DOCUMENT STRUCTURE

To simplify the storage of the original documents, the documents have to be divided into several categories. The SAP System works according to the document principle: A document is saved for every posting (refers to a business transaction). The document remains as a complete unit in the system until it is archived. Every document is uniquely identified by the following fields: 1. Document number 2. Company code 3. Fiscal year Documents in mySAP ERP Financials include the following: 1. A document header (information that applies to the entire document) 2. Between 2 and 999 document items (information that applies to the line item) Two important control keys: 1. Document type for the document header 2. Posting key for the line items The SAP system records at least one document for every business transaction. Each document receives a unique document number. The system can assign the document numbers (= internal number assignment) (always numeric) or the user can assign the number during document entry (= external assignment) (can be numeric or alphanumeric). A business transaction can create one or more documents. For example, when goods arrive from a vendor, a material document is created to record data that is important for inventory management. An accounting document is created to track financially-relevant information, such as G/L accounts and amounts. Many business transactions occur in the system for which documents are created, but no accounting document is created because there is no effect for accounting. An example of this would be a purchase order in Materials Management. Documents that are connected to each other are linked in the system, so that you have an overview of every business transaction in the system. Document Types Document is a defined at client level. The document type controls the document header and is used to differentiate the business transactions to be posted, for example, vendor invoices, customer payments, and so on. Document types are defined at client level and are therefore valid for all company codes. The standard system is delivered with document types that can be changed or copied. Document types define the following: 1. Number ranges for document numbers 2. Account types permitted for postings

Document types also define the following: a. The field status of the document header fields .Document Header Text. And Reference Number fields in the doc header b. Whether invoices are posted with the net procedure In the procedure recommended by SAP for storing original documents, the document type controls document storage. Always store the original documents under the number of the system document. If the original document has an external number: 1. Enter the external number of the original document in the "Reference Number" field in the system document header 2. Note the number of the system document in the original document We can create our own document types. The document types are classified on the basis of business transactions, which makes them easy to access & analyse. Every business transaction in sap ERP is identified by a document. Documents are uniquely identified by a document number for a given company code within a fiscal year. Document type AB allows postings to all account types. All other document types limit the types of accounts you can post to. Document type DG, for example, allows you to post to customer (D) and G/L accounts (S) only. To transfer billing documents from the mySAP ERP billing system, you need one of the following document types: 1. RV, the default document type for Sales Order Management billing documents (customer invoices). 2. RE, the default document type for Materials Management billing documents (vendor invoices). When internal number assignment is used, the system assigns a new number to each document in the Financial Accounting component. In external number assignment, the system transfers the billing document number to the accounting document, providing this number has not already been assigned. The payment program uses mostly the document type ZP for its automatic postings. Document Number Ranges The document number range defines the number range for the document numbers that are to be assigned. These number ranges must not overlap. 1. Internal number assignment: The system saves the last document number that was taken from the number range in the Current Number field and assigns the number following the current number as the next document number.

2. External number assignment: The user enters the number of the original document, or the number is assigned automatically from another system. The numbers are usually not used in sequence and therefore the system cannot store a current number (example 02). The numbers may be alphanumeric. The document number range must be defined for the year in which it is used. There are two options: 1. Up to a future fiscal year: At the beginning of a new fiscal year, the system uses the number following the current number as the next number. It does not restart at the first number of the number range. That means number ranges can be carried forward to next fiscal year. 2. For each fiscal year: At the start of a new fiscal year, the system starts again with the first number of the number range. This helps to ensure that the number range is sufficient. One number range can be assigned to several document types. You can copy the intervals of document number ranges from one company code to another, or copy intervals from one fiscal year to another. You can use report RFBNUM00 to find gaps in the document number assignment. Note If the ledger solution is mapped in new GL accounting, different ledgers (OL or LO) can use different fiscal year variants. It is then necessary to make special settings for these ledgers in customizing 1. Document number ranges are stored for the GL view. 2. The number ranges are assigned to the document types for the GL view. 3. Internal number assignment must be set for these number ranges Note - If the ledger solution is mapped in new GL accounting, document types for pure posting in a non-leading ledger must be assigned separate number ranges. This is done to ensure that there are no gaps in document assignment in the ledger view. Posting Keys: The posting key is a 2 digit numeric key defined at client level and is called as entry of document. The posting key has control functions within the line items. It controls 1. To which type of account the line item can be posted to (s,d,k,a & m). 2. If the item is posted as a debit or credit. 3. The field status of additional details. This key determines the field status of a line item entry such as whether the field of line items are required or optional or suppress. However this cannot influence all the fields in a document like the fields of Amount ,Account, Posting key itself. These fields will always be Required entry field & cannot be influenced by customizing. In addition to the above mentioned control functions, the posting key specifies the following: 1. Whether the line item is connected to a payment transaction or not. This information is required for analysing the payment history and creating payment notices. 2. Whether the posting is sales-relevant and the sales figure of the account is to be updated by the transaction, for example, by the posting of a customer invoice.

The posting keys have been enhanced for the Enjoy document entry functions. In the standard transactions, posting keys are labelled .debit. and .credit.. In Customizing, mySAP ERP delivers the following default values: 1. For G/L account posting: .Debit. is posting key 40, .credit. is posting key 50. 2. For customer invoices: .Debit. is posting key 01, .credit. is posting key 50. 3. For vendor invoices: .Credit. is posting key 31, .debit. is posting key 40. Document Field Status
The field status for posting an accounting document is determined by 3 factors 1. Posting Key 2. Account key (GL or Sub-ledger A/c) 3. Field status of account itself

During document entry, different fields are displayed depending on the transaction and the accounts used. For example, when posting expenses, cost center and tax information is usually required. However, when posting cash, this same information is not necessary. These different displays during document processing are controlled by the field status. As a general rule, you customize the account-specific field status for general ledger accounts. For customer and vendor processing, you customize the field status specific to the posting key as necessary. Just as in the field status definition in G/L accounts, the field status with the higher priority applies. Exceptions to this rule: 1. If business areas are used, the business area field must be ready for input. It is activated by enabling business area financial statements for the company code. You can only use the field status to define whether the field is a required or an optional entry field. 2. Entries in tax fields are only possible if the general ledger account is relevant for tax. The field status Hide cannot be combined with the field status Required entry. This combination causes an error. The system determines the field status dependent on Account Type (S, A, D, K & M) example the system automatically hides the terms of payment field for pure GL posting. Field Status Groups For each group of general ledger accounts, for example, cash accounts, expense accounts, you have to define the status of every document entry field. When using these G/L accounts, should the text field for document entry be a required field, an optional field, or a hidden field? Will the cost center field be required, hidden, or optional for document entry when using these G/L accounts? And so on. This information is divided into field status groups for each group of G/L accounts. You assign field status groups to the respective general ledger accounts in the general ledger account master records. The field status groups are summarized in one field status variant. Different company code can use 1 field status variant. The field status variant is assigned to your company code(s). No posting can be made until this is complete. Typically, you assign

the same field status variant to all of your company codes so that the same field status information applies across company codes. mySAP ERP delivers a standard set of field status groups. We recommend you copy the standard delivered field status groups and modify them as necessary. We can create, copy & modify field status groups. If a document is posted to a sub ledger account, the field status group of the reconciliation account is used. Standard Posting Keys SAP recommends that you use the standard posting keys delivered. If you change them or define new posting keys, all tables containing a reference to these keys must also be updated. Posting keys for assets and materials may only be used if the corresponding SAP components are installed. By changing the field status definitions of posting keys and the field status group, the field status can be made transaction-dependent and account-dependent. Since the sub ledger accounts do not have a field status group, differentiation in the sub ledger postings is mainly made via different posting keys. Therefore, there are a lot of posting keys for sub ledger accounts. In general ledger postings, differentiation is mainly made via different field status groups. Therefore, only two posting keys (40 and 50) are needed for general ledger postings.

Note In addition to the Account (Field status group field in GL A/c ) and posting key dependent field statuses for postings, mandatory fields are also controlled centrally for document splitting objects (such as segment or profit center) when document splitting is used.

POSTING PERIODS
At the end of a posting period the sub ledgers are closed; however, the general ledger accounts stay open for longer in order to have time to reconcile the Financial Accounting and Controlling ledgers for the last period.

Posting periods are defined in the fiscal year variant. To prevent documents from being posted to an incorrect posting period, you can close certain posting periods. Usually the current posting period is open and all other periods are closed. At the end of a period this period is usually closed and the next period is opened. You open a posting period by entering a range in the posting period variant that encompasses this period. You can have as many posting periods open as desired. During period closing, you open special periods for closing postings. In figure you can notice that period 13, 14, 15 & 16 are open along with period 12. During closing, two period intervals must be open at the same time. Therefore, two period intervals can be entered in the posting period table. Notice that both period 12 & 02 are open. Posting periods must be open to enable posting. Special periods have no start & end date, they are assigned to last posting period. For posting in special periods, the posting date must be in the last posting period. Several company codes can use the same posting period variant. For all company codes assigned, the posting periods are opened and closed simultaneously. In the document header, the periods assigned to the account type "+" are checked. This is the first check. The account type .+. must therefore be open for all periods that are supposed to be open for all other account types. The posting period variant must contain at least the account type .+.. If the posting periods for different account types are all to be handled in the same way, the control via the + entry is sufficient. Posting periods can be handled differently for different account types, that is, for a certain posting period, postings to customer accounts may be permitted while postings to vendor accounts may not. At the line item level, the system checks the account type of the posting key to ensure that the period is open for the assigned account type. Subsequently you can restrict open & close periods by number range.

The account interval always contains G/L accounts. By entering certain reconciliation accounts behind sub ledger account types, these sub ledger accounts can be treated differently to accounts that have a different reconciliation account.

During closing, two period intervals must be open at the same time. Therefore, two period intervals can be entered in the posting period table. An authorization group may be assigned to the first period interval. Then, only users belonging to this authorization group have the permission to post in the first period interval. It makes sense to use the first range for the special periods and authorize only the accountants involved in closing to post in the special periods. The posting period can be opened or closed based on account types can also control open or closed based on authorisation group. One set of users falling under one authorisation group could have access to posting, while for all other users the posting period will be closed. With the new GL accounting, a third period interval is displayed. In this interval, open periods are stored for the real-time integration CO-FI. This interval can only be used for account type +. The third interval is used to control whether FI postings triggered from CO really should be able to be posted in the periods. If the third interval is not filled, the entries in interval 1 & 2 are also valid for these postings. With the new GL accounting, there is also the option to control more precisely which values for which individual account assignment objects can be posted, & when example it should be possible to post to profit center 1000, while the person responsible for profit center 2000 does not want to permit postings any more. Determination of Posting Periods during Posting When entering a document, among other items, you enter the posting date the system automatically determines the posting period and fiscal year based on the posting date entered.

In the document overview, the posting date, posting period, and fiscal year are displayed. The posting period determined is entered in the document and the transaction figures for this posting period is updated. If you display the balance of an account, the transactions figures for the posting periods are displayed.

POSTING AUTHORISATIONS

Tolerance group are basically the limit set for posting the limits of amounts in a company code such limit can be set not only for the company code but also for the user group. Tolerance groups are created at client level, assigned to company code which in turn gets assigned to employees. Tolerance groups, once assigned to the user, determine the limits for the amounts that the user can post in any transaction. Focus on Upper limits for posting transactions or Maximum amounts. In tolerance groups you can enter upper limits for the following: 1. Total amount per document 2. Amount per customer/vendor item 3. Cash discount a user with this tolerance group is able to grant The currency is the local currency of the company code. You can create as many tolerance groups as you like. Every user can be explicitly assigned to a tolerance group. If users are not assigned to any special tolerance group, then entries in the tolerance group ____ are valid for them. This is the default tolerance group. Usually the tolerance group ____ contains values which are meant to apply to most employees. For any employees who have especially high (Chief accountant) or low limits (Accounting clerks), a special tolerance group should be created and assigned to their user logon ID.s.

SIMPLE DOCUMENTS IN FINANCIAL ACCOUNTING

Simple Postings in mySAP ERP Financials OR ENJOY transaction: The SAP Financial Accounting component uses one posting transaction for several different postings, for example: 1. G/L account postings 2. Customer invoice postings 3. Customer credit memo postings 4. Vendor invoice postings 5. Vendor credit memo postings You enter the general data for the posting document on the screen in the document header, for example, invoice and posting date, text, and so on. For entering invoice and credit memos received, you can define a document type for each transaction, which then appears as a general default value. You can overwrite this proposed document type at any time as long as the document type field is ready for input during document entry. If you do not define a document type, the system proposes standard document types; for example, KR for entering vendor invoices. The important input fields are in the foreground on a tab page and the fields used less frequently are on the subsequent tab pages. With customer and vendor invoices, you enter the business partner account data in this section together with the invoice or credit memo amount. When you then choose Enter, the business partner master data is also displayed alongside the account name, address, and bank details. You can display an open item list by pressing the Open Items button. In addition to the header and item data, the entry screen also contains an information area where you can see the display balance. Via the button .Tree., you can access screen variants, account assignment templates, and held document that you can select as templates. Users can navigate from a tree structure on the left hand side of the screen. Enjoy Posting Screen: Additional Line Items Enter the additional line items for the document in the table in the bottom section of the screen. The account name (short name) appears once you have made and confirmed your entries. You can select different fields or columns and change the size and sequence of the columns and fields. You can also copy line items. At the top of the screen, you can select from Park, Post, or Hold, to complete the document entry transaction once the balance is zero. You can still use the standard transaction for entering postings. For complex postings you can access the complex posting transaction via the menu. You cannot return to the initial screen from this complex posting transaction. You can enter an explanatory text for the line item. This item text can be used internally and externally. If you want to use the texts for external purposes, for example, in correspondence, dunning notices, payment advice notes, and so on, enter a .*. in front of the text (the .*. is removed for the printout). In Customizing, you can define text templates under a four digit key - these text templates are copied into the line item when you enter the relevant key in the text field during document entry.

Some features that are available to you while entering the document include 1. Copying the line items 2. Park, post or hold 3. Accessing the complete posting screen