2) Allow foreign currencies in payment method for company code level.
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 3) Maintain currency details under bank determination.
4) Maintain currencies in OBA1 T code.
5) Journal entry for FX gain and FX loss.

IF MULTIPUL PARTNER BANKS ARE AVAILABLE IN VENDOR MASTER BUT VENDOR

REQUESTED TO MAKE PAYMENT TO SPECIFIED PARTNER BANK?

In this case we have to maintain partner bank type details in vendor master. Here
specified bank partner bank type should be 0001.

WHAT IS ORDER CURRENCY OR PURCHASE ORDER CURRENCY?

Purchase order currency is called as order currency. It is maintained in vendor master

under purchasing data. This currency will come up while creating purchase order(ME21N). If
we don’t maintain order currency, system will accept any currency while creating PO.

What is ‘Payment Advise’ Note ? or Remittance Advice

It’s a document contains invoices document number and payment document number,
value of cash discount, value of gross amount and net amount. We will send it to Vendors.

Payment Advice Note Formats are 3 types 1) Sap Scripts 2) SMART Forms 3) Adobe Forms.

“Middleware team (B2B Team) will save the file in AL11 data dictionary.
Then they will share the file path and file name with FICO team in email”.
One special GL Account can be assigned to more than one normal vendor reconciliation
account.

Paying company code ?

Paying company code is which make the payment on behalf of sending company code.

Sending Company Code?

Sending company code is who is actually paid the amount. (Sending company code is
used for communication purpose.By sending company code business partner can understand
company transaction)

Reallocation of House bank in F110?

We can use reallocation option in F110 when user want block any invoice, to change
house bank, to change payment method.
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How many payment mediums we use in APP?

Classic payment medium RFFOUS_C RFFOEDI1

Payment medium workbench DME with ABAPER HELP.

WE USE DME because of BANK AND COUNTRIES FILE FORMAT

Value Date and Posting Date for payments

Value date is bank Date Value Date is the date when the payment was actually received
or paid by Customer. It’s useful for payments by bills of exchange.

Posting Date for Payments – This is the date when Payment document is posted in SAP.

Additional Info – The value date helps in determining the available amounts as there is a time
lag between payment run date and value dating at the bank.

Bank Optimization by bank group?

Optimization by bank group helps ensure that money is transferred from your house bank to
your customer/vendor’s bank as fast as possible. In order to do this, assign a bank group to all
banks in your master records both Bank master and Vendor/Customer master.

The payment program selects two banks that belong to the same bank grop. If several
house banks come into consideration, the bank will selected by based on ranking order. If an
optimization is not possible this function does not apply.

Payment IDOC - RFFOEDI1 is linked with variant in F110. Variant contains payment method
and House bank, account ID, CHECK LOT etc, In house bank we maintain EDI Partner number,
EDI payment method and partner details. In Partner details we maintain IDOC Message type
PAYEXT and Basic Type PEXR2002, Port Details.

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Optimization by postal code ensures the house bank is selected according to the
customer/vendor’s location.

REGUH (Settlement data from payment program) is a Transparent table containing payment
details.

Contains the information on the payment, such as the payment method, payment document
number and payee. The payment program creates a REGUH record for each payment.

REGUP (Processed items from payment program) is a Cluster table containing paid item
details.

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Contains the information on the paid items, such as the amount, cash discount and invoice
document number. The payment program creates a REGUP record for each paid item in a
payment

Can the payment Program consider check cashing time for value dating?

Consider that the payment posting date was 10 April-2021 for a payment of INR 1000 to one
of your vendorand payment method is ‘cheque’

Entry in ‘check cashing Entry in ‘Days to value Value date arrived by the
time’ in vendor master date’ while configuring system
record ‘Value Dates’
2 4 12-April-2021
Blank 4 14-April-2021
Blank Blank 10-April-2021

Alternative Payee?

A Vendor who receives payment on behalf of another vendor is called alternative

payee. In vendor master company code data – payment transactions we can maintain
alternative payee.

Outgoing payment with Cash discount from All Company Code

Only items that have a cash discount percentage rate greater than or equal to the one
specified here are paid with the cash discount deducted. If the percentage rate is less than the
one specified here, payment is made at the due date for net payment

Maximum Cash Discount All Company Code

System pays as early as possible to get maximum possible discount. The payment program
applies ‘cash discount term 1’ to those open items

Can you pay a vendor in a currency other than the invoice currency?

Yes we can, you need to give required currency code directly in the open item.

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Workbench Payment Medium

SAP Payment Medium Workbench (PMW) is a method used to print payment media during
SAP payment run process. This method is more flexible to generate a payment file. You can
create own PMW format in OBPM1 to OBPM4. Once the format is created, you can assign it to
your payment method.

Data Medium Exchange Engine

DMEE is even more flexible and user-friendly solution compare to PMW formats.To
“switch on” the engine, you tick the checkbox “Mapping using DME Engine” in the format
settings in OBPM1.The main configuration is now controlled by the format tree of type PAYM
that you maintain in transaction DMEE.

When you post Manual clearing (F-03 or F-44 or F-32) only header information will be
saved in BKPF table Line Item data will not be saved in BSEG table.

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 DME DATA MEDIUM EXCHANGE

DME stands for data medium exchange. It is used to exchange payment file to the
bankers to make an outgoing payment to the vendors. This file consists of payment
information of an organization. According to this payment information bankers transfers the
funds to vendors. DME is used to send files to bankers and tax authorities(Tax
information)DME file format is depends on country norms and bank regulations. DME file
formats are 1) Flat File 2) XML File.

Creation of DME Tree

DME tress is called DME structure. DME tree construction process we need DME tree
properties like de limiter, levels and key fields. De limiter separates the fields in payment file.
And also we have to maintain levels and key fields in DME tree.

How to send DME File to Bank

After execution of F110 once file is located in AL11. One medium level incident will
create automatically to PI service group team with the help of interfaces and automations.

DME configuration is always stored in ‘work bench request’

What is Level?

How many times you want print the information in output file. Generally header &
Trailer will be print one time only. Transactions are infinity.

Sort Key Fields

There is mandatory Fields. Based on key fields only information will be sorted in output
file. Like Date or Sequence Number.

What is the use of Carriage Return and Line Feed?

The tick on Carriage return and Line feed is for creating new line after the finish of
Header Part.

Carriage Return is used for creating new line in word or PDF format and Line Feed is
used for creating new line in txt Format.

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What is use of Atom?

We mostly used to calculate total amount of payment orders and to calculate number of
instances in one payment medium.

Technical Field information will not be printed on output file.

Version 0 = Active and Version 1 = Inactive

Conversion Function is applicable for - Path ---> Elements – Attributes Tab

 Character
 Time
 Date
 Currency

1. Create Segment Group

2. Create Segments under Segment Group. Header, Transaction Data, Trailer Data.
3. Create Elements under Segments corroding to business requirement
4. Create Atoms under elements according to Business requirement
5. Maintain reference fields in elements to define Aggregation Rule.
6. Node is lowest level in DME Tree.

DME Standard Structures?

149, 152, 76 Fields are in these 3 structures accordingly.

Give always name like “_DMEE”

In OBPM4 we maintain file path location for payment file.

APP Configuration for incoming payments. (Not suggestible)

First of all the customer should have given a standing instruction to his bank authorizing the
direct debit. If the customer not maintains the sufficient funds in their account (Bank will

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inform to you with bank statement or some other way) we have to reverse the cleared items
in FBRA and send dunning notices.

1. Create Payment method for incoming payment

Select Incoming Payment
Give Document type ZP and AB
2. In Bank Determination - GL should be Bank Incoming Payment GL .
3. Bank Determination – Available Amounts – Schedule Amounts – Maintain Amounts.

APP with Inter-company payments BUV Clearing Between Company Code

5801 Paying Company Code Intercompany Receivable a/c(5806) Dr Bank a/c Cr

5806 Sending Company Code Vendor a/c Dr Intercompany payable Cr(5801)

1. OBYA configuration need maintain four GLs. Payables and receivables for
Sending/Paying co cd
2. Need to maintain FBZP configuration for Both company codes 5801 and 5806
3. In 5801 FBZP sending co cd is 5806
4. In 5806 FBZP sending co cd is 5801 (If you want post vice versa) Not required

Vendor is a Customer and Customer is a Vendor

1. Link Customer master with Vendor Master
General Data – Control Tab -- Customer or Vendor Number need to give.
Company code data – Payment Transaction – Select Clearing with Customer/Vendor.
2. If Sales are more DZ document will be clearing document
3. If Purchases are more KZ document will clearing document

Vendor Dr/ Bank Incoming Payment Dr/ Customer a/c Cr - If Sales more
Vendor Dr/ Bank Outgoing Payment Cr/ Customer a/c Cr - If Purchases more

APP With Check Printing Parameters

 Give Variant Name in F110 Print out / Data Medium for RFFOUS_C
 Click on Maintain Variant and select for all selection screens and enter
 Paying Co Cd and Sending Co Cd
 Payment Method
 House Bank ID
 Account ID
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  Check Lot Number
1. Select Print Payment Advise Note Select Print Immediately LP01
2. Print Check Printer Select Print Immediately LP01
3. Select Print Payment Summary Select Print Immediately LP01
4. Number of Sample Printouts ={0}
5. Number of items in Payment Summary = 9999
6. Select Do not void checks
7. Click on attributes and save variant

Vendor Down Payment Journals

 Down Payment Request – No Journal Entry
 Down PaymentAdv to Vendor a/c Dr Bank Outgoing Payment a/c Cr
 Down Payment Clearing Vendor a/c DrAdv to Vendor a/c Cr
 Clearing the Normal Items in F-44

Client need separate payment for two banks. Inventory invoices need to post AXIS bank and
service invoices need to post ICICI bank.

Solution :- we have to maintain vendor partner banks at invoice levels MIRO and FB60
level.For MIRO AXIS and Service invoice in FB60 ICICI bank.

Partial Payment with APP

1. Create Partial Payment Recon A/c like Standard Recon.
2. Link-up AP Recon ac and Partial Payment Recon ac in FBKP
3. Change special GL indicators in OBXP if an error.(Optional)
4. Maintain Special GL Indicator “P” in FBZP All Company Codes
5. Post Invoice in FB60 and Block it.
6. Post Partial Payment Request in F-59

Note:- At any point of time you can unblock original invoice and make payment. If any thing
goes wrong with F-59 Partial Payment request (Noted Items) we can block these noted items
in FBL1N.

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 APP DMEE
1. Create DME File Format in OBP1

 New Entries
 Format Name /ZDME_XXXX (Always starts with “/ZDME”)
 Select Payment Medium without Doc and Type = File
 Country = IN
 Select Mapping Using DME Engine
 Select Company Code
 Select House Bank Account

2.Assign Payment Medium Format to Payment Method for Country. T code FBZP

 Select Use Payment Medium Work Bench

 Format Name = /ZDME_XXXX

3.Create and Assign Variant to Bank in OBPM4

 Double Click on Format which we created in OBPM1 (/ZDME_XXXX)

 Give Variant name for house banks and double click on define further variant
 Select Yes and Select All Selection screens
 Payment Medium Format = /ZDME_XXXX
 Double click on Print Parameters (Payment Summary) give LP01 and enter
 Again Double click on Print Parameters – LP01 ENTER
 Give Variant Description and Save

Follow same steps for remaining House Banks

4.Creation of DME Tree T code DMEE

 Tree Type = PAYM

 Format Tree = /ZDME_XXXX –
 Click on Create and select Flat File
 Double click on DME Tree Prosperity

Administrative Data

 Short Description = DME Tree for Co Cd XXXX

 Documentation = (Optional)
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Format Attributes

 Field Type = 1 (Fields are Separated by Delimiter)

 Give “-“ for Segment groups, Segments and Composites

Levels

 Level 1 = Repetition Factor 1

 Level 2 = Repetition Factor 9999999

Sort Key Fields

Key Field Structure Sort Field Level

FPAYH LAUFD 1
FPAYH LAUFD 2
File Data
Select Carriage Return and Line Feed

 To See Invoice changes – Environment – Document Changes

 To See Vendor changes – Environment – Account changes – All Fields

APP Payment output file Journey to AL11:- F110 –> FBPM1-> BNK_APP –> BNK_MONI ->
BNK_MONIP -> AL11.

What is 4 Phase of APP?

1. Parameters
2. Proposal
3. Payment Program
4. Print Out

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 3. Accounts Receivable
1. Create Customer Account Group OBD2
2. Maintain Number Range for Customer Account Group XDN1
3. Assign Number Range to Customer Account Group OBAR
4. Maintain Tolerance Limit for Customers/Vendors OBA3
5. Maintain Number Ranges for AR FBN1 DR DZ DG DA 18 14 16 12
6. Create Accounts Receivable Recon A/C
7. Create Customer Master FD01 VD01 XD01
8. Post Customer Invoice F-22 FB70
9. Post Customer Incoming Payment F-28
10. Customer Credit Memo FB75 DG 16
11. Customer Down Payment Request F-37
12. Customer Down Payment F-29 DA 12
13. Customer Down-payment Configuration OBXR
14. Clearing of Customer Down Payment F-39 and N.Clearing F-32
15. Journal Entries for Down Payment Process
16. Define Dunning Procedure FBMP
17. Assign Dunning Procedure in Customer Master
18. Dunning Execution F150
19. Dunning/Accounting clerk Updation OB05
20. Define Dunning Area OB61
21. Define Dunning Keys OB17
22. Define Dunning Interest Rates OB42
23. Define Dunning Group Key OBAQ - Maintain in Master Data
24. Known/Negotiated Leave & Leave Rule OBAL/OBAM
25. Dunning Block for Customer Line Item F8P2
26. Define Dunning BLOCK Reason OB18 - Maintain in Master Data

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 3. Accounts Receivable
What is customer down payment?

A down payment is a payment made or received before the physical exchange of the
goods or services. Down payment is cleared against the final invoice. These customer
down payments are a liability for the organization which will be cleared by future sales.

An alternative reconciliation account is required to post down payment

transactions. When a down payment is received from the customer the system updates
the alternative reconciliation account instead of the standard AR reconciliation account. In
OBXR we have to create a link between alternative reconciliation account and standard
reconciliation account.

What is ‘Dunning’?

After sale of goods and service to the customers, If the customers are not paid total
due amount before due date we have to notify them. To achieve this in SAP we can use
dunning. According to the dunning configuration system has to generate dunning notice
based on dunning procedure.

What is Dunning Procedure?.

It controls the path of dunning to the customers and vendors through the system.
Dunning procedure consist of Dunning levels, Dunning intervals, Grace days, Dunning
Text, Dunning Charges. Minimum Amount and Special GL indicators.

Dunning Levels

Dunning level is a part of dunning procedure. Here we can specify number of notices
need to send to the customer after due date. The maximum dunning levels are 9 minimum
1. Dunning level determines the dunning text and dunning charges.

Dunning Intervals

The time duration between two dunning levels is called dunning interval.

Grace days are additional days to the dunning intervals.

Dunning Area? OB61

Dunning area is helpful to configure the settings below company code level for
example at business area, sales division, sales organization or segment level or at an
organizational unit level. It’s useful, if dunning is required for specific organizational units
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within company code. Maintain Dunning Area in Customer/Vendor master data and in
Dunning Text you can maintain Dunning Area.

(This is generally used in fertilizers, bulk drug chemicals or Parma products for the
organizations which are involved in production of complex or bulk products generally
fertilizers, bulk drug chemicals or Parma products.)

Negotiated leaves in Dunning?

In some countries like Spain companies will get closed completely for certain
period. In that holiday time invoice will not get an extra time for due.

Same special GL Account can be assigned to more than one normal vendor
reconciliation account.

Alternative Payer?

A customer who pays on behalf of another customer is known as ‘alternative Payer’.

Alternative payer can be maintained at client level and company code level. Maintain
Alternative payer in customer master general data payment transaction. You can maintain
multiple payers in “allowed payer’ option.

We can ‘Dun’ customer across ‘Clients’ in single a single ‘Dunning Run’.

We can send X customer dunning notice to Y customer by using dunning Recipient

Type.

By using Dunning clerk we can print name of the clerk in dunning letters.

In Dunning Key we can maintain Dunning Levels.

We can block dunning at master data level, Line item report level, Document Level, and at
the time of Dunning in F150

We can send dunning notices in multiple currencies. Maintain dunning charges in

multiple currencies in Dunning Procedure.

Dunning to Vendors
If vendor has a debit balance because of credit memo, Down payments, If Vendor is a
customer also, Security Deposits, if vendor has got paid twice mistakenly we can do
dunning for vendors.

1. Maintain Special GL Indicator for Vendors A,F

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 2. Maintain Dunning Text for Vendors in Dunning Procedure
3. Maintain the Dunning Procedure in Vendor Master

Lock Box or Postal Box

Lockbox is a service provided by banks to process faster payments for better

receivables management. It will reduce the expenses and improve cash flow.

Lockbox applicable for customer those who make payment through checks. Customer will
deposit the checks in the Lockbox. After that bank will process the checks and creates
output file(Txt file) called BAI2. The file will sent to Organization on timely.

Journals Lockbox Clearing a/c Dr Bank Incoming Clearing a/c Dr

Customer a/c Cr Lockbox Clearing a/c Cr

1. Customer account is cleared

2. Cheque amount is parked in “Incoming Payment Clearing a/c” until it is created to
main bank.
3. When we upload BAI2 for Electronic Bank Statement then system will clear the
“Incoming payment Clearing a/c”.
4. Main Bank a/c Dr and Bank Incoming clearing a/c Cr

Configuration Steps

 Define House Bank

 Create Lockbox Clearing Account (Same as Bank Incoming GL)
 Define Lockbox for House Bank OB10
 Define Control Parameters for House Bank OBAY
 Define Posting Data for Lockbox OBAX B.A/c, Bank Key, SA,DZ,40,50,15,06
 Post customer invoice
 Upload BAI2 file in Lockbox in FLB2
 Post Processing FLB1

BAI2 File Format Details Bank Administration Institute Version 2

 Header FLB01
 Detail Header Record FLB05
 Detail Record FLB06
 Over Flow FLB04 (Like Note Payee)
 Batch Total Record FLB07
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 Lockbox Total Record FLB08
 Trailer Record FLB09

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 4. House Bank & EBRS
1. Creation of House Bank FI12
2. Create Accounts Symbols OT83
3. Assign Accounts To Accounts Symbols
4. Create Keys for Posting Rules
5. Define Posting Rules for Incoming/Outgoing Payment and Bank Charges
6. Create Transaction Type MT940 Standard German
7. Assign External Transaction Types to Posting Rules NTRF+ NCHG—
8. Assign Bank Accounts to Transaction Type(MT940)
9. Bank Key CreationFI01
10. Execute EBRS in FF_5
11. Search String OTPM
12. Create And Assign Business Transaction
13. Define Variant for Manual BRS OT43 Manual BRS
14. Run Manual Bank Statement FF67
15. Creation of Check Lot FCHI
16. Display Check register FCHN/FCH1
17. Unused Check Cancelation FCH3
18. Manual Check Updating FCH5
19. Cancelation of Check with Reversal payment Document FCH8
20. Void Check without Reversal Payment Document FCH9
21. Creation of Void Reason FCHV
22. Online Check Encashment FCHR
23. Post Manual entry for EBRS in FEBAN and FEB_BSPROC
24. Print Bank Statements FF_6
25. Country Field Checks Display – OY01
26. Bank Statement Import & Forward(Automatically) FEB_FILE_HANDLING
27. Create Logical File Path FILE

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 4. House Bank & EBRS TABLE T012

The banks that your company has an account with it. You can use them to process payment
transactions, check deposit, automatic payment program (APP), and bank reconciliation. We
maintain the house bank at company code level

1) House Bank ID It represents a branch of a Bank.

2) Account ID
3) Bank Key
4) Account Number
5) GL account Number
6) Currency
7) Address Details
8) Discount A/C - Discounting on Bills of Exchange.
9) Alternative A/C – Same account manages in different currencies in HB
10) Control Key – Check Bank Number and Bank A/C Number

Describe the purpose of the Bank Key.

It is the bank identifier. A bank’s country and a unique code called bank key. These two fields
help to identify any bank in the SAP system. It is used for the money transfer from one Bank to
another bank in online. Example SWIFT Code, IFSC Code.

Describe the Account ID.

Account ID is unique for a specific bank ID and company code. One House banks can
have more than one bank account id, the account ID is used for the payment program and for
updating the G/L Account Master records.

Control Key in House Bank

Control key is used for checking the combination of bank number and bank account
number. (if you do not enter a value, then 01 is taken as the default)

Discount Account

Credit memos resulting from discounting bills of exchange at this house bank account
are posted to this account.

House Bank is Company code specific. Same House Bank can be maintain with other Co.Cd

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Alternative Account Number

It is used for categorizing house bank accounts with identical account numbers. If a
house bank manages accounts in different currencies using the same account number.

What is the relationship between a bank account and a G/L account master record?

A G/L account master record must be created for each bank account. The house bank and
account ID must be entered in the GL account master record to ensure the accounting
transactions involving the bank account will be reflected in the general ledger.

Bank Directory?

The list of all banks is called bank directory. The Bank Directory contains complete details
about each house bank.

While Creating check lot we can specify payment method. So the check lot will be used for that
particular payment method only.

Bank Account Number length is 18 digits and Alternative account number length is 24 digits. If
account number is more than 18 digits system automatically update Alternative account.

Electronic Bank Reconciliation Statement

What is Electronic Bank Statement?

Electronic Bank Statements (EBS) are documents that are sent by the bank from one
system to another. These documents contain the bank transaction details of the indicated
account holder.

EBS is a chart of account level configuration.

Companies need to record and keep track of all incoming and outgoing payments. These
are usually posted in SAP as accounting documents.

There are many EBS formats but the most commonly used would be MT940 and
BAI2. Developed by The Society for Worldwide Interbank Financial Telecommunication
(SWIFT), SWIFT is a communications network used by banks and financial institutions to
securely communicate financial related information such as money transfers etc. It is a
Customer Statement Message that provides an end of day account statement.

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Commonly used formats for EBS?

What is main function of EBRS?

EBRS is a process of reconciliation between the account maintained by the bank and the
account maintained by SAP.

What’s the use of posting Area?

In posting area we can select Bank accounting and Sub ledger accounting.
Posting area is useful to clear either sub-ledgers or main ledgers in Electronic Bank
Reconciliation.

What is algorithm in EBS?

Interpretation Algorithm is a standard SAP functionality that helps facilitate auto-

clearing. Basically, you are telling the system to look for a certain criteria in the concerned
electronic bank statement. This criteria is based on what you set in the Interpretation
Algorithm.

Algorithm = Document Number in SAP = Bank Statement 86 field should have the Doc
Number We Can Create Custom Algorithms from 901 to 909

000 (No interpretation)

001 (Standard algorithm)

011 (Outgoing check: Check number not identical to document number)

012 (Outgoing check: Check number identical to document number)

015 (Assignment No) ZUONR

019 (DME administration reference document number)

020 (Document number search) BELNR

021 (Reference document number search) XBELNR

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What is 'Search String' ? OTPM

It increases efficiency of standard EBS interpretation algorithms. It works only on note

to payee line items of EBS statement 86 fields in MT940 format. There are some cases we
need search strings like changing posting rule, populating values from EBS file to assignment
field in accounting document, skip processing of bank code for specific house bank etc.

Account Determination Logic in EBRS?

Bank account number is linked with Transaction Type(MT940) Transaction Type is

linked with External Transactions, algorithms and Posting Rules. Posting Rules are linked with
Account Symbols. Account Symbols are linked with GL accounts.

Posting Rules

The system uses the posting rule to determine which bank or sub ledger accounts to post.
Posting rules are non-bank specific codes in the SAP system.

What is External Transaction Type? Business Transaction BTC CODES

It is issued by the bank in EBS. System needs these codes to identify the business
transactions. NTRF, NCHG, NCHK (Payment by Check) NMSE and NINT. System will convert
these codes into Posting Rules.

EBRS ACCOUNTING ENTRIES?

Incoming Payment Bank A/c Debit Cheque Deposit A/c Credit

Outgoing Payment Cheque Issued Debit Bank a/c Credit

Sap main bank GL balance should match with the closing balance of bank statement.

How to delete bank statement form sap?

SE38 T code RFEBKA96 Program -> application 0001 execute-> select statement and delete.

20 Statement Date
25 Account ID (IBAN Number)
28C Statement Number
60F Opening Balance
61 Transaction Details
86 Note to Payee

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 62F Closing Balance
64 Available Balance

Difference between Manual BRS and EBRS

In manual BRS we have to upload transactions manually into sap. And we cant have
options like Interpretiation Algorithama and search strings. In EBRS bank will send an elctronic
stament in fromats like BAI, BAI2, MULTICASH, MT940. So we can upload it automaticaly.

 86 Field - Note to Payee field will provide additional information of 61 transaction field.
 61 Field – Posting Date, Booking Date, Credit or Debit, amount, external transaction
code (First Character must be N, S or F) NTRF NCHG

Search String Configuration Steps

1)Search String Definition

 Search String Name & Description
 Search String – Target Fields – Mapping
2)Search String Use
 Co Cd, House Bank, Account ID,
 External Transaction and + or – Symbol
 Search String Name (Which we defined in prior)
 Target Field (Posting Rule, Cost Centre, Profit Centre, Business Area, BDC Fields for
Custom Fields)
 Activate
 Mapping Prefix

EBS With IDOC

We will receive statement from bank through IDOC. After receiving the file we have to
scheduling the background job to pick the file from saved location and to post the same into
SAP.

Partner Profile - In bound Parameter Basic Type FINS Message Type FINSTA

Bank key and Bank number both can be same

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 5.Tax Procedure
Taxes neither income nor expenditure of the business we simply discharging duties of
government. As per the act seller has to raise tax invoice and has to collect from customer and
need to pay to the government on timely.

Input Tax = Tax paid on Purchases/Reverse charge on Services

Output Tax = Tax collected on Sales

Input Tax will be Deductible Taxes and Non-Deductible Taxes

Output Tax is payable to Tax Authority every month.

1. Define Tax Procedure OBQ3 OBYZ

2. Assign Country to Calculation Procedure OBBG
3. Define Tax codes for Sales and Purchases FTXP
4. Assign GL Accounts to Account Key OB40VST&MWS
5. Assign Tax codes for Non-Taxable Transactions OBCL
6. Maintain Default Values for Tax codes OMR2
7. Display All Tax Codes S_ALR_87012365
 To Copy Account Keys OBCN
 To Change Tax Code Rate FV13
 To Create New Rate FV11

RM Consumption a/c Dr 15 Bank a/c Dr 20

VAT Input Tax a/c Dr 5 To Sales a/c Cr 15

To Bank a/c Cr 20 To Output Tax Cr 5

Logic of Tax in SAP

Access sequence (MWST) is assigned in Condition Type (MWVS&MWAS). Condition

Type is maintained in Tax Procedure. Against each condition type we have to assign Account
Key and Tax code. Account Key (VST&MWS) is linked with GL accounts. Tax code is linked with
Account key and it contains tax rates.

Note:- Condition Type and Account Keys are standard If we need custom we can create our
own.

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To calculate Taxes on Net Amount go to FB01-Editing Option – Select Calculate Taxes on net
amount.

Tax codes are defined at what level?

Answer : Country Level

Non-Deductible Tax

Business will treat Non-Deductible taxes as a expenditure so it will include in Inventory,

No need of Input tax GL account separately.

System will consider Input Tax amount at MIGO level itself. It will add tax amount to
Debit GL account automatically. Here Input tax GL account will not post.

Inventory a/c Dr 110 (100 Inv + 10 Input Tax)

MIGO
GR/IR Clg a/c Cr 110

GR/IR Clg a/c Dr 110 (100 Inv + 10 Input Tax)

MIRO
Vendor a/c Cr 110

Configuration for Non-Deductible Tax

1) Copy “MWVS” and Create New condition Type OBYZ

2) Insert New Condition in Tax Pricing Procedure NVV Account Key
3) Create New Tax Code for Non-Deductible Input Tax

Test – Post PO, MIGO, MIRO

NVV Account Key SAP Standard

If you want to assign GL account for NVV account key, we have to go OBCN Tcode
position NVV process, Un-tick Non-deductible check box.

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Reverse Charge Mechanism

1. Copy MWVS Condition Type and Create two New Conditions

2. Copy VST account key and create two new account keys
3. Maintain new conditions and account keys in Pricing Procedure
4. Create account Tax key for newly created account keys.

Journal Entry GRIR Debit - Vendor Credit - Input GST Debit - Input RCM A/C Credit.

Don’t use Round figure amount while Testing TDS. Always use numbers when testing
“Rounding Rule" like 7689.97

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 5. WITHHOLDING TAX TDS EWT Table WITH_ITEM

1. Check Withholding Tax countries

2. Define Withholding Tax Keys
3. Define Withholding Tax Type for Invoice posting and Payment Posting
4. Assign Withholding Tax Type to Company Code
5. Define Withholding Tax Code OBC7
6. Activate Extended Withholding Tax Released From 4.0
7. Account Assignment for Withholding Tax OBWW Tax Type - Tax Code - GL
8. Maintain W/Tax Code, Tax Type, and CIN Details (PAN Number)in Vendor Master
9. Activation in Vendor Account Setting OMT3E
10.TDS Report J1INEMIS
11.Quarterly TDS Returns J1INQEFILE
12. Excise J1ILN
13.Maintain Company Code Settings Logistics General – Tax on Goods movement – India

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 5.WITHHOLDING TAX TDS EWT Program RFWT1000
Tax paid to the government on behalf half of service provider. Example TDS on salaries,
Commission, Professional fees Rent, Interest and Dividends, winning from the lottery, and
service contracts. Withholding Tax is also called as retention tax. It’s a kind of Indirect Tax. TDS
is a current liability.

The customer is authorized to deduct withholding tax either at invoice level or at the
time payment to vendor. The customer pays the collected tax amount directly to the tax
authorities on yearly bases the customer issues WTH tax certification to the vendors which
provides details of remittance challah date of payment tax amount. The vendor files tax
returns with reference to the income tax certificate.

Customers – Authorities to deduct the tax  Vendors

Vendors – Subject to tax  Customers

1) Service expenses a/c Debit 194J Professional/ Technical Services

2) Accounts Payable a/c Credit 194I Rent
3) TDS Payable a/c Credit 194D Insurance
1) TDS rates will be change every year.
2) TDS follows accrual concept
3) In INDIA TDS is administrated by CBDT
4) TDS is a kind of advance TAX
5) If TDS is more than net payable tax it will come debit side.

Define Withholding Tax Keys: Tax key determines source of the income to deduct TDS as per
income tax regulation (like 194C Payment to contract 194D Insurance commission 194I Rent)
these keys issues by tax authorities.

WTH tax type: Tax type has control the setting related to calculation of taxes during invoice
posting or payment posting. Select Tax on invoice gross amount or net amount, Post WTH
amount, No Accumulation, Rounding rule,

Define Withholding Tax Code: Tax code contains tax type and tax key. We maintain
percentage for WHT Rate and percentage for Base amount. WHT Codes are ‘Country Level’
and we will assign it to company codes

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How GL account for posting withholding tax amount is picked automatically.

Combination of WTH tax type & WTH tax code is assigned GL account for posting WTH
tax amount.

Vendor details relevant for withholding tax are maintained in vendor master?

1) Applicable withholding tax type & tax code

2) Vendor belongs to which recipient type?
3) Vendor may be exempted from certain percentage of WTH tax.
4) Exemption certificate number if any
5) Validity dates of exemption certificate
6) Some vendors may not be liable for WTH tax.

Difference between Classic WHT and Extended WHT?

Classic WHT had less functions compare to Extended WHT.

The major differences are classic WHT is only for payments and its only for vendors,
here only one tax component is chance to maintain.

 CWT : only for payment.

 EWT : payment and invoices
 CWT : Only for vendors
 EWT : for vendors and customers also.
 CWT : only one tax component (like TDS )
 EWT : N no of tax component (like TDS + Surcharge + Ecess + H Ecess)
 No. of withholding tax from each document Max 1 – Several
 TDS on partial payment NO -- Yes
 Tax amount NO -- Yes
 Rounding rule NO -- Yes
 Cash discount consideration NO -- Yes
 Accumulation NO -- Yes
 Minimum/Maximum amount and exemption NO -- Yes
 Certification Numbering NO – Yes

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1. We can deduct the TDS both invoice level and payment level on same invoice.
2. Post TDS with Down Payment
3. We can control TDS Base amount and TDS rate at invoice level as well
4. Cash Discount is always calculated on Invoice Price not after TDS deducted.
5. TDS will be calculated after cash discount in payment level, if TDS is calculated in
invoice level, TDS will be on invoice not after cash discount.
6. Post TDS with Exemption(Exemption will calculate on TDS amount not on invoice)

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 6. Foreign Currency Revaluation
1. Maintain Exchange Rate Type OB07
2. Maintain Exchange Rates OB08/S_BCE68000174 For User
3. Define Translation Ratio for Currency Client Level OBBS
4. Define Valuation Method OB59
5. Define Valuation Area
6. Define Accounting Principle
7. Assign Accounting Principle to Ledger Group
8. Assign Valuation Area to Accounting Principles
9. Account Assignment OBA1
10. Run Foreign Currency Revaluation FAGL_FC_VAL
11. Define Maximum Exchange Rate Difference per Company Code OB64 It will show
warning message.
12. Currency Simulation EWCT
13. KDB Account Determination OB09

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 6. Foreign Currency Revaluation
What is the purpose of FCR?

To know foreign exchange gain or loss by doing valuation of open items in foreign
currencies, Open items like customer, vendor and GL open items. Foreign currency valuation is
a necessary step in the closing process to create an accurate balance sheet. Documents posted
in foreign currencies have to be converted to company code currency for preparing the
company financial statements.

Difference between realized and unrealized loss or gains?

Realized gain or losses refer to completed transactions. We did payment or received.

Unrealized gain or losses are “Notional transactions”. It is not real transaction as we did not
make the actual payment. There will be no financial impact with unrealized gain/loss.

Valuation Area?

Valuation area contains valuation method and Currency Type. It is assigned to the
accounting principles. It’s used in Revaluation Run.

Valuation Method?

Valuation method consists of valuation procedure example, lowest value principle, always
evaluate, Exchange rate type, Document type

What is the purpose of Balance sheet adjustment account in FCR?

For non open item managed accounts, the valuation adjustment posts directly to the
account itself. For open item managed accounts, since it is not possible to post directly to a
reconciliation account for payables or receivables, the valuation is posted to an adjustment
account. This is a special account that must be created for this purpose.

Accounting entries for FCR?

Accounting entries for open item managed accounts:-

Unrealized FX loss Dr

Balance sheet Adjustment a/c Cr

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Balance sheet Adjustment a/c Dr

Unrealized FX gain Cr

Accounting entries for non-open item managed accounts:-

Unrealized FX loss Dr

GL a/c Cr

Balance sheet Adjustment a/c Dr

Unrealized FX gain Cr

KDB is useful to do the settings for balance valuation for non open item managed accounts.
Here you’ll create one indicator for exchange rate type with assignment of forex GL acconts
and this indicator will be assigned to the GL masters.

KDF is useful to do account determination for open item managed accounts. Here you assign
forex accounts to OIM accounts.

There are two types of GL accounts.

Open item managed accounts:- vendor/customer accounts and clearing accounts.

Non Open item managed accounts:- Bank accounts, material accounts.

Note:- In revaluation process entries are posted in SA document. Here document type and
exchange rate type is derived from valuation method configuration. GL accounts are picked
from OBA1 configuration.

Valuation Method Screen Fields

Always evaluate: If we select this all foreign currency balances and foreign currency open item
are valuated and the revaluation result will booked irrespective of loss or gain

Post per line item

Normally the valuation results are posted in a summarized form. If you select this parameter, a
line item is generated for each valuated item in the valuation posting as well as in the
adjustment account, such as the expense or revenue account.

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Exchange rate type from invoice reference balance

If you select this field, the balance per invoice reference number and currency is considered
for the exchange rate type determination.

What is Direct and Indirect Quotation?

 The quote is direct when the price of one unit of foreign currency is expressed in terms
of the domestic currency.
 The quote is indirect when the price of one unit of domestic currency is expressed in
terms of foreign currency.
 Converting Foreign currency into Local currency
 Converting Local currency into Foreign currency

What is Extract in Valuation Method?

If you select Extract we have to give file name to store all revaluation data into this file.

Why foreign currency valuation posting is required?

 Reporting purpose
 To Calculate expected Loss/Profit

Some companies may disclosure in the footnotes of the financial statements.

Realized Exchange Gain

Vendor A/C Dr

Bank Clearing a/c

Realized Gain a/c

Realized Exchange Loss

Vendor a/c

Realized loss a/c

Bank clearing ac

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Exchange Rate Type

G Bank Buying Rate

B Bank Selling Rate

M Average Rate

EWCT we can Simulate and understand how system picking rates based on our configuration

We can assign default Exchange Rate Type(G B M) in Document Type Level in OBA7. If it is not
mention here system will pick M average rate.

Additional information

These are paper gain or paper loss, because it is recorded on paper only.

We will report realized gain or losses in income statement. Unrealized gain or losses are
recorded in an account called accumulated other comprehensive income, which is found in
the owner’s equity section of the balance sheet.

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 7. Controlling

1. Maintain Controlling Area OKKP

2. Maintain number ranges for controlling Documents KANK
3. Maintain and Assign Business Transactions in KANK COIN
4. Maintain Versions OKEQ
5. Create Cost Elements KA01
6. Display All Cost Elements KA23
7. Creation of Cost Center Standard Hierarchy OKEON
8. Cost Center Group KSH1
9. Cost Centers KS01
10. Re-posting of CO Line Items KB61 RKU3
11. Cost Center Report KSB1
12. Internal Order Report KOB1
13. Business Transactions COIN RKU3 RKS RKIU RKIV KOAO
14. Controlling Periods OKP1

Allocation with Assessment

1. Create Cost Elements and Element Group KAH1

2. Create Cost Centers and cost Centre Group
3. Create Secondary Cost Element 42 for Assessment KA06
4. Maintain Business Transaction RKS & RKIU
5. Create Statistical Key Figure KK01
6. Provide Details in Statistical Key Figure KB31N
7. Create Assessment Cycle KSU1
8. Execution of Assessment Cycle KSU5
1. Set Controlling Area OKKS
2. Default Account Assignment OKB9

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 3. Display All Cost Centers KS13
4. Display All Cost Elements KA23
5. Delete Cost Centre OKC4

Allocation with Distribution

1. Create Distribution Cycle KSV1

2. Execution of Distribution Cycle KSV5
3. Maintain Business Transaction RKIV

Internal Order

1. Create Internal Order Type KOT2_OPA

2. Creation of Internal Order KO01
3. Create Internal Order Group KOH1

Real Order with Settlement

1. Maintain Allocation Structure OKO6

2. Maintain Settlement Profile OKO7
3. Maintain Number Range for Settlement Document KO8N
4. Maintain Business Transaction KOA0
5. Create Secondary Cost Element 21 KA06
6. Create Internal Order with Settlement Rule KO01
7. Execution of Settlement K088

Profit Center Accounting

6. Maintain Profit Center Standard Hierarchy FA(N)-GL-MD-PC

7. Create Profit Center Groups KCH1
8. Create Segments Enterprise Structure – Definition-FA-Define Segment
9. Create Link Between Standard Hierarchy and Profit Center Group KCH4

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10. Create Profit Center KE51

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 7. Controlling
What is Operating Concern?

It is the highest node in controlling module. It collects the sales and marketing
information. Example sales contribution report at Market segment level i.e Product, customer.
This is required only when COPA is implemented otherwise not required.

Controlling Area

It records and analyses the overhead related activities, Product costing and Profit center
related activities. One company code can have only one Controlling area. One controlling area
can be assigned too many company codes. But chart of accounts and fiscal year must be
similar.

Cost Center Standard Hierarchy

Cost Center standard hierarchy is a highest node in cost center accounting. It controls
cost center groups and cost centers. It is a base for creation of cost center. SAP Cost Center
Group

The group of similar nature of cost center are comes under CC group. All production cc
are comes under production CC group. Cost center group is used in Cost allocation and
distribution process.

Cost Center

Cost Center is a cost object. It is helpful to capture the cost for a given period of time. It
may be person or department or organizational unit like plant. Cost Center is the
organizational unit within a controlling area that represents a location where costs occur.
Production CC, Service CC, Sales CC, Administration CC, Material CC, R&D CC, Quality CC.

Cost Element

Cost element is a cost carrier between FI to CO and one cost center to another cost
center. There are two cost elements Primary CE and Secondary CE. It enables planning at the
Cost Element level so planned and actual expenses can be compared

Cost Object collects the Cost or Revenue

Cost Objects are used to control Cost Elements

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Primary Cost Element

Primary cost elements are helpful to transfer the cost FI to CO. All profit and loss GL
accounts defined in Finance chart of accounts shall be created as cost element. This is in order
to avoid reconciliation of FI and CO module.

Primary cost elements which are based on GL accounts.

Secondary Cost Element?

Secondary Cost elements are used only in Controlling. In case of cost transfer/
allocation/distribution/recovery of cost with in controlling. SCE are not linked to any GL
accounts. We have to create SCE in controlling.

1) 21 Internal Settlements
2) 41 Overhead Rates
3) 42 Assessment of the Cost
4) 43 Internal Activity Allocations

Cost Allocation with Assessment (Allocation Tools)

It is a process of allocation of cost from one cost center to another cost center. Under
this method the cost will be allocated with the help of secondary cost element 42 and business
transaction RKIU. After execution of assessment cycle in receiver cost center report values are
updated with secondary cost element and business transaction RKIU

Cost Allocation Distribution

It is a process of allocation of cost from one cost center to another cost center. Under
this method the cost will be allocated with the help of primary cost element and RKIV business
transaction. After execution of distribution cycle in receiver cost centers report values are
updated with primary cost element and business transaction RKIV.

Internal Order (Plan – Collect-Settle) It analyzes and compares the results

Internal Order is a cost object It’s used to capture specific event cost or project cost,
internal jobs and internal tasks. By using internal order we can monitor the cast on project or
events. The advantage of internal order is wide variety of planning and budgeting functions.
There are two types of internal order statistical order and real order

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 Statistical order is a type of internal order. It is not a real cost object, but statistical
order reports are used for management reporting purpose. Here cost settlement also not
possible.

Real orders are used for cost settlement purpose. The cost will be distributed from Real
order to cost centers with the help of settlement rules and secondary cost element. After
execution of settlement rule internal order value will become zero. Real order is a real cost
object. Whenever we post FI documents we have to give real order number not cost center for
settlement.

Note:- When posting transaction either cost center or internal order should be use but not
both, if you use both there will be inaccurate and duplicate reporting.

Cost Center VS Internal Order

1. An internal order is used to accumulate cost for a specific project or task for a specific
time period.
2. Internal order is used for a short period with a specific deadline.
3. IO has no hierarchy. Its linked organization unit through its settlement to a cost center.
4. The difference is CC is a permanent record in the system where as IO is used for a
temporary purpose. Marketing cost, event cost.
5. Cost center records only cost but IO records both revenue and cost. KO02 – Control
data tab - Select Revenue Posting.

Difference between Assessment and Distribution?

Assessment - It is used for primary and secondary cost allocation.

Distribution - It is used for only Primary cost allocations.

Assessment - The system does not display the sender cost elements in the receivers.
Distribution - The sender cost elements will display in the receiver cost center.

Assessment - Here sender’s total amount will transfer to all receivers.

Distribution - Here each cost element wise cost will be transferred to receivers.

Only cost centers or business process can be used as sender. A distribution receiver can
be a cost center, WBS element, internal order, cost object, or a business process.

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What is Profit Center?

Profit Center is used to determine profit for internal area. It’s responsible for both
revenue and cost. Management is used it to know Return on Investment from a department or
an area. The main aim of profit center is to analyze the cost of a product line or a business
unit. Used for Internal Control.

Profit Center Standard Hierarchy?

Profit center standard hierarchy is the highest node in the profit center accounting. We
cannot have profit center groups and profit centers without this.

OKB9 – Default/Automatic Account Assignment

You can assign either a cost center, order or profit center to the cost elements.
Whenever the system is not able to find a cost center entered for this P&L accounts it will
default from this OKB9 settings. You can assign a cost element to Company code/Val
Area/Business area /Cost Center based on flexibility & business requirement.

If there is no scope for user to enter the cost center even though it is mandatory. In such
cases system will take the values from OKB9. While creating cost element also we can set
default cost center or order in KA01.

Internal Order Life cycle

1) Create
2) Released
3) Technically Complete
4) Closed.

When we use cost centers?

Cost Centers are typically used for tracking ongoing, fiscal year based activities (May 1 thru
April 30)

When we use Internal Orders?

Internal Orders are used for short term activity tracking or for long term non-fiscal year
based activities (Any Start Date or End Date, Annual or Life to Date)

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Prerequisites for creation of cost center

 Analysis Time Frame - From Date and To Date

 Name and Description
 Person Responsible
 Cost Centre Category
 Business Area
 Profit Center(Optional)
 Address and Communication(Optional)

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 8. MM Configuration Steps
 Define Plant OX10
 Define Division OVXB
 Maintain Storage Location OX09
 Maintain Purchase Organization OX08
 Define Location OP12
 Assign Plant to Company Code OX18
 Assign Purchase Organization to Co Code OX01
 Assign Purchase Organization to Plant OX17
 Maintain Posting Period for Material Management OMSY Give Current Posting Period
and allow ABP (Allow Back Posting)
 Define Attributes for Material Types OMS2 Select ROH – click on Quantity & Value
Updating – Position – Plant – Select Tick mark for Quantity & Value.
 Maintain Plant Parameters OLMB Maintain Plant
 Set Tolerance for Price Variant PE & SE S_ALR_87002196
 Set Tolerances for Goods Receipt OMC0 B1 B2 VP
 Set Tolerance for Invoice Verification OMR6 PP PS ST BD KW
 Automatic status change in correct invoices OMRV
 Define Industry Sector OMS3
 Define Material Group OMSF
 Account Assignment in OBYC
 Check All OBYC GLs in Table T030 SE16N Give COA
 Maintain Material Master and Customer Master
 Allow Postings to Previous Period MMRV
 Delete Material Immediately MM06
 Display Warehouse Stocks of Material MB52
 Check All Materials at Plant Level MM60
 Create Material Cost Estimation CK11
 Maintain Translation Ratio for Client Currency in OBBS
 Maintain Company code in T169P in SM30
 Change Period in Material Master MMPV check period in OMSY
 Change Factory Calendar SCAL
 Valuation Level OX14
 Cancel and Reverse Invoice MR8M
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 Park Invoice MIR7
 Define Payment Block Reasons OB27
 Additional Rules for Automatic Clearing OB74 useful for GRIR Clearing.
 Release Blocked Invoice MRBR
 PO Release ME29N
 To Know the POs ME2L
 Define Reversal Reason for Invoice or Billing Document S_KK4_82000069
 Purchase requisition List ME5A

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 8. MM FI Integration
MM module is responsible for managing materials and inventory in SAP. Value of the
stock must be reflected on financial accounts of a company. System will calculate
automatically value of the company’s stock and keep financial accounts up-to-date with the
help of integration between MM and FI modules. This is controlled by a number of
parameters. COA, Movement Type, Transaction Keys, Valuation Class, Valuation Grouping
Code.

P2P Cycle ?

1. Purchase Requisition
2. Purchase Order
3. Goods Receipt
4. Invoice Posting
5. Vendor Outgoing Payment
6. Bank Reconciliation

What are the fields you know vendor master purchase organization tab?

1) Conditions 2) Sales Data 3) Control Data 4) Material Data 5) Service Data

Order currency, Payment Terms, Incoterms, Minimum order value, GR based invoice
verification, Service based invoice verification, Purchasing group, Planned delivery time.

Profit Center is maintained in Material Master under “General Plant Data”. The same
profit Center comes in ‘Costing1’ Tab.

HOW SYSTEM TO POST GOODS RECEIPT ENTRY? Or what is the account determination of FI-
MM Integration or Goods Receipt?

In goods receipt process moment type 101 plays important role. In OMWN t code
transaction keys like BSX WRX and FR1 are linked with 101 moment type. In OBYC BSX and
WRX are linked with financial GL accounts with the help of valuation class 3000.

What is Movement Type? 101,201,206,601

It is useful to track material moments in MM module example 101 Good Receipt 201
Goods Issue. It’s helpful in account determination automatically. They control the MIGO
screens. It’s a 3 digit code.

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Valuation String/Posting String 101 - WE01 – BSX, WRX, FR1

It is always contains the same account assignment characteristics for a certain

transaction or event. The posting string is needed for the purposes of automatic account
determination.

What is Transaction Key? BSX, WRX, FR1

Transaction keys are used to determine general ledger accounts for auto posting.

Valuation Class? Client Level

Valuation class categorizes the G/L account on the basis of material type. For that we
have maintain valuation class in material master in Accounting 1 tab. It is the main link
between Material Master and Finance. We can assign valuation class to material group for
account determination.

Valuation class specifies the exact GL a/c to be posted automatically.

Type of Valuation Class:

 3000 – Raw Materials ROH

 7900 – Semi finished Goods HALB
 7920 – Finished Goods FERT

What is GR/IR Clearing Account?

The GR/IR clearing account is an interim clearing account used to track goods received
and invoices processed against those goods. In P2P Cycle posting are made automatically to
this account.

Valuation Area ?

Valuation Area is the level at which you need your material to be evaluated.

2) Plant Level - Every plant has a different material price.

3) Company Code Level - Same material price across all the plants.

VALUATION GROUPING CODE or Valuation Modifier

Valuation modification is used to differentiate account determination based on

valuation areas. Creating a code for group of valuation areas. It’s used for single account

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determination for all the valuation areas. It will reduce the number of entries to be created in
automatic account determination for the stock postings.

 4 plants need separate account or 4 plants need single account both cases we can use.
 OMWM - To activate Valuation Grouping code.
 OMWD – Assign Valuation Grouping code to Valuation area.

Combination of Valuation class + The Movement types determines the GL accounts.

OBYC MM-FI Account determination setup is stored in underlying table T030

WHAT IS THE PROCESS OF P2P AND WHAT ACCOUNTING ENTRIES?

PURCHASE ORDER NO ENTRY

Goods Receipt(WE) RAW MATERIAL INVENTORY A/C DR

GR/IR CLEARING A/C CR

FRIGHT CLEARING A/C CR

Invoice Verification (RE) GR/IR CLEARING A/C DR

FRIGHT CLEARING A/C DR

INPUT GST A/C DR

VENDOR A/C CR

Vendor Payment Vendor A/c DR

Bank Outgoing Payment Cr

What is the integration point of FI-MM?

OBYC Configuration.

Where we will mention Fright amount?

Fright Condition Type = FRB1 with Fixed Amount

INVOICE PRICE DIFFERENCE FROM PO

Maintain PRD Transaction key with Price difference a/c

Maintain VBR Transaction key with Raw Material consumption a/c in GBB
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Invoice price is different from PO price but total stock is available.

GR/IR clearing a/c Debit

Raw Material Inventory a/c Debit

Vendor a/c Credit

Total stock is not available Partial stock is available

GR/IR clearing a/c Debit GR/IR clearing a/c Debit

Price Difference a/c Debit Raw material a/c Debit

Vendor a/c Credit Price Difference a/c Debit

Vendor a/c Credit

PO raised for 1000 units but Goods Received only 500 units. How to process 500 units on
respected PO in ‘MIGO’.

Enter received goods units in Quantity Tab and post invoice.

Account Modifier or General Modifier?

It is helpful to post different GL Accounts for the same transaction key.

What is Sales Area?

It is a combination of sales organization, distribution channel and division.

Can we assign division to multiple sales organizations?

Yes, It’s Possible.

Can I assign one distribution channel to more than one company codes?

Yes.

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Purchase organization is the highest node in Material Management.

Plant is part of Logistic

Standard Price Valuation:- it will be calculated for a particular period like 3 month 6months, 1
year. Variances are required

Moving Average Price: - Automatically it will keep on changing on every GR. The scope
variances are not required.

Valuation class is maintained at two places Material Master and In OBYC integration.

What is Item category field in Purchase Order?

Item category determines how a material is going to behave in purchasing document. It

has vital control functions.

1. Requires a material number

2. Requires an account assignment
3. Is to be managed as a stock item
4. Requires a goods receipt (GR) and/or an invoice receipt (IR)
 Standard
 Consignment
 Subcontracting
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  Stock transfer
 Third-party
 Limit

For Creation of New Item Category below is the path.

SPRO --> Materials management --> Purchasing --> Purchase requisition --> define document
types --> here for each document type you can find allowed item categories.

What is Account Assignment field in Purchase Order?

It determines where to allocate the costs relating to such materials. It helps you to
define the type of account assignment(asset, order, cost center, sales order, project) and
which accounts to be posted to when GR/IR is posted to.

What is Unplanned Delivery Cost?

It is a delivery cost which is not planned in purchase order, or user forgot to enter in PO
level. Sometimes Delivery cost may change between PO and invoice.

Maintain Unplanned Delivery Cost GL for Business transaction UPL in OBYC

We can give UD cost In MIRO Details Tab. Amount with Tax Code

Maintain GL account for DIF Transaction key (small differences) in OBYC

Maintain BD Tolerances key in OMR6 (Small Differences Automatically)

Separate Account Determination Based on Plant and storage location

Client has 1 material in 2 plants. Requirement is to have different Inventory account
determination for 2 plants.

 Maintain 2 Plants and Same Material should be created in 2 plants

 To activate Valuation Grouping code. OMWM

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  Assign Valuation Grouping code to Valuation area. OMWD
 In OBYC select Valuation Modifier and assign GL accounts like below
 Post PO with same material two lines with different Plant & Storage Locations ME21N
 Post MIGO and check Finance Document for check.

Delivery Date outside period covered by factory calendar 01 SCAL

Select Factory Calendar and click on Change button. Check Factory Calendar 01 Year From To

Fright Expenses need to post separate expenses account instead of Fright clearing account.
Client don’t want to include fright expenses in inventory

 Change FRA1 Condition type in T code M/06 Put X for Negative values and Remove
Delivery Cost condition “B”
 Create Fright Expenses GL and assign it to FR1 transaction key in OBYC
 Post PO and MIGO and 10 MIRO
 Inventory Dr 100 X = 1000 GRIR Clr a/c Dr = 1100
 Fright Expenses a/c Dr = 100 Vendor a/c Cr = 1100
 GRIR Clr a/c Cr = 1100

We have 2 types of Raw Materials and 2 type of Finished Products, each of them needs to
post separate account.

 Raw Material ROH 1) Normal Wood T100 2) Premium Wood T200

 Finished Products FERT 1) Chairs C100 2) Tables C200

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Configuration:-

1. Copy ROH Material Type and Create New Material Types for Normal Wood and
Premium Wood in OMS2
2. Select Quantity Updating and Value Updating for those two materials.
3. Follow the same steps to Finished Products FERT
4. Check the Account Category Reference Number for all materials types in OMSK
5. For Raw Material T100 & T200 will have 0001 as Acct Ctgy reference and finished
products C100 & C200 will have 0009.
6. Create Valuation Classes in OMSK like below New Entries

7. Create Accounts for T100 and T200 (Same as Raw materials accounts) and 2 accounts
for Finished Prodcuts C100 C200 (Same as Finshed Goods Inventory)
8. Create 2 GRIR accounts for Normal Wood and Premium Wood.
9. Maintain Valuation classes and Assign GL accounts for BSX in OBYC.
10. Maintain 2 GRIR accounts for WRX in OBYC 3010-GRIR 1 AC 3020-GRIR 2 AC
11. Create 4 Materials for T100 T200 and C100 C200 in MM01 Material will be like below for
Raw Material W100 & W200 (Normal Wood & Premium Wood)
Finished Products CHAIR & TABLE
12. Post PO MIGO & MIRO. Separate inventory & GRIR accounts will pick
13. If you maintain Valuation grouping code you will get an Error.

FB03 Material Documents Display Layout

 Plant, Transaction, PK, Amount, INR, Material, Quantity, Purchasing Document

 Select with Striped Pattern in Display Tab.

GR/IR Clearing Account Re-Grouping - OBYP 1) GRIR Adjustment a/c

BNG – Invoiced but not yet delivered 2)GRIR Invoiced but not Delivered

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GNB- Delivered but not yet Invoiced 3)GRIR Delivered but not Invoiced

GRIR A/C – GRIR Adjust a/c – GRIR Invoiced but not delivered a/c

GRIR A/C – GRIR Adjust a/c – GRIR Delivered but not Invoiced a/c

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 8. SD Configuration Steps
 Define Sales Organization OVX5
 Define Distribution Channel OVXI
 Create Sales Office OVX1
 Create Sales Group OVX4
 Assign Sales org to Company Code OVX3N
 Assign Distribution Channel to Sales Org OVXKN
 Assign Division to sales Org OVXAN
 Assign Sales Office to Sales area OVXMN
 Assign Sales Group to Sales Office OVXJN
 Setup Sales Area OVXGN
 Assign Sales Organization – Distribution Channel – Plant OVX6N
 Define Rules(001) by Sales Area OVF2
 Assign Business Area to Plant & Division OVF0
 Define Shipping Point OVXD
 Assign Shipping Point to Plant OVXC (Cntl+F = Plant. Enter. Click on Plant and Assign –
Select Shipping point from window)
 Assign Sales Area to Sales Document Type OVAO Sales org + Sales Org(Reference)
 Combine Distribution Channel OVAM S.Org + Dis Chl + Ref. Dis Chl
 Combine Division OVAN S.Org + Division + Ref Division
 Assign Sales Order Types(OR) Permitted for Sales Area OVAZ R S.Org+ R Dis + Divi + OR
 Setup Partner Determination of Customer Master VOPAN – New Entries - Partner
function – select PF and click on Partner Functions in Procedure – NE - SP SH BP PY-
Partner Determination Procedure Assignment – Select PD – click on Position - Customer
Account Group – Click on Account groups and Function assignment-NE.
 Define Tax Determination Rules OVK1 IN-1-MWST
 Maintain Pricing Procedure V/08 RVAA01 -76 records, EK01 PR00 KA00 K007 K004
RB00 HB00 KF00 MWST
 Maintain Material Attributes for Finished Goods OMS2 FERT Quty updating – Valueupd
 Create Material Master and Customer Master
 Create Condition Record VK11 - Customer Material with Release Status – Material –
Amount – Unit(INR) – Unit of Measure (ONE)
 Account Determination in OBYC
 Assign Sales GL account in VKOA
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  Define Pricing Procedure Determination OVKK S.O/D.C/Division/Doc Procedure(A)/
Customer Procedure(1)/Pricing Procedure/ Condition Type
 Assign Shipping Point According to Storage Location Shipping Condition 01/Loading
Group 0001/ Plant/ Storage Location/ Pre Shipping
 Assign Shipping Point OVL2 Shipping Condition 01/ Loading Group 0001/ Plant/ Pre
shipping
 Maintain Document No ranges for Goods Issue / Delivery / Billing 47 48 49 –WA WL RV
 Change Condition Type V/06

Create Material Master MM01/MM02/MM03

1. Material No = XXXXXX
2. Industry Sector = XXXXXX
3. Material Type = Trading Goods/Finish Goods based on need.

Select Tabs/Views

1. Basic Data 1
2. Sales Org Data 1 and 2
3. Purchasing
4. Sales General Plant Data
5. MRP1 and MRP2
6. Accounting 1
7. Costing 1

Material Master Fields Material Master Fields

1 Description of the Material Loading Group 0001
Base Unit of Measure ONE ONE 5 MRP Type ND
Material Group 6 Product Storage Location
Net Weight and Gross Weight 7 Valuation Class 7920
2 Tax Data 01 Price Control S
Division Standard Price
3 Account Assignment Group 8 Material Origin
Item Category Group
4 Availability Check KP
Transport Group 0003

Customer Master Fields Customer Master Fields

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Sales area Data Fields Terms of Payment 0001
Shipping Tab 1 Account Assignment Group 01
Customer Pricing Procedure 2 Tax
Delivery Priority 01 Partner Function Tab Cust. No
Shipping Condition SP xxxxxx
Delivering Plant SH xxxxx
Billing Documents BP xxxxxx
Price Determination PY xxxxx
Incoterms EXW

Initial Stock Upload (Production Receipt) MB1C

 Doc Date and Posting Date

 Movement Type 561
 Plant
 Storage Location
 Material No
 Quantity
 Text
Sales Order VA01

 Order Type = OR
 Sold to Party = Customer
 PO Number = Customer PO(Could be anything)
 Payment Terms = 0001
 Delivery Plant
 Material
 Quantity
 Double Click on Material in line item – Shipping Tab – Give Storage location.
 Check Condition Details in Condition Tab
Post Goods Issue VL01N

 Shipping Point
 Selection Date
 Order
 Picking Tab - Give Picked Quantity

Reversing Billing Document – VF03 – Menu – Billing Document –Cancel.

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Analysis Pricing Procedure in Billing Document

Go to Billing document – select line item – click on Item “Pricing Condition” Icon – Condition
Tab – Click on “Analysis” Icon

Custom Account Keys and Assignment for Different GL account Determination

 Create Account Key in OV34 3 Digit code and Description

 Assign Account Key to Condition Type in Pricing Procedure V/08
 Assign GL account for custom account key in VKOA

Company has 3 types of customers Domestic, Foreign and wholesale. They want to record
sales customer wise. How can you achieve this in SD?

1. Create Customer Account assignment group for 3 customers in OVK8

2. Maintain these Customer account assignment group in 3 material masters XD01
3. Assign GL account 3 separately for that Customer account assignment groups in VKOA
Use Table 2

Company has 5 Products for selling and they want to know each product sales amount. How
can you achieve this in SD?

1. Create Material account assignment groups for each product in OVK5

2. Maintain these material account assignment group in 5 Material Master MM01
3. Assign GL Account for that groups in VKOA Use Table 3

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 8. SD FI Integration
Whenever we sale a finished material to customer, then the customer have to pay for
that. We send a bill to customer. In that position all billing document which is happens to sales
and distribution module will be posted into FI module. The accounting entry will have two
sides. One side is Customer account and other side will be revenue account.

ORDER TO CASH CYCLE?

Sales Enquiry and Sales Quotation SD

Sales order SD

Delivery of the goods FI-MM-SD OBYC

Billing FI-SD VKOA

Customer Incoming Payment FI

Bank Reconciliation Statement FI

What is the account determination of Billing?

In billing process sales account is derived from VKOA configuration. In VKOA sales
account is linked with

1) Account key
2) Customer account assignment group
3) Material account assignment group
4) Sales Organization
5) Chart of Accounts
6) Condition Type
7) Application V (Sales & Distribution)
8) ERL is linked with PR00 condition type in pricing procedure.

Delivery of the goods entry back ground logic?

601 moment type is linked with BSX and GBB transaction type. BSX and GBB BSA, VAX
are linked with GL accounts with the help of valuation class 7920.

BSA Initial Stocks upload A/C

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VAX Cost of Goods Sold A/C

How the delivery of the goods journal amount picking?

In Material master Price X VL01N Picked Quantity

WHAT IS VKOA CONFIGURATION?

In VKOA GL account are linked with ERL accounts key.

WHAT IS OBYC CONFIGURATION FOR SD?

BSX Inventory postings

Valuation class GL ACCOUNT

7920 FINSHED GOODS INVENTORY A/C

GBB

GENERAL MODIFIER VALTUATION CLASS GL ACCOUNTS

BSA 7920 INITIAL STOCK UPLOAD A/C

VAX 7920 COGS A/C

1) PRE REQUESITIS FOR CREATION OF CONDITION RECORD?

1. Pricing Procedure
2. Material Master
3. Customer Master, q2q

2)WHAT IS CONDITION Record?

In condition record we have to maintain pricing details of the product.

3) What are the Accounting1 Tab details in Material Master Creation?

 Valuation class 7920

 Price Control S
 Standard Price 1000

4) What are the GL accounts required for FI SD postings?

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 1. Finished Goods Inventory A/C
2. COGS A/C
3. Initial stocks upload A/C
4. Local Sales A/C
5. Discount Allowed A/C

Billing Document date will determine accounting document date.

OTC PROCESS JOURNAL ENTRIES?

INTIAL STOCK UPLOAD

 Finished Goods Inventory A/C BSX

 TO Initial Stock Upload A/C GBB-BSA

DELIVERY OF THE GOODS

 COGS A/C DR VAX

 Finished Goods Inventory A/C CR BSX

BILLING

 Customer a/c DR Vendor Master

 Discount a/c DR
 Local Sales a/c CR VKOA
 Output Tax a/c CR

Customer Payment

 Bank Clearing a/c Dr

 Customer a/c Cr

Total Sales price?

Amount of sales is calculated with the help of condition record price (PR00) and sales order
quantity.

 Total Quantity X Price of the Product

 Quantity = Sales Order
 Price per Unit = Condition Record

T CODES FOR OTC JOURNALS POSTINGS?

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 1. Sales Quotation VA21
2. Initial stocks upload MB1C
3. Sales Order VA01
4. Delivery of the Goods VL01N
5. Billing VF01
6. MMBE Material Overview

SD to CO integration point

In VKOA condition type KOFK is for SD –CO integration. KOFI is for SD-FI integration.

How to See Revenue Account determination by System? VF02 – Cntl+Shft+F12 Release VFX3

Go to VF03 – Environment – Account Determination Analysis – Revenue Accounts – click

on KOFI Condition Type.

Customer Account Assignment Group – This grouping code is used to post different revenue
GL accounts based on the nature of customers. We need to give it in Customer Master.
01 Domestic Revenue, 02 Foreign Revenue.

Customer Acct Assignment Group – Customer Master Sales Area Data – Billing Documents Tab
– Account Assignment Group 01 Domestic Revenue

Material Account Assignment Group – This grouping code is used to post different revenue
accounts based on nature the nature of material. It is maintained in Customer master. 01
Trading Goods, 02 Services, 03 Finished Goods.

Material Acct Assignment Group –Material Master – Sales Org Data 2 – Acct Asgn Group 01
Trading Goods

SD Discount

1. Maintain Condition Type K004 in Pricing Procedure V/08

2. Assign Discount GL against Discount Condition Type K004 in VKOA (Act Key ERS)
3. Create Condition Record for Condition Type K004 VK11 (Give Material No & Discount
Amount)
4. Journal Entry - Customer a/c Debit - Discount a/c Debit - and Sales a/c Credit

SD Output Tax Configuration

1. Define Tax Determination Rules OVK1 IN-1-MWST

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 2. Assign Delivering Plant for Tax Determination OVK6/OX10 Maintain Plant
3. Define Customer Tax classification and Material Tax Classification OVK3 & OVK4
4. Maintain Tax Classification in Customer and Material Master (Liable for Tax &Taxable)
5. Maintain Condition Type MWST in SD Pricing Procedure V/08
6. Create Condition Record for Condition Type MWST in VK11(Give Tax Classification and
Output Tax Code) Domestic Tax
7. Maintain Tax Procedure
8. Taxes will be calculated based Plant Location and Customer Location.

Explain what a pricing procedure is? RVAA01 Standard Pricing Procedure

Pricing Procedure is a group of condition types arranged in particular sequence to have

correct prices being determined in a sales document.

 Which sub-totals appear during pricing?

 To what extent pricing can be influenced manually
 Which method the system uses to calculate percentage discounts and surcharges
 which requirements for a particular condition type must be fulfilled before the system
takes the condition into account.

SD Pricing Procedure – Overview

The prices are calculated based on conditions techniques. A condition technique is the
process of determining the condition records into sales documents. The pricing procedure
structure as below.

1. Condition technique consists of condition records

2. Condition records are stored in condition tables.
3. Condition tables will be placed in access sequences.
4. Access sequences are assigned to condition type.
5. Condition types will be placed in pricing procedure

Condition Records: – It is also called as condition master it is the master data for pricing.
VK11.

Condition Tables: – It is the combination of fields which are used to maintain condition
records V/03.

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Access Sequence: – It is a search strategy used to search for valid condition records from most
specific to most general. It checks where prices are stored and what condition prices are to be
picked up. V/07. In ECC we can maintain 99 accesses in access sequence. In S4 Hana 999

Condition Type: – It controls the pricing components and pricing elements. Condition type is
used for different type of charges discount, surcharges. Condition type is a reference to create
condition record in VK11.

1) Error 1:- In Billing Process account document not generated?

2) Solution: - VF02 Billing document click on “Green Flag” It will give you more details
about error.
3) Error 2:- Goods issue has not been posted for the delivery?
4) Solution :- Check OBYC Setup or check Pricing Procedure

One company code can be assigned to Multiple Sales Organizations. But One sales
Organization can be assigned to one company code.

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 9. Asset Accounting

1. Copy Chart of Depreciation EC08

2. Specify Description of Chart of Depreciation ORFA
3. Copy Delete Depreciation Area OADB
4. Assign Chart of Depreciation to Company code OAOB
5. Maintain Account Determination S_ALR_87009195
6. Create Screen Layout S_ALR_87009209 Copy Standard Layout and Rename it
7. Define Number Range Intervals AS08
8. Define Asset Class OAOA
1. Select Include Asset (Don’t Select it for AUC Assets)
2. Select Line Item Settlement for AUC Assets
9. Create GL accounts and Account Assignment AO90
10. Determine Depreciation Area in Asset Class OAYZ
1. Screen Layout = 2000
2. Un Tick Area Deactivation and Save
3. Depreciation Key = 0000
4. Useful life = 999
5. Periods = 12
11. Specify Intervals and Posting rules OAYR Select Monthly Posting / Smoothing if req
12. Specify rounding of Net book value and Depreciation OAYO Select Automatically
Calculated Depreciation and Arithmetic Rounding
13. Define Screen layout for Asset Master Data S_ALR_87009044/3686 02 & 03 CD CC BA
14. Define Screen Layout for Asset Depreciation Area AO21 2000 Screen Layout
15. Base Method S_ALR_87015147
16. Multilevel Method for SLM/WDM AFAMS
Validity Start Date = From Ordinary Depreciation Start Date

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 Acquisition Year Years Period Base Value Percentage
9999 999 12 01/24 XX
17. Period Control Method AFAMP 01 for all.
18. Create and Assign Depreciation Key for SLM/WDM AFAMA
19. Maintain Asset Master Data AS01 – AS02 – AS03
20. Purchasing Of Asset F-90
21. Sale of Asset F-92 Without Customer ABAON
22. Asset Retirement By Scrapping ABAVN
23. Asset to Asset Transfer ABUMN
24. Asset Transfer Company code to Company Code ABT1N
25. Asset Block AS05
26. Create SUB Asset AS11
27. Run Depreciation AFAB
28. Unplanned Depreciation ABAA 640 TT Previous Year 650 C.Year No Accounting entry
29. Depreciation Job Name RAPOST2000 SM37
30. Asset Explorer AW01N
31. Asset Year End Closing AJAB RAJABS00
32. Asset Fiscal Year Change AJRW RAJAWE00
33. Delta Depreciation ASKB
34. Asset Tables ANKA, ANLA, TABA, ANLB, ANLH,ANLP

Asset Legacy Data Upload Steps for Year End

1) Set Company Code Status Path - Asset Data Transfer. Status = 2

2) Specify Transfer Date Or Last Closed Fiscal Year Path - Asset Data Transfer –Parameters
for Data Transfer – Date Specification. Give Takeover Date here.
3) Legacy Data Upload AS91 Take over Value/No entry because it’s just master data
upload
4) Asset Transacting Data Posting OASV Accounting entry

AUC Settlement Process All Steps and Journals

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1) Maintain Settlement Profile OK07 AI
2) Assign Settlement Profile to Company Code OAAZ
3) Maintain Settlement Document Number Range KO8N
4) Create AUC Asset Master with ZERO Depreciation AS01
5) Asset Procurement through Cash ABZON
6) Procure AUC Asset F-90
7) Post Capital Expenditure Item with different dates FB01
8) Create Main Asset with Depreciation key
9) AUC Settlement Line item List AIAB -FXA Settlement AUC - Receiver - AIBU
10) AUC Reversal AB08/AIST Previous Year Reversal KB11N
 Overview of Asset Accounting Document AB08
 Incomplete Asset AUVA
 Delete Asset AS06
 Miscellaneous Transaction to add cost to Capitalized Asset TT 140 ABSO
 Asset Balances S_ALR_87011965
 Specify Document Type for Posting Depreciation OA71
 Asset Write-up ABZU
 Reverse the document AIST
 Asset Group Creation AS21 AS22 AS23
 Sub-Asset Group Creation AS24
 Recalculate Depreciation AFAR
 Specify LVA Asset Classes OAY2
 Specify Amount for Low Value Assets OAYK


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 9. Asset Accounting
Explain Asset Accounting?

The asset accounting is a sub-module in SAP it manages a company’s fixed assets, right
from the acquisition to retirement/scrapping. All the accounting transactions relating to the
assets are taken care through this module, and all the accounting information from this
module flow to FI-GL on real time basis.

FI-AA and CO integration helps?

Assigning an asset to any of the controlling objects like cost center, internal
order/maintenance order, or an activity type.

The depreciation and the interest are passed on to the cost/profit centers.

NOTE - When there is a situation where the asset master record contains an internal order
and a cost center, then the depreciation is always posted to the internal order and not to the
cost center.

Chart of depreciation?

The chart of depreciation contains list of country –specific depreciation areas. It

provides the rules for the evaluation of assets that are valid in a given country. Chart of
depreciation configuration is country level and it’s not possible to maintain directly in SAP
system. It must be copied from standard chart of depreciation provided by SAP. After copying,
you may delete the depreciation areas you do not need. However, note that the deletion must
be done before any assets are created. One chart of depreciation can be assigned to multiple
company codes but country must be similar.

Depreciation Area?

The depreciation area is 2 digits. It contains the depreciation terms which are required
to be entered into the asset master records or asset classes. 01 – Books depreciation is the
major one.

The fixed assets are valued differently for different purpose (business, legal etc.). SAP
manages these different valuations by using of depreciation areas. A depreciation area
decides how and for what purpose an asset is evaluated.

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 The depreciation is can be ‘real’ or a ‘derived one’. You may need to use several
depreciation areas for a single asset depending upon the valuation requirement and reporting
requirements. System allows you to define up to 99 depreciation areas.

Describe the function of Depreciation Areas?

Depreciation area 01, which can be set as the book depreciation, can make automatic
postings to the G/L. Other depreciation areas my get their values from depreciation area 01
but calculate and post different depreciation values to the general ledger. Other depreciation
areas can be set up to show not to post.

What is Depreciation?

Depreciation is the reduction in the book value of an asset due to its usage over time or
technological changes or accidents. Depreciation is calculated on straight line method and
diminishing balance method.

Planned Depreciation Or Ordinary Depreciation? ANLP table NAFAZ field has Dep value

Planned depreciation brings down the value of the fixed asset after every planned
period (monthly) till the asset value is fully depreciated over its life period. With the help of
this you can know the asset value at any point of time.

Unplanned Depreciation?

Unplanned depreciation is a sudden happening of an event resulting in a permanent

reduction of the value of asset. Fire accidents, Natural disasters causes big damage to asset.
Value comes down drastically.

Special Depreciation is used normally for taxation purposes.

What is an ‘Asset Class’? Client Level

Classifying an asset based on business and legal requirements. Every asset must be
assigned to any one asset class. Group of similar nature of assets comes under one asset class.
Asset class is base for creation of asset master. An asset class is the link between the asset
master records and the relevant accounts in the GL. The account determination in the asset
class enables you to post to the relevant GL accounts.

Simple Asset will not have any sub asset. It is also called as Main asset.
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Complex Asset contains Main asset, under main asset sub asset will be there

Account Determination Screen Layouts and Number Ranges?

 In SAP, account determinations are the keys that are used to link the asset classes or
master record to the general ledger (G/L) accounts based on the nature of transaction.
 One Account Determination key can be assigned to multiple asset class
 One Account Determination Key can be assigned to multiple asset classes.
 Screen layouts are useful to control asset master data fields at the time of creation of
master data.
 The number range controls the number of assets in each class.

What are all the ‘Time dependent data’ in asset master?

All the cost accounting assignment related data like cost center, internal orders or
business area etc. need to be maintained as time dependent data in asset master. (And also
plant, location, shift factor, real estate key) SAP maintains all the time-dependent data for the
entire life span of the assets.

What is Depreciation Keys?

It contains combination of calculation rules, which are used to calculate the

depreciation automatically. Depreciation key is COD level configuration. Depreciation key is
assigned to each depreciation area separately (AO21). It refers method of calculation of
depreciation like SLM or WDM. It consists of Base method, Period control, and multilevel
method.

What is known is Depreciation Run?

The depreciation run is a periodic processing program in asset accounting that posts
planned depreciation to all relevant assets. Most companies execute the depreciation run
every month, although you could run this program on a quarterly or yearly basis.

Smoothing and catch up?

If the smoothing option is activated, the difference is distributed equally among the
remaining posting periods of the current fiscal year.

If this option is not activated, the entire difference is posted to the current period which
is known as catch up.

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  If we select the smoothing we can have equal depreciation amounts for all periods in a
fiscal year.
 If we don’t select the smoothing depreciation amount will be vary on month to month.

What is the importance of Depreciation Key ‘0000’?

Depreciation key ‘0000’ is a SAP delivered key that ensures depreciation and interest is
not calculated and posted. This key can be used for the Asset under Construction (AUC).

What is Asset Transaction Type in Asset Accounting? AO73 – AO76

Transaction type helps to identify (classify) the nature of asset transaction weather it is
acquisition or transfer or retirement. It is used in most of the asset reports and asset history
sheet to differentiate the transactions by transaction type. We can create custom TT also.

 100 Asset Acquisition External Acquisition

 110 Asset Acquisition In house Production
 200 Asset Retirement without Revenue
 210 Asset Retirement with Revenue

Why it is necessary to ‘Block’ an asset master record? AS05

In case you decide that you do not want to post any more acquisitions to an existing
asset, then it is necessary that you set the block indicator in the asset master record. This is
usually the case with AUC, where after the capitalization you no longer want any further
additions to the asset. The block indicator prevents only further postings but not transfers or
retirements or depreciations.

Maximum Amount Method

Here, we can define maximum depreciation amount for that fiscal year. Useful for
better controlling on the depreciation amount.

What is Multilevel Method?

We can define different depreciation rate for every year/period. This Method provides
flexibility to specify different rate of depreciation for different years or periods.

Period Control Method

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 Period control is used for determination of effective date (Value Date) for depreciation
calculation Asset acquisition, asset addition, asset retirement, asset transfer. The system
determines the start date or end date of depreciation calculation using the period control.

Restart Run - If posting run terminated for technical reasons or system outage or error the
depreciation run report must be begin in restart mode.

The table TABA entry must exist at this point, but the restart run does not create a new
TABA entry. If the field TABA-XBUKZ has a value of “1”, which means restart mode is required.
After solving error(s), the field will be changed to “X” which means it’s posted successfully. If
TABA-XBUKZ has a value of “N”, it’s yet to be posted.

Note: This affects only those assets that were not successfully executed in the previous run.

Repeat Run - It posts only Difference. During a repeat posting run, the system only posts the
differences that resulted between the first posting run and the repeat posting run in other
words no double posting or overwriting existing posting. Repeat would be used if changes
have been made after the period depreciation run has been posted.

 Changes of Depreciation Terms in Asset Master Data – Useful life changes

 New transactions posted – Asset Transfer
 If any new assets are created through allocation after Dep run

Unplanned Posting Run

Several periods can be posted in a single run with this option. By setting this indicator,
the system does not check for the connection to the previous period and allows skipping over
periods. This can be a useful option for test purposes for estimation or validating some
depreciation calculation, but generally this option is not recommended.

Amortization:- As per Accounting standard 26 the amortization which is applicable for

intangible fixed assets. If decreasing value of intangible asset over the period of time are
known as Amortization.

 The value of amortization which is calculated by using straight line method.

 Amortization = Cost of the Intangible Asset / Life of the intangible asset.

Impairment:- As per AS 28 If suddenly decreasing any value of asset or investment due to

accident, technological changes and market conditions are known as Impairment.

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  If net realized value of the asset is less than carrying value of the asset are known as
Impairment
 Impairment = Book value of Machinery – Net realized value.

Specify Intervals & Posting Rules OAYR

Here we specify to the system how often posting runs need to be carried out. Like
monthly posting, quarterly posting, semiannual posting, annual posting.

We can maintain depreciation key for entire asset class in OAYZ Determine Depreciation
Area in Asset Class.

What is Settlement in SAP?

Transferring balances from one place to another place. Like AUC Asset to Main Asset.
Internal order to cost center.

Can we Reverse the Depreciation Postings

It’s highly impossible. It’s not Standard Practice. Audit compliance will be tough.

DEPRECIATION KEY

Base Method:-

0014 Ordinary explicit percentage (after end of life) "Based on Percentage"

1. Type of Depreciation - Ordinary

2. Dep Method - P Stated percentage
3. Dep after Planed life end - Yes (No depreciation should be calculated if Net Book
value = zero)
4. Dep. below Net book value zero - No (Asset will depreciate till net book
value of asset become zero) If Yes Negative Dep will calculate
5. Curb - No (If you select this rate of dep will increase every year after planned Dep life
completed. 10plnd yr 10% Dep. In 11th year dep will be 11% 12th year 12%, 13th y 13%.

Multilevel Method

1. Validity Start Date:- From Ordinary Depreciation Start Date or From Capitalization
Date. This is useful to control “Asset Validity Date”

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 2. Acquisition Year 9999 To avoid creating this every year we will give 9999 for life time.
3. Year:- 999 Asset Depreciation years unlimited
4. Base Value:- It will be Acquisition value or Net Book value
5. Remaining Life: -

Leading ledger will be assigned for only one depreciation area, if you want use other
depreciation areas use Non-leading ledgers.

In Planned depreciation we can't skip the period.

Important Fields Determination Depreciation in Asset Class OAYZ

What is LVA Check? Low Value Assets and Quantity Check Dep Key GWG

It control maximum amount for asset acquisition and also quantity. It control PO
acquisition amount as well.

Negative Value Allowed

If we set this indicator Negative APC and positive depreciation will be allowed for the
asset. It’s useful for AUC, if you need to post subsequent credit memo to AUC after it’s
completely settled.

1. We can set Minimum useful life in Years or Periods for an asset class OAYZ
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 2. We can set Maximum useful life in Years or Periods for an asset class OAYZ

Why we deselect "Area Deactivation" In Determine Depreciation Area in Asset class. OAYZ

If we have multiple depreciation areas for any asset class so we don’t want few
depreciation areas in that list, here we can deactivate it.

Why we have to De-select Area Deactivation Check Box for land and Capital WIP even
though there is no Depreciation on land and Capital WIP?

At the time of creating Land Master we Capitalization Date which would be Purchase
Date of Land or Registration Date and Rate of Depreciation as "0%"

The ‘Asset Value Date’ is the start date of depreciation for the asset.

What is Include Asset in Asset Class Screen?

If we select this asset will be counted in Physical Inventory.

AUC Reversal of Previous Year?

Post Journal entry in KB11N

AUC Reversal AB08/AIST

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What details we can find in AO90?

1. Chart of Accounts
2. Chart of Depreciation
3. Account Determination
4. Depreciation Area
5. Acquisition Account Assignment, Retirement Account Assignment, Ordinary
Depreciation account assignment.

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 Depreciation Key

 Period control according to the fiscal year:- Period will be taken from fiscal year variant.
 Depreciation to the day
 Depreciation Type - Ordinary or Special
 Phase – From the start of Depreciation
 Base Method - 0014 Explicit percentage
 Period Control Method
 Multilevel Method
 Class – SLM or WDV
 Activate Depreciation key

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 Asset Accounting Entries

Transaction Journal Entry Transaction Journal Entry

Asset Purchase Asset a/c Dr Asset Sale Customer a/c Dr
Vendor a/c Cr Sale of Asset a/c Dr
Acc Dep a/c Dr
Depreciation Depreciation a/c Dr Loss on sale of Asset a/c Dr
Acc Dep a/c Cr
Asset a/c Cr
Asset Scraping Loss due to scrapping Dr Sale of Asset a/c Cr
Acc Dep a/c Dr Gain on Sale of Asset a/c Cr
Asset a/c Cr

Asset Transfer Asset a/c Dr New BU Asset Tran Asset a/c Dr New
BU to BU Acc Dep a/c Cr New BU Inter comp Inter Co Clearing a/c Cr New

Acc Dep a/c Dr Old BU Sale of asset a/c Dr Old

Asset a/c Cr Old BU Acc Dep a/c Dr Old
Asset a/c Cr Old
AUC AUC Asset a/c Dr
Vendor a/c Cr AUC Setlmt Final Asset a/c Dr
AUC Asset a/c Cr
AUC Capital AUC Asset a/c Dr Asset Transact
Expences Bank a/c Cr OASV Asset a/c Dr 5L
Trnspt,instaltin Acc Dep Cr 1L
Initial upload a/c Cr 4L
Ordinary Dep a/c Cr (if it is
Mid Year upload)

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 10. New General Ledger
1. Create Ledgers for General Ledger Accounting Ledger / Name / Table
2. Define Accounting Principles INAS/IFRS/USAP - Description
3. Assign Accounting Principle to Ledger
4. Define Ledger Group Ledger Assignment / Reporting Ledger
5. Define Currencies of Leading Ledger Group Currency – 0 – M – 1 – 3
6. Define and Active Non-Leading Ledgers N.L – Co Cd – Crcy Type2(30) – FV(K4)
7. Assign 6 Scenarios and Customer Fields to Non-Leading Ledgers
8. Activate Cost of Sales Accounting Co Cd - Activate
9. Document Types and Number Range for Entry View and GL View
10. Classify GL Accounts for Document Splitting Accounts Range & Item Category
11. Assign Zero Balance Clearing Account GSP_KD
Item Category = 01001 Select 000 Account Key give Zero Bal cl GL
12.Define Document Splitting Characteristic for General Ledger Accounting
13.Activate Document Splitting S_ELN_06000009
14. Ledger Comparison GCAC
15. Simulation of Document Splitting FAGL_MIG_SIM_SPL

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 10.New General Ledger ECC5 ECC6
Ledgers are used to generate different financial statements as per accounting principles.
New GL and Classic GL are two ways to implement General Ledger functionality in SAP. New
GL is extension to classic GL. New GL provides lot of benefits compare to classic GL.

1) SAP has consolidated multiple classic GL tables (GLT0, GLPTC) into single table
FAGLFLEXT. It will give faster response time for reporting.
2) New GL has document splitting functionality that enables segment reporting. It’s not
available in classic GL
3) New GL has a real-time integration between FI and CO that happens with each
transaction creating in CO instead of a summary posting done by reconciliation ledger
during period-close.
4) New GL has advanced drill-down capabilities by segment and other characteristics.
5) We can have Parallel Accounting in New GL
6) New GL ensures better SOX compliance.
7) Faster Period Close is possible with New GL as,
 Reconciliation Ledger is not required
 Balance sheet Adjustments are not required
 Profit and Loss Adjustment are not required
 Activities related to Special Purpose Ledger are not required
 Depreciation posting is online instead of a batch session
 SAP support packs and future enhancements will be released for New GL only.

What is parallel Accounting?

If new GL accounting is implemented with parallel accounting, the accounting entries

will get updated both leading and non-leading ledgers.

Purpose of Ledger group?

We can use ledger group if business want to post any financial transaction in specific
ledger. While creating ledger group the reporting ledger fiscal year should be same as
company code fiscal year.

A Leading ledger contains the same setting like currencies, fiscal year variant, and posting
period variant that apply to the company code.

Non Leading Ledgers?

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 Non leading ledgers are parallel ledgers to the leading ledger. They can be based on
local accounting principle of country. Non leading ledgers are not predefined but they are
defined ledgers. According to business requirement if business want prepare financial
statement by using more than one accounting principle like IFRS, USGAAP, UKGAAP,
AUSTRILIAN GAAP. We will need Non leading ledgers.

You have to activate Non-leading ledgers for the individual company codes.

What is Document Splitting?

In document splitting accounting document line items are splits according to

characteristic like business area, Profit center, Segment as we defined in configuration stage. It
is helpful to prepare multidimensional financial statement any time. If splitting is not possible
then Profit center and segment reports are will not tally.

1) Segment Level Financial Statement

2) Profit center Level Financial Statement
3) Business Area Level Financial Statement
4) Company code Level Financial Statement

Document Splitting is client level but you can control activation or deactivation at company
code level.

Entry View :- It will shows how you have entered data at the time of posting a transaction.

GL View:- It will show you the document in splitting view which was done by the system.

Active Document Splitting

Active document splitting based on the business transaction/ variant assigned to

document type and the item category assigned to the GL account. System does the splitting of
each line item in the document based on the configuration you have done. You have control
over this document splitting. It’s also called rule based splitting.

Passive Document Splitting

It comprises all document splitting processes. Under this method line items will split in
accounting document based on referral documents or preceding document, like vendor
payment document line items are split based on vendor invoice document characteristic.
Reversal document always refers to the original document. Here we don’t have the control on
splitting.
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Zero Balance Splitting

If the debits and credits characteristics (profit center or business area) are not matched
in a document then zero balance clearing account will trigger automatically and creates
additional clearing items based on configuration.

NOTE:- Line items are splits in GL view only not in entry view as sub ledgers are not part of
item category.

New GL Logic – Splitting method (000012) is linked with business transactions variant.
Business transaction variants are linked with item category and document types. Item
category is linked with GL accounts. GL accounts are linked with document splitting
characteristics.

What are the 6 Scenarios in NEW GL

When we post any document with fields like Profit Centre Cost Centre, Segment,
Partner PC, Trading Prater and functional area. These fields will be displayed in Ledgers for
general ledger view based on scenarios you assigned to ledgers. SAP Standard we can’t define
new. It’s Useful for segment reporting.

What is Item Category?

It characterizes the items of an accounting document. It is derived from account type.

What is Business Transaction Variant? 0001 Standard S_AL0_96000709

It will specify how the splitting will occur for the related business transactions. Business
transaction variant is a special version of business transaction. Here you can further limit the
item categories that were specified in the business transaction.

Splitting Method determines splitting rules based on BT and BTV

Splitting Rule determines which item categories will be split and from which item categories it
will derive the account assignment.

Active Splitting VS Passive Splitting

In Active Splitting While posting transaction we have to give bus area, profit center in
debit line or credit line then the system will update the other line, this is called active splitting
while In Passive splitting means the values will be captured from invoice levels to the rest of
process. Example
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 Purchase order. The system picks a business area from division and profit center from
material master. So the same will be updated to MIGO, MIRO and vendor payment. Therefore
we don't need to specify every time while doing these transactions.

Technical Details

1) FAGLFLEXT – Financial Accounting General Ledger Flexible Table or Total Table

2) FAGLFLEXA – Actual
3) FAGLFLEXP – Planned
4) FAGL_SPLINFO -Splitting data

Company Code Currency is local currency – Company code level. It is useful to prepare
financial reports for local authorities. OX02

Group Currency - it’s the currency of the country where main company is located. It is used for
group reporting like consolidation. Maintained at client level SCC4
ACDOCA table to check Non leading ledgers.

Hard Currency –Maintained at country level. Used only in countries which are economically
unstable and had high inflation rate. When a hard currency is selected, the document is
automatically updated in the local currency and the hard currency. Along with local currency,
financial reports are prepared in hard currency as well. OY01 - OBY6

Index Based Currency – Maintained at country level. Used in countries where extreme
inflation level. It is used for Statutory Reporting Purposes for subsidiaries. OY01 - OBY6

Transaction Currency which is entered in header segment of the document

Account Currency : We define this currency at the time of GL creation.

Controlling Area Currency - The system uses this currency for cost accounting. This currency is
set up when you create controlling area.

Object Currency - A currency defined in the master record of a Controlling object (cost center,
internal order, and so on). When you create a Controlling object, the controlling area currency
is defaulted as the object currency. You can change this.

NOTE: - Currency of leading ledger always the first currency of non-leading ledger.

FI-CO Data transfer only in Leading Ledgers.

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Additional Information about Classic GL table GLT0

The Classic General Ledger was primarily intended to provide a complete mechanism for
external reporting purposes by recording all the transactions of a business. However, for
internal reporting purposes data needs to flow to the various controlling modules like Profit
Centre Accounting, Cost Element Accounting, etc. The linkage between the Classic General
Ledger and the controlling module was weak.

Costs of Sales Ledger, Special Purpose Ledger, the Reconciliation Ledger or the Profit
Centre Ledger these modules were not automatically reconciled with the classic general
Ledger. Due to this there was a need to perform additional closing activities in order to
reconcile these additional modules with the classic general Ledger.

Reconciliation Ledger use in Classic GL

In case of cross company code postings, the information was initially stored in
controlling and then transfer to the FI module at period close. The controlling data was stored
in the Reconciliation Ledger. At the period end, this data was transferred from controlling to
create FI documents so that are reconciliation between controlling and FI was carried out.

What is Special Purpose Ledger?

You can define ledgers for reporting purposes. It is helpful to report at various levels
using the values from various application components. It will collect and combine information.
FI-SD-MM-CO-External Data.

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What is cost of sales accounting?

Cost of sales accounting compares the sales revenue for a given accounting period with
the manufacturing costs of the deducted activity. The expenses are allocated to the
commercial functional areas. Cost of sales accounting identifies where costs originate in a
company. It identifies the economic reason for a particular expense.

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 All Tables and Programs
GL Master Table Vendor Master Table Customer Table
Master
COA SKA1 General LFA1 General KNA1
Co. Cd SKB1 Co.Cd LFB1 Co.Cd KNB1
Text SKAT Purchasing Org LFM1 Sales Org KNVV

Open Item BSIS Open Item BSIK Open Item BSID

Cleared Item BSAS Cleared Item BSAK Cleared Item BSAD

 Accounting Document: BKPF for Header and BSEG for Line Item
 Material Document: MKPF for Header and MSEG for Line item
 Purchase Order Header Data EKKO and PO Line item Data EKPO
 Invoice Receipt Header RBKP and Line item data RSEG
 Sales Order Header VBAK and Item Data VBAP
 Delivery Document Header LIKP and Item Data LIPS
 Billing Document Header VBRK and Item Data VBRP
 Cost Center Header data COBK and Line Item Data COEP

1. Asset Master ANLA

2. Depreciation Data ANLB
3. Recurring entries BKDF
4. Asset Depreciation Table T093D
5. Parked Document Table VBSEGS/K/D/A
 Controlling Table COAP
 Cost Element with Chart of Accounts CSKA
 Cost Element with Controlling Area CSKB
 Profit Center CEPC
 Profit Center Actual Line items GLPCA
 Internal Order AUFK
 Statistical Key Figure (SKF) TKA03
 Activity Type CSSL
 Manual Check posting. Checks will stored in PAYR
 Electronic Bank Statement Line Items FEBEP Short Key & Value Date IMP fields

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  GL Account Totals FAGLFLEXT
 Ledger Actual Line Items FAGLFLEXA
 Ledger Center Plan Line Items FAGLFLEXP
 Currency Keys TCURC
 Exchange Rate TCURR
 Withholding Tax WITH_ITEM
 Material Master MARA

With-Holding Tax Tables

 Tax Key T059P

 Tax Type T059O
 Tax Code T059Z

House Bank Tables T012

House Bank Accounts T012K

Client T000

Company T880

Company Code T001

Document Type T003

Chart of Accounts T004

BUSINESS AREA TGSB

FISCAL YEAR VARIANT T009

Tax Code Names T007S

GL Account Group T077S

Field Status Variant T004F

Countries in SAP T005

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Currency-codes TCURC

Exch-rate in SAP TCURR

Currency-name in SAP TCURT

Credit-control-area SAP T014

Posting-period-variant (PPV) T010O

Posting period variant names in SAP T010P

Permitted posting periods in SAP T001B

SAP Accounts Receivable Table

Customer Bank details KNBK

Customer Contact persons KNVK

Customer hierarchy KNVH

Customer master tax indicator KNVI

Customer partners KNVP

Shipment data for customer KNVS

SAP FI Accounts payable tables

Bank details LFBK

Purchasing data LFM2

Purchasing organization data LFM1

Vendor dunning data LFB5

Electronic Bank Statement Header Records FEBKO

Reference record for electronic bank statement line item FEBRE

Electronic Bank Statement Line Items FEBEP

Clearing data for an electronic bank statement line item FEBCL

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  APP F110 Tables REGUH Settlement Data Net amount
o REGUP Paid Data Absolute Value
o REGUS Accounts blocked by payment proposal Run Date & ID

Accounts Blocked by Payment Proposal Check Run ID & Identification REGUS

Accounting or Dunning Clerks Table T001S

SAP tables – Assets Accounting

Asset classes: Depreciation area ANKB

Asset classes: Description ANKT

Asset classes: General data ANKA

Asset line items ANEP

Asset master record user fields ANLU

Document header asset posting ANEK

Time-dependent asset allocation ANLZ

SAP CO Tables

Cost center master data CSKS

Cost center texts CSKT

Assignment of work center to cost center CRCO

Cost totals for external postings COSP

Line items (by period) COEP

Document header COBK

Price totals COST

Profit center accounting tables

Actual line items – Profit center GLPCA

Object table for account – Profit center GLPCO

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Plan line items – Profit center GLPCP

Transaction attributes – Profit center GLPCC

Profit center master data table CEPC

Texts for profit center master data CEPCT

Material Valuation MBEW

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 11. Technical Concepts
1) MM Ticket – Tolerance Change in DW Tolerance Key

Solution – Go to SM30 – V_169G or OMR6 Maintain values here Absolute Upper Limit

2) Bank Keys Creation for new house banks FI01

3) Dunning Clerk/Accounting Clerk T Code OB05 and Table is T0015

4) House Bank Creation

5) SAP Data Export Issue – User has Outdated excel version in his system

6) Cost Elements Group Updating – KAH2

7) Vendors list with Tax, Purchase Organization details report.

8) User requested to delete F110 Proposal Run details. Check REGUH REGUP REGUS Tables
and delete.

9) User forgot to reverse two accrual journals. After two months he posted SA documents
for accrual reversal with opposite sign. And he is looking for initially booked accrual to be
reversed.

10) User want reverse the PO based invoice but when reversing it PO is blocked stage.

Solution – User is unable to unblock it so MM consultant unblocked and release it. Then
Invoice got reversed by user

Solution – Open the closed period to reverse the 2 accruals. And also reverse the SA
Documents as well.

3. Account Key not maintained in Pricing Procedure:

Impact: This may create accounting document, but if condition type, which are to be posted
to account, but do not have account key maintained in pricing procedure, it will not be post
the relevant condition type to G/L account.

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 1. Validations and Substitutions

What is validation?

Validation will validate the conditions that are set in the validation rule and if such
conditions are satisfied then it will allow the transaction to post or else it will display an error
message. If validation conditions are not satisfied then you cannot enter the transaction.

Suppose in validation rule, we have set a condition that a particular GL Account should
be entered with a particular cost center. In this case such GL account will be allowed only with
that cost center entered in validation. If we enter any other cost center then sap will return an
error message.

 Create Validation GGB0

 Activate Validation OB28
 Create Set for group values GS01
 Validation Transport GCT9

Under Validation we have to maintain Step. Step consist of Prerequisite, Check and Message

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What is Call up Point in Validation?

We can know validation level by using call up point like Header level/Document level/
Line Item level.

In Asset Accounting Validation is possible at 1) Master data level and 2) Posting level.

In Cost Accounting Validation is possible at 1) Line item level 2) Internal CO Posting 3)

Document header level

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 Substitution
Substitution will also work like validation but in substitution sap will not display an error
message. It will replace the value that you have set in substitution rule. Suppose we have set a
substitution rule that a particular GL Account should pick up a particular business area. In that
case whenever the user enters the GL account, in the back end sap will picked up the business
area that is set in the substitution rule. End user will not be aware of this functionality. When
we visit the document display screen we can see the item that has been substituted by
substitution rule.

 Create Substitution GGB1

 Activate Substitution OBBH
 Generate Program RGUGBR00 in SE38
 Transport Substitution GCT0

Debugging Substitution - Go to substitution put it in display mode, put cursor on Step – Extras
– Expert Trace – Set Break point. Try to post transaction to debug.

Adding New Fields in Substitutions

SM30 – Table/View VWTYGB01 –Click on Maintain and find for the Field – Un-tick under
Exclude.

To View Technical Fields in Table SE11- Give Field – Enter

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 2. Legacy System Migration Work Bench

LSMW is a tool that supports the transfer of data from non-sap system ("Legacy
System") to SAP R/3 systems. The data can be transferred to SAP system by using batch input
recording, direct input, Intermediate Document (IDOCs) and BAPIs (Business Application
Programming Interface). This can be a one-time transfer as well as a periodic one. It’s not
suggested for regular upload. LSMW supports flat file only.

First 6 steps are design part for data in next 8 steps we pump the data in SAP.

Multiple users cannot access the LSMW Project at a same time. If one user has
completed his job with LSMW Project the next user again need to start it from specify file
onwards so its bit lengthy process.

To create multiple batches in LSMW use “Convert Data” step here give From range and
To range, system will create batch for that range only.

We can set fields in “Constant” (Co Cd, Co Area) mode in Field Mapping & Conversion Rules
but we have to remove the constant field in upload file and Source fields

Export LSMW Go to LSMW – Extras – Export LSMW – Select Recording Click on Export button.
You can save the file where ever you want, same way to Import.

1. Maintain Object Attributes Object Overview – Copy Technical Fields

2. Maintain Source Structures
3. Maintain Source Fields
4. Maintain Structure Relationships
5. Maintain Field Mapping and Conversion Rule Extras-Auto Field Maping-No Confirmatin
6. Maintain Fixed Values, Translations and User-written Routines.
7. Specify Files Upload file – Tabulator – Field Name at start of file
8. Assign Files
9. Read Data
10. Display Read Data
11. Convert Data
12. Display Convert Data
13. Create Batch Input Session
14. Run Batch Input Session

To Close Batch Input Session T code is /BEND

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 System will do the automatic mapping only when we use same technical field names like
KOKRS+KOKRS. If any changes in field name, we have to do mapping manually.

In LSMW BAPI is fastest way for input method. It’s useful when we have tones of data.

Based on Situation we have to choose input methods. Normally Recording and IDOC input
methods are bit slowly compare to BAPI.

BAPI in LSMW: - BAPI is a function module, bunch of code written by SAP, We don’t have
manually go and do the steps. But rather give the input, sap run the code and create the new
data.

We don’t need to write single line of code in LSMW.

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 3. Transport Request Process

Workbench Request:- Workbench requests are cross-client. It essentially means that the
changes done in one client are automatically reflected in all other clients.

Customizing Request:- Customizing requests are client specific. The changes will not be
reflected in other clients.

SANDBOX :- Before moving configuration to the Quality System, we have to test our
configuration in Sandbox. If working as per the expectations, will move that TR to Quality
System.

Functional Client :- All functional consultants will work in the client. like FI, MM,SD,PP,WM
etc.

 Only Sandbox can have master data and transaction data in Development server.
 In new implementation there won't be any transaction data in Sandbox. In case of
already SAP implemented company Production Data is copied to Sandbox.

Transport Request In Development Server

ABAP Client To Sandbox No need to move TR

Functional Client To Sandbox Need to copy TR in Sandbox client SCC1 T code

TR Process Development to Quality Server

Send the TR in SE09 or SE10 T code

Important the TR in STMS_IMPORT T code in Quality and Production client

Changes in JOB Variant of fiscal year SA38 Year end activity

List of Spool Requests SP01

To check Authorization for any t code use SU53

Delete Blocked sessions SM12

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 4. IDOC Intermediate Document

 IDOC Manual Processing BD87

 To display an IDOC WE02 EDI or WE05 ALE
 Partner Profile WE20
 Create a file port WE21
 Searching Data in IDOC Segments WE09
 Upload files CG3Z
 Download files CG3Y
 IDOC Data IHC0
 IDOC Documentation WE60
 View Achieved IDOCs SARI
 SALE - IMG ALE Configuration root
 WE20 - Manually maintain partner profiles
 BD64 - Maintain customer distribution model
 BD71 - Distribute customer distribution model
 SM59 - Create RFC Destinations
 BDM5 - Consistency check (Transaction scenarios)
 BD82 - Generate Partner Profiles
 BD61 - Activate Change Pointers - Globally
 BD50 - Activate Change Pointer for Msg Type
 BD52 - Activate change pointer per change.doc object
 BD59 - Allocation object type -> IDOC type
 BD56 - Maintain IDOC Segment Filters
 BD53 - Reduction of Message Types
 BD21 - Select Change Pointer
 BD87 - Status Monitor for ALE Messages
 BDM5 - Consistency check (Transaction scenarios)
 BD62 - Define rules
 BD79 - Maintain rules
 BD55 - Defining settings for IDoc conversion
 WEDI - ALE IDoc Administration
 WE21 - Ports in Idoc processing
 WE60 - IDoc documentation
 SARA - IDoc archiving (Object type IDOC)
 WE47 - IDoc status maintenance
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  WE07 - IDoc statistics

 BALE - ALE Distribution Administration

 WE05 - IDoc overview
 BD87 - Inbound IDoc reprocessing
 BD88 - Outbound IDoc reprocessing
 BDM2 - IDoc Trace
 BDM7 - IDoc Audit Analysis
 BD21 - Create IDocs from change pointers
 SM58 - Schedule RFC Failures

Basic configuration for Distributed data:

 BD64: Maintain a Distributed Model

 BD82: Generate Partner Profile
 BD64: Distribute the distribution Model

Programs:

 RBDMIDOC – Creating IDoc Type from Change Pointers

 RSEOUT00 – Process all selected IDocs (EDI)
 RBDAPP01 - Inbound Processing of IDocs Ready for Transfer
 RSARFCEX - Execute Calls Not Yet Executed
 RBDMOIND - Status Conversion with Successful tRFC Execution
 RBDMANIN - Start error handling for non-posted IDocs
 RBDSTATE - Send Audit Confirmations
 For testing you can use WE19

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 4. IDOC Intermediate Document Vehicle for Data Transfer

IDOC is a data container used to exchange information between any two systems SAP to
SAP or Non-SAP to SAP. The transfer from SAP to non-SAP system is done via EDI (Electronic
Data Interchange) subsystems whereas for transfer between two SAP systems, ALE is used.
When we execute an outbound ALE or EDI Process, an IDOC is created

IDOC Types – 1) Out Bound Idoc 2) Inbound Idoc. Every IDOC has 3 Records

1. Control Records EDIDC

2. Data Records EDID2 To EDID4 and EDIDD
3. Status Records EDIDS, TEDS1

Direction '1' indicates outbound, '2' indicates inbound.

 Inbound IDOC – Information received from logical system to sap

 Outbound IDOC – Information sent from sap to logical system or partners.
 Partners can be Banks, customers, vendors, trading partners, logical system, and users.

How Many Records an IDOC will have?

Control Record – It contains information such as IDoc number, direction, IDoc Status, Basic
Type, Message Type, Partner (Sender/Receiver), date and time of creation/update,
Interchange File or ISA number, etc.

Data Record - It contains the details of the IDoc segments. IDoc segment contains fields. Fields
contain the data necessary for document posting. Invoice document/Billing document,
Purchase order /sales orders, Credit Memo/Debit Memo.

Status Record - IDoc statuses are used to track the IDoc. Status Numbers represents IDoc
status. From its creation to till information sent to application. Statuses 1-42 for outbound, 50-
75 for inbound

 Basic type gives Structure of IDOC

 Message type gives Meaning of IDOC

Basic Type or IDOC Type or Document Type – WE30 IDoc Types are based on the EDI
standards and mostly on EDIFACT standards. It defines structure of IDOC and controls what
kind of data to be stored and inter changed between partners. It gives the structure of an
IDOC

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Message Type - The basic type is assigned to the message type, It will tell you what type of
message exchanged. It gives meaning of the IDOC.

IDOC SEGMENTS

IDoc segments contain the actual data that is sent to or received from a partner.

Port - It is a connection between the two systems. There are different types of ports. The 2
most commonly used are the TRFC ports used in ALE and File ports used in EDI. For TRFC ports
we have to give the name of the logical destination created using SM59. Port cannot work
without destination.

When using file port you can specify the directory where the IDOC file should be placed.
The other system or the middleware will pick up the file from here.

What is difference between IDOC and DME?

1. IDOC is an intermediate doc which is work for data flow from non-sap to sap or sap to
sap. Whereas DME for data Exchange from other system (Oracle) to SAP.

2. IDOCs are more standardized and used globally. Idoc file formats are internationally
accepted. While DME files are more specific to country and bank.s

What is EDI? Electronic Data Interchange

EDI means electronic exchange of business document between the computer systems of
business partners, using a standard format over a communication network”. Two widely used
standards are ANSI ASC X12 and EDIFACT.

In ANSI X12 business document will be transactions and each transaction is represented by
three digit number e.g. 850 – Purchase Order, 855 – Purchase Order Acknowledgement.
EDIFACT describes business document as messages, represented by standard names e.g.
ORDERS for purchase order.

ALE is a proprietary SAP technology. ALE normally used to distribute the master data (Ex:
Material Master, Vendor Master) with in a company when you are maintain the distributed
environment. EDI used for transaction data PO SO, Delivery note.

There are three layers in the ALE system 1) Application Services 2) Distribution Services
3) Communication Services

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The Outbound Process

1. Create segments(WE31)
2. Create an idoc type(WE30)
3. Create a message type (WE81)
4. Associate a message type to idoc type(WE82)
5. Create a port(WE21)
1. If you are going to use the message control method to trigger idocs then create the
function module for creating the idoc and associate the function module to an
outbound process code
2. Otherwise, create the function module or stand-alone program which will create the
idoc
6. Create a partner profile(WE20) with the necessary information in the outbound
parameters for the partner you want to exchange the idoc with.Trigger the idoc.

The Inbound Process

7. Creation of basic Idoc type (Transaction WE30)

8. Creating message type (Transaction WE81)
9. Associating the Message type to basic Idoc type (Transaction WE82)
10. Create the function module for processing the idoc
11. Define the function module characteristics (BD51)
12. Allocate the inbound function module to the message type(WE57)
13. Defining process code (Transaction WE42)
14. Creation of partner profile (Transaction WE20)

SAP has provided an easier way to implement electronic payment processing by using IDOC
interface. All the banks allows EDI payments through IDOC’S

SAP has capability to generate IDOC and covert those EDI message types or send the
IDOC directly to the banks, in the banks readable format.

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 We have to use ALE or EDI technology to transfer the IDOC data from SAP to receiver
application or from the sender to SAP systems.

IDOC is transmitted to receiver though EDI Sub system the EDI sub systems must be
connected to both sender and receiver systems.

IDOC EXTENSION

Basic type contains all the standard fields that are necessary for carrying out a business
transaction. However, if any additional values are to be sent to the partner then we can make
use of the IDoc Extension feature. IDoc extension is extension of basic type and contains
additional custom IDoc segments and fields that are not available in standard basic type.

PROCESSING VIA BACKGROUND JOB

IDoc processing by background is the most preferred way of processing the IDocs.
Following Programs are used from processing the IDocs using background job:

 RBDAPP01 – Inbound IDocs

 RSEOUT00 – Outbound IDocs

REPROCESSING IDOCS

On the basis of IDoc statuses different programs can be used for reprocessing of failed IDocs.
These are given below:

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TCODE WE02/WE05: GENERAL SEARCH

IDocs can be displayed in system via TCODE WE02 and WE05. If IDoc number is not
known then search can be made on the basis of IDoc Date, Direction, BASIC TYPE, MESSAGE
TYPE, and PARTNER NUMBER. Partner number can be found in the Output Messages of the
documents. IDoc search can also be made on the basis of ISA or Transfer files Reference.

SEARCHING DATA IN IDOC SEGMENTS WE09

if you want to search a particular Purchase Order number e.g. 100000001 in multiple
IDocs which lies in Segment E1EDK01 of an IDoc under field BELNR. Then the search can be
executed in the following manner.

ARCHIVING/DELETION OF IDOCS FROM DATABASE

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IDOC VALIDATIONS, COMMON IDOC ERRORS AND SOLUTION

The following list gives the Basic Type and Message Type combination for common idocs

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 IDOC

Maintain EDI Details in APP House bank

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Create Partner Profile

Maintain Outbound Parameters

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Create a file port T code WE21

 WE02 List Of All Idocs Created. (Default, Additional, EDI)

 WE05 List Of Idocs Created. (Standard, Additional)
 WE06 Active Monitoring For Idoc Processing.
 WE07 Idoc Statistics.
 WE08 Display View “File Status”:Overview-Path Name.
 WE09 Idoc Search For Business Contents (Database).
 WE10 Idoc Search For Business Contents (Archive).
 WE12 Modification Of Outbound File, Triggering Inbound Processing.
 WE14 Process All Selected Idocs.
 WE15 Selection Program For Issuing Output.
 WE16 Trigger Inbound Processing.
 WE17 Trigger Status Processing.
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 WE18 Generate Test Status File For Outbound Idocs.
 WE19 Test Tool For Idoc Processing
 WE20 Partner Profile.
 WE21 Ports In Idoc Processing.
 WE23 Display Test Catalog Test Idoc Interface.
 WE24 Maintain Table View. Direction-1.(Outbound)
 WE27 Maintain Table View. Direction-2.(Inbound)
 WE30 Develop Idoc Type.
 WE31 Develop Idoc Segments.
 WE32 View Development.
 WE33 Maintain Table Views.
 WE34 Change View “Table Of Style Ids With The Objects To Be Loaded”
 WE40 Display System Process Code.
 WE41 Display View: Logical Msg Overview. For Outbund.
 WE42 Display View: Logical Msg Overview. For Inbound.
 WE43 Display Status Records.
 WE44 Display Partner Types
 WE45 Maintenance Interface: Forwarding Inbound/EDILOGADR For Application
 WE46 Global Parameter For Idoc Interface.
 WE47 Status Maintenance.
 WE50 Display Text For Process Code System.
 WE54 Idoc Function Module For File Name
 WE56 Display Status Process Code
 WE57 Idoc Assignment Of FM To Log. Message And Idoc Type.
 WE58 Text For Process Code Status.
 WE60 Documentation For Idoc Type.
 WE61 Documentation For Idoc Record Type.

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 WE62 Documentation For Idoc Segment Type.
 WE63 Documentation For Idoc Record Types And Idoc Types (Parser).
 WE64 Process Code In Idoc Inbound And Outbound.
 WE70 Conversion Table For Basic Types.
 WE71 Conversion Table For Extensions.
 WE72 Conversion Table For Field DOCTYP.
 WE73 Conversion Table For Logical Message Type.
 WE81 EDI:Logical Message Type.
 WE82 Message Types And Assignment To Idoc Types.
 WE84 Assignment Table Between Idoc And Application Field.
 BD10 Send Material (Matmas)
 BD11 Get Material.
 BD12 Send Customer.
 BD13 Get Customers
 BD14 Send Vendor.
 BD15 Get Vendor.
 BD16 Send Cost Center. (Cosmas)
 BD17 Request Cost Center.
 BD18 Send G/L Accounts.
 BD19 Get Master Data G/L Accounts.
 BD20 Inbound Processing Of Idocs Ready For Transfer.
 BD21 Creating Idoc Types For Change Pointers.
 BD22 Delete Change Pointers.
 BD23 Serialization Using Time Stamp: Deletion Of Old Time Stamp.
 BD24 Send Cost Elements.
 BD25 Send Activity Type (COAMAS)
 BD26 Request Activity Type

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 BD27 Cost Center/Activity Types: Transmit Plan Quantities And Acty Prices.
 BD28 Cost Center/ Cost Elements: Send Control Records.
 BD30 Material Bom Distribution. (Bommat).
 BD31 Document Structure Distribution. (Bomdoc)
 BD32 Plant Allocation To Material Boms Distribution.
 BD33 Distribution Of Material Variants. (STTMAT)
 BD34 Distribution Of Boms (BOMORD)
 BD35 ALE: Send Business Process Group.
 BD36 ALE: Send Business Process.
 BD37 ALE: Send Business Process Price.
 BD40 Generate Idocs For Serialization Group From Change Pointers.
 BD41 Dispatch Of Idocs Of Serialization Group.
 BD42 Check Dispatch Status Of Idocs Of Serialization Group.
 BD43 Processing Inbound Idocs Of Serialization Group.
 BD44 Change View “Serialization Group”.
 BD47 Dependence Between Methods.
 BD48 Dependence Between Methods And Message Type.
 BD50 Activate Change Pointers For Message Type.
 BD51 Characteristics Of Inbound Function Module.
 BD52 Determine Work Area.
 BD53 Reduce Message Type.
 BD54 Change View: Logical Systems
 BD55 Idoc Conversion.
 BD56 Maintain Idoc Segment Filters.
 BD57 Link Type And Serialization Type Of Message Type.
 BD58 Convert Organizational Unit.
 BD59 Allocation Of Object Type.

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 BD60 Additional Data For Message Type.
 BD61 Activate Change Pointers Generally.
 BD62 Display Conversion Rule.
 BD63 Transport Of Ale Tables For A Message Type.
 BD64 Display Distribution Model.
 BD65 Maintain Idoc Type Required Fields.
 BD66 Change Idoc Fields.
 BD67 Function Module For ALE/EDI Overview.
 BD68 Maintain List.
 BD69 Assignment Of Idoc Type To Message Type.
 BD70 Cross-System Comparison Of Number Range Objects.
 BD71 Attributes For Receiver Determination.
 BD72 Active Events For ALE/EDI
 BD73 Start Error Handling For Non-Posted Idocs.
 BD75 Status Conversion With Trfc Execution.
 BD77 Generate Transport Requests For Distributing ALE Customizing Data.
 BD78 Monitoring Ale Customizing Data Transport
 BD79 ALE IDOC Segments – Conversion Rule
 BD81 Filter Objects For BAPI Parameter Filtering
 BD82 Generating Partner Profile
 BD83 Re-Processing Incorrect Outbound Odocs.
 BD84 Re-Processing Of Idocs After ALE Input Error.
 BD85 Consistency Check: Reassignment Between Two System.
 BD86 ALE Consistency Check: Create Purchase Order From Sales Order.
 BD87 Select Idocs
 BD89 Customizing Data Modeling For Distribution Model.
 BD91 Distribute All Characteristics Via ALE.

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  BD92 Distribute Class Via ALE: Send Direct.
 BD93 Distribution Of Classification Data Via ALE.
 BD95 Ale Object View
 BD96 Filter Object For Receiver Determination Of Methods.
 BD97 Assign RFC Destination For Synchronous Method Calls.
 BD98 Consistency Check With Workflow Link
 BD99 Dependencies Between Message Types.
 BD100 Display Serialized Idocs. (Serialization Using Object Types)
 BD101 Serialization Using Object Types: Consistency Check.
 BD102 Ale: Outbound Channel Registry.

IDOC ALE Logical System configuration

1. Define Logical System SALE

2. Assign Logical System to Co Cd
3. Maintain Global Co Cd
4. Maintain Distribution Model View SM59
5. Maintain FRC Connection in BD64
6. Create Ports in WE21
7. Create Partner Profiles in WE20
 DEBMAS BD12
 CREMAS BD14 Message Types
 GLMAST BD18
 MATMAS BD10

SAP Programs

1. Switch On Line Item Display SE38 RFSEPA01

2. Activate Open Item Management FAGL_SWITCH_TO_OPEN_ITEM SM37
3. Hold Document Program RFTMPBLU
4. Bank Statements Deletion RFEBKA96
5. Bank Statement to “Posted” Status RFEBKA90
6. Depreciation Job Name RAPOST2000
7. Fields Matching RM07CUFA
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8. Asset Year End Closing RAJABS00
9. Asset Fiscal Year Change RAJAWE00
10. Customer and Vendor Balances are Carry Forward SAPF010
11. Posting Period Automation RFOB5200
12. Generate Substitution RGUGBR00
13. Maintain Fields for Substitutions VWTYGB01 SM30
14. Inbound Processing of IDOC ready for Transfer RBDAPP01
15. Process All Selected IDOCs (EDI) RSEOUT00
16. Creating IDOC Type from Change Pointer RBDMIDOC
17. Execute Calls Not Yet Executed RSARFCEX
18. IDOC Archiving RSEXARCA
19. Status Conversion with Successful tRFC Execution RBDMOIND
20. Start error handling for non-posted IDocs RBDMANIN
21. Send Audit Confirmations RBDSTATE
22. F110 Proposal RFF110S
23. F110 Payment RFZALI20
24. FI Document List of Updated Terminations RFVBER00
25. Gaps in Document Number Assignment RFBNUM00
26. Copy General Ledger master data RFBISA10
27. Accrual/Deferral Program SAPMF05A

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 SERVICENOW

NEW  ASSIGNED  IN PROGRESS  ON HOLD  RESOLVED  CLOSED  CANCELED

When we received the Incident it will be in “Assigned Status” and we need to take it
and change into Inprogress and click on Update.

Path:- All Applications – Self Service - My Incidents

1) Go to Incident Assigned to Me and Open the Incidents

2) Before getting into incidents first we need to check whether it is related to my team
or not.
3) If it is me I will click on In progress and I will give comments in “Work note”. WIP or In
Process and Update the incident.

Work Note:- It’s visible to my team not visible to users.

Additional Comments:- It is visible to users

On Hold:- If any inputs need to come from users put it in “On-Hold” and give comments in
“Additional Comments” Awaiting for user information or Awaiting for User confirmation. And
click on update.

When you click “On Hold” it will ask the reason to put it On Hold. On Hold Reason should be
“Awaiting Caller” SAL Clock will be stopped if you use On Hold

 Awaiting change – SLA clock will not be stopped

 Awaiting Vendor – SLA clock will not be stopped

If user replied in ServiceNow then it will automatically goes to In Progress. If user replied to
mail it won’t go to In-Progress.

DOWN TABLES

1) Notes
2) Related Records
3) Resolution Information
4) Integration.

RELATED LINKS

1) Child Incidents

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 2) Incidents by Same Caller
3) Incident Tasks
4) Affected Cls
5) Copied Incidents
6) Outages
7) Tasks SLA

RESOLVE:- Click on Resolve when it In Progress stage or Un Hold. Resolved incidents will be
moved to “Closed” status after 10 days.

 Give Additional comments

 Work Notes
 Resolution Code – Solved Permanently
 Resolution Notes – Resolution Information
 CMO ID – User will track with this ID it will be in Integration Tab.
 CMO is customer Tool and MSP is our Tool
 Incidents will be created by users when they are getting Issues from existing process.
 Service requests will be created when new configuration is required.
 Closed Incidents we cannot reopen
 Resolved Incidents we can reopen
 Never change On Hold to In Progress. Always On Hold to Resolve.

3 Reminders Process

We do send 3 reminders for 3 days. If user not replied to 3 mails, we can close ticket.

Important Fields are Incident

Category & Sub Category – Both are related to Module (FI,SD, MM)

Based on “Configuration Item” only SLA will define.

Priority - It will be defined based on Urgency and all.

We can change Priority if it’s not urgent. We need information from the user before
change the priority we need to give comments.

Resolution Codes

 Solved(Work Around) – Very rare case we will use

 Business Impact – It is necessary for Priority 2 tickets
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  P1 – Critical Immediate
 P2 – Urgency 2-3 days
 P3 – Medium 4 days
 P4 – Low 5Days

Create a Service Request

Categories – Advanced IT Service – Application Services – application Services ERP –

Accounting.

 Here also number will be different to user.

 Breach Date and Due date are same.
 We can see Due Date in Service Task

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 12. Implementation Project
ASAP Methodology - Accelerated SAP Methodology

It is designed by SAP for SAP project implementation in the most efficient manner to
reduce time & cost. By using this methodology we can optimize the time, resource, quality and
more. It is a road map for implementation project. It consists of 5 phases.

1. Project Preparation
2. Business Blue Print
3. Realization
4. Finale Preparation
5. Go Live & Support
6. Operate

1.Project Preparation In this phase we will work on

1. Project Implementation strategy
2. Resources Planning & Allocation
3. Project Vision, Objective, Scope
4. Training Methodology
5. Testing Strategy
6. Procedure of signing off project.

There will be Kick off meeting to decide geographical scope (no of co cd, plant, segments) and
module scope (MM SD FI CO PP HR BASIS ABAP)

In Project Preparation phase we will discuss on server details, system land scape, no of clients,
server space & size.

2.Business Blue Print It describes details of current business process and future business
process. It is a key document of implementation project. According to business blue print
document we have to prepare configuration document. It consist of 4 documents. 1. As Is
Document 2) To Be Document 3) GAP Analysis Document 4) Finale Blue Print Document.

AS IS Document :- It Describes current business process like how the client posting journal
entries in legacy system, invoices process, payment process, reconciliations, managing the
assets.

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TO BE Document:- It is a process of mapping client business process to SAP system. To be
document contains the existing business process and SAP business process details side by side.

3.Relization :- Based on Business blue print document we have to do configuration and

testing in realization phase.

Unit Testing - After compilation of configuration we have to test it whether it is working fine
or not. This testing will perform in Development server Sand Box. Its also called Module
testing.

Integration Testing – It’s a Cross module testing like FI SD FI –MM, this testing will perform in
Quality Server.

Regression Testing

The purpose regression testing is to test and confirm that a changes that are being
introduced to the code does not in any way affect the existing functionality of the application.
like enhancements, patches or configuration changes.

(To test and confirm that the new changes to application does not affect to existing
application.)

4.Finale Preparation – In this phase we have to perform 1) Data upload 2) UAT User
Acceptance Testing 3) User Training.

Data upload is also known as cutover activity. It’s a process of financial data transfer from
legacy system to SAP. In Cutover we will upload master data and transaction data.

 Master data uploaded through LSMW Batch Input Recording. GL, Vendor, Cust, Asset
 Transaction Data uploaded through BDC Recording. SHDB GL, Vendor, Customer, Asset

User Acceptance Testing - User will test the configuration whether it is working fine or not
from their end (3rd party).

User Training – We have to provide training and user manuals to users

5.Go Live & Support - In this phase we have to move the configuration (TRs) from Quality
server to Production server to start posting in production system.

What is cutover Process or what are the cutover activities

Yearend Cutover Balance sheet and Midyear cutover Trial Balance
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In which system we upload the legacy data?

For testing purpose initially we have to upload legacy data into quality system. If we get zero
errors then we can upload the total data into production. Errors while upload data, Profit
center and cost center error, data format wrong, no credit debit or credit amounts.

In Implementation I have worked for Base line (FI Module only)

Final Line is like all modules FI-MM-SD

Which documents submitted to client after implementation?

All the configuration document and also user manuals regarding all activities which they need
to perform.

ChaRM Change Request Management

It allows you to track change requests, transport requests in change management

system in the entire business solution.

Month End Activities

1. Open and close posting periods OB52

2. Bank Reconciliation FF_5
3. Depreciation Run AFAB
4. Foreign Currency Revaluation FAGL_FC_VAL
5. GR/IR Clearing F.13
6. Recurring Entries Posting through F.14
7. Accrual/Deferal Document Reversal F.81

Year End Activities

1. Open and close Periods in OB52

2. Maintain Number Range OBH2
3. GL Balances carry forward FAGLGVTR
4. Vendor/Customer Balances Carry Forward F.07
5. Asset Year End closing AJAB RAJABS00
6. Asset Fiscal Year Change AJRW RAJAWE00
7. Fiscal Year Change in Job Variant SA38

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 End User Activities
What is Master Data?

Master data is a core data that is used for any transaction. GL master data
customer/vendor master data, material master data, asset master data.

What are the tabs and fields in GL master creations?

 ED2 – 100 Development Client

 ED2 – 200 Sandbox
 ET2 – 100 Quality
 EP2 – 100 Production

Company Code USD 7000 TO 7999

 Assets 100000 to 199999

 Liabilities 2
 Sales/Revnue 3
 COGS 4
 Operating Expenses 5
 Depreciation and Amortization 6 to 9
 Interest and Taxes 8

Recurring Entries: - Recurring entries are business transactions that are repeated regularly for
a specific time period such as rent entries or insurance payments entries etc. The values will be
same and gl coding and line items details will be same for every month for that we can setup a
recurring entry in SAP. FBD1 FBD2 FBD3 F.14 F.56

Important Fields in Recurring Document

5. First Run
6. Last Run
7. Interval in months
8. Run Date remaining will be same as normal document Header data and line item data
Co cd Header Text, Doc type, currency, amount GLs PC and CC Line Text.

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 Recurring entries process
We maintain Excel file all recurring entries with complete details and back up files like
mail & invoice. My control check is posted recurring entries should match with my excel
tracker. After F.14 I will download the data from ZFIPDR t code SAP and check with tracker.

Delete Recurring Entries - Recurring entries will get deleted automatically from the system
after completion of recurring period. If we want delete manually we have to set deletion
indicator in FBD2 and go to F.56 give recurring doc number co cd and fiscal year Reference doc
type as “D” and delete.

F.14 Run Recurring Entries Monthly Activity

 Co Cd 7000 to7999
 Fiscal Year 2016 to 2021
 Settlement Period Current month start date and end date
 User name
 Select Hold Process Session
 Test run After Production Run batch input session will be created go to SM35

AP Team 1st Entry Expenses a/c Dr Vendor a/c Cr

Reversing Entry to Prepaid GL Prepaid exp a/c Dr Expenses a/c Cr
Monthly Recurring Entry Expenses a/c Dr Prepaid Expenses a/c Cr

FV60 & FV70 Parking the vendor and customer invoices

We receive the invoice confirmation from treasury team. After that we have to park
invoices to margin control account 199995.

For vendor invoices the payment method is Z to avoid double payment.

Margin ac dr and vendor ac cr customer ac dr and margin ac cr

These are margin accounts invoices. Company will receive security deposits. So these security
deposits will do invest in bonds and investments.

Point of contact Creel Jason

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Accounting for security deposit is margin call deposit accounting process. Margin deposits are
involved in contracts such as oil and gas industry. These deposits will be invested in
investments or bonds for short term by the company.

F.81 Mass Reversal of Accrual Entries

Accrual accounting is an accounting method where revenue or expenses are recorded when a
transaction occurs rather than when payment is received or made. The method follows the
matching principle, which says that revenues and expenses should be recognized in the same
period. Late Invoices will make you to book accrual entry in sap.

 Company code
 Fiscal year
 Reversal Posting Period Current month start and end date
 Test Run
 Do Not Process or Process

Sometimes few entries will not get reversed due to cost center and WBS are blocked. We
have to request the master data team to unblock the cost center. Once they unblocked we
have to re run F.81.

Cost Allocation Reports S_ALR_87013611

 Controlling Area 1000
 Fiscal Year
 From Period
 To Preiod
 Plan Version “0”
 Cost Center Group 4202 Clock work
 Cost Element Group

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 F.13 GR IR Clearing
System will clear the GRIR account items based on same assignment field and amount.
Items having zero balance will be cleared. If not system will not clear. The purpose of this
process is to ensure that account is clear. It will also ensure that purchase orders are
maintained properly and expenses posting are recorded accurately.

 Company Code
 Fiscal year
 Select GL account
 Give GL account number
 GR/IR a/c Special process
 Clearing Date Month End Date
 Select all items under Output control

Monthly Prime Rate

Get the Prime rates prime Bloomberg site and send it to clients. These rates are used to
calculate interest in loan journals.

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 Blackline Tool for Reconciliation and Tasks

It is a tool used to track reconciliations and daily monthly yearly tasks on timely basis.
Balckline will get the GL balances with interlink, so every moth we have to update supporting
documentation for current month postings. It will send reminder mails to users to do
activities. Once you completed the task you can submit the task and certify. It is useful for
remember all activates so we can’t miss our SLA.

Month end FX Rates I will get the rates from share point uploaded by treasury team. Once
downloaded I will copy those prices into my working file which is formulated to get different
types of average prices. After that I will send it to the consultant Chandra Ramesh. He load the
rates into sap and will confirm me back. Now I will share the confirmation to clients.

Reconcilations

 Telephone expenses GL Reconciliation

 Prepaid expenses GL reconciliation and other expenses GL

Reporting GL balances to required teams

Outstanding Expenses:- The expenses which have been incurred during an accounting period
and are due to be paid, but are not paid are known as Outstanding Expenses. Outstanding
Expenses is a personal Account.
Accrual Concept:- According to the accrual concept of accounting, transactions are recorded in
the books of accounts at the time of their occurrence and not when the actual cash or a cash
equivalent is received or paid. Therefore, payments are not necessarily made immediately,
they may be late or in advance. Outstanding expenses and prepaid expenses are both a result
of this.
Prepaid Expenses:- The expenses relating to next year but paid during the current year.
Related benefits are not consumed within the accounting period.
Outstanding Income or Accrued Income or Income Receivable:
The income relating to current year which is not received during the current year but to be
received in the next year.

Income Received in Advance: - Income relating to next year but received in advance during
the current year.
This income is to be debited to Income Account, In P&L A/c Less from Income, and show as a
Current liability in Balance sheet.
If income received in advance are given only in Trial Balance show as a Liability in Balance
sheet.

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Amortization:- As per Accounting standard 26 the amortization which is applicable for
intangible fixed assets. If decreasing value of intangible asset over the period of time are
known as Amortization.

 The value of amortization which is calculated by using straight line method.

 Amortization = Cost of the Intangible Asset / Life of the intangible asset.

Impairment:- As per AS 28 If suddenly decreasing any value of asset or investment due to

accident, technological changes and market conditions are known as Impairment.

 If net realized value of the asset is less than carrying value of the asset are known as
Impairment
 Impairment = Book value of Machinery – Net realized value.

Matching Concept:- The concept is based on accounting period concept which requires that
they should be a periodic matching of cost incurred and revenues earned during the
accounting period. The purpose is to ascertain profit periodically.
Accrual Concept:- As per this accounting principles the cash and credit transactions which are
relating to present period must be consider in the Books of accounts. Examples outstanding
expenses, outstanding incomes.

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 IDOC Questions & Answers
What is the T code for RFC Destination Creation/Changing/Display?

Ans SM59

What are the different techniques through which IDOC can be triggered form sender
system?

1. Using the normal report/FM Function Module – Call Function – Master IDOC Distribute
2. Using the message controls
3. Using the change Pointer

Trouble shooting is going to be dependent on based on the problem and the way IDOC is
generated.

Whether IDOC itself is generated or not?

How to check WE02/WE05

What is Change Pointer ?

Ans:- CHANGE_POINTER_READ

What is the program to trigger the OUTBOUND IDOC for change pointer?

Ans:- RBDBMIDOC

What is the table for Change Pointer?

BDCP2 Earlier version, data used to be stored in BDCP and BDCPS table

What is the table for change log?

CDHDR and CDPOS

Which table stored the data of Change Log for a table ? T Code SCU3

DBTABLOG (We have to enable change log in Table - SE11 - Table - Technical Settings - Select
Change Log)

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How to Debug an IDOC?

Identify the Inbound Function Module and put the Break Point. Go to WE19 or BD87 in BD87
IDOC should be in (56) red status then only you can debug. If you use WE19 It will create New
IDOC number.

How to Identify the Inbound Function Module?

T code WE57 Give Message Then you can able to see the corresponding FM. First we have to
know the message type & Basic Type in WE02

Another Way WE20 – Inbound section – Message Type – Double click on Message Type –
Process Code Double Click - FM

Once you identify the function module, put the break point and then go to WE19/BD87 and
REPROCESS the IDOC, It will hit the debugger.

What is the difference between WE19 and BD87 ?

BD87 - you will be able to reprocess the IDOC only when IDOC status is in error, red(51) or in
yellow/warning(64/68)

WE19 - It can be executed in any status of the IDOC.

BD87 - It will not generate a new IDOC. We can use it in Production System.

WE19 - It will generate IDOC every time. You are not supposed to use this in Production
System

What is the T code to check the stuck IDOC which was sent from sender system but not
received to the Receiver system?

Ans:- SM58

Whenever you have created outbound IDOC, is it necessary to write the COMMIT WORK
after MASTER_IDOC_DISTRIBUTE Call?

Ans YES

Outbound IDOC

Put the Dynamic Break-Point (Master_IDOC_DISTRIBUTE)

SE37 - Put the External Update

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How to change the status of an IDOC so that you can debug through BD87?

Ans RC1*IDOC*SET*STATUS*

What are the two ways of processing the OUTBOUND IDOCs with respect to Time?

1. Immediate Mode
2. Collect IDOCs

What is the program need to be scheduled for outbound IDOC to be processed automatically
when collect option is selected?

Ans RSEOUT00

What are the two Ways of Processing the inbound IDOC at RECEIVER SYSTEM?

 Trigger by background program

 Trigger Immediately

If you have selected trigger by background program then which program need to be
executed in Batch ?

Ans RBDAPP01 (64,66)

If your IDOC is stuck at RFC layer(SM58), then which PROGRAM need to be executed for
clearing the IDOC ?

Ans RSARFCEX

What is the Program name which will trigger the CHANGE POINTER IDOC?

RBDBMIDOC - Change pointer related IDOC to pass from sender to receiver.

What is Master IDOC and What is Communication IDOC?

Ans:- The Main IDOC which is generated in SENDER SYSTEM is known as Master IDOC.
Whereas one Master IDOC can be distributed into multiple connected system. So those
distributed IDOCs will be known as communication IDOCs

What is the Change Pointer?

Change Pointer is a technique through which you are capturing the log of changes of the
objects in the table BDCP2, and actual changes are there present in the table : CDHDR, CDPOS

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What are the steps for need to follow in order to configure the change pointer?

Ans Let us consider a message type MATMAS

1. Activate the Change pointer globally using the T-code BD61

2. Activate the Change pointer at message type level using the T code BD50
3. Activate the Change pointer at field level of message types using the BD52
4. Configure Partner Profile
5. If you want to enable filtration, you will have to create the Distribution model using
BD64

What are the different types of filtering in IDOC?

There are two types of filtering -

1. Segment Filtering BD56 (The segment maintained here will be removed from IDOC)
2. IDOC Filtering based on Field value BD64 (The Field you maintain here will be going to
receiver system)

What is IDOC Extension?

Ans:- IDOC Extension is the mechanism to enhance the existing IDOC(Standard IDOC) so that
we can pass the extra information from one system to another system.

What are the different steps involved in IDOC Extension?

Outbound Process

1. Create an append structure with the fields which you want to add
DEBMAS (Customer Master) => KNA1
MATMAS(Material Master) => MARA
Note: Write some code in order to update this table.
2. Create a Custom Segment - WE31
3. Create IDOC Extension - WE30 and Add Segment
4. Just Release this.
5. Partner Profile level (Outbound Parameter -WE20) Basic Type Extension
6. Identify a place (Customer Exit, User Exit, BADI) Outbound Program.

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INBOUND Process

1. Create an append structure with the fields which you want to add
DEBMAS (Customer Master) => KNA1
MATMAS (Material Master) => MARA
Note: Write some code in order to update this table.
2. Create a Custom Segment - WE31
3. Create IDOC Extension - WE30 and Add Segment
4. Just Release this.
5. Create a Inbound FM. If already inbound FM is there, handle the segment.
6. Maintain the relationship for Message type, extension and FM in t-code WE57

What is Reduced Message Type?

Ans:- It is created with reference to Message type, In this we removed or disable the extra
fields which is not required. Whatever the fields are required we use SELECTE command and
make that fields that part of reduced message type.

Can you create the reduced message type for ZMessage?

Ans Not Possible

Can you Create the Reduced Message type for all the Messages?

Ans No

For what kind of message type you can create the reduced message type?

In Table TBDME, the flag for field reduced message type should be enabled.

What is the Tcode for reduced message type?

Ans BD53

What are the frequently used message type which is reduced frequently?

Ans MATMAS
DEBMAS
CREMAS
INFREC
LOIPLO

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What is the difference between Reduction and Extension of IDOC?

Reduction: 1. Removing Extra Fields

2. T.code BD53
3. Here we use the reference as Message Type

Extension: 1. Adding Extra Fields

2. Tcode WE30
3. Here we use reference as Basic Type/IDOC Type.

Once you create the reduced message type then what other steps need to be followed?

Ans:- Partner Profile (WE20)

Creating a Model using BD64, add the message type and generated the Model.

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