1. A.

Organizational Elements/Basic Settings : Company Code:

A Company Code represents an independent legal accounting entity in SAP. Balance Sheets and Profit/Loss statements required by law will be created at the Company Code level. In other words, the organizational unit for which a complete self-contained set of accounts can be drawn up for external reporting purpose. The process of external reporting involves recording all relevant transactions and generating all supporting documents required for financial statements. The Company Codes of PESD is PESD PESD will use Indian Rupee (INR) as the Company Code Currency.
B. Business Area: C. Chart of Accounts:

A Chart of Accounts is a classification consisting of a group of General Ledger (G/L) accounts under a Client. It provides a framework for the recording of values, in order to ensure an orderly rendering of accounting data. The chart of accounts contains the definitions of all G/L accounts in an ordered form. The definitions consist mainly of the account number, account name, and the type of G/L account, that is, whether the account is a P&L type account or a balance sheet type account. A Chart of Accounts can be used by one or more Company Codes. Chart of Accounts HPEP will be used by the PESD as defined in the template. (PESD team decided to use HPEP chart of accounts for company code PESD)
D. Variant Principle:

That means once a variant is defined in SAP the same variant can be assigned to various or several business objects. The variant principle is a three step method used in SAP system to assign particular properties to one or more objects. For example, if we define a Fiscal variant V3, we can assign the same variant to several company codes. We need not recreate the fiscal year variant K4 for each company. In SAP variant principle is used for 1. Field Status 2. Posting periods 3. Fiscal years

E. Fiscal Year Variant:

Usually a range period for which a company regularly creates financial statements is defined as a Fiscal year. A Fiscal year may be defined for 12 months or less than 12 months also. The fiscal year is defined as a variant which is assigned to the company code. The fiscal year variant contains the definition of posting periods and special periods. Special periods are used for postings which are not assigned to time periods, but to the process of yearend closing. A fiscal year will consist of maximum of 16 posting periods including the special periods.

PESD has the fiscal year from April-March with 1 fiscal year variants. V3 : 12 normal and 4 special posting periods V3 will be used for the leading ledger i.e. for the statutory compliance as well as for the corporate MIR purpose.
2. General Ledger (FI-GL) A. G/L Master Records :

The G/L account master control the posting of accounting transactions to G/L accounts and the processing of the posting data. There are two segments in the General Ledger Master record: Chart of Accounts Segment Company Code segment Chart of Accounts Segment In this segment, specifications that apply to the entire G/L account master record are captured. These include: The G/L account number and G/L account name Whether the account is a balance sheet account or an income statement account Data that controls the creation of a master record in a company code, such as the account group Company Code segment The information, which is specific to a particular Company, is maintained in the Company code segment of the General Ledger Master record. This data controls how one enters and processes business transaction data in the appropriate account as well as how the account is managed within a company code. The following are some of the specifications which will be made for each G/L account:
B. Account Groups :

Since a chart of accounts contains many different types of accounts, they can be bundled into different Account groups. Account group is a logical grouping of accounts, which have got similar properties and the same tasks within the General Ledger The Account code of an account depends upon the number range that is assigned to that Account group. The account group has to be entered in the chart of accounts-segment and controls the appearance of the company code segment of a G/L account.

C. Reconciliation Accounts: It is subsidiary ledger account.

The reconciliation accounts are maintained in the master record of customers/vendors, so that all postings made to subsidiary ledger are also posted to the G/L. when the items are posted to subsidiary ledger the sap system automatically posts the same data to the G/L a/c's via. Reconciliation a/c in the G/L.

D. Document Control Overview:

SAP purely designed on Document principle 1. Every document identified uniquely by following fields: Document Number Company Code Fiscal Year 2. Doc Header & Doc Line item (2 999) 3. Two important control keys: Document type for header posting key for line item 4. A business transaction can create one or more documents (one is in MM and another is in FI) 5. Some business transaction creates the document but no effect for accounting (PO) Documents that are connected to each other are linked in the system

E. Automatic Account Assignments: Automatic account assignment determines the correct GL accounts that need to post from the transaction types used and with other relevant factors. you no need to enter general ledger accounts manually every time for all these types of transactions in SAP. Posting done with Customizing of automatic account assignment is called automatic postings. FBKP Tax account: OB40 Cross company code: OBYA FI-MM : OBYC FI-SD:VKOA

F. TAX Procedures: