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Comparative Analysis between New GL and Classic GL

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New GL and Classic GL are two ways to implement General Ledger functionality in SAP ECC5 and ECC6. New
GL provides lot of benefits over classic GL. The New GL benefits
- Provide an extension to the existing functionality in classic GL, or
- Provide new functionality compared to classic GL, or
- Provide a technologically superior way to perform a functionality in Classic GL
It is imperative to understand the differences between Classic and New GL to be able to understand which
solution addresses the business requirements better. I am providing a comparative analysis of the basic
differences between Classic and New GL.

(1) Extended Data Structure provides flexibility

SAP has consolidated the multiple totals table (GLT0, GLPCT, etc) in classic GL into a single FAGLFLEXT Totals
table with New GL. One Summary Table provides flexibility and faster response time for reporting. FAGLFLEXT
can also be enhanced by adding customer defined fields.

(2) Segment Reporting to ensure Statutory Requirements

IAS accounting standards define the statutory requirements for segment reporting. New GL has document
splitting functionality that enables segment reporting. Standard Segment Reporting functionality is not available in
Classic GL.

(3) Real Time Integration between FI and CO

Classic GL has the period-close reconciliation ledger functionality to synchronize FI and CO for cost transfers
across functional area, business area and company code originating in CO. New GL has a real-time integration
between FI and CO that happens with each transaction originating in CO instead of a summary posting done by
reconciliation ledger during period-close.

(4) Parallel Accounting

New GL provides Non-leading ledgers for parallel accounting like IFRS and GAAP. Parallel accounting can also
be implemented using Account based approach which is also available in classic GL.

(5) Reduce TCO by Faster Period Close Activities

Faster Period Close is possible with New GL as,

(a) Reconciliation Ledger is not required
(b) Balance sheet Adjustments are not required
(c) Profit and Loss Adjustment are not required
(d) Activities related to Special Purpose Ledger are not required
(e) Depreciation posting is online instead of a batch session

(6) Flexible Drill-down Reporting in New GL

New GL has advanced drill-down capabilities by segment and other characteristics.

 2.Document Splitting in New General Ledger
In SAP ERP the document splitting is the most powerful tool is widely and most commonly
used. With this function the document splits the line items based on the “Characteristics”
we define in system. Often this function is used to get the financial statements correctly
for segment reporting.

Back to the Basics –

Concept can be explained of document splitting with the help of one of the most basic
business transaction as “Vendor Invoice”. Suppose we have vendor invoice as below which
consists of two expense line items say 10,000 in total with 1,000 of tax component which
sums to 11,000.

1. Expense Item 1 for 8,000 where it is assigned to PC – X

2. Expense Item 2 for 2,000 where it is assigned to PC – Y
Account Amount Profit Centre
Vendor A/C -11,000

Expenses 1 8,000 PC – X
Expenses 2 2,000 PC – Y
Input Tax 1,000

If any person is responsible for PC – X wish to analyze the transactions performed for PC –
X, but unfortunately the user can’t – because of, if you look at the transaction the “Vendor
Balance” and “Input Tax” is cumulative and hence is not assigned to any of the profit center
either X or Y.

Now if you look at the transaction above it represents that the total expense is distributed
in the ratio of 80% and 20% and same of Profit Centre of X and Y. So base to this the Vendor
Balance and Input Tax should also have split according to 80%-20% rule.
As per the above image the system should have posted the document as per below financial
transaction entry in system –

Okay so the conclusion for whole exercise is, if the user can post the document as above, the
reporting will be pretty particuar and balanced and there won’t be a problem – issue is re-
solved.

Its easily said that issue will be solved but why any user will separate the line item as per
calculations and split its bases always on its ratio, especially when there are 100’s of line
items sometimes in any document ! And what if system takes care of this?

Well the answer is Yes, and that’s what the document splitting is all about!
Now we will understand the Document Splitting elements and key concepts –

 Passive Splitting – This type of splitting is mostly occurs when the payment
transaction is posted for a vendor invoice. Now system splits the payment document
bases on how the vendor invoice was split in place already.
 Active Splitting – In Active Splitting the document is split according to mySAP ERP
predefined rules. SAP almost supports all the business process transactions but if it
doesn’t suit to any requirement the own splitting rules can be created.
 Zero Balancing Splitting – When the amounts within financial documents are not able
to balance out to Debit of Profit Centre and Credit of Profit Centre which does not
Net Off as its own, SAP then automatically generates new line item to balance the
document. We will see the example in following section of this scenario.

 Item Category – Item category categorizes the general ledger accounts for document
splitting. In the configuration each GL account is assigned to item category. Just to
name a few like 01000 – Balance Sheet Account, 02000 – Customer, 03000 – Vendor
and so on.
 Business Transaction – Business transaction is real scenario of business processes
happens in organization such as vendor invoice, customer invoice etc.
 Business Transaction Variant – In the SAP, financial postings are derives the item
category for individual line item. Business transaction variant always works in
conjunction with business transaction where business transaction restricts the
business processes to be posted to. System validates a check all postings against
the item category to validate if these postings are allowed by splitting rule if not
then understand this failed.
 Document Splitting Method – Document splitting method works in combination with
business transaction and business transaction variant it determines the document
splitting rule.
 Document Splitting Rule: Document splitting rule determines which item categories
will be split and from which item categories it will derive the account assignment.

Let us see the actual example from system of Document

Splitting for vendor invoice –
If we are posting an invoice from FB60 with two different expenses line item as below with two
different cost centers assigned now system has derived the profit center from its cost centers
mentioned in line item.

Simulate this document to see pre-posting view with line item and associated assignments.
Now press F3 or Back button and come to main screen. Now go to Menu Bar Document –>
Simulate with General Ledger to see the ledger view of this document.

Once clicked on simulate with general ledger, document can be seen as below as “Document
Split” functionality.
Document Splitting – Zero Balancing

As discussed above when system is not able to balance out the transaction entry based on
its own it balances out by “zero balancing” account. System adds the zero balance account
at its own to make balance zero for transaction. We will see the example for this now –

We will post the transaction via FB50.

Now simulate this with General Ledger View as below

If you look at above and notice simulated “General Ledger View” system has automatically
generated the “Zero Balance Clearing A/C.”

Now let us look at the configuration of document splitting –

1. Classify GL Accounts for Document Splitting –
 SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger
Accounting (New) –> Business Transaction –> Document Splitting –> Classify G/L
Accounts for Document Splitting

Here in this step GL’s are classified according to item categories according to business
transaction nature. It is recommended that instead of assigned item category to each
individual general ledger account try maintaining the item categories for “Range of General
Ledger Accounts”.

2. Classify Document Types for Document Splitting –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger
Accounting (New) –> Business Transaction –> Document Splitting –> Classify Document
Type for Document Splitting

In this step the “Business Transaction” and “Business Transaction Variant” is assigned to
document types. Now almost every financial transaction in considered for document splitting.
3. Define Zero Balance Clearing Account –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger
Accounting (New) –> Business Transaction –> Document Splitting –> Define Zero
Balance Clearing Account

In this step we have to define the zero balance clearing account which will be used to
generate and balance out financial entry when it is not possible to balance out at its own, as
we have seen this example earlier.
4. Define Document Splitting Characteristics for General Ledger Accounting –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger
Accounting (New) –> Business Transaction –> Document Splitting –>Define Document
Splitting Characteristics for General Ledger Accounting

This is one of the most important configurations step in document splitting. In this step we
have to define the splitting characteristics. Additionally you can define whether this should
be Zero Balance and

Mandatory.
5. Edit Constants for Non Assigned Processes –

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
(New) –> Business Transaction –> Document Splitting –>Edit Constants for Non Assigned
Processes

In this step the constants are defined which helps to assigned the default account
assignment when is not able to derive from any of the sources.
6. Activate Document Splitting

SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
(New) –> Business Transaction –> Document Splitting –>Activate Document Splitting

Finally the step to activate document splitting with additional settings like “Inheritance” and
Activation of Document Splitting.

Select check box “Document Splitting” and apply appropriate method. SAP Standard pre-
delivered method is “0000000012”.

Selecting the Inheritance signifies the line items which do not have account assignment will
derive the account assignment from other line item.

Selecting Standard A/C Assgnmnt means system will set the standard account assignment
for non-assigned line items. When this indicator is selected “Constant” needs to be
maintained.
Activate of Document Splitting happens at client level but it is always possible to control of
activation and deactivation at company code level.
 3.SAP Foreign Currency Valuation Process

It is common practice for organizations to conduct transactions in currencies different

from their local/company code currency. This is what is referred to as Foreign
Currency Transaction.
Where open items denominated in foreign currency exist at a key date (meaning
weekly, monthly or yearly closing date), then they have to be evaluated to determine
the exchange gain/loss (exchange rate movement) arising therefrom. A foreign
currency valuation (Forex valuation) is nothing but restating the value of your foreign
currency balances (assets and liabilities) by comparing the exchange rates at the
time of the creation of the open item (Original Document generation) to the rate
existing at the key date.

In this week’s posts we will be discussing the topic of SAP Foreign Currency
valuation, by going through the following:

1) Scope of Foreign Currency Valuation

Generally, currency valuations covers the following
a) Customer open items, Vendor open items and General Ledger Open Line items,
Managed in foreign currency.
b) Other General Ledger Balance Sheet Accounts Managed in Foreign Currency, but
not flagged as open item management accounts.

2) Valuation Methods
The valuation method basically contains the relevant parameters in the valuation
process. In this step we make all the specifications necessary for the SAP valuation
program to run.
You set up Valuation methods by going through the menu path below:
IMG — Financial Accounting (New) — General Ledger Accounting (New) —
Periodic Processing – Valuate — Define Valuation Methods
You can create your own valuation method by clicking on New Entries, or copy and
existing one by clicking on copy, or use a system provided one.
Click on New Entries
a) Valuation Method: Enter a key that will represent your valuation method. This is
a maximum of four character alpha-numeric key.

b) Lowest value principle: flagging this indicator means that the items are valued
according to the lowest value principle. Meaning that the valuation result is only
taking in to account, if the valuation difference between the local currency amount (of
the foreign currency transaction) at the original document creation and the newly
revalued amount is negative, that is valuation run resulted in a loss. With this
procedure, the valuation is calculated per item total, and items with same invoice
reference are viewed together.

c) Strict lowest value principle: flagging this indicator means the valuation is only
displayed if, the new valuation result has a greater “devaluation and/or a greater
revaluation” than the previous valuation. Just like the above, the valuation is
calculated per item total, and items with the same invoice reference are viewed
together.

d) Always evaluate: Flagging this indicator means all foreign currency balances and
foreign currency open item are valuated and the revaluation result is booked
irrespective of what the result is (loss or gain).

e) Revaluate Only: If this indicator is selected, it means that the system only takes
the valuation run into consideration if it results in a gain. That is “Revalue Only – Do
Not Devalue”. This is the opposite of the “Lowest value principle”.

f) Group Vendors: Here Vendor accounts are categorized into groups, and during
the valuation process the group is then viewed as a whole and the same conditions
apply to them.

g) Group Customers: Here Customer accounts are categorized into groups, and
during the valuation process the group is then viewed as a whole and the same
conditions apply to them.

h) G/L Valuation Group: Here General Ledger accounts are categorized into
groups, and during the valuation process the group is then viewed as a whole and
the same conditions apply to them.

i) Balance Valuation: If this indicator is selected, open items are balanced per
account or group and currency. The balance is then valuated and the valuation
difference is posted as an expense or revenue. If you do not select this indicator, the
open items are summarized and valuated per reference number. If there is no
reference number, each line item is valuated individually.

j) Post per line item: If this indicator is selected, revaluation is done at line item
level. Meaning that a line item is generated for each valuated item in the valuation
posting as well as in the adjustment account. If not selected, the valuation results are
posted in a summarized form

k) Document Type: Enter the document type that the revaluation postings will use.

l) Exchange Rate Type: Select your exchange rate type for the revaluation process.
Normally the standard exchange rate type “M” (Standard translation at average rate)
is used, although you can use any custom exchange rate type you defined.

3) Valuation Areas
By defining your valuation areas, you can report different valuation approaches and
post to different accounts. In this IMG activity, you define your valuation areas for
your closing operations. The valuation method we defined above will be assigned to
our valuation area we will define in this step.

Follow the menu path below to define your valuation area (s).
IMG — Financial Accounting (New) — General Ledger Accounting (New) —
Periodic Processing – Valuate — Define Valuation Areas
Click on new entries or copy and existing valuation area.

Specify a key to represent your valuation area, assign your valuation method to it
and select a suitable currency type (we select the company code currency).

4) Assignment of Accounting Principle to Ledger Group

In this IMG activity, we assign our adopted accounting principle to our ledger group.

Follow the menu path below to Assign Accounting Principle to Ledger Group.
IMG — Financial Accounting (New) — General Ledger Accounting (New) —
Periodic Processing – Valuate — Check Assignment of Accounting Principle to
Ledger Group
Click on New Entries.

Enter your adopted accounting principle (in our example GAAP) and select a target
ledger (in our example leading ledger-0L).
Save your entries.

5) Assign Accounting Principle to your Valuation Areas

In this IMG activity, you assign your adopted accounting principles to your valuation
areas.

Follow the menu path below to assign your adopted accounting principles to your
valuation areas.
IMG — Financial Accounting (New) — General Ledger Accounting (New) —
Periodic Processing – Valuate — Assign Valuation Areas and Accounting
Principles

Click on new entries.

Select your defined valuation area and your adopted accounting principle, and save
your entries.

6) Activate Delta Logic

The valuation process can take two forms:
a) The so called “Gross Method”, by which the program compares the exchange
rate existing on the date of the original document creation to the exchange rate
prevailing on the Key Date, and any difference booked as exchange difference. With
this approach valuation results are reset on the first day of the following period (Key
Date+1)
b) The Delta Logic: with this approach valuation results are not reversed on key
date +1. The delta logic ensures that the system does not execute any reversal
postings for the valuation postings in the following period. The next valuation run
takes the difference between the last valuation date and the current key date.

If it is required for you to use the Delta valuation Logic, activate it through the
following the menu path below:
IMG — Financial Accounting (New) — General Ledger Accounting (New) —
Periodic Processing – Valuate — Activate Delta Logic

Select you valuation area (in our case Z1)

To activate the delta logic for the valuation area, set the indicator for the delta logic.

7) Prepare Automatic Postings for Foreign Currency Valuation

In this activity, we define how, and to which accounts, the valuation results are
posted. The system reads the settings done here to determine how to automatically
Post Exchange rate differences when valuating open items and foreign currency
balances.
In the same configuration step we can also define the accounts for realized
exchange rate differences during open item clearing.

You can also define here the Exchange Rate Key to which you assign the gain and
loss accounts for posting any exchange rate differences that occur during valuation.
The exchange rate keys you define here are entered in the master records of the G/L
Accounts that you want to valuate.

Follow the menu path below to configure automatic postings for Foreign Currency
Valuation.

IMG — Financial Accounting (New) — General Ledger Accounting (New) —

Periodic Processing – Valuate — Foreign Currency Valuation — Prepare
Automatic Postings for Foreign Currency Valuation

a) Double click on “Exchange rate difference using exchange rate key” to define
the exchange rate key and assign the gain and loss G/L accounts to it, for the
posting any exchange rate differences.
Click on Create, and make the relevant entries.
Save your entries.

The next step is to assign to the relevant G/Ls (in the G/L Master data) an Exchange
Rate Key created above. That assignment means that any exchange rate difference
from transactions on this G/L will be posted to these accounts as configured above.
Use transaction FS00 to do this assignment.
b) Double click on “Exchange Rate Dif.: Open Items/GL Acct” to maintain settings
for automatic Post of Exchange rate differences when valuating open items and
foreign currency balances, or use transaction OB09.

Click on new entries.

Maintain your entries and save.

Exchange rate difference realized: This is an exchange rate difference which

results at the point of clearing an open item (example through incoming or outgoing
payments). Maintain here the P&L account that the realized differences are to be
posted. Note that this can be a single account, or a different account for gain and
another for loss. The offsetting postings are done on the relevant G/L account.

Valuate: You maintain here the accounts to be posted to incase of unrealized

exchange differences arising from the valuation process. When you valuate open
items in foreign currency, the exchange rate difference determined is posted as an
unrealized exchange rate difference.

Note: the Field Balance Sheet Adjustment Account contains the G/L Account that
is posted to instead of the account itself that is being evaluated. This is necessary to
maintain the original value of this account, because valuation differences are
unrealized differences. The offsetting postings go to the relevant P&L Accounts.

c) Double click on “Payment difference for Altern. Currency” to maintain settings

for automatic Posting of Payment differences.

Maintain your settings and save.

8) Foreign Currency Valuation Run

We can now run the currency valuation transaction after the configuration settings
above.
Go through the menu path below:
Accounting – Financial Accounting — General Ledger — Periodic Processing
— Closing – Valuate — Foreign Currency Valuation (New).
Or use transaction FAGL_FC_VAL
9) Resetting Foreign Currency Valuation Run
If for whatever reason you want to undo/reset the valuation postings you have made,
you can do so. What you just need to do is to run the valuation program again
entering the same selection parameters as the valuation run, but this time flagging
the field reset, as below. What this does is to recreate the status before the valuation
run, that is, all valuations posted are set to zero by an inverse posting.

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4. Open item Management activation process
Activation of Open item management:-

I would like to share one document, where you can learn how to activate the open item
management with using of existing SAP tools. SAP given tool activates OI for GL accounts since
ECC 600 onwards, if balances existed ,but suggestible to use from ECC 603 onwards as per
SAP note 1770786.

What is open item management:-

In technical point of view it is just check box of control data tab in GL master data (FS00).Check
screen shot as marked.

In Functional point of view, it would be control all outstanding’s ,which will be receive from
customer’s and pay to vendor’s / Employees / Govt.authoirities etc. in each and every line item of
respective GL account reports. It should be give clear report, which line item / invoice has to be
paid to vendor and received from customers. One red / Green symbol as below mentioned will be
appear in standard report like FBL3N, FBL5N, and FBL1N & FAGLL03 report ,if you marked as
open item management check box in GL master. Red symbol states those line items are still open
and yet to clear & green symbol line items states those line items are cleared.

Accounts to be managed as Open item management:-

1. Bank clearing GL accounts: – All bank sub ledgers like Bank incoming payments &
outgoing payment GL account must be select as open item management & it will be help
us for bank reconscilation purpose.

2. Payable GL accounts :- Like salary payable ,commission payable ,wages payable Freight
payable & other tax related GL accounts like VAT payable must be select as open item
management & it will be guide to FI department line item was tracking whether
outstanding line items are paid to vendor’s / employees and VAT authorities or not.

3. GRIR Clearing accounts: – You easily recognize your contingency liability status of GRIR
accounts, if you activated OI management.

Process to activate the OI Management:-

Case 1:- Activate open item management for GL account with existing all line items:-

Transaction code: – FAGL_ACTIVATE_OP

You can able to activate OI for all existing line items with using of above transaction. Let us assume
there is one GL account as mentioned screen shot, which was not maintained as OI and posted
several line items & now you want to activate open item management for all existing line items.

FAGLL03 report view (Before activation of Open item management)

Let us assume now business would like to activate all above line items as open with using of above
program. Go to that transaction code & do as follows.
Enter company code & GL account number, which is to be activating as OI & switch on date should
be before the line items was posted with respect to above GL.In above case study my first
document posted on 01.04.2013 ,that means switch on date should be earlier than
01.04.2013. Document type & account for transfer posting is not required, if you enter switch on
date earlier than my first document posting date & enter profit center and segment, which are
mandatory & execute.

Mentioned log would shown

Display must not be red mode, it should be green or yellow mode. Comeback from above screen
& unselect test run & execute.
Check above log ,which was given information about how many line item has been activated as
open items & any transfer document posted or not. Now go to FAGLL03 & check whether line item
activated as open item management and also check GL master activated for OI check box or not.

Check mentioned applicable SAP notes, which can give more details.
1356457 – Function of FAGL_ACTIVATE_OP

1349772 – FAGL_ACTIVATE_OP: Standard open item management

1770786 – FAQ – Open Item Management – FAGL_ACTIVATE_OP

Posting Automatically:-

Basically Posting Automatically will be selected for GL accounts where manual postings will not
happen. Means take a example of Cash Discount, Foreign Exchange Difference accounts these
accounts will be posted automatically.
eg: When u run F110 for doing vendor payments and cash discount is received from vendors
then cash discount account will be automatically posted with the discount amount.
If you will select Post Automatically check box in FS00, it means that this account can only be
posted by the system using account determination and the system will not allow posting the
entries manually for this GL.

Accounts for which you do not do Manual Postings, you will select post automatically only.
For example Interest accounts , Forex profit and loss accounts, cash discounts taken and given
accounts, Tax accounts like sale tax,purchase tax,TDS,Service Charges,EDU CESS accounts
etc.
As postings to these accounts will be done done automatically only.

5.What is difference between reconciliation account and alternative

reconciliation account and explain with scenario
Alternative reconciliation account is also a reconciliation account which connect vendor/customer
accounts with general ledger.
The main difference is alternative reconciliation we do not assign in any vendor/customer master
records where as it will be assigned alongwith vendor/customer reconciliation account to
differenciate special general ledger transactions like advances, security deposits etc.

6.APP Configuration steps (Next payment run date use of free selection tab)

Automatic Payment Program Run F110: SAP Tutorial

Introduction
The Payment Process includes the Following Steps

1. Invoices are Entered

2. Pending Invoices are analyzed for due date
3. Invoices due for payment are prepared for review
4. Payments are approved or modified
5. Invoices are paid

A consistently high volume of invoices have to be processed. Accounts

Payable Invoices have to be paid on time to receive possible discounts.
TheAccounting department wishes to perform this processing of invoices
automatically. The Automatic Payment Program is a tool that will help users
manage payables. SAP gives users the options to automatically:

1. Select Open(Pending) Invoices to be paid or collected

2. Payment Documents to be posted
3. Print Payment Media or generate EDI

The Automatic Payment Program has been developed for both national
and international payment transactions with vendors and customers , and
handles both outgoing and incoming payments. Configuration We can
configure the Payment Program by selecting the Payment Program (Tcode
- F110 ) Application menu Environment -> Maintain Config

The Settings for Automatic Payment program are divided into following
Categories :

1. All Company Codes

2. Paying Company Codes
3. Payment Methods / Country
4. Payment Methods / Company Codes
5. Bank Selection
6. House Banks
All Company Codes : In this section we perform the following settings

1. Inter Company Payment Relationship

2. The Company codes that process payments
3. Cash Discounts
4. Tolerance days for Payments
5. The Customer and Vendor Transactions to be Processed
Paying Company codes : In this section we perform the following settings

1. Minimum Amounts for Incoming and Outgoing Payments

2. Bill of Exchange Parameters
3. Forms for Payment Advice and EDI
Payment Method / Country : In this section we perform the following
settings

1. Methods of Payments - Cheques , bank transfers etc

2. Settings for individual Payment Methods -
1. Master record requirements
2. Document Types for Posting
3. Permitted currencies
 4. Print Programs

Payment Method / Company Code: In this section we perform the

following settings

1. Minimum and maximum payment amounts

2. Whether payments abroad and foreign currencies are allowed
3. Grouping Options
4. Bank Optimization
5. Forms for payment media
Bank Selection :

1. Ranking Order
2. Amounts
3. Accounts
4. Charges
5. Value Dates
Ranking Order
Bank Accounts

Available Amounts
Value Dates

Expenses / Charges
Execution : After Configuration of the Payment Process we will enter
parameters to execute the program. Enter the Transaction code F110 in
the SAP Command Field

Every Payment Program run is identified by two fields

1. Run date
2. Identification

In the Parameters Tab , We have to define the following

1. What is to be paid - Docs. Entered Up to

2. What payment methods will be used - Payment Methods
3. When will the payments be made - Posting Date
4. Which company codes will be considered - Company Codes
 5. How are they going to be paid - Payment Method Sequence decides
the Priority of the Payment Method

Save the Parameters Entered

After the Parameters are Entered we execute the Program by pressing the
proposal button in Application Toolbar
In the next dialog box , Check the "Start Immediately" and press Continue

A payment proposal is generated based on the parameters.

We can view the Proposal Log for possible errors by Pressing the
Proposal Log Button
We can edit the proposal to block the some payments if we want, Press the
Edit Proposal Button
 In the next screen , the Proposal List of Vendors is generated who are to
receive the Payments

After edit the Proposal , and then run the payment run to release the
payments. We can schedule the payment run by coming back to main
screen pressing the Payment Run button
 In the next Dialog box , Check "Start Immediately" to start the payment
run instantly and Press continue

We can check the status of the Payment run on the Status Tab
7.Special GL transactions along with Scenario (in FBL3N Normal items, Special
GL items, Cleared Items )

 Reconciliation is not but Sundry Creditors or Sundry Debtors a/c. What you do is assign
the recon a/c in the vendor or Customer master. So whenever you post to that vendor or
customer, the balance will get updated in the recon a/c in the background.
If you want to have a separate track of advances, say for the vendor, then you maintain a
spl. G/L indicator and assign this recon a/c to one more recon a/c, so that whenever you
use the spl g/l indicator & post to that customer or vendor, then the posting will go to the
recon a/c which is assigned to the Spl g/l indicator.
*Can someone explain what is the relationship between Reconciliation Account & Special
G/L Indicator?
And what kind of Special G/L Account(Account Group) should we link to the reconciliation
acct in Cust and Vendor, and why?*
Hello
 - A reconciliation account is a GL which cannot be posted manually under normal
circumstances. This is assigned to the master records in customer & vendor. This recon
account is diplayed in the balance sheet as one item representing customers or vendors
balances.
- A special GL indicator is a feature which is used to assist in recording advance reciepts
or payments from customer or a vendor. A recon account is assigned to the indicator in
its properties.
So when an advance is made, we need to choose the indicator, so that two entries are
posted, one to customer and one to the recon account.
This recon account may be seperate from the normal recon account.
Reg
reconciliation account is the subsidiary account and Spl gl is alternative a/c.
when coming to vendor suppose vendor is a service provider
then the recon a/c is creditor for contractor and in normal scenario the same vendor
might have given the advances also.
so that all should be created as spl gl indicator a/c's.
bye

In SAP vendor and customer account is like a subledger where u maintain individual
transactions and give main ledger account for balance sheet which gives u a
consolidated picture.
For the purpose of advance and other transaction for which u want to maintain separate
record and u also want consolidate picture u can route that transaction thru special gl.
Special gl transaction is recorded in separate gl account which u define in tcodes like
obxy,obxz etc.
While taking view thru fbl3n and fbl5n u can see report with or without special gl
transaction by selecting or deselcting tick box.
Assign points if useful.
Thanks for so many friendly Answers, i wanted to give everyone 10 points but system not
didnt allowe me to do. 😀

8.W.H.T configuration steps and what is difference between tax type and tax
code

Step by Step document for Withholding Tax configuration

17 Likes 76, 276 Views 5 Comments

Withholding Tax is also called as retention tax. Its requirement of Government to

deduct or withhold a particular percentage from paying to the vendor and pay such
amount to the Government on behalf of other person. It’s a kind of Indirect Tax.

[A] CONFIGURATIONS:

All the configurations for the Withholding Tax is done in the following Tab only:
Define Business Places: Business Place is to be created for each Tax Deduction Account
Number (TAN) that company has.
Define Section Codes: In India for each Business Place a Section Code is created and
mapping is done on one to one basis. In Section code information about Local Tax
office as well as District Tax office can be made.

The flow for the configuration is such that firstly the Withholding Tax Key (e.g. 194C)
is to be created then under that Withholding Tax type is created one at the time of
invoice and other at the time of payment and then based on the different rates
prevailing in the Income tax Act, different Tax Codes are to be created (e.g. for
194C, 2 different rates are there in the Act, one is 1% TDS on the contract basis and
second is 2% TDS on the sub-contract basis)
 E.G. 194C à Invoice / Payment Posting àC1/C2 based on different rates.

Define Withholding Tax Keys: Withholding Tax key is used to identify different
withholding tax types. A name is to be given with the official key.

Withholding Tax can be deducted at two point of time; it can be either at the time of
invoice or at the time of payment. So for this Withholding tax types are to be created
one for invoice and second for payment.

Define Withholding tax Type for Invoice Posting: Here the withholding tax type is
assigned for the invoice purpose and the same will not get triggered at the time of
Payment Posting.
Define Withholding Tax Type for Payment Posting: Here the withholding tax type is
assigned for the payment purpose and the same will not get triggered at the time of
Invoice Posting. The withholding information is to be provided while posting for such
document for Withholding Tax payment.
 For each Withholding Tax Type, according to the different rates available in the
Income tax rates, the different Withholding Tax Codes are to be created based on
the Withholding Tax Type.

Define Withholding Tax Code: In withholding tax code, different rates are maintained and
on what basis the TDS should be deducted is maintained.
 Here above configuration is done and on the above basis the TDS amount will be
deducted from the invoice or payment.

Defining Document Type for Challan:

Here we maintain the Document type for posting Challan.

Define Number Ranges for the Challans create: Here this is important on the basis that
the client requires that he want details about the combination of Section Code and
the Withholding Tax Key basis, so then different number range can be assigned and
so he will be able to know the TDS Challans that are generated for each area.
Maintain Number Groups: Here a Number Group is assigned to the combination of
Company Code, Section Code and Withholding Tax Key. From below we can see
that Number Group ‘01’ is assigned to the combination of AP01 and all the Tax
Types.

Assign Number Ranges to Number Groups: In this step of configuration, the number
Group created above is assigned to an Internal Number Range for the challans.
Maintain Number Ranges: Here we maintain the number ranges for Challans. The
number groups are assigned to number range and these number ranges are
maintained for fiscal years which are consumed while challan posting.

Here we Edit Groups by clicking on Groups button for defining number ranges
specific to Number groups.
 For example, if we want to maintain the number range for number group 01, then we
have to select the number group 01 and then insert the number range for the same.

Here we can add or delete the number ranges for particular fiscal years.

TDS JV Configuration:
For passing the TDS JV for the rectification amount, we need to define the
Document Type and the GL account for JV Losses. Following are the configuration
nodes for the same.

The Document types are configured here in the following Node.

The JV Losses GL accounts are configured in the following Node.

Above is the full configuration document for the purpose of implementing Withholding
Tax in the system.

9.FI-MM integration along with accounting Entries and FI-SD Integration

along with accounting entries (ask each and every field in VKOA)

FIMM integration is done through transaction code OBYC. General ledger

accounts are set as per the different parameters of valuation area,

movement type and transaction type that is created with respect to the

movement type.

Accounting entries are posted to Financial Module due to FIMM integration

are below;
1. Accounting entry when PO is created:

—- No Accounting entries generated so nothing flows from MM module to

FI module —–

2. Accounting entry When GR is posted

When goods received the inventory is gone up as a result there is an

impact on the accounting. Following entry is generated and get posted from

Material Management module to Financial Accounting Module

Inventory Account Dr (Transaction Key BSX in OBYC) XXXX

To GRIR account (T.Key WRX in T-code OBYC) XXXX

3. Accounting entry When Invoice is posted

When material received and the invoice reached the accounting team

accounting team makes the following entry by nullifying the GR/IR Clearing

account and recording the vendor account.

GRIR account Dr. XXXX

Vendor account Cr. XXXX

4. Accounting entry when Payment made to Vendor

As vendors get paid accounting entry get posted to Financial Module

Vendor A/c Dr XXXX

To Bank Clearing A/c Cr. XXXX

Points to know to understand the accounting entry and the integration:

Movement Types, Assignment of Movement types to T-keys (T-code

OMJJ), Value string (I also need some information on this), OMWN and

OMWB transactions.

There is a close integration between FI & MM, actually document flows

from MM to FI in the following areas such as,

1. Movement Types:

Used to enable the system to find the predefined posting rules determining

how the accounts of financial accounting system are to be posted & to

update the stock fields in the material master data.(Goods Receipt, Goods

Issue, etc)

2. Valuation Class:

Assignment of material to grp of gl account, used to determine the gl

accounts that are updated as a result of goods movement.

3. Transaction/Event key
There keys are used to control the storage or filing of documents &

assignment of documents. Used to differentiate between various

transactions such as goods movement that occurs in inventory.

4. Material Type:

Each material should assign material type in material master record used to

update whether changes made in qty are updated in material master record

& change in value also updated in stock account.

EBS Configuration steps and ,what MT940 format it contains

12-Tell me at least 20 Tables & 10 or 15 technical fields names

LFB1 ( Vendor Company Code Data)

LFA1 ( Vendor General Data)
KNB1 ( Customer Company Code Data)
KNA1 (Customer General Data)
SKB1 ( GL Company Code Data)
SKA1 ( GL General Data)
FI
BSEG (Accounting Doc Line Item)
BKPF (Accounting Doc header)
BSIS(GL Open Item)
BSAS(GL Cleared Item)
BSIK(Vendor Open Item)
BSAK(Vendor Cleared Item)
BSAD(Customer Cleaerd Item)
BSID(Customer Open Item)
BKPF Accounting Document Header
BSAD Accounting: Secondary Index for Customers
BSAK Accounting: Secondary Index for Vendors (C
BSAS Accounting: Secondary Index for G/L Accoun
BSAUTHORS Table of Authors
BSBM Document Valuation Fields
BSBMT Text for Valuation Adjustment or Deductibl
BSBOOK Bookshop - Table of Books
BSBW Document Valuation Fields
BSCATALOG Bookshop Catalog of All Available Books
BSCUSTOMER Bookshop Customers
BSEC One-Time Account Data Document Segment
BSED Bill of Exchange Fields Document Segment
BSEG Accounting Document Segment
BSEGC Document: Data on Payment Card Payments
BSEG_ADD Entry View of Accounting Document for Addi
BSES Document Control Data
BSET Tax Data Document Segment
BSE_CLR Additional Data for Document Segment: Clea
BSE_CLR_ASGMT Doc. Segment Add. Data: Clearing Info with
BSIA Archive Index for FI Documents (Outdated!
BSID Accounting: Secondary Index for Customers
BSIK Accounting: Secondary Index for Vendors
BSIM Secondary Index, Documents for Material
BSIP Index for Vendor Validation of Double Docu
BSIS Accounting: Secondary Index for G/L Accoun
BSIUDES BSI Default Destination
GL:
GLFLEXA Flexible general ledger: Actual line items
GLFLEXP Flexible G/L: Plan line items
GLFLEXT Flexible G/L: Totals
GLP0 Local Logical General Ledger Plan Line It
GLP1 Local Logical General Ledger Plan Line It
GLP2 Global Special Purpose Ledger Plan Line I
GLPCA EC-PCA: Actual Line Items
GLPCC EC-PCA: Transaction Attributes
GLPCO EC-PCA: Object Table for Account Assignme
GLPCP EC-PCA: Plan Line Items
GLPCT EC-PCA: Totals Table
GLPO1 Plan Line Items for Object Table
GLPO2 Plan Line Items for Object Table Global
GLPO3 Plan Line Items for Object Table
GLPPC Profit Center Accounting: Plan line items
GLS1 Local Logical General Ledger Actual Line I
GLS2 Global logical Consolidation line items
GLS2IDX Index table for FI-LC document cluster
GLSO1 FI-SL Line Item Table with Objects for GLT
GLSO2 FI-SL Table with Objects, Structure corres
GLSO3 FI-SL LI Table with Objects for GLTO3
GLSPC Profit Center Accounting: Line Items
GLT0 G/L account master record transaction figu
GLT1 Local General Ledger Summary Table
GLT2 Consolidation totals table
GLT3 Summary Data Preparations for Consolidatio
GLTO1 FI-SL Table with Objects, Structure Corres
GLTO2 FI-SL Table with Objects, Structure Corres
GLTO3 FISL Table with Objects, Amounts and Quant
GLTPC Profit Center Accounting
Costing:
CSKA Cost Elements (Data Dependent on Chart of
CSKB Cost Elements (Data Dependent on Controlli
CSKR Resource master record
CSKS Cost Center Master Data
CSKSTPL Template Assignment for Cost Centers
CSKT Cost Center Texts
CSKU Cost Element Texts
CSKV Resource texts
CSLA Activity master
CSLT Activity type texts
Vendor master:
LFA1 Vendor Master (General Section)
LFAS Vendor master (VAT registration numbers ge
LFAT Vendor master record (tax groupings)
LFB1 Vendor Master (Company Code)
LFB5 Vendor master (dunning data)
LFBK Vendor Master (Bank Details)
LFBW Vendor master record (withholding tax type
LFC1 Vendor master (transaction figures)
LFC3 Vendor master (special G/L transaction fig
LFCPR Function code profile per step
LFCTX Pushbutton text
LFEI Vendor Master: Preference for Import and E
LFINF Delivery information Project System
LFINFX Assignment delivery information to Project
LFLR Vendor Master Record: Supply Regions
LFM1 Vendor master record purchasing organizati
LFM2 Vendor Master Record: Purchasing Data
LFMC Vendor master (short texts for condition t
LFMH Vendor hierarchy
LFZA Permitted Alternative Payee
Customer Master:
KNA1 General Data in Customer Master
KNAS Customer master (VAT registration numbers
KNAT Customer Master Record (Tax Groupings)
KNB1 Customer Master (Company Code)
KNB4 Customer Payment History
KNB5 Customer master (dunning data)
KNBK Customer Master (Bank Details)
KNBW Customer master record (withholding tax ty
KNC1 Customer master (transaction figures)
KNC3 Customer master (special G/L transaction f
KNEA Assign Bank Details and Payment Methods to
KNEX Customer Master: Legal Control - Sanctione
KNKA Customer master credit management: Central
KNKK Customer master credit management: Control
KNKKF1 Credit Management: FI Status Data
KNKKF2 Credit Management: Open Items by Days in A
KNKO Assignment of Cost Est. Number to Config.
KNMT Customer-Material Info Record Data Table
KNMTK Customer-Material Info Record Header Table
KNOB Assignment of Cost Est. Number to Config.
KNVA Customer Master Loading Points
KNVD Customer master record sales request form
KNVH Customer Hierarchies
KNVI Customer Master Tax Indicator
KNVK Customer Master Contact Partner
KNVL Customer Master Licenses
KNVP Customer Master Partner Functions
KNVS Customer Master Shipping Data
KNVT Customer Master Record Texts for Sales
KNVV Customer Master Sales Data
KNZA Permitted Alternative Payer

Fields important

Fields:

 MANDT
 OBJEK
 ATINN
 ATZHL
 MAFID
 KLART
 ADZHL
CO-KBAS – Overhead Cost Controlling

Table Name : A132

Table Purpose : Price per CostCenter
Fields:

 MANDT
 KAPPL
 KSCHL
 KOKRS
 VERSN
 RESRC
 KOSTL
 DATBI

Table Name : A136

Table Purpose : Price per Controlling Area
Fields:

 MANDT
 KAPPL
 KSCHL
 KOKRS
 VERSN
 RESRC
 DATBI

Table Name : A137

Table Purpose : Price per Country / Region
Fields:

 MANDT
 KAPPL
 KSCHL
 KOKRS
 VERSN
 RESRC
 LAND1
  REGIO
 DATBI

Table Name : COSC

Table Purpose : CO Objects: Assignment of Original Costing Sheets
Fields:

 MANDT
 OBJNR
 SCTYP
 VERSN
 GJAHR

Table Name : CSSK

Table Purpose : CostCenter / Cost Element
Fields:

 MANDT
 VERSN
 KOKRS
 GJAHR
 KOSTL
 KSTAR

Table Name : CSSL

Table Purpose : CostCenter / Activity Type
Fields:

 MANDT
 KOKRS
 KOSTL
 LSTAR
 GJAHR

Table Name : KAPS

Table Purpose : CO Period Locks
Fields:

 MANDT
 KOKRS
 GJAHR
 VERSN
 VRGNG
 PERBL

CO-KBASCORE – Overhead Cost Controlling: General Services

Table Name : CSKA

Table Purpose : Cost Elements (Data Dependent on Chart of Accounts)
Fields:

 MANDT
 KTOPL
 KSTAR

Table Name : CSKB

Table Purpose : Cost Elements (Data Dependent on Controlling Area)
Fields:

 MANDT
 KOKRS
 KSTAR
 DATBI

Table Name : CSKS

Table Purpose : CostCenter Master Data
Fields:

 MANDT
 KOKRS
 KOSTL
  DATBI

Table Name : CSLA

Table Purpose : Activity Master
Fields:

 MANDT
 KOKRS
 LSTAR
 DATBI

CO-OM (KACC) – Overhead Cost Controlling

Table Name : COBK

Table Purpose : CO Object: Document Header
Fields:

 MANDT
 KOKRS
 BELNR

Table Name : COEJ

Table Purpose : CO Object: Line Items (by Fiscal Year)
Fields:

 MANDT
 KOKRS
 BELNR
 BUZEI
 PERBL

Table Name : COEJL

Table Purpose : CO Object: Line Items for Activity Types (by Fiscal Yr)
Fields:
  MANDT
 KOKRS
 BELNR
 BUZEI
 PERBL

Table Name : COEJR

Table Purpose : CO Object: Line Items for SKF (by Fiscal Year)
Fields:

 MANDT
 KOKRS
 BELNR
 BUZEI
 PERBL

Table Name : COEJT

Table Purpose : CO Object: Line Items for Prices (by Fiscal Year)
Fields:

 MANDT
 KOKRS
 BELNR
 BUZEI
 PERBL

Table Name : COEP

Table Purpose : CO Object: Line Items (by Period)
Fields:

 MANDT
 KOKRS
 BELNR
 BUZEI

Table Name : COEPL

Table Purpose : CO Object: Line Items for Activity Types (by Period)
Fields:

 MANDT
 KOKRS
 BELNR
 BUZEI

Table Name : COEPR

Table Purpose : CO Object: Line Items for SKF (by Period)
Fields:

 MANDT
 KOKRS
 BELNR
 BUZEI

Table Name : COEPT

Table Purpose : CO Object: Line Items for Prices (by Period)
Fields:

 MANDT
 KOKRS
 BELNR
 BUZEI

Table Name : COKA

Table Purpose : CO Object: Control Data for Cost Elements
Fields:

 MANDT
 OBJNR
 GJAHR
 KSTAR
 HRKFT
Table Name : COKL
Table Purpose : CO Object: Control Data for Activity Types
Fields:

 MANDT
 LEDNR
 OBJNR
 GJAHR
 VERSN

Table Name : COKP

Table Purpose : CO Object: Control Data for Primary Planning
Fields:

 MANDT
 LEDNR
 OBJNR
 GJAHR
 WRTTP
 VERSN
 KSTAR
 HRKFT
 VRGNG
 VBUND
 PARGB
 BEKNZ
 TWAER

Table Name : COKR

Table Purpose : CO Object: Control Data for Statistical Key Figures
Fields:

 MANDT
 LEDNR
 OBJNR
 GJAHR
 WRTTP
 VERSN
 STAGR
  HRKFT
 VRGNG

Table Name : COKS

Table Purpose : CO Object: Control Data for Secondary Planning
Fields:

 MANDT
 LEDNR
 OBJNR
 GJAHR
 WRTTP
 VERSN
 KSTAR
 HRKFT
 VRGNG
 PAROB
 USPOB
 BEKNZ
 TWAER

CO-OM-CEL (KKAL) – Cost Element Accounting (Reconciliation

Ledger)
Table Name : COFI01
Table Purpose : Object Table for Reconciliation Ledger COFIT
Fields:

 MANDT
 OBJNR

Table Name : COFI02

Table Purpose : Transaction Dependent Fields for Reconciliation Ledger
Fields:

 MANDT
 OBJNR
Table Name : COFIP
Table Purpose : Single Plan Items for Reconciliation Ledger
Fields:

 RCLNT
 GL_SIRID

Table Name : COFIS

Table Purpose : Actual Line Items for Reconciliation Ledger
Fields:

 RCLNT
 GL_SIRID

CO-OM-CCA – Cost Center Accounting (Cost Accounting Planning

RK-S) – What is RK-S

Table Name : A138

Table Purpose : Price per Company Code
Fields:

 MANDT
 KAPPL
 KSCHL
 KOKRS
 VERSN
 RESRC
 BUKRS
 GSBER
 DATBI

Table Name : A139

Table Purpose : Price per ProfitCenter
Fields:
  MANDT
 KAPPL
 KSCHL
 KOKRS
 VERSN
 RESRC
 PRCTR
 DATBI

CO-OM-OPA(KABR) – Overhead Orders: Application Development R/3

Cost Accounting Settlement
Table Name : AUAA
Table Purpose : Settlement Document: Receiver Segment
Fields:

 MANDT
 BELNR
 LFDNR

Table Name : AUAB

Table Purpose : Settlement Document: Distribution Rules
Fields:

 MANDT
 BELNR
 BUREG
 LFDNR

Table Name : AUAI

Table Purpose : Settlement Rules per Depreciation Area
Fields:

 MANDT
 BELNR
 LFDNR
 AFABE
Table Name : AUAK
Table Purpose : Document Header for Settlement
Fields:

 MANDT
 BELNR

Table Name : AUAO

Table Purpose : Document Segment: CO Objects to be Settled
Fields:

 MANDT
 BELNR
 LFDNR

Table Name : AUAV

Table Purpose : Document Segment: Transactions
Fields:

 MANDT
 BELNR
 LFDNR

Table Name : COBRA

Table Purpose : Settlement Rule for Order Settlement
Fields:

 MANDT
 OBJNR

Table Name : COBRB

Table Purpose : Distribution Rules Settlement Rule Order Settlement
Fields:
  MANDT
 OBJNR
 BUREG
 LFDNR

CO-OM-OPA(KAUF) – Overhead Orders: Cost Accounting Orders

Table Name : AUFK

Table Purpose : Order Master Data
Fields:

 MANDT
 AUFNR

Table Name : AUFLAY0

Table Purpose : Enttity Table: Order Layouts
Fields:

 MANDT
 LAYOUT

EC-PCA (KE1) – Profit Center Accounting

Table Name : CEPC

Table Purpose : ProfitCenter Master Data Table
Fields:

 MANDT
 PRCTR
 DATBI
 KOKRS

Table Name : CEPCT

Table Purpose : Texts for ProfitCenter Master Data
Fields:

 MANDT
 SPRAS
 PRCTR
 DATBI
 KOKRS

Table Name : CEPC_BUKRS

Table Purpose : Assignment of ProfitCenter to a Company Code
Fields:

 MANDT
 KOKRS
 PRCTR
 BUKRS

Table Name : GLPCA

Table Purpose : EC-PCA: Actual Line Items
Fields:

 RCLNT
 GL_SIRID

Table Name : GLPCC

Table Purpose : EC-PCA: Transaction Attributes
Fields:

 MANDT
 OBJNR

Table Name : GLPCO

Table Purpose : EC-PCA: Object Table for Account Assignment Element
Fields:

 MANDT
  OBJNR

Table Name : GLPCP

Table Purpose : EC-PCA: Plan Line Items
Fields:

 RCLNT
 GL_SIRID

EC-PCA BS (KE1C) – PCA Basic Settings: Customizing

for Profit Center Accounting

Table Name : A141

Table Purpose : Dependent on Material and ReceiverProfitCenter
Fields:

 MANDT
 KAPPL
 KSCHL
 KOKRS
 WERKS
 MATNR
 PPRCTR
 DATBI

Table Name : A142

Table Purpose : Dependent on Material
Fields:

 MANDT
 KAPPL
 KSCHL
 WERKS
 MATNR
 DATBI
Table Name : A143
Table Purpose : Dependent on Material Group
Fields:

 MANDT
 KAPPL
 KSCHL
 WERKS
 MATKL
 DATBI



12.how many levels controls Fields in FI

We control 3 levels
1. Posting key level
2. Account group level
3. Document level

13.what is difference between validation and substitutions explain

along with scenario.
You can use additional validation to supplement the existing SAP logic to fit you into your
businness needs.
For e.g. to allow postings from company code 0001 to business area AA only.
GGB0 - To maintain the validations
Validation - Enter a validation name e.g. VBUS
Applicaion Area - SAP module e.g. FI
Calling Point - Dependent upon the application area that is selected.
0001 - Document Header - validate enteries at document header, e.g BKPF table
0002 - Line Items - check line item entris within a document, e.g. BSEG table
0003 - Complete Document - check settings for the whole documents.
e.g. Validation step 001
Allowed company code '0001' to post to business area AA only. 'FI00' checks that line item is
from FI.
If checks failed, the error message number 14 is displayed to stop the transaction.
Prerequisite
<BSEG> -BUKRS = '0001' AND
<BKPF> -GLVOR = 'FI00'
Check
<BSEG> -GSBER = 'AA'
Message
Type E No. 14 - Business Area not allowed for company 0001
Output fields 1 - BSEG - GSBER 2 - BSEG - BUKRS
3-4
OB28 - Define Validations for Posting
CC CallPnt Validation Description Activtn Level
0001 2 VBUS Business Area Validation 1
Activtn Level - 0 - Not Active 1 - Activated 2 - Activated for all except batch input
GGB4 - Manage the activation of all validations in the SAP system.
 Financial Accounting -> Special Purpose Ledger -> Tools-> Maintain
Validation/Substitution/Rules -> Maintain Substitution.
The Change Substitution: Initial Screen appears.
Choose Substitution -> Create.
The Create Substitution: Initial Screen appears.
Enter the following data:
– Substitution name
– Application area code for the substitution
– Callup point code for the substitution
Similarly,
Financial Accounting -> Special Purpose Ledger -> Tools-> Maintain
Validation/Substitution/Rules -> Maintain Validation for Validations.

15.What is smooth up method catch up method

We all know that in Asset Accounting, we have the concept of Smoothing and Catch Up. We can
activate either of one in company code level.
I have the requirement to activate both for my company code. Could you kindly tell me the
feasibility as to is this possible or not? If yes, any bespoke development we have to develop?

Answer
You cannot have both.
Either of one methods you should adopt.
Catch-up method
Using the catch-up method, the system calculates the posting amount in this period as the
difference between the planned depreciation and the depreciation posted up to this period.
Acquisition posted in period 5
12000
Depreciation start in period
1
Planned annual depreciation
1200
Deprec. posted up to period 5
0
Planned deprec. up to period 5
500
Deprec. to post in period 5 =
(500-0) = 500
Deprec. to post per period (5-12) = (6-12) =
(700/7) = 100
Smoothing

Using the smoothing method, however, the system distributes the difference between the
forecasted annual depreciation and depreciation already posted, to the remaining posting
periods.
Acquisition posted in period 5
12000
Depreciation start in period
1
Planned annual depreciation
1200
Deprec. posted up to period 5
0
Remaining periods, incl. period 5
8
Deprec. to post per period (5-12) = (5-12) =
(1200-0)/8 = 150

16.what is Depreciation key what it contains

Use
The depreciation key contains the value settings which are necessary for determining depreciation
amounts. It represents a combination of calculation rules, which are used for the automatically
calculated depreciation types

 Ordinary depreciation

 Special depreciation

 Imputed interest
Features
You assign calculation methods to each depreciation key for the actual determination of depreciation
amounts.

You can define depreciation keys and calculation methods in Customizing for Asset Accounting
(Depreciation  Valuation Methods  Depreciation Keys).

Components and Control Parameters of Depreciation Key

Depreciation keys are defined at the level of the chart of depreciation. Therefore, they are available in
all company codes. With the help of the depreciation keys defined within a chart of depreciation, you
can set up the chart of depreciation with uniform depreciation terms based on the special rules for
valuation in an economic area (country, geographical region and so on).

The standard charts of depreciation in the R/3 System contain depreciation keys that are predefined
to meet country-specific depreciation needs.

You can divide the duration of depreciation into several phases in the depreciation key. If you enter a
changeover method for one of these phases, the system changes over to the next phase as soon as
the event specified in the changeover method occurs. Then the system uses the type of depreciation
calculation that is specified for that next phase.

17.what is depreciation method types of methods

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Depreciation Calculation Methods

Various depreciation calculation methods are mentioned below:

i. Base Method
ii. Declining Balance Method
iii. Maximum Amount Method
iv. Multi Level Method
v. Period Control Method
i. Base Method
Base Method- SPRO> IMG> Financial Accounting (New)> Asset Accounting>Depreciation> Valuation
Methods> Depreciation Key> Calculation Methods>Define Base Methods

Base method primarily specifies:

 The Type of depreciation (Ordinary/ Special Depreciation)
 Depreciation Method used (Straight Line/ Written Down value Method)
 Treatment of the depreciation at the end of Planned useful life of asset
or when the Net Book value of asset is zero (Explained in detail later
in other related transactions ).
Straight Line Method (SLM)
 This is the simple method of depreciation.
 It charges equal amount of depreciation each year over useful life of
asset.
 It first add up all the costs incurred to bring the asset in use and then
it divides that by the useful life of asset in years to calculate the
depreciation expense.
 E.g.: Say a Computer costs Rs. 30,000 and Rs. 11,000 (as additional
set-up/installation/maintenance expenses) = Rs 41,000 and it is
anticipated that its scrap value will be Rs. 1,000 at the end of its useful
life, of say, 5 yrs.

Total Cost = Cost of Computer + Installation Exp. + Other Direct Costs

Depreciable Amount over No. of years = Total Cost – Salvage Value (At end of useful life)

30,000 +11,000 =41,000 (Total cost)

41,000 – 1,000 = 40,000 as the Depreciable Amount

Depreciable Amount = Rs. 40,000, Spread out over 5 years = Rs. 40,000/5(Yrs) = Rs. 8000/-
depreciation per annum.

Written Down Value Method (WDV)

 This method involves applying the depreciation rate on the Net Book
Value (NBV) of asset. In this method, depreciation of the asset is done
at a constant rate.
 In this method depreciation charges reduces each successive period.
 This method should be used in those assets, where high depreciation
should be charged in initial years.
 Assume the price of a depreciable asset i.e. computer is Rs. 40,000
and its salvage value after 10 years is 0.
 In this method NBV will never be zero.

Depreciation Per year = (1/N) Previous year’s value, Where N= No. of years

So in our example, the depreciation amount during the first year is

[Rs. 40,000*1/10] =Rs. 4,000

NBV of computer after 1st year= Rs 40,000- 4,000 = Rs. 36,000

Depreciation for 2nd year is

[Rs. 36,000*1/10] =Rs. 3,600

ii. Declining Balance Method

 Enter Transaction code AFAMD- Change View “Declining Balance Method”

AFAMD- Change View “Declining Balance Method”- SPRO> IMG> Financial Accounting
(New)> Asset Accounting>Depreciation> Valuation Methods> Depreciation Key>
Calculation Methods> Define Declining-Balance Methods
This is the other name of Written Down Value (WDV) method as mentioned in Base method
above.
If the WDV method is specified in Base method then the following additional settings in this
method can be used:
 A multiplication factor for determining the depreciation percentage
rate. The system multiplies the depreciation percentage rate resulting
from the total useful life by this factor.
 A lower limit for the rate of depreciation. If a lower depreciation
percentage rate is produced from the useful life, multiplication factor
or number of units to be depreciated, then the system uses the
minimum percentage rate specified here.
 An upper limit for the rate of depreciation.If a higher depreciation
percentage rate is produced from the useful life, multiplication factor
or number of units to be depreciated, then the system uses the
maximum percentage rate specified here.

iii. Maximum Amount Method

Maximum Amount Method- SPRO> IMG> Financial Accounting (New)> Asset
Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation Methods>
Define Maximum Amount Method
Generally, If we uses Straight line method, then depreciation amount should be same for
all years. But depreciation on asset is subject to change due to many factors e.g. any
addition to the asset, change in estimate of useful life, change in estimate of scrap value
etc.
So for maintaining better control on the amount of depreciation, SAP has provided this
method where we can specify the maximum amount that can be charged as expense in a
particular year. If this is specified, user will not be able to post depreciation exceeding the
amount specified here.
iv. Multi Level Method

Enter Transaction code AFAMS- Change View “Multilevel Method”

AFAMS- Change View “Multi Level Method”- SPRO> IMG> Financial Accounting (New)>
Asset Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation
Methods> Define Multi Level Methods
As the name itself suggests, this method provides the flexibility to specify different rate of
depreciation for different years/periods. E.g. in some cases depreciation rate required is
different in initial years and after that the rate should be changed. This can be achieved in
SAP by using Multi level Method.
In this method, SAP provides us the possibility to specify different levels during the useful
life of an asset. Each level represents the period of validity of a certain percentage rate of
depreciation. This percentage rate is then replaced by the next percentage rate when its
period of validity has expired. We can specify the validity period for the individual levels of
a asset in years and months.
It also provides the flexibility to us to choose the defined validity period, which can begins
with
 The capitalization date.
 The start date for ordinary or tax depreciation.
 The original acquisition date of the asset under construction.
 The changeover year.
v. Period Control method

Enter Transaction code AFAMP- Maintain Period Control Method

AFAMP- Maintain Period Control Methods”- SPRO> IMG> Financial Accounting (New)>
Asset Accounting>Depreciation> Valuation Methods> Depreciation Key> Calculation
Methods> Maintain Period Control Methods
It is one of the most relevant method to keep control on the calculation of depreciation.
Here we mention the different rules for periods in case of different scenarios for assets.
This method controls the period for which the depreciation is calculated on an asset
during the year.
Under this method, we can specify the period for which the depreciation should be
calculated in case of :
 Acquisition of Asset/Subsequent acquisition
 Retirements/Scrap
 Sales/Transfers
 Upward/Downward Revaluation

There are some standard methods that has been provided by SAP e.g. Pro rata at
mid period, Pro rata at period start date, at the start of year or At mid year etc. E.g., If client
requires to depreciate an asset from the First day of the year in which the asset is
capitalised, we can use the method `At the start of the Year` in case of Acquisition.
This method has been explained with the help of one comprehensive example below:
Example: A company wants to charge depreciation as follows. Client follows calendar year from
January-December 2013 as
Accounting/Fiscal year.
 1. In case of Asset Acquisition: Depreciation should start from the First day of the year in which
asset is acquired.
2. In case of Asset Addition: Depreciation should start from the Ist day of period of date of addition.
3. In case of Asset retirement: Depreciation should be charged upto Mid period regardless of date
of retirement.
4. In case of Asset Transfer: Depreciation for the full year should be charged by the transferee
company.

After having knowledge of all the depreciation calculation methods, we can assign the depreciation
calculation methods to the depreciation key.
Creation of Depreciation key:

 Asset accounting module of SAP calculates the depreciation on Assets based on the
configuration done for Depreciation key. Depreciation Key basically contains the calculation
methods which in combination control the following:
o Period for which Depreciation is charged
o Method of Depreciation
o Scrap value, if any
o Planned change in Method of Depreciation
We enter a separate depreciation key for each depreciation area in the asset masterrecord.
Creating Depreciation Key:

Enter Transaction code AFAMA- Change View “Depreciation Key”

AFAMA- Change View “Depreciation Key”- SPRO> IMG> Financial Accounting (New)>
Asset Accounting>Special Valuation> Net Worth Tax>Depreciation Key>Define
Depreciation keys
As depreciation key is Chart of Depreciation dependent, system will prompt to enterchart of
Depreciation on accessing transaction AFAMA and screen shown below will be displayed.
Here, we need to specify the following at appropriate fields\check boxes:
 No./Name of Depreciation key Numeric/Alphanumeric.
 Maximum Amount method (Discussed above in methods of depreciation)
 Cutoff value key to control the scrap value if no absolute scrap value is
maintained in the system. The cutoff percentage rate that is determined on the
basis of this cutoff value key is only used by the system when:
 There is no absolute scrap value entered in the the depreciation areas
of the asset concerned (an absolute scrap value takes precedence
over a cutoff percentage rate)
 Negative book value is not allowed for the asset
 Whether ordinary depreciation should continue to be charged in a year in which
special depriciation is also charged on the asset or not?
 Set `Depreciation to the day` indicator to allow system to calculate the
depreciation according to the number of days the asset is used.
If this indicator is set, period control method assigned to depreciation key will be ignored and
Asset value date will be considered as the depreciation start date.
 Assignment of Depreciation Calculation Method to Depreciation key:

Select The depreciation key and click on Assignment of Calculation methods. Now assign
different methods to depreciation key.

18.Asset value date & Asset account determination process

Asset Value Date Determination When Posting Through Purchase Order. 1. ... So now
the asset value date would be the posting date on which the goods receipt was posted. So
the depreciation will be calculated on this asset from period based on the period control in
the depreciation key and asset value date.

Asset Value Date Determination When Posting Through Purchase

Order
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1. Business Requirement: when we are acquiring the Asset from purchase order with account
assignment category “A”, for some cases the goods are received from the vendor in the
current month but the invoice receipt will come in the next period (i.e. goods receipts in
January and invoice receipt in March). Till the time accounting department receives the
invoice they can’t post the goods receipt (that means next period but actually the goods
received at the company’s location in February only.

The purchasing department will do the Goods receipts once Finance department get the
invoice from vendor (i.e. GR done in March). So now the asset value date would be the
posting date on which the goods receipt was posted. So the depreciation will be
calculated on this asset from period based on the period control in the depreciation key
and asset value date.

When the goods receipt is posted in the system, the Asset value date would be the
posting date of the Goods receipt document which is March 2016 in the mentioned
scenario. So as per the period control from depreciation key (most of the cases it would
be 01 for acquisitions which means Pro rata at period start date -the depreciation is
calculated from start of the period with value date period from which the asset is
posted). But actually the asset is in our company’s premises from previous period so the
depreciation should be calculated starting from previous period

2. Artifacts about Company code:

The company code uses Fiscal year variant as Oct. – Sep. with 12 periods and 4 special
periods which is a year dependent fiscal year with the below configuration.

3. Artifacts about Dep. key:

The dep. Key is a straight line based and its dep. to the day (which means the dep. is
calculated based on the no of days in the period, it will vary with no of days in a period)
4. Analysis and Solution proposed:

Asset value date getting picked up as GR posting date because of customization in SAP
Asset accounting on how the Asset value date should be calculated.

The screenshot for the same is below.

Here you have a standard variant for determining default asset value date

If you select the variant and click on Business transaction.

The business transaction responsible for the asset value date determination in our case
is Acquisition

Here we can maintain the different selection criteria. The selection criteria which can be
maintained are as follows.
We need to assign this variant to the company code. That is done in the same
configuration step as shown below.

If there is no variant assigned for a company code means the standard SAP variant
which is SAP_DEFAULT will be considered.

So for all the company codes above shown will take SAP_DEFAULT as variant for
determining the Asset value date.

Solution: we can copy this variant and save as a new variant Z variant and for the
business transaction Acquisition the primary rule can be maintained as 04 (Earlier of either
document or posting date (if different fiscal year: posting date) and the secondary rule is empty.
Then assign this rule to company code where we facing the above problem and save it.

Now if we do a GR for Purchase order in the current period with the current period as
posting date the depreciation would be posted but actually it should be posted from
previous period because the goods are in premises from previous period for which we
are liable to do depreciation from previous period

In March period end the depreciation is posted for the acquired asset for months March,
February and January.

In Normal scenario where we are using the standard variant the system will only post
March month’s depreciation amount. It doesn’t contain depreciation for February and
January period.

4. Testing performed:

 For performing the testing, we need two new assets

The Two assets created are 28213 and 28214

 o Then we need to create purchase order and goods receipt with standard
variant for asset value determination with one asset from which we have
created.

The Purchase order created for the standard variant scenario is 4500001857

When we post the goods receipt for this P.O. The material document created for this is
5000002008.

The document posted is having document date as previous period and posting date as
current period but when we check the value date in Asset document it shows 02ndMach
2016.

Let us say the Goods are received in previous period and invoice is received in current
period.

If you go and see the asset document, you can find that the Asset value date is
02ndMach 2016 the period would be 6 in our case
III. We need to create a purchasing order and goods receipt with the ZTEST variant for
asset value determination with the second asset.

Change the configuration, assign ZTEST to company code 1000.

The purchase order created for testing this scenario is 4500001858

When we post the Goods receipt as 01st January 2016(period 5) as document date and
02nd March 2016(period 6) as posting date. The material document created is
5000002009

If we check the Asset document in accounting documents, one can see the Asset value
date is 01/01/2016(period 5)
  Now compare both the plans in AW01N for both assets, we can see the
difference.

For asset 28214 the dep. is calculated from period 4(from date 01/01/2016) and shows
to be posted amount as 14,136.99-

For asset 28213 the dep. is calculated from period 6 (date 3rd March 2016) hence we can
see the amount as 4,109.59- in AW01N in to be posted.
5. Observation:

For the second asset which is acquired with ZTEST variant for asset value date
determination, the deprecation amount would be more than the first asset which is
acquired with standard variant SAP_DEFAULT

Account determination process

The account determination key defines the accounts in Financial Accountingthat should
be posted during asset transactions, for each chart of accounts and depreciation area
(defined as an automatic posting area) in the chart of depreciation.

Using the Asset Accounting (FI-AA) component, you can automatically update all relevant
transactions to the general ledger. These include all accounting transactions that are posted to
assets, and all changes to asset values that are automatically calculated by the system
(particularly depreciation). This update takes place immediately online for the master
depreciation area. For all other depreciation areas, this update is either direct or takes place
during periodic processing (see Updating Values in the Depreciation Area).
Features

When you post with account assignment to an asset, the system determines the G/L accounts
that are posted based on: the chart of accounts valid in the company code, the depreciation area,
and the account determination key.

Account Determination

Chart of Accounts

The chart of accounts contains all accounts in the general ledger. In Financial Accounting,
exactly one chart of accounts is assigned to every company code. This assignment is also
binding for Asset Accounting

Account Determination Key

You enter the account determination key in the general master data for the asset class. The
account determination key defines the accounts in Financial Accounting that should be posted
during asset transactions, for each chart of accounts and depreciation area (defined as an
automatic posting area) in the chart of depreciation. The chart of depreciation itself is not the key
criterion for account determination. This fact is important for company codes that have different
charts of depreciation, but use the same chart of accounts. It is not possible to specify
reconciliation accounts that are chart-of-depreciation-specific for these company codes.

You have to enter an account determination key in every asset class. Doing so guarantees that
the account assignment will be the same for all assets in the given asset class. SAP provides
account determination keys for the standard charts of depreciation and standard charts of
accounts.

For more information on the accounts in an account determination key, see the F1 help for the
accounts in the account determination definition.

Posting Depreciation Areas

When you define depreciation areas, you specify whether the values of the area should be
automatically entered in Financial Accounting (see Characteristics of a Depreciation Area ). For
every depreciation area that is defined for automatic posting, you can specify its own accounts in
an account determination key. If changes to APC in a posting depreciation area were not already
posted using direct processing, then you can post these APC values using the APC Values
Posting report.

You can also specify that one depreciation area uses the accounts of another. We recommend
you use this approach for parallel accounting in new General Ledger Accounting . The advantage
this offers is that you can use the same accounts for all accounting principles in each ledger .
You thereby avoid having to enter all of the accounts in the account determination several times
for each depreciation area.

For more information, see Parallel Accounting in Asset Accounting .

It is not possible to make specifications for account assignment for depreciation areas that do not
have an automatic posting indicator in their area definition.

Transaction Type
The transaction type identifies the type of business transaction. Using the transaction type, the
system posts the transaction to the appropriate accounts of the given account determination
(see Transaction Types ).

You can use a customer enhancement to set up your own controls for account determination. For
example, you can exchange accounts that are not asset reconciliation accounts (see Customer
Enhancements (Customer Exits) ).

19. Depreciation account entries & Asset transfer & Asset sale entries

What are the GL Entries that occur in Asset Accounting?

Sales of asset purchase of asset, scraping of asset, Deprecation posting, transfer of an asset.
What are the deprecation areas that are taken into consideration for Indian implementation and
how there are treated in asset accounting?
purchase of asset

Asset A/C (70) Dr

To vendor (31) Cr

Sales of asset

Customer A/C (01) Dr

Asset Sale A/C (50) Cr
Acc. Dep. on Asset (70) Dr
Asset A/C (75) Cr
Asset Sale A/C (40) Dr
Profit on Asset sale (50) Cr or Loss on Asset sale (40) Dr
Deprecation posting

Depreciation A/C Dr
To Acc. Dep A/C Cr
scraping of asset
Asset A/C (75) Cr
Acc. Dep A/C (70) Dr
Loss due to Scrapping A/C (40) Dr
transfer of an asset

ABUMN----->Asset transfer within Company Code

70 Asset debited in NEW Business Area
75 Asset credited in OLD Business Area
 70 Acc. Dep debited in OLD Business Area
75 Acc. Dep credited in NEW Business Area

ABT1N------>InterCompany Asset Transfer

OLD Company Code 75 OLD Business Area Asset A/C Credit
OLD Company Code 70 OLD Business Area Acc. Dep Debit
OLD Company Code 40 OLD Business Area Asset sale A/C Debit
NEW Company Code 70 NEW Business Area Asset A/C Debit
NEW Company Code 50 NEW Business Area InterCompanyClearing Credit

21.AUC Settlement process

Settlement of Asset Under Construction

using transaction codes AIAB and AIBU
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 Created by Former Member, last modified on Aug 14, 2012

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Purpose
The purpose of this page is to clarify the understanding of the system logic and requirements in relation to the
settlement of asset under construction through transaction codes AIAB and AIBU.

Overview
The following paragraphs and screen shots will describe an EXAMPLE in steps of a settlement of asset under
construction using transaction codes AIAB and AIBU and provide an explanation of the functionality of the main fields
and buttons.

Preparing scenario
Creating the Assets:

1.1) Create an asset under construction using asset class that refers to AUC. and post two acquisitions to this
asset with different posting date, please refer to the following link how to post acquisitions: Asset acquistion.

1.2) After creating and posting to this asset, AW01N should appears like the following picture:
1.3) Create another asset with a non-asset under construction class without any posting.

Setting distribution rules through transaction code AIAB

2.1) To set distribution rules to an asset under construction go to Navigation: SAP Easy Access -> SAP Menu ->
Accounting -> Financial accounting -> Fixed Asset -> Posting -> Capitalize Asset u. Const. -> Distribute.

Alternatively: Transaction code AIAB.

2.2) Fill out Field Asset with your asset number already created and with postings (press F8)

2.3) Select the first of the two line items as per the picture above, then press button -Enter- or shift+f6

2.4) Fill out Field settlement Receiver with the first asset created in the section 1.3 and fill out filed % percentage with
100. Them press button to check or Shift+f2.
2.5) After that, return to line items screen pressing return button or F3. Select the second line item and press button --
Enter- or shift+f6.

2.6) Fill out Field settlement Receiver with the second asset created in the section 1.3 and fill out filed % percentage
with 50. Them press button to check or Shift+f2.

2.7) After that, return to line items screen pressing return button or F3 and save. Now the distribution rules are created.
Settlement AUC through transaction code AIBU
3.1) To settle an asset under construction go to Navigation: SAP Easy Access -> SAP Menu -> Accounting -> Financial
accounting -> Fixed Asset -> Posting -> Capitalize Asset u. Const. ->Settle.

Alternatively: Transaction code AIAB

3.2) Fill out Field Asset with your asset under construction number already created with postings, same that you used
in section 2.2.Fill out Fields Document Date, Posting date and Asset Values (it cannot be a date prior to this asset
capitalization date). Press “Simulation” button to simulate settlement document creation.

3.4) For means of check you can go to asset explorer and check the values posted to the asset under construction and
the receivers assets.

I have some AUC internal orders that are completed and need to transfer to Fixed Assets.
I go to KO02 change the order by going to extras and then create completed asset and then go
back to control data tab and choose Tech.comple. and then save.
I have check the settlement rule and it has two rules, one is to settle the items in AUC fixed
asset# catorgory and the second one is to the Building fixed asset catorgory with a fixed asset #.
(don't know if that is correct or not, because some only has one rule to settle to fixed asset only).
Then I use KO8G and do an automatic settlement and it does settle the AUC internal order# to
AUC fixed asset#, but for those that I created completed asset and save as tech. comple. is not
showing in Fixed Asset at all.
What did I do wrong on this procedures? Hope anyone can help?

Answer
At the time of invoice booking, initially auc amount is being posted as expenditure.
It has to be settled to AUC by using KO88 for individual internal orders/KO8G for group of
internal orders.
While making the settlement with KO88/KO8G - use settlement type - Automatic
After receipt of commissioning date, the auc has to be capitalised.
For this purpose use KOB5 - give the settlement rule
Then use KO88 and settle the AUC to asset - use settlement type - full/partial as per need
The process is usually driven by business scenario/requirement.
The recomended process, in your case, would be as below
1) Collect all asset values in I/O
2) Settle all values to AUC (KO8G)
3) Identify the assets need to be capitalised and settle them to final asset (AIAB and AIBU)
There is nothing wrong in settling to AUC as well as to final assets in step 2. But, it is always
better bring the values to AUC first and then move to final assets.

22.what is difference Planned posting run & Repeat & Restart and un planed
posting run.
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RAPOST2000 (t-code AFAB) vs. RAPOST2010

If you have to run depreciation by company code wise, the t-code AFAB (Program name
RAPOST2000) can be executed. The program RAPOST2010 allows selection of several company
codes. The Report selection variables can be maintained in the TVARV table for both these programs
and can be scheduled using the scheduler Manager.

Planned Posting Run

The Planned Posting Run is the standard periodic run to post planned depreciation. This should be
used when the last depreciation run was successful, and it’s time to carry out the depreciation run as
part of the new period-closing process. The system checks that the posting period is the one following
the last successfully posted period; this information is then recorded in Table T093D, in the AFBLPE
(period) and AFBLCJ (year) fields. In addition, the status of a depreciation run is also updated in the
table TABA. The field names in TABA are “Document posted indicator-XBUKZ and Period in which
last depreciation was posted-AFBLPE. Please note TABA entry is created first during the posting
process. The table T093D is updated as one of the last steps. However, please note the table T093D
wouldn’t be updated for test runs. In addition, the table ANLP stores the depreciation posting values
from each depreciation run. The field NAFAZ has value to be posted from this depreciation run.

Restart

The Restart run would only be used if the depreciation Posting Run terminated during processing due
to either a system outage or error may have caused it to end abnormally. If posting run terminated for
technical reasons, and changes made already made to the database, the depreciation run report must
be begin in restart mode.

For example, when an asset has an either closed WBS or invalid cost center, system makes posting
to Fixed Assets sub-ledger (by updating the tables ANLC/ANLP), but the job failed to post to G/L. In
other words, the program failed the postings to G/L, thus an inconsistency created at this point of time
between FI-AA and FI-GL, at least until restart of the depreciation is run again. If the WBS or Cost
Center is fixed in the asset master, the restart will reset tables and execute the planned posting run,
beginning at the point it was interrupted. This will clear any database of possible inconsistences.
Using the restart mode ensures that all system activities that were interrupted by the termination are
repeated. 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

The Repeat run is used to repeat the posting run within the period last posted. Repeat would be used
if changes have been made after the period depreciation run has been posted.

For example, let’s say depreciation terms (e.g. an asset useful life) are changed in the asset master
data or new transactions posted (for e.g. asset transfers). Therefore, there is a need to depreciate in
the current period for the changes made. The system recalculates the depreciation for the period,
subtracts the depreciation already posted, and then posts only the difference. This can be restricted to
specific assets which can be listed under parameters for Test Run or for all assets in the company
code. In addition, the Repeat posting run may be used if additional assets were settled after the
planned posting run was complete. An example would be allocation was run which caused additional
assets to be created. A Repeat run could then be processed for only those specific asset numbers or
a single asset.

Note: 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.
Unplanned Posting Run

The Unplanned Posting run allows posting outside of the normal processing cycle (for example
monthly). This option is not same as unplanned depreciation. 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.

Repeat run is used to post the depreiciation for assets in a period, for which the planned
depreciation has been posted.
Ex: You have run the dep for 01-2010, then in the same period you might have added some
more assets and need to be posted depreciation for the same period again. In this case repeat
run would be useful.
Note: this repeat run can be done for the last posted period only.
Restart option is to continue the depreciation posting run from a last dep run, which is stopped
due to some errors casused at the system level.

1) The planned posting run means that usualy, every month you execute the depreciation run
in january, it will be the 1st run, in february the 2nd (and so on)
This depends on how you customized the frequency of the depreciation run (monthly, quarterly,
yearly)
In monthly --> 12 periods --> 12 runs
Quarterly --> 4 Periods --> 4 runs
Yearly --> 1 Period --> 1 run
2) repeat run --> you can be faced to launch twice or more a depreciation run in a period (for
example if you changed the calculation methods, if you added new assets . . . )
3) restart Run --> in case of errors in the last depreciation run
4) Unplanned Posting run --> if you want to post your depreciation in period mm + x (for example
in July period 07) and you did'nt posted in previous periods (for example from Januray to June)
By setting this indicator, it is possible to skip over periods. The system then does not check for
the connection to the previous period.
•Planned Posting Run
You can post to the next period that is specified according to the posting cycle. During a regular
posting run of this kind, the system does not allow you to limit the run to particular assets.
•Repeat Run
You can request a repeat posting run for the last period posted. You might need to carry out a
repeat run if the depreciation terms were changed for individual assets in connection with the
year-end closing, for example. During a repeat posting run, the system only posts the differences
that resulted between the first posting run and the repeat posting run. You can limit the run to
particular assets.
•Restart Posting Run
If a posting run terminated for technical reasons and changes had already been made to the
database, you have to restart the program in restart mode. Using the restart mode ensures that
all system activities that were interrupted by the termination are repeated.
•Unplanned Posting Run
If, for whatever reason, you want to skip over one or more posting periods, you can do this by
specifying an unplanned posting run. The system then creates a posting session for all the
periods that were skipped, as well as for the period entered. The posting period that you specify,
however, must fit into the posting cycle. If you specify period 7 for a quarterly posting cycle, for
example, no posting occurs.

25.While uploading asset master data what are the configuration steps needs
to follow
ny one could help me, pls? I am new to Asset Accounting while I have a
potential job for mass upload of master data using transaction AS02. Focus is to
convert the asset super number from an old reference to a new reference (to be
determined by client), plus some other field modifications included in the
request.

I would be using BAPI_FIXEDASSET_CHANGE for instance. What table/s I shall

look into to explore the system requirements for this?

To make a mass change, you have two options:

1. If the change of the field can be put into an algorithm (e.g., enter XYZ as a
super number for all assets in class 1234), you can use a mass change rule. You
first define the mass change rule in the same way as you would define an asset
substitution (IF something, THEN something else), then you go into the mass
change transaction, select the right assets, the proper change rule ... and hit
Execute.

2. Very often, it is easier to prepare the data in Excel and use transaction AS02
for the upload. Here, I can recommend transaction LSMW - you simulate (and
record) the AS02 transaction on one fixed asset master, then follow all the steps
proposed by the system (define fixed values, variables, etc.) and finally upload
the Excel (.csv). System will automatically generate a batch input for all assets.
It may take some time for you if you do it for the first time, but it is the best
way if you would otherwise need to define complex algorithms.

So - use option 1 if you have a simple algorithm for many assets, and option 2 if
"each case is different" or if you feel more comfortable in Excel than ABAP.
Option 2 is simple, but of course takes some time to generate the upload and
then run the batch sessions (while option 1 changes everything instantly in a
matter of seconds).

I’ve read you post re mass changes of the fixed assets and also interesting in
the transaction code for the mass changes.

Also I did not understand for LSMW how to simulate (record) AS02 transaction,
could you pls describe more clear how to do it? Or better send the csv file as an
example…
Here are the details:

I. To use mass change:

1. First, define a mass change rule in transaction OA02 (Accounting - Financial

accounting - Fixed assets - Environment - Mass change rule). For each company
code, you can define one rule (or a sequence of them). However, all of them will
always be executed at the same time. Therefore, if you need to define different
rules for different assets, you will have to do this repeatedly. Technically, this is
done in the same way as AA substititution.

2. Once the rule is defined, you need to select assets for mass change. Go to
transaction AR01 (Accounting - Financial accounting - Fixed assets -
Environment - Worklist - Generate). Enter selection criteria like on any standard
AA report, and run Execute. I cannot simulate this now on my system (we do
not have AA), but it should ask what you want to do (mass change, mass
retirement, etc.) and ask for a name of the worklist (write anything - e.g., Super
number change). The system will show you a list of selected assets in a report
format. Check it and make sure that it is correct. You may add or remove single
assets from this (now cannot tell you how, but it is possible). If you are happy
with the list, save it.

3. The last step is execution of the change. Go to transaction AR31 (same path
as above), execute the report and if you are happy with the list (same as in step
2), press Save. System will show you a log of change (what went through, which
errors occured). You are done.

II. LSMW
LSMW is a transaction, which will let you mass upload almost any other
transaction (FB01, FD01, AS91, etc.). You do it in the following way:
1. Enter into transaction LSMW (no menu path), possibly in a development / test
system
2. First, define a project, subproject and object (relatively formal task).
3. On the horizontal menu, go to Goto -> Recordings. Click on "Create
recording".
4. Enter the name and description of recording (freely definable).
5. I cannot simulate this now in my system, but SAP will ask you about
transaction code (AS02) and will take you into the AS02 transaction. In this
step, do the change manually. Make sure you "touch" (change / write
something) in all fields which you want to update.
6. Once you are done, save the recording and return on the start page of LSMW.
Click "Execute".
7. You will see a list of tasks. Do them one by one. They should be relatively
simple (and I cannot help you with them). Important is step 3 (maintain source
fields) - here you define the columns of your excel (csv) file in the particular
order. In step 5 (field mapping and conversion rule), you assign file columns to
SAP fields (note that you will see only those fields which you "touched" during
recording). You need to go through all the steps. In the end, you get (and run) a
batch session.
8. If you did this in a development system, transport the LSMW object (menu
Extras - Export project, Extras - Import project). You have to do it via file, not
via standard transports of configuration (it is perhaps more simple).

I cannot simulate it now (no AA module around ), so I hope it will work. Let me
know if it does not. Make sure you test it first in development or quality system!
And let us know your feedback!

Master Data Upload – First Time, Then Must Read

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Master Data Upload

This topic is bit easy but while doing it first time – it would look like huge task, and in a way it is! It
needs more attention and some precaution too. This reference article is for those consultants
who want to read before starting their task.

Master Data is one of the most important task after configuration, rather equal, and need to be
done very carefully. Basically, the data/details that you want to store, maintain and use further to
perform activities, during actual processes – is your master data. This data do stay in system and
appear when required/called in transactions, such as – Customer Master Data, Material Master
Data, Credit Master Data etc. and play his role.

How Does It Works During Project

Most of time consultants share templates after BBP sign-off and ask core team members to fill
that up. After successful completion of configuration, uses these data templates to upload in
system. Ideally, one should have entire master data in DEV, QAL and PROD system. This ideal
scenario will help testing lot of scenarios and enhances confidence at both ends. This helps even
after Go-Live.

Many organizations have ready-to-use Templates; this is a good practice and save lots of time.

What is Master Data Template

Master Data Template is nothing but an empty excel-sheet with title heads, descriptions and
space to fill actual data. In another worksheet mention all reference values for easy reference
(and strictly ask them to follow this list). Some sample data will make it more clear, and easier to
fill.

 Try maintaining values in excel as general text format. Always align it to left (at times this
matters). Use excel formulas to calculate but, finally remove it and mention the resultant
values.
 Do not keep any un-necessary/un-wanted data in excel-sheet, keep the template clean
and tidy. A simple dot (.) will get considered as value, so be aware of any such garbage.
 Do not pass any special characters – system might accept it, but in table it would get
stored as garbage and might make difficult situation while extracting that in outputs or
reports. It might give dump at times.
 As I told earlier, the template should have all the list of details to be filled, making it easy
to understand and use. The maximum number of characters/digits allowed should also
be mentioned. In case if it exceeds, system will trim that itself, would not give any
warning, so manual intervention is must.
Options For Data Upload

There are three ways to load your data in system. All three are important but you need to choose
very intelligently at times. List is as follows:

 Manual Method
 LSMW
 BDC
 Mass maintenance for missing fields (in existing data)

The general rule is – if your data volume is less than 20/30 do it manually, otherwise good to go
by LSMW or BDC way. In case of huge data, choose wisely.

LSMW – is a best tool and functional-consultant-friendly. Functional people must try working on
this. It has capability to work equivalent to BDC. One more benefit is – you are nor dependent on
ABAP team (for any last minute modifications or troubles). Here, we will not talk how to use
LSMW. I personally prefer this most of the times. So as to learn and gain expertise on LSMW –
use these links:

http://scn.sap.com/docs/DOC-48866

http://scn.sap.com/docs/DOC-26159#section31

BDC will be developed by ABAPers. Good thing about BDC is – flexibility, validations and logical
conversions. For this task your ABAP team would ask for recording using SHDB. While
recording, be sure of the fields that want to consider, and choose those fields by entering value
or at least put space in that fields (if do not know value now, but planning to record it). In case of
doubt, record it instead of excluding. Because, AABPer can comment/hide it if not required, but in
case of new field addition they might require to put more efforts. So if there is 1% or 2% chances
of using certain filed – consider it in recording. Later on comment that field if unused. Do a clean
recording, go in sequence and do not repeat one field (in case of mistake, do it again).

At times your client might use this BDC/LSMW for their day today business. Ex. Our open order
BDC has been used by our client to load Sales Orders in mass, every day. In fact – your BDC
belong to them, you would be asked to handover all those finally.

What To Check After Template Receipt

You should verify entire received data. Check if it is as per your configuration, check other
integration points, such as SD-FI, SD-MM or MM-FI etc. Most of the time you will not get perfect
data until 2nd or 3rd iteration, so be very cautious. Test it and change if there are any
modifications required, or get it done from client as they are more aware of their own business
and data too. Now, get it approved from client before production. Be sure by perform trials on
DEV and QAL, this will improve your confidence and data quality!

 Check all the entries in template with your configuration – check values, id’s, names,
sales organization, material IDs, company code, cost center, terms of payment and all
others things (you can do it easily by converting that column to unique values or use v-
lookup or formulae).
 Do take care of the required prefixes. Let me give one simple example – in SD Customer
Master data there is ‘Terms of payment’ which is ‘0001’ as standard. But in normal excel,
if you enter 0001 – it converts to 1. But master data will not accept 1 – it asks for exact
 0001 (four digit). So, modify the data format of such fields accordingly (sounds very
childish but when you face this you get mad on this silly things).
 Also, check for the maximum number of characters/digits allowed. System will not throw
any error but will trim it. So be ready for that!

Some So-called Complications

Certain master data, such as Material Master or Customer Master, are complicated. You might
use same/simple transactions but the screens, fields, tabs, would vary depending on your
selection parameters or input parameters. Simple example: in case of Material Master if you
choose less views it will show less number of fields. Similarly in Customer Master if you do not
provide company code in XD01 it will only show you two views one is ‘Sales Area’ and another is
‘General Data’ view. So accordingly your LSMW or BDC will differ. So just to get it more easy –
for customer master there could be three BDCs (choose as per your requirement):

 CM creation at fresh
 Extending CM for another company code if any
 Extending CM to anther Sales Area

Precautions Before Upload

Make sure you have tested this templates and BDC/LSMW multiple times in DEV and QAL
system, and it’s running smoothly.

Because, at time of Go-Live you cannot take any risk! It becomes very time critical and this
saved time is worth investing on other critical things.

Troubles You Might Face

 The excel files with huge data – might get hang and you lose your data. So, be careful
and regularly keep backup of your files.
 Your LSMW/BDC terminates because of system failure or power failure (if you set it at
‘display errors’ or ‘foreground’) – in that case check your database in respective tables
and see till which record it got saved, and repeat task for that data onwards (modify your
template accordingly).
 At final moment you find some data-point is mandatory and not given in template (and
you got to know when BDC/LSMW thrown an error!) – in that case use any masking
value, keep record of that and modify afterword. There were cases told by my mentor,
their client given a huge master with multiple pin-codes that were less than required digits
(and pin-code made mandatory). His Team started checking the right pin-code from
Google and mentioned at every record. They did this for 80/90 records religiously and
spent some time extra. Was it worth! His suggestion was – instead, one can enter any
indicative values such as 999999 or 000000 and then replace it soon you get correct
value from client. May be you get in trouble for wrong details! Possible, right!
 Your BDC or LSMW that was running well is not working now (or need one more fields to
be added or removed) – not sure why but it might happen. In such cases be in touch with
ABAP Team. In this scenario I find myself very comfortable with LSMW. I can create one
more for me and test it, am not dependent on someone else. You develop your style and
comfort!
 Your team member who is responsible or aware of data load, is absent – you can’t do
anything in this cases – only since beginning, be aware of what to do, be aware of the
data stored. Make sure of a back-up since beginning. That’s it.


Mass Maintenance:
Even after tons of precaution you did not managed to fill an specific filed or maintained erroneous
data in specific field. Oops! in such cases there are ways to work on it.

 If the data value is same throughout – you can quickly use mass maintenance tool. T-
code is MASS or specific to your module, which is XD99 for SD. (precaution: mass
maintenance takes lot of time, so be patient). I also, hear SAP stopped giving support for
LSMW.
 If Data is not same but can be grouped – filter it and maintain your mass data accordingly
and do it in parts.
 If there is no way for any such grouping of values – better option is prepare a LSMW and
change Master Data. Simple example – when we missed maintaining City field in
Customer Master (using BDC) – LSMW for change master data and added city to each
record.

Lastly –

More you give attention to the data-templates – more easy will be your life on final day.

This entire article is not a rocket science, you will also understand your way of comfort and learn
this with time.

All the best, happy uploading!

I uploaded 1000 Assets through LSMW from Tr code AS91. Now, for Asset Balance Upload We
can use 2 Tr codes OAMK and OASV.
Can anybody explain the process to upload Asset balances (Acquisition value & Accumulated
Depreciation) with entries and GL Accounts and
Impact of TB,

Answer
 Fixed Assets have to be posted in 2 stages:
1 - Master records values - LSMW
2 - GL Account balances - OAMK and FB01, or OASV.
Use OAMK only tor accounting adjusts. It unlocks reconciliation account from AO90 to be
posted.
In tis case the best choice is OASV. You have to post Acquisition and Acumulated
depreciation accounts (Check AO90) and post against Migration transitory account (EG
999999).
Take a look in below sample. The Expenses account were done in P&L migration then
assume only Acquisition and Cumulative depreciation:
Best Regards
 AA01.png (32.3 kB)

AA02.png (95.2 kB)

AA03.png (99.8 kB)

o Share

Yes Anil.
it is better idea go like this. Make sure account determination once again as suggested by Mr. Marssel.

It appears you have already created Legacy Asset Master data

Now got ot As92 and select Asset take over values and enter legacy asset values
To post in GL account, go to OAMK and change the control of reconciliation account to
"BLANK"
Post GL balances and go to OAMK and restore control of reconciliation account to "
ASSETS"
Check the legacy asset value and GL account are balanced
At last your General ledger balances and Asset sub ledgers must be tally. You always upload legacy
balances which is previous year through AS91. In AS91 it self you have to update actual acquisition
value and either depreciation or accumulated depreciation & also do mentioned entries through OASV.
1. Acquisition Posting :- Single entry enough for all assets.

Fixed asset GL account............Dr

To Initial Balance account ..................Cr
2. Accumulated depreciation posting :- Single entry enough for all assets.

Initial balance account............Dr

To Accumulated balance account.........Cr

Please read below wiki link: It explains the Asset Legacy steps.
http://wiki.sdn.sap.com/wiki/display/profile/Asset+-+Legacy+Migration+Guidelines

I have small doubt in asset upload

Eg: asset Purchased on 01.04.2005 - Rs 10000
Some asset added on 01.08.2009 - Rs. 50000
For Example Acc.Dep - Rs 2000 till now
here how we upload asset additions

29.Dunnnig Levels & Grace Periods

Dunning Procedure. Actually dunning is useful to send remanding letters to the customers about
their dues. Following configuration needed
T.Code for Dunning Procedure (FBMP):
1. In first screen we have to give Dunning Interval in days, No. of dunning levels, Minimum days
in arrears, line item grace periods, interest indicator and activate standard dunning.
2. In the second screen dunning levels:
Days in Arrears will come automatically based on Dunning intervals. here if you want to calculate
interest from which dunning level, then activate interest calculation.
Always dun means if you want to print dunning notes again and again, then you have to activate
all, otherwise activate last one. in real time we have to activate last dunning one only
print all item activate it. payment deadline, if it is there then give days.
3. Charges:
In this step, if you want to charge any amount on customers, then we can give dunning level and
minimum amount and charge amount or percentage.
4 Minimum Amounts: In this if you want to calculate interest then give dunning level and
minimum amounts and interest amount or percentage.
5. Dunning Text: Usually we have to copy existing one. Copy the dunning text from existing one
to your company code.
these are the steps to configure dunning procedure.
And one more thing after dunning program run, there is no effect on customer account balances.
it will only update the following fields in the master record
 Last dun Date
 Dunning level etc.
if you have any doubts let me know

30.I want to make vendor payment partially what is the process

Partial Method: Incoming & Outgoing Partial Payments Posting

in SAP
In this tutorial, we will learn Incoming & Outgoing Partial Payments Posting
using Partial Method

Incoming Partial Payments Posting

In SAP we can post Incoming Payments as Partial Payments . The partial
payments which will be posted as a separate open(Outstanding) item . For
example a customer has an outstanding of 1000 and he makes a payment
of 400 as partial payment then there will two separate open(Outstanding)
items of 1000 Dr and 400 Cr .No clearing document is created.

Here is a Demo on how to post a partial payment by Partial Payment

Method
Step 1) Enter a Transaction Code F-28 in the SAP Command Field

Step 2) In the next screen, Enter the following data

1. Enter Document Date

2. Enter Company Code in which the payment is to be posted
3. Enter payment currency
4. Enter the Cash/Bank Account in which the payment is to be posted
5. Enter the Payment Amount
6. Enter Customer ID of the Customer making the payment
7. Press 'Process Open Items'
Step 3) In the next screen ,

1. Choose the Partial Payment Tab

2. Select and Activate the Invoice against which the partial payment
has been made.
3. Enter Partial Amount
Step 4) Press 'Save' to post the Payment Document
Step 5) Check the Status bar for the Document Number Generated.

Outgoing Partial Payments Posting

Step 1) Enter a Transaction Code F-53 in the SAP Command Field
Step 2) In the next screen, Enter the following data

1. Enter Document Date

2. Enter Company Code in which the payment is to be posted
3. Enter the Cash/Bank Account in which the payment is to be posted
4. Enter the Payment Amount
5. Enter Vendor ID of the Vendor making the payment
6. Press 'Process Open Items'
Step 3) In the next screen ,

1. Choose the Partial Payment Tab

2. Select and Activate the Invoice against which the partial payment
has been made.
3. Enter Partial Amount
Step 4) Press 'Save' to post the Payment Document

Step 5) Check the Status bar for the Document Number Generated.

31.what is payment term and installment payments ?what is base line date

Configuring Terms of Payment

Terms of payment is used in SAP to determine the due date and discount calculation. Terms of
payment is maintained in vendor master and customer master to default at invoice level however
this can be changed at invoice level as well.

 For FI invoices payment terms is defaulted from “Accounting View” for customer and
vendor. FB60/FB70
  For Purchasing invoices payment term is defaulted from “Purchasing View” in Purchase
Order / MIRO Invoices
 For Customer Invoices from SD side the payment is defaulted from “Sales Data” view.

Let us see the configuration and field explanation for payment term fields in detail –

 Payt Terms:- This field contains four characters alphanumeric identifier for payment term
key.

 Sales text:- Maintain the short text for explanation. The explanation can be maintained
up to 30 characters. This field validates the account type “Customer”. If you maintain the
text here and account type “Customer” is not “Selected” system will give you an error as
below.
  Day limit: This field is used to specify the particular term of payment is valid from which
particular date. Example as below –

Example 1 – Payment Term T001

Day Limit – 20
Discount – 5 %
As per above details system will consider this payment terms for the invoices posted in system ON
or BEFORE 20th date in every month and applies 5% cash discount. The discount won’t be
applicable for invoices posted after 20th in month.

Example 2 – Payment Term T001

Day Limit – 31
Discount – 2 %
As per above details system will consider the invoices for 21st to 31st and applies the 2% discount.
This perfectly suits where the requirement is – the invoices posted upto 20th should have
5% discount and invoices posted in date range of 21st to 31st should apply discount of 2%.

 Own explanation: This field is used to give detail explanation of the payment term. Be
careful while using this field because this field overrides the explanation automatically
generated by system based on discount percentage and days entered.

Example 1 –

In below example system has updated the explanation as per days and percentage entered in
“Explanations” section.
Example 2 –

Now if I maintain the “Own Explanation” system will override the “Systems automatically
generated” explanation. Refer below image –
 Account Type –
o Customer: If payment term is intended to use for “Customer” please select this check
box.
o Vendor: If payment term is intended to use for “Vendor” please select this check box.

 Baseline Date Calculation

o Fixed day: This field signifies the “calendar fix day” for base line date calculation.
o Additional Months: Value maintained here is used to add the calendar month for base
line date calculation.

See below example –

In above case the base line date would be 15th of the next month.

 Pmnt block/pmnt method default –

 o Block Key: The value maintained in this field signifies the block key for payment. If block
key is maintained here the system proposes the block key along with terms of payment.
o Payment Method: If user wants to maintain the payment method here other than
customer/vendor master it can be maintained here as an identifier.

 Default for baseline date –

o No Default: Selecting “No Default” here means system prompts user to enter baseline
date as own.
o Posting date: Selecting this means posting date mentioned will be same as “Baseline
Date”.
o Document date:- Selecting this means document date mentioned will be same as
“Baseline Date”.
o Entry date: Selecting this means “Systems Date” will be same as “Baseline Date”.

 Payment terms –

o Installment payment: Check this field if user wants to break down the invoice line items
with different due dates.Use the installment payment term functionality to achieve this.
o Rec Entries:Supplement fm Master: Selecting this indicator means, for recurring
entries the payment is term is fetched from master record if does not found in line item.
o Percentage: The percentage rate which will be used to calculate the discount.
o No. of days: Maintain the number of days for the discount rate is valid. Like if payment
received within 10 days 3% discount will be granted. So maintain the 3% in percentage
field and 10 days in “No. of days” field.
o Fixed date: This field is used to determine the fix day of the calendar month as due date.
o Additional months: Enter the value here if you want to add the months to fix day.

In above example –

 5% discount will be granted in the same month.

 2% discount will be granted if payment performed before 15th of next month
 Full payment is due after this.

 Explanations: This explanation is system automatically generated, unless payment term

description maintained in “Own Explanation” field.

Please proivde your valuable comments ! Any suggestions / guidance is welcome !!!

32.Asset accounting month end activities and year end activities

SAP FICO TCodes for Month End and Year
End activities
FEBRUARY 17, 2016 ~ SADIQUE HUSSAIN

5 Votes

CLOSING ACTIVITIES
1. Execute Report for Inter Company Activity & Journal Entries
2. Open posting period for next yr (T.Code: OB52)
3. Run Business Area’s Assignment report. (T.Code: F.50)
4. Review list of recurring journal entries (T.Code: FBD3)
5. Execute Recurring Entries for A/R, A/P, G/L (T. Code: F.14)
6. Process Parked A/R, A/P, G/L accounting documents (T.Code: FBV0)
7. Final Cutoff for the Maintenance of Fixed Asset- Add Transfer and Retire
(T.Code: ABUMN)
8. Run Depreciation in Test Run and post (T.Code: AFAB)
9. Verify Display Log for Depreciation Test Run (T.Code: AFBP)
10. Capitalize AUC Assets if needed (T.Code: AIAB, AIBU)
11. Enter Payroll Data to SAP (T.Code: CAT2)
12. Verify Depreciation Balances with GL balances (T.Code: ABST2)
13. Post Depreciation (T.Code: AFAB)
14. Execute Asset History Report, and retire assets if needed (T.Code:
S_ALR_87011963, ABAVN)
15. Adjust specific depreciation areas if necessary (T.Code: ABCO)
16. Reconcile AM sub ledger with GL (T.Code: ABST2)
17. Check Bank Data (T.Code: S_P99_41000212)
18. Review AR Open Items (T.Code: FBL5N)
19. Review AP Open Items (FBL1N)
20. Execute Pending Invoices(T.Code: MRBP)
21. Clear Open Item for GRIR, freight (T.Code: F.13)
22. Reconciliation of Financial Documents and transactional figures (F.03)
23. Open new CO Posting Period: (T.Code: OKP1)
24. Compare current (cost estimates) with last current price (Moving Avg)
(T.Code: OKBH)
25. Update current cost price to material master price field (T.Code: CK11N,
CK24)
26. Process Freight charges, Match SD freight to actual (T.Code: V-31)
27. Review Internal Order Postings(T.Code: OKSA)
28. Settle All Orders (T.Code: KO88)
29. Verify All Post Goods Issue have been Invoiced (Billing Due List) (T.Code:
VF04)
30. Review SD Billing Doc from prior month that have not yet been released to
accounting (T.Code: F.2D)
31. Reconciliation of MM movements in Transit Intra-SAP to Non SAP
32. Reconcile PI Inventory with SAP (T.Code: MI07)
33. Perform Manual Adjustment if needed (T.Code: F-02, FB50)
34. Verify balance of the GR/IR account (T.Code: MB5S)
35. Post Accruals and Deferrals (T.Code: FBS1)
36. Clearing of Cancelled Documents (T.Code: F-03, F-32, F-44)
37. Check Profitability Segment Adjustment (T.Code: KISR)
38. Aging Report-Reconcile GL balances with sub ledger balances AP (T.code:
FBL1N, FBL5N, FBL3N)
39. Check the check run numbers (T.Code: FCH1, FCHI)
40. Bank reconciliation Data (T.Code: FF67 & FEBA)
41. Enter Tax Journal Entry (T.Code: FB41)
42. Reconcile GL balances with sub ledger balances AR/MM/AP (T.Code: F.03)
43. Display Balance Sheet Adjustments (T.Code: F.5F)
44. Post Balance Sheet Adjustments (T.Code: F.5E)
45. Post Foreign Currency Valuation (foreign exchange) (T.Code: F.05)
46. Check generic cost centers for posting with wrong accounts
47. Correct wrong postings on generic cost centers
48. Check Validation dates for Cost Centers, Cost Elements, CO area (T.Code:
GGB0)
49. Check COGI–for both month end and year end
50. Doubtful receivables (T.Code: F104)
51. Verify In-transit Inventory
52. Reconcile PA to G/L (T.Code: KE5U)
53. Post Cost Center Assessments and Distributions (T.Code: KSU5 & KSV5)
54. Run CO-FI Reconciliation to balance (T.Code: KALC)
55. Run BW reports P&L and Balance Sheet
56. Maintain CO yr variant (T.Code: KCRQ)
57. Fiscal Yr Balance carry forward AP/AR/AM (T.Code: F.07,
58. Fiscal Yr Balance carry forward CO (T.Code: CXS1)
59. Fiscal Yr balance carry forward FI (T.Code: F.16)
60. Fiscal Yr balance carry forward PCA (T.Code: 2KES)
61. Set Document number ranges – FI – new year (T.Code: OBH2, OBA7)
62. Set Document number ranges AP/AR – new year (OBA7)
63. Generate Financial statement Reports (T.Code:OB58) OR (T.Code: FSE2)
64. Change Fiscal Year For Assets (T.Code: AJRW)
65. Year end Closing– Asset Accounting–final for year end (T.Code: AJAB)
66. Close CO Posting Period : (T.Code: OKP1)
67. Close Prior A/R Posting Period (T.Code: OB52)
68. Close Prior A/P Posting Period (T.Code: OB52)
69. Close Prior MM Posting Period (T.Code: OMSY)
70. Reverse accruals and deferrals for the new month (T.Code: F.81)
71. Reconciliation of Financial Documents from old fiscal year and new fiscal year
(T.Code: FNSL)
72. Load Balances, Budget Data for Cost centers, sales
73. Update Retained Earning Account , balance carry fwd (T.Code: F.16)

Month end closing Activities

1. All the expenses including amortization, prepaid expenses, Preliminary
expenses and accruals have been booked.
2. Complete Bank Reconciliation (T.Code: FF67)
3. Make sure that Sum of Inter company balances is Zero
4. Suspense Accounts should be cleared regularly.
5. Ensure that all documents related to MM & SD have been entered in system.
(T.Code:F-22 & F-43)
6. Ensure that all billing documents are released to accounting.
7. Calculate Overheads on all process Orders (CO43)
8. Technically complete all process orders which are fully processed (CORM).
9. Calculate Variance (KKS1)à (Relevant only if Standard cost is calculated).
10. Settle all process orders which are technically complete (CO88).
11. Close All settled Process Orders
12. Close MM period (Transaction Code: MMPV).
13. Carry out GR/IR clearing (F.13) transaction
14. Depreciation Run (AFAB) has been carried out for the month
15. Close FI Posting period after the month end closing activity is over
(T.Code:OB52)

Year end closing Activities:

1. Calculate production work in progress on process orders which are not

technically complete.
2. Carry out Assessment cycle for Cost Centers.(T.Code: KSUB)
3. All month end closing Activities should be carried out.
4. Carry Forward Balances to next year
(With TC: F.16 we can carry forward the balance to next year. With TC: OBH2
copy the number ranges to next year Open next year periods by selecting the
Posting Period Variant. then test by posting the transaction in F-02)

 Month end closing Activities

1. All the expenses including amortization, prepaid expenses, Preliminary expenses and
accruals have been booked.

2. Complete Bank Reconciliation

3. Make sure that Sum of Inter company balances is Zero

4. Suspense Accounts should be cleared regularly.

5. Ensure that all documents related to MM & SD have been entered in system.

6. Ensure that all billing documents are released to accounting.

7. Calculate Overheads on all process Orders (CO43)

8. Technically complete all process orders which are fully processed (CORM).

9. Calculate Variance (KKS1)à (Relevant only if Standard cost is calculated).

10. Settle all process orders which are technically complete (CO88).

11. Close All settled Process Orders

12. Close MM period (Transaction Code: MMPV).

13. Carry out GR/IR clearing (F.13) transaction

14. Depreciation Run (AFAB) has been carried out for the month

15. Close FI Posting period after the month end closing activity is over.

Year end closing Activities:

1. Calculate production work in progress on process orders which are not technically
complete.
2. Carry out Assessment cycle for Cost Centers.
3. All month end closing Activities should be carried out.
4. Carry Forward Balances to next year
(With TC: F.16 we can carry forward the balance to next year.
With TC: OBH2 copy the number ranges to next year
Open next year periods by selecting the Posting Period Variant.
then test by posting the transaction in F-02)
Hope this will help.
Regards,
Ferry Lianto
Hi,
Following are the month end and year end operations.
1. Open and Close Period
2. Close period in MM module.
3. GR/IR Clearing
4. Foreign Currency revaluation.
5. Balance Sheet Adjustment
6. Balance Carry forward
7. Asset Fiscal Year Close
8. Asset Fiscal Year Open.
9. Settle Production Order
10 Depreciation Posting.
11 Settle Assets under construction.
12.Post Accruals and Deferrals.
13 Release Standard Cost estimate.
For internal order with availablity control
the budget carryfoward and commitment carryfoward are necessary when yearly closing.
This message was moderated.
I read that you have some valuable material on Month End & Year End Activities.
It would be of gr8 help if you can pls share the same with me.
If possible, kindly sent me a mail of the same.

This is Nabeela. I am going on my first assignment and I request to send me the month
end and year end closing procedures documents for cost center accounting. I will greatly
appreciate your help. Thanks

This is Nabeela. I am going on my first assignment and I request to send me the month
end and year end closing procedures documents for cost center accounting. I will greatly
appreciate your help. Thanks
But, there is something I don't understand! About month end closing
Is there any checks that the system execute while changing the period in the transaction
of "open and close period"? Or I can close a period in every moment?
And can I re-open - always - a period already closed?
I'd like to know if all the checks we've listed are procedures to ensure the Finance user
that everything is included in Accounting, or if there could be technical impact....
0
These are some Imp month closing activities.
Closing Activities
1 Open posting period for next year OB52
2 Review list of recurring journal entries FBD3
3 Execute Recurring Entries for A/R, A/P, G/L F.14
4 Process Parked A/R, A/P, G/L accounting documents FBV0
5 Final Cutoff for the Maintenance of Fixed Asset- Add Transfer and Retire ABUMN
6 Run Depreciation in Test Run and post AFAB
7 Verify Display Log for Depreciation Test Run AFBP
8 Capitalize AUC Assets if needed AIAB, AIBU
10 Enter Payroll Data to SAP CAT2
11 Verify Depreciation Balances with GL balances ABST2
12 Post Depreciation AFAB
13 Execute Asset History Report, and retire assets if needed S_ALR_87011963, ABAVN
14 Adjust specific depreciation areas if necessary ABCO
15 Reconcile AM sub ledger with GL ABST2
17 Check Bank Data S_P99_41000212
18 Review AR Open Items FBL5N
19 Review AP Open Items FBL1N
20 Execute Pending Invoices MRBP
21 Clear Open Item for GRIR, freight F.13
22 Reconciliation of Financial Documents and transactional figures F.03
23 Open new CO Posting Period: OKP1
24 Compare current (cost estimates) with last current price (Moving Average) OKBH
25 Update current cost price to material master price field CK11N, CK24
26 Process Freight charges, Match SD freight to actual V-31
27 Review Internal Order Postings OKSA
28 Settle All Orders KO88
29 Verify All Post Goods Issue have been Invoiced (Billing Due List) VF04
30 Review SD Billing Doc from prior month that have not yet been released to accounting
F.2D
32 Reconcile PI Inventory with SAP MI07
33 Perform Manual Adjustment if needed F-02, FB50
34 Verify balance of the GR/IR account MB5S
35 Post Accruals and Deferrals FBS1
36 Clearing of Cancelled Documents F-03, F-32, F-44
37 Check Profitability Segment Adjustment KISR
38 Aging Report-Reconcile GL balances with sub ledger balances AP FBL1N, FBL5N,
FBL3N
39 Check the check run numbers FCH1, FCHI
40 Bank reconciliation Data FF67 & FEBA
41 Enter Tax Journal Entry FB41
42 Reconcile GL balances with sub ledger balances AR/MM/AP F.03
43 Display Balance Sheet Adjustments F.5F
44 Post Balance Sheet Adjustments F.5E
45 Post Foreign Currency Valuation (foreign exchange) F.05
46 Check generic cost centers for posting with wrong accounts GGB0
47 Correct wrong postings on generic cost centers
48 Check Validation dates for Cost Centers, Cost Elements, CO area
49 Check COGI--for both month end and year end
50 Doubtful receivables F104
51 Verify In-transit Inventory
52 Reconcile PA to G/L KE5U
53 Post Cost Center Assessments and Distributions KSU5 & KSV5
54 Run CO-FI Reconciliation to balance KALC
56 Maintain CO yr variant KCRQ
57 Fiscal Yr Balance carry forward AP/AR/AM F.07
58 Fiscal Yr Balance carry forward CO CXS1
59 Fiscal Yr balance carry forward FI F.16
60 Fiscal Yr balance carry forward PCA 2KES
61 Set Document number ranges - FI - new year OBH2, OBA7
62 Set Document number ranges AP/AR - new yea OBA7
63 Generate Financial statement Reports OB58 , FSE2
64 Change Fiscal Year For Assets AJRW
65 Year end Closing-- Asset Accounting--final for year end AJAB
66 Close CO Posting Period : OKP1
67 Close Prior A/R Posting Period OB52
68 Close Prior A/P Posting Period OB52
69 Close Prior MM Posting Period OMSY
70 Reverse accruals and deferrals for the new month F.81
71 Reconciliation of Financial Documents from old fiscal year and new fiscal year FNSL
72 Load Balances, Budget Data for Cost centers, sales F.16
73 Update Retained Earning Account , balance carry fwd
Hope it will help you,
Regards,
33.How values update from asset accounting to GL Accounting

Parallel Valuation
Purpose
Along with the posting of depreciation (using the depreciation posting run), the most important
periodic processing you perform in Asset Accounting is posting changes to APC values. These
changes consist of all postings that affect the APC of the asset, including acquisitions, retirements,
and so on.

You need to post changes to APC values from more than one depreciation area to General Ledger
Accounting, if one of the following applies:
● You need to create different financial statement versions, for example, for internal and external

reporting. For this, you can define any number of financial statement versions per chart of
accounts in the General Ledger (FI-GL) (approach using additional accounts). A different
option is to post the parallel valuation with the same account set to different ledgers using
periodic posting (approach using parallel ledgers).
● You have a group depreciation area in a foreign currency, and you need to post changes to

APC values from this area to the ledger of the corporate group (see below).
● You calculate special reserves for special depreciation in a derived depreciation area. (This is

common in Germany in depreciation area 03 of the standard chart of depreciation.)

● To meet the needs of parallel accounting, you have to create an additional financial statement,

for example according to IAS, in addition to your financial statement based on your local
accounting principles.

Process Flow
At the present time, online (realtime) automatic posting to Financial Accounting is only possible for
one depreciation area. Therefore, changes to APC values (transactions) from other posting
depreciation areas have to be posted to G/L accounts either periodically or directly.

If you manage parallel valuation using the additional accounts approach, the G/L
accounts that are posted directly or periodically are not allowed to be reconciliation
accounts (based on the indicator in the account master record).
Parallel Valuation

You can also have the system directly update the values of periodically posting depreciation areas
during the posting transaction. (For more information, see Posting APC Automatically from
Depreciation Area to General Ledger.)
● To use this function, you have to make settings for the depreciation area in Customizing

for Asset Accounting. Choose Integration with the General Ledger Post APC Values
Periodically to the General Ledger  Maintain Posting Rules for Parallel Accounting
Principles. Set the PostDirect indicator.

Starting in Release ERP2004, this function has been replaced with the functions of the
new general ledger. You now no longer need a special ledger. Instead, you post to a
ledger in the General Ledger Accounting(FI-GL) component. If you upgraded to Release
ERP2004 from an earlier release, you can still use the ledgers of the Special Ledger (FI-
SL) component. However, you are restricted to using your existing posting rules. It is not
possible to create new posting rules.
Updating G/L Accounts Using APC Values Posting Report

Using the APC Values Posting report, you can post changes to APC values of all depreciation areas
to the appropriate G/L accounts, when the depreciation area is defined in Customizing for periodic or
direct posting.

On the SAP Easy Access screen, choose Accounting  Financial Accounting  Fixed
Assets  Periodic Processing APC Values Posting.
When the report is executed, the system posts APC transactions based on the settings for the given
depreciation area. Posting is either to the accounts in the account determination of the depreciation
area, or, when a Different Depreciation Area is specified in the area definition, to the accounts of that
different area.

The report generates one document for each month and affiliated company. The line items of the
document reflect the needed information (for example, one line item for each account determination
or business area). These line items are created in the same way as those for the online posting
transaction. The accounts are posted in the same way as with the online posting transaction.
Start Parameters

When starting the report, you can enter only the company code, not the periods to be posted. The
report always posts all transactions that took place up to the start date of the report, and which
were not yet posted to General Ledger Accounting. In addition, any cancelled documents from
depreciation areas that post directly are re-posted.

You enter the document type for posting in the company code settings for Asset Accounting. This
document type has to be assigned to a number range with external number assignment

In Customizing for Asset Accounting, choose Integration with the General Ledger Post APC Values
Periodically to the General Ledger  Specify Document Type for Periodic Posting of Asset Values.

First execute a test run, and correct any errors that are listed in the log. The update run of the report
has to be executed using background processing, in order to improve system performance.
Therefore, start the report as a background job. In the report selection screen,
choose Program  Execute in Background.
Consolidation

The system always uses the consolidation transaction type from the originally used transaction type
when both of the following apply: the system is posting a transaction affecting APC values and this
transaction is from a depreciation area for parallel valuation that is posted periodically to the general
ledger.

The system requires the posting amount both in the foreign currency and in the local currency for the
group consolidation. Therefore, for APC postings, the system posts the amount in group currency
from the group depreciation area to the corporate group ledger, in addition to the amount in the local
currency from the group depreciation area managed in local currency.

For more information, see Requirements for Consolidation.

Special Reserves

There are also derived depreciation areas that do not manage acquisition and production costs, but
that are used for creating special reserves (for example, area 03 special tax depreciation for
Germany). These depreciation areas also have to be posted periodically as parallel valuation. For
these derived areas, the program posts the proportional value adjustments resulting from retirements,
transfers, post-capitalization, and so on.

An asset has depreciation areas: 01 book depreciation, 02 tax depreciation, 03 special

depreciation (derived from 02 minus 01). You post a complete retirement to this asset
(asset value date 12/31). The acquisition and production cost was 1000, the asset has a
useful life of 10 years, and is in the 4th year of use. The three depreciation areas would
then have the values below:

Area 01

APC 1000

Prop. accumulated depreciation -300

Prop. depreciation current fiscal year -100

Current book value 600

The system posts the 600 being retired from the book depreciation area online
automatically within the framework of the retirement transaction. No automatic posting
takes place for area 02. The write-off of the special reserve amount of -250 is carried out
by the periodic posting of changes to APC in area 03.

For more information on the transfer of values from depreciation areas to General
Ledger Accounting, seeDepreciation Areas).
Parallel Financial Reporting in Asset Accounting

In Asset Accounting, you can meet different financial reporting needs using multiple depreciation
areas. If you need parallel financial reporting in your SAP System, that is you need valuation and
financial statements based on different accounting principles, you have to create a separate
depreciation area for each accounting principle. Different accounting principles in asset accounting
differ primarily in the following:
● Determination of Depreciation

● Capitalization of fixed assets produced in-house

You enter the different depreciation rules, useful lives, and so on, of the individual accounting
principles in separate depreciation areas. The system then determines depreciation for each
depreciation area in parallel, using the depreciation rules that were entered. This depreciation is
posted separately for each depreciation area.
35.How many periods we can open single time in asset accounting

How to Open & Close the periods in Asset Accounting for Depreciation.
May 29, 2009 at 02:30 PM | 49 Views
Dear All,
How to to How to Open & Close the periods in Asset Accounting for Depreciation ? Please
let me know
If there is any T.Code or procedure for it.

You don't open and close the periods for depreciation posting in FI-AA. In tbale TABA, you can
see the last period for which depreciation has been posted ("Posted up to"). You may ask a
"planned posting run" only for the next period. If you want a new run for an already posted
period, you have to choose "Repeat" run.
Dear Alex ,
1) I am facing one problem that one of my asset 123 I Capitalized on 13.09.2006 have deactivated on
14.05.2008. with value of Rs.1.00.000/- all the activities are closed down related it on deactivation date.
In 2009 a new asset 456 purchased with different value. But in T.code OARP in column cumulative acquisition
value it is showing value of Asset 123 instead of it's own capitalization value.
2 ) And about my Asset 123 it is also showing a Cumulative Acquisition value in year 2009 which it
should not display because I have already deactivated that asset. ( The same checked in AR03 )
Please help.
Your help is highly appreciated.
Regards,
Pankaj.
P.S :- Keep the discussion on for further assistance.

37.How many ways we can block the payment

Introduction

During the company payment process some open items can be blocked by the Payment Block
Key (PB – Payment Block) due for many reasons where we will discuss in this document to
discover many possibilities to block your open item or master data for payment processing.

The use of PB Key in the SAP system is define and described as below:

– Automatic Payment Transactions

– Manual Payments
– Release for Payment

In this first moment let´s understand about the payment block definition and the configuration
parameters related to it and in the second moment we will discuss where the payment block can
be defined to block the payment transactions.

Payment Block Definition

The payment block key is defined by a char indicator in OB27 having three important definitions
which will reflect on their use:

The PB Key blank – Free for payment will allow the payment posting for the open item or master
data, you can even change the description of it, but the use is the same, allowing the payment
posting.

There is another three PB Keys with the same special meaning as the Free for Payment, they
are:

– The block key * has the effect that all items of the account are skipped in automatic payment
transactions:
 The use of the payment block “Skip account” is when you need to block the vendor or
customer account of the Automatic Payment Transaction (F110). If your master data is set as * –
Skip Account, the automatic payment will not process any open item of this vendor or customer

– The block key + has the effect that all items are skipped in which a payment method was not
entered explicitly:

The use of the payment block “+” the open items which payment method was not entered
explicitly.

– The block key A is always set automatically when a down payment is entered. Therefore, you must
not delete the block key A or use it for other purposes:

The use of the payment block “A” to automatically set Down Payments blocked for payment. When
posting a down payment, SAP system define the block A for that sub-ledger line items to avoid
Automatic Payment Process to clear this open item with other offsetting open items.

Except about these special meaning payment blocks ( _ , A , * and +) you can create another and
determine three parameters indicators for it. Let´s check what is the meaning of each one:

– Indicator: Change in Payment Proposal Permitted?

If you set this indicator you can remove the payment block in the Automatic Payment
Proposal. This functionality is important when your treasury team can remove certain payment
blocks, but don´t have access to FB02 or accounting document changes to remove in the
Original Open Item.

– Indicator: Blocked for manual payments

 If you set this indicator, the payment is block in the Manual Payment Transactions as well in
the Automatic Payment.

Note that the Manual Payment Transactions are:

…F-28 – Incoming Payments

…F-52 – Incoming Payment

…F-53 – Post

…F-58 – Post + Print Forms

…F-59 – Payment Request

In the SAP standard, postings with Clear as F-51 and F-30 are not blocked because are not
considered as Manual Payment. Actually, in the SAP standard posting key definition for these
transaction codes are postings that are not set as Payment Transactions. You can change the
Indicator of Payment Transaction in the posting key (transaction code OB41) or set another
posting key which has the Payment Transaction Indicator (OBU1 transaction code) if you want to
consider these tcodes (Posting with Clearing) as payment transactions.

– Indicator: Payment block, not changeable

If you want to block the PB Key to be removed within a dialog transaction from an open item, you
can set this indicator. This mean that the payment must be released or changed by a program or
background function.

This payment block is relevant for the payment release workflow (sample workflow WS004000012)
in Financial Accounting. Please, check OSS Note 548278 – Workflow FAQ to learn more about the
payment release process.

We’ve checked about the Payment Block definition and from now, let´s see how to determine the
payment block and where it´s possible to set up the automatic definition of them.

Payment Block Determination

It´s possible to setup the automatic determination of these payment block in the open items
depending on the business need. Let´s check where we can configure to have this payment block
automatically defined.
Master Data:

It´s possible to set the PB Block in the Customer or in the Vendor Master Data in the Payment
Transactions at Company Code Level:

The definition of posting block in the Master Data Level will reflect for all open item payment for
that account.

Payment Terms (OBB8 Transaction Code):

It´s possible to set the payment block in the Terms of Payment. When posting any document with
the following Terms of Payment the Payment Block will be set. You can also set the Terms of
Payment in the Vendor Or Customer Master Data which implies in the Automatic Determination
of the Terms of Payment as well the Payment Block during the posting.
Invoice Block during the Logistics Invoice Verification:

The Logistic Invoice can also determine a payment block during the posting depending on the
tolerance limits checking defined in OMR6 transaction code or following the IMG path:
When the Logistic Invoice Posting reaches these tolerances the Payment Block R is set because
of the Invoice Verification.

If you need to implement some enhancements about the payment block at this moment, you can
look OSS Note 685158 – MRRL: Enhancement of ‘Payment block’ in EXIT_SAPLMRMH_001

The release the invoices blocked by this tolerance, MM-IV use the transaction code MRBR –
Release Blocked Invoices.

39.What is use of capitalization date

Dear gurus,
In AS03, in posting information, first acquisition date is the posting date taken from GR. Problem
is GR was cancelled but the date is still showing as the posting date.
How do I get the date to be blank as the GR was cancelled thru MBST.
 Your help will be greatly appreciated.
Regards,
Syed

FIN (Finance)

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Related questions
ABUMN error message AA396

By Former Member, Dec 19, 2007

Reversing asset capitalization

By Mainak Bhattacharjee, Feb 05, 2019

Invalid Asset Capitialization Date

By Former Member, Apr 07, 2006

1 Answer
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Former Member

Mar 11, 2008 at 05:26 PM

0
Hello
Check this info and * assign points if useful*
Dates in Asset Accounting
Use
In addition to the usual dates entered in Financial Accounting (posting date, document
date), there are special dates to consider in Asset Accounting. Either you enter these
additional asset accounting dates yourself, or the system determines them.
Features
Asset Value Date
The asset value date is the value date of an asset transaction from the asset accounting
point of view. Each transaction on a capitalized asset triggers the automatic calculation of
depreciation on the posting amount. The asset value date, corrected by the period control
of the depreciation key, is the key factor in determining the depreciation start date.
Default Values for Asset Value Date
Since the asset value date has a direct influence on the amount of depreciation, the
system creates a default value for this date when it can. The overview that follows shows
the default asset value date for the most important asset transactions:
Initial acquisition
Capitalization date from master record (if in same FY, otherwise posting date)
Subs. acquis. in the same year
Asset value date of initial acquisition
Subs. acquis. in later years
Document date
Down payment
Capitalization date from master record (if in same FY, otherwise posting date)
Investment support
Capitalization date from master record (if in same FY, otherwise posting date)
Revaluation
Date of revaluation measure
Credit memo at time of invoice receipt
Value date of the invoice receipt (if in same FY, otherwise posting date)
Later revenue/costs from retirement
Date of last retirement (if in same FY, otherwise posting date)
Manual adjustments
First day of fiscal year
Retirement/transfer
No default value (required entry)
Settlement of AuC
Posting date
If the capitalization date is not set in the asset master record after the initial acquisition,
or if this date is not in the current fiscal year, the system uses the logic below to
determine a default value for the asset value date:
If the document date and the posting date are both in the current fiscal year, the system
uses the earlier of these two dates as the default asset value date.
If the document date is in a past fiscal year, the system uses the posting date as the
default asset value date.
Automatically Set Asset Value Date
In the following posting transactions, you cannot enter an asset value date directly. The
system therefore uses the default asset value date automatically. It determines which
date it uses based on the table below:
Goods receipt (valuated)
Posting date
Invoice receipt with reference to purchase order (valuated)
Posting date of goods receipt (if in same FY, otherwise posting date)
 Invoice receipt without reference to purchase order (valuated)
Posting date
Invoice receipt (difference post.)
Posting date of goods receipt
Stock withdrawal
Posting date
Defining Your Own Logic for Determining the Asset Value Date
You can set up your own the method for determining the asset value date in Customizing
for Asset Accounting (choose Transactions). Or you can use a customer enhancement
project (transaction CMOD).
Capitalization Date
You can enter the capitalization date manually when you create the asset master record.
The system uses this date as the default asset value date when you post the first
acquisition to the asset. If you do not enter a capitalization date in the asset master
record, the system automatically adopts the asset value date of the first acquisition
posting as the capitalization date. The system inserts the asset value date of the first
acquisition posting in the capitalization date field (Capitalized on...) in the asset master
record, when a capitalizing transaction type is used.
Depreciation Start Date
The system determines the start period for depreciation calculation from the asset value
date and the period control specified in the depreciation key (period control method) of
the transaction category. The depreciation start date is the first day of the start period.
The system determines the book value of an asset at the point of retirement In a similar
fashion.
Date Asset Is Ready for Operation
Along with the date specifications already mentioned, you can also enter the date the
asset is ready for operation in the asset master record (in the detail specifications of the
depreciation areas). This date is for informational purposes only, and has no influence on
the calculation of depreciation. If you do not make an entry in this field, the system
automatically enters the capitalization date.
Fiscal Years That Can Be Posted
In the FI-AA component, it is possible to post to the current fiscal year and all previous
fiscal years back to the date of the legacy data transfer for assets. When you post to past
fiscal years, the system automatically updates all the relevant values in the subsequent
fiscal years. Therefore, it is possible to make correction postings in the previous fiscal
year, even after the fiscal year change (but before the year-end closing). However, after
posting in a previous fiscal year, you need to run the depreciation posting program again
for that year and all the following fiscal years up to the current fiscal year.
It is no longer possible to post to fiscal years that have been closed using the report for
this purpose (refer to Year-End Closing).

40.what is difference between valuation class and valuation area

What is the difference b/w the Valuation class & Valuation Area
Dec 21, 2010 at 10:28 PM | 47 Views
Hi Experts,
1. What is the difference b/w the valuation class and the valuation area?
2. Can I assign a valuation class to a valuation area?if so what is the T-Code?
3. Can I assign a material type to a valuation area? if so what is the T-Code?
Thank you,

 Former Member

Dec 22, 2010 at 05:59 AM

1) Valuation Area:An organizational unit in Logistics subdividing an enterprise for the

purpose of uniform and complete valuation of material stocks.
Valuation Class:Assignment of a material to a group of G/L accounts
With other factors, the valuation class determines the G/L accounts that are updated as a
result of a valuation-relevant transaction or event such as a goods movement.
The valuation class makes it possible to:
Post the stock values of materials of the same material type to different G/L accounts
Post the stock values of materials of different material types to the same G/L account
2 & 3) No
Reason:
A valuation class is assigned with Account Category reference...An Account Category
reference is assigned with Material type...So indirectly a or set of valuation class is
assigned with Material type....Now a valuation area(plant) is assigned with company
code...when a material master is created after entering the material type (so at this time
only the valuation class gets selected in the background) the system aks for Plant after
you have selected the views...
Regards,
Indranil

o Share

Former Member

Feb 16, 2011 at 06:03 AM

Valuation class & Valuation area are mainly used for automatic account determination.
When we work on any transation, system automatically search which GL account the
posting should happen.
Valuation Area:
It is combine together several valuation areas (plant/com codes) which use same chat of
account(Set of GL accounts).
 Valuation Class:
It is used to differentiate account determination with respect to material.
Ex. For any transaction system will look at the plant...which valuation are it is assigned
to....
Then the search will boil down to which material ...so which valuation class..... so which
GL account..
2& 3) No, These are not assigned to each other...
Take the example of postal address search.1st you will look at which country...then which
state...then which locality...house no/person name.
In the same way system use valuation area & valuation class.

o Share


Former Member

Dec 21, 2010 at 11:33 PM

0
Hello
In the standard SAP R/3 System, an account category reference is created for each
material type. The account category reference is, in turn, assigned to precisely one
valuation class. This means that each material type has its own VALUATION CLASS.
Quantity and Value String are defined by the material type customizing settings (OMS2).
When the material is created (MM01) under the accounting perspective (view Accounting
1) it will be linked to a VALUATION AREA.
The link between the valuation classes and the material types is set up via the account
category reference. It is customizable through the transaction OMSK.