Document structure/ control 1) A document is saved for every posting.

Every Document is uniquely identified by the Document Number, Company Code and Fiscal Year. 2) A Document contains Document header + 2 to 999 line items. 3) Document Type : Controls the Document header and classify the business transa ctions to be posted. >> Posting Key : Controls the Line items. 4) Document types are defined at client level. Document types define the followi ng: a) Number ranges for Document number. b) Account types permitted for postings. And also c) The field status of document header Text and Reference number in the Document hea der. d) Whether the invoices are posted with net procedure. 5) Standard Document types are : KR Vendor Invoice DR Customer Invoice. KG Vendor Cr.Memo. DG Customer Cr.Memo. KZ Vendor Payment DZ Customer Payment. AB General Document SA G/L a/c posting. 6) Document numbers can have internal or external number assignment. 7) Up to a future fiscal year Number range will continue irrespective of year en d. For each fiscal year At the start of a new year the system starts the number ass ignment again at the start of the number range. (You need to define number range for every new fiscal year) 8) The document number range must not over lap. 9) Document type AB allows postings to all account types. 10) One number range can be assigned to several document types. 11) Posting keys are defined at client level. 12) Posting keys control: i) On which type of account the line item can be posted to ii) The item is posted as a Debit or Credit.? iii) The field status of additional fields. In addition to this posting key specifies the following:

>> Whether line item is connected to payment transaction or not. >> Whether posting is sales relevant. 13) Document line item fields are controlled by : a) G/L Account specific field status group assigned to the G/L account while cre ating. (Account specific field status groups are summarized under field status v ariant which is assigned to company code) If the document is posted to a sub led ger a/c, the field status group of the reconciliation a/c is used. b) Posting key specific field status group. (The field status HIDE cannot be combined with the field status REQUIRED entry w hich causes an error.) 14) Document type does not have default posting key or vise versa. For each FI t ransaction (E.g. Invoice, Credit memo, Out going payment) you can define a docum ent type and default posting key at: IMG:FI A/cing>F.A.Global Settings>Document>Default values for document processin g>Default values. (E.g. When posting outgoing invoices, you use the document type "DR" and posting key "01". You can store these specifications in the system. They are proposed by the system when you call up the corresponding transaction). Posted by Ketan at 11:49 AM 0 comments Email ThisBlogThis!Share to TwitterShare to Facebook Labels: document structure/ control General Ledger Master Records 1) a) b) c) There are 3 steps to create and use a chart of accounts (COA) Define COA Define the properties of the COA Assign the COA to Company codes.

2) The COAs is a variant that contains the structure and the basic information a bout general ledger accounts. 3) a) b) c) d) e) f) g) The Definition of COA contains Four digit COA key. COA Name. Maintenance language, Length of the G/L Account number. Integration with Controlling (CO) Manual/Auto creation of Cost Elements. Group Chart of accounts. Status Block indicator.

4) Length of G/L accounts can be from 1 to 10 digits. 5) One COA can be assigned to several company codes.

6) GL Master contains COA segment and Company code segment. 7) The Information entered in the COA segment for a G/L account applies to all c ompany codes using that COA. 8) The Chart of account segment contains following details: i) Type/Description - Account group. - P/L or Balance sheet item. - Description Short/Long text. - Group Chart of Account G/L. no. ii) Key word Translation. Key words in COA - Translation. iii) Information - Info in COAs - G/L text in COA.s 9) The Company code segment of G/L master contains: Only bal in a. Control Data. Account Control local currency, Exchange rate diff, Tax Categor y.A/c Management in Company code.- Open/Line item management, b. Bank interest c. Information. 10) Account Group Controls - Number ranges of the account. - Status of fields in the company code segment of the master record. 11) Field status has following properties - Hide. - Display. - Required entry. - Optional entry. 12) Fields displayed in G/L account master record are controlled by: a. Account group b. Transaction specific controls (Create/Change/Display). 13) Field status group assigned to a G/L codes in Company code segment is to con trol the field status of the financial transaction entered in that G/L account. 14) While creating Reconciliation account G/L master Reconciliation a/c type nee ds to be assigned i.e. D Accounts receivable or K Accounts payable 15) You cannot post amounts directly to reconciliation accounts. 16) You can only activate or deactivate open item management if the account has a zero balance. 17) If the account currency is the local currency the account can be posted to i n any currency. 18) Account in Foreign currency as account currency can only be posted to in tha t foreign currency. 19) The group chart of account is assigned to each operational chat of accounts. If this is done Group account number in COA segment of the Operational COAs is a required entry field. 20) Country COA/Alternative COA number is entered in company code segment. This makes alternative G/L a/c field in Company code segment of the G/L master record a required entry.

21) Different accounts of one operational COAs can refer to the same group g/l a ccount. However one country chart of a/c GL code can be referred to only one ope rational GL a/c. Every country chart of accounts number can only be used once. 22) If all the companies are using the same operational COA then consolidation i s possible otherwise Group COA is used for Consolidation. 23) G/L accounts with open line item management must have line item display acti vated. 24) GL account number ranges are always external where as for customer/vendor it can be internal as well as external number assignment. 25) For Cross company code controlling, companies must use the same chart of a/c s. 26) Number intervals for G/L account master data can overlap. 27) The fields Account currency and Field status Group are always required entry fie lds. This status cannot be changed. 28) Reconciliation accounts are general ledger accounts assigned to the business partner master data to record all transactions in the sub ledger. IMG: Financial A/cing>G/L A/cing>Master records>Preparations >Additional Activit ies>Define screen layout for each transaction 9Create/Change/Delete) Posted by Ketan at 11:23 AM 0 comments Email ThisBlogThis!Share to TwitterShare to Facebook Labels: G/L Master Record Finance Terminology Client: In commercial, organizational and technical terms, a self-contained unit in an R/3 System with separate master records and its own set of tables. Company Code: The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of exter nal reporting. Business Area: An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to wh ich value changes recorded in Financial Accounting can be allocated. Enterprise structure: A portrayal of an enterprise's hierarchy. Logical enterpri se structure, including the organizational units required to manage the SAP Syst em such as plant or cost center. Social enterprise structure, description of the way in which an enterprise is or ganized, in divisions or user departments. The HR application component portrays the social structure of an enterprise fiscal year variant: A variant defining the relationship between the calendar an d fiscal year. The fiscal year variant specifies the number of periods and speci al periods in a fiscal year and how the SAP System is to determine the assigned posting periods. Fiscal Year: A period of usually 12 months, for which the company produces finan cial statements and takes inventory. Annual displacement/Year shift: For the individual posting periods various entri es may be necessary. For example, in the first six periods the fiscal year and c alendar year may coincide, whereas for the remaining periods there may be a disp lacement of +1.

Chart of Accounts: Systematically organized list of all the G/L account master r ecords that are required in a company codes. The COA contains the account number , the account name and control information for G/L account master record. Financial statement version: A hierarchical positioning of G/L accounts. This po sitioning can be based on specific legal requirements for creating financial sta tements. It can also be a self-defined order. Account group: An object that attributes that determine the creation of master r ecords. The account group determines: The data that is relevant for the master r ecord A number range from which numbers are selected for the master records. Field status group: Field status groups control the additional account assignmen ts and other fields that can be posted at the line item level for a G/L account. Posting Key: A two-digit numerical key that determines the way line items are po sted. This key determines several factors including the: Account type, Type of p osting (debit or credit),Layout of entry screens . Open item management: A stipulation that the items in an account must be used to clear other line items in the same account. Items must balance out to zero befo re they can be cleared. The account balance is therefore always equal to the sum of the open items. Clearing: A procedure by which the open items belonging to one or more accounts are indicated as cleared (paid). Reconciliation account: A G/L account, to which transactions in the subsidiary l edgers (such as in the customer, vendor or assets areas) are updated automatical ly. Special G/L indicator: An indicator that identifies a special G/L transaction. S pecial G/L transactions include down payments and bills of exchange. Special G/L transaction: The special transactions in accounts receivable and acc ounts payable that are shown separately in the general ledger and sub-ledger. They include: Bills of exchange Down payments Guarantees House Bank: A business partner that represents a bank through which you can proc ess your own internal transactions. Document type: A key that distinguishes the business transactions to be posted. The document type determines where the document is stored as well as the account types to be posted. Account type: A key that specifies the accounting area to which an account belon gs. Examples of account types are: Asset accounts Customer accounts Vendor accounts G/L accounts Dunning procedure: A pre-defined procedure specifying how customers or vendors a re dunned. For each procedure, the user defines Number of dunning levels Dunning frequency Amount limits Texts for the dunning notices Dunning level: A numeral indicating how often an item or an account has been dun ned. Dunning key: A tool that identifies items to be dunned separately, such as items you are not sure about or items for which payment information exists. Year-end closing: An annual balance sheet and profit and loss statement, both of which must be created in accordance with the legal requirements of the country in question. Standard accounting principles require that the following be listed: All assets All debts, accruals, and deferrals

 All revenue and expenses Month-end closing: The work that is performed at the end of a posting period. Functional area: An organizational unit in Accounting that classifies the expens es of an organization by functions such as: Administration Sales and distribution Marketing Production Research and development Classification takes place to meet the needs of cost-of-sales accounting. Noted item: A special item that does not affect any account balance. When you po st a noted item, a document is generated. The item can be displayed using the li ne item display. Certain noted items are processed by the payment program or dun ning program - for example, down payment requests. Accrual and deferral: The assignment of an organization's receipts and expenditu re to particular periods, for purposes of calculating the net income for a speci fic period. A distinction is made between: Accruals An accrual is any expenditure before the closing key date that represents an exp ense for any period after this date. Deferral Deferred income is any receipts before the closing key date that represent reven ue for any period after this date. Statistical posting: The posting of a special G/L transaction where the offsetti ng entry is made to a specified clearing account automatically (for example, rec eived guarantees of payment). Statistical postings create statistical line items only. Valuation area: An organizational unit in Logistics subdividing an enterprise fo r the purpose of uniform and complete valuation of material stocks. Chart of depreciation: An object that contains the defined depreciation areas. I t also contains the rules for the evaluation of assets that are valid in a speci fic country or economic area. Each company code is allocated to one chart of dep reciation. Several company codes can work with the same chart of depreciation. T he chart of depreciation and the chart of accounts are completely independent of one another. Asset class: The main criterion for classifying fixed assets according to legal and management requirements. For each asset class, control parameters and default values can be defined for d epreciation calculation and other master data. Each asset master record must be assigned to one asset class. Special asset classes are, for example: Assets under construction Low-value assets Leased assets Financial assets Technical assets Depreciation area: An area showing the valuation of a fixed asset for a particul ar purpose (for example, for individual financial statements, balance sheets for tax purposes, or management accounting values). Depreciation key: A key for calculating depreciation amounts. The depreciation key controls the following for each asset and for each deprecia tion area: Automatic calculation of planned depreciation Automatic calculation of interest Maximum percentages for manual depreciation The depreciation key is defined by specifying: Calculation methods for ordinary and special depreciation, for interest and for the cutoff value Various control parameters

Period control method: A system object that controls what assumptions the system makes when revaluating asset transactions that are posted partway through a per iod. Using the period control method, for example, you can instruct the system only t o start revaluating asset acquisitions in the first full month after their acqui sition. The period control method allows different sets of rules for different types of asset transactions, for example, acquisitions and transfers. Depreciation base: The base value for calculating periodic depreciation. The following base values are possible, for example: Acquisition and production costs Net book value Replacement value Posted by Ketan at 11:01 AM 0 comments Email ThisBlogThis!Share to TwitterShare to Facebook Labels: Finance Terminology Bank Accounting 1) Bank Master can be created four ways : i) When entering Customer/Vendor master records or in the customizing for house banks. ii) Using the create bank transaction in the accounts payable/receivable master data menu. The bank directory can be imported from disk/tape using program RFBVALL_O. Customers using lock box function can create a batch input session that automati cally updates customer banking information in the master records. 2) Bank key contains - Bank Master data contains Bank name, Region (State), Addr ess 3) Bank key is assigned to a house bank. 4) GL a/c code is assigned to the house bank along with Account id. 5) Steps to create House bank i) Create bank master with bank key (E.g. 01) ii) Create House bank (E.g. ICICI) Enter House bank id, Country, Bank key, Conta ct person + telephone numbers. iii) Create bank a/c Enter House bank id already created (It will take bank addr ess from already assigned bank key to that house bank id), Bank id (E.g. SB), De scription (E.g.-Savings bank a/c), Bank a/c no, Currency, G/L a/c. iv) Change G/L a/c in tab -create/bank/interest, enter house bank id and Account id. Summary (a) Create -Bank key, (b) Create house bank id and add bank key.

(c) Create bank a/c with Account id and assign GL a/c. (d) Modify G/L a/c and assign House bank+Account id. 6) For every bank a/c G/L account must be created. This G/L account is assigned to the bank a/c and vice versa. Both accounts have to have the same account curr ency. 7) In the Customer/Vendor master record, the field Bank Type is used to distinguis h between different banks. 8) Using the house bank id and the bank types the payment program determines the banks to be used. 9) Each bank a/c is reflected in the SAP system by a combination of house bank I D and account ID (bank type). 10) The bank group is used for classifying banks. The key is freely assignable. The aim of classification is to group banks together in such a way that payment transactions within a group can be carried out as fast as possible (payment opti mization). 11) The SWIFT code is used for identifying banks in international payment transa ctions. 12) Every bank master record is identified by the bank country and bank key. Posted by Ketan at 10:57 AM 0 comments Email ThisBlogThis!Share to TwitterShare to Facebook Labels: Bank Accounting Assets and Liability closing T codes 1. Process Depreciation Run Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Dep reciation run -> Execute - AFAB 2. Process Investment Grant Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Inv estment grant - AR11 3. Process Revaluation Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Rev aluation for the balance sheet -> Post revaluation - AR29 4. AA Fiscal Year Change Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Fis cal year change - AJRW 5. AA Fiscal Year Close Account Reconciliation Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Yea r-end closing -> Account reconciliation - ABST2 6. AA Fiscal Year Close Accounting -> Financial accounting -> Fixed assets -> Periodic processing -> Yea r-end closing -> Execute - AJAB 7. Produce Asset History Sheet Accounting -> Financial accounting -> Fixed assets -> Info system -> Reports on Asset Accounting -> Balance Sheet Explanations -> International -> Asset History Sheet

or Accounting -> Financial accounting -> Fixed assets -> Info system -> Reports on Asset Accounting -> Balance Sheet Explanations -> Country Specifics - various 8. Produce GR/IR Balance Report Logistics -> Materials Management -> Inventory Management -> Environment -> Bala nces Display -> List of GR/IR Bals. - MB5S 9. Maintain GR/IR Clearing Account Logistics -> Materials Management -> Invoice Verification -> Invoice Verificatio n -> Further processing -> Maintain GR/IR acct - MR11 10. Material Revaluations Price Changes (manual) Logistics -> Materials Management -> Valuation -> Valuation -> Price Determinati on -> Change price - MR21 11. Material Revaluations Debit/Credit Material Logistics -> Materials Management -> Valuation -> Valuation -> Price Determinati on -> Debit/cred. material - MR22 12. Product Costing Material Price Change Accounting -> Controlling -> Product Cost Controlling -> Product Cost Planning > Material Costing -> Price Update - CK24 13. Material Ledger Closing Logistics -> Materials Management -> Valuation -> Actual Costing/Material Ledger -> Periodic material valuation -> Post closing - CKMI 14. Materials Management Closing Logistics -> Materials Management -> Material Master -> Other -> Close period MMPV 15. Materials Management Closing Control Posting to Prior Period Logistics -> Materials Management -> Material Master -> Other -> Allow posting t o previous period - MMRV 16. Lowest Value Determination Market Prices Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuat ion -> Determ. lowest values -> Market prices - MRN0 17. Lowest Value Determination Range of Coverage Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuat ion -> Determ. lowest values -> Range of coverage - MRN1 18. Lowest Value Determination Movement Rate Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuat ion -> Determ. lowest values -> Movement rate - MRN2 19. Lowest Value Determination Loss-Free Valuation Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuat ion -> Determ. lowest values -> Loss-free valuation - MRN3 20. LIFO Valuation Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuat ion -> LIFO Valuation - Various 21. FIFO Valuation Logistics -> Materials Management -> Valuation -> Valuation -> Bal. sheet valuat ion -> FIFO Valuation - Various 22. Physical Inventory Processing Logistics -> Materials Management -> Physical Inventory - Various 23. Analyze GR/IR Clearing Accounts and Display Acquisition Tax Accounting -> Financial accounting -> General ledger -> Periodic processing -> C losing -> Regroup -> GR/IR clearing - F.19 24. Define Adjustment Accounts for GR/IR Clearing IMG -> Financial Accounting -> General Ledger Accounting -> Business Transaction s -> Closing -> Regrouping -> Define Adjustment Accounts for GR/IR Clearing - OB YP 25. Print Balance Confirmation Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Closi ng -> Check/count -> Balance confirmation: Print or Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Print correspondence -> Balance confirmation -> Print letters - F.17

26. Configure Balance Confirmation Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Closi ng -> Check/count -> or Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Print correspondence -> Balance confirmation - F.1B, F.1A 27. Post Individual Value Adjustment Accounting -> Financial accounting -> Accounts receivable -> Document entry -> O ther -> Intern. trans. posting -> Without clearing - F-21 28. Define Account Determination for Flat-Rate Individual Value Adjustment IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Busin ess Transactions -> Closing -> Valuate -> Valuations -> Define Accounts OBB0 29. Configure Flat-Rate Individual Value Adjustment IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Busin ess Transactions -> Closing -> Valuate -> Valuations -> SPRO 30. Calculate Flat-Rate Individual Value Adjustment Accounting -> Financial accounting -> Accounts receivable -> Periodic processing -> Closing -> Valuate -> Further valuations - F107 31. Writing-Off Doubtful Receivables Accounting -> Financial accounting -> Accounts receivable -> Document entry -> O ther -> Intern. trans. psting -> With clearing - F-30 32. Customizing Exchange Rates IMG -> General Settings -> Currencies - Various 33. Maintaining Exchange Rates Accounting -> Financial accounting -> General ledger -> Environment -> Current s ettings -> Enter exchange rates - OB08 34. Customizing Valuation Methods IMG -> Financial Accounting -> General Ledger Accounting -> Business Transaction s -> Closing -> Valuating -> Foreign Currency Valuation -> Define Valuation Meth ods - OB59 35. Foreign Currency Open Item Valuation Accounting -> Financial accounting -> General ledger -> Periodic processing -> C losing>>Valuate -> Valuation of Open Items in Foreign Currency - F.05 36. Account Determination for Exchange Rate Differences IMG -> Financial Accounting -> General Ledger Accounting -> Business Transaction s -> Closing -> Valuating -> Foreign Currency Valuation -> Prepare automatic pos tings for foreign currency valuation - OBA1 37. Regroup Receivables and Payables Accounting -> Financial accounting -> A/P or A/R -> Periodic processing -> Closi ng -> Regroup -> Receivables/ Payables - F101 38. Account Determination for Regrouping Receivables and Payables IMG -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Busin ess Transactions -> Closing -> Regrouping - OBBV, OBBW, OBBX 39. Revalue Foreign Currency G/L Account Balances Accounting -> Financial accounting -> General ledger -> Periodic processing -> C losing -> Valuate -> Foreign Currency Valuation of Inventory - F.06 40. Posting Accruals/Deferrals Accounting -> Financial accounting -> General ledger -> Periodic processing -> C losing -> Valuate -> Enter Accrual/Deferral Doc. - FBS1 41. Posting Accrual/Deferral Reversal Accounting -> Financial accounting -> General ledger -> Periodic processing -> C losing -> Valuate -> Reverse Accrual/Deferral Document - F.81 42. Generate Recurring Entry Posting Accounting -> Financial accounting -> General ledger -> Periodic processing -> R ecurring Entries -> Execute - F.14