SAP FICO T Codes & Definitions

Enterprise Structure:-
[Link] Company (OX15):- Company is the smallest organizational unit. A company can include one are more
company codes .The company definition is optional. A company in SAP is denoted by six-character alphanumeric
code. Under group company, you generate consolidated financial statements as per requirements of an
organization.

Example: – Reliance Group, Wipro group, etc.

[Link] Company Code (OX02):- Company code is the smallest unit in an organization for which financial
statements (profit-loss statement, balance sheet etc.) will be generated separately.

 The definition of company code in SAP is mandatory.

 It is denoted by a 4-character alphanumeric code.

 It is mandatory to create at least one company code for implementing the SAP financial
accounting module.

[Link] Business Area (OX03):- Business area represents specific business segments or area of company.
Ex:- SPLB – Bangalore Business Area.

[Link] Company Code to Company (OX16):-The link between company and company code in SAP is
established through an assignment of company code to company.

[Link] Fiscal Year Variant (OB29):- Fiscal year Variant is used to define the fiscal year. A fiscal year variant
contains the 12 normal posting periods and 4 special periods. We can define maximum 16 posting periods for the
year. Special periods are used for Year-end activities.

 Financial accounting period is also called as “fiscal year” which consists of 12 periods (1 month = 1
period).
 Each period in a fiscal year is called as posting period
 When you post the transactions in SAP R/3 system, then the transactions are assigned and updated to a
particular posting period.

How the companies maintain standard fiscal year variant

 Indian Companies follow 12 posting periods (April – March) with 4 Special Periods –(V3)

 US companies follow 12 posting periods (Jan – Dec) with 4 Special periods – (K4)

 European companies follow posting periods from (July – June )– with 4 Special periods-(V6)

 African companies follow 12 posting periods (October to September) – (V9) with 4 Special periods.

Fiscal Year in SAP can be defined as two types

[Link] Dependent:- The financial year is same as calendar year. Starting from 1st Jan to 31st Dec.

[Link] Independent:- The financial year is different from calendar year. Starting from 1st April to 31st March.

6. Assign Company Code to Fiscal Year Variant (OB37):-The link between company code and fiscal year
variant is establish through the assignment.

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7. Define Variants for Open Posting Periods (OBBO):- Posting period variant (PPV) is a variant that controls
to open and close the posting periods for entries.

8. Assign Variants to Company Code (OBBP):- The link between company code and posting period variant is
established through the assignment.

[Link] and Close Posting Periods (OB52):- Open and close posting periods variant enables to open the
current posting periods and other posting periods remains in closed. It controls what are the posting periods to
open and close for entries. Through posting period variant, you can determine which company codes are open for
posting period.

10. Define Document Types (OBA7):- Document Type Key is used to distinguish between different business
transactions and to classify the accounting documents. It is also used to determine the number range for
documents and account types such as asset, material, vendor, etc. for posting.

11. Define Field Status Variants (OBC4):- Field Status Variant is used to define the fields which are used for
input like cost centre, profit centre, plant, etc., which are entry fields, and hidden fields. Field status Variant is a
tool which is provided by SAP to assign the same set of properties to more than one object.

Difference between field status variant and field status group

Field status variant will have field status groups. Field status group is maintained in GL account and it defines the
fields while posting to the GL.

12. Assign Company Code to Field Status Variants (OBC5):- The link between company code and field
status variant is established through the assignment.

13. Edit Chart of Accounts List (OB13):- Chart of accounts is a list of GL accounts master record that are used
by the organization. The master chart of accounts must be assigned to each company code. Chart of accounts is
defined at client level. There are 3 types

1. Operating COA:- Day to day activities. It is mandatory.

2. Country COA:- It is used for legal requirements of each country. It is additional and optional.

3. Group COA:- It is used for consolidation purpose of company codes.

14. Assign Company Code to Chart of Accounts (OB62):- The link between company code and chart of
accounts is established through the assignment of company code to chart of accounts in SAP.

15. Define Account Group (OBD4):- Account group determines which fields you can configure on the G/L
master record. It is necessary to have at least two one for Balance sheet another P&L a/c. it controls the number
ranges of G/L a/c. The status of fields of the master record of GL belongs to company code area.

[Link] Retained Earnings Account (OB53):- At the year end, the net profit earned should be carry
forwarded to balance sheet liabilities side as an opening balance to next year.

To complete this activity, SAP has made it mandate to define a GL account which is retained earnings account to
which the net profit will be carry forwarded.

It is bridge to flow the net profit or loss to the balance sheet.

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17. Define Tolerances Group for G/L Accounts (OBA0):- Tolerance groups allow the SAP system to process
and post the transactions beyond the tolerance groups limits. Tolerances are referred as payment differences, it
can be an amount tolerance, percentage tolerance, and debit & credit tolerance.

[Link] Tolerances Groups for Employees /Users (OBA4):-

Tolerance groups for employees in SAP determines the upper limits for postings as per

 Amount per document

 Amount per open item account

 Cash discount

 Payment differences.

19. Assign Country Code to Calculation Procedure (OBBG):- Every country will have a separate tax
calculation procedure, based on which taxes will be calculated and deposited to tax departments.

Ex:- City - Name - Procedure

IN - India - TAXIN

20. Define Document Splitting:- (To split the line items) ONLY PATH:-

Navigation:-SPRO-SAP Reference IMG-Financial Accounting (New)-General Ledger Accounting (New)-

Business Transactions-Document Splitting-Activate Document Splitting

21. Enter Global Parameters (OBY6):- Global parameters control how a company code behaves in the SAP
system; these parameters influence the way system process the business transactions. Global parameters are
divided in to two categories.

 Accounting organization

 Processing parameters.

Update the following details.

 Some of the fields are updated automatically as we already configured and assigned. For e.g. Chart of
accounts, Company, FM area, Credit control area, Fiscal year variant, etc.

 Choose company code is productive.

 Choose business area financial statements check box.

 Select the propose fiscal year check box

 Select define default value data check box

 Select negative postings permitted check box.

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GL ACCOUNTING:-
The General Ledger accounting is the complete record of all business transactions.

1. Create A New GL Account (FS00)

A GL account is created to post financial transactions.

Every GL account will have 2 levels of data.

1. Chart of accounts [Link] code

GL account master record fields are controlled from reference GL account group.

General Ledger (G/L) accounts are used to provide a picture of external accounting and accounts and to record
all the business transactions in a SAP system. This software system is fully integrated with all the other
operational areas of a company and ensures that the accounting data is always complete and accurate.

Create Share Capital A/c:- (FS00)

G/L Account : 100000 (Share Capital A/c)

Company Code :

Click on Create

Go to Type /Description Tab

Account Group : LIAB (Liabilities)

Select Balance Sheet Account

Short Text : Share Capital A/c (20 Characters allowed )

G/L Acct Long Text : Share Capital Account (50 Characters allowed)

Go to Control Data Tab

Select Only Balances in local Currency

Select Line Item Display

Sort Key : 001 (Posting Date)

Go to Create/bank/Interest Tab

Field Status Group : G001 (General)

Save

Create Bank A/c:- (FS00)

G/L Account : 200000 (Bank A/c)

Company Code :

Click on Create

Go to Type /Description Tab

Account Group : ASST (Assets)

Select Balance Sheet Account

Short Text : Bank A/c

G/L Acct Long Text : Bank Account

Go to Control Data Tab

Select Only Balances in local Currency

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Select Line Item Display

Sort Key : 001 (Posting Date)

Go to Create/bank/Interest Tab

Field Status Group : G005 (Bank Accounts)

Save

How Posting Key is managed in SAP FICO? (T Code:- OB41)

Posting Key in SAP is a two-digit numeric key defined to control the entry of document line items in a FI
Transaction. Posting Key in SAP also specifies whether the line item is a debit or a credit entry, account type that
can be posted (Vendors, Customers and General Ledger etc.) and the screen layout of line items.

For posting special General ledger transactions, special posting keys in SAP are used which are supplemented by a
special GL indicator. The system uses the specifications (posting key and special G/L indicator) to determine the
alternative reconciliation account.

SAP delivers standard posting keys for use;

Account Type use

Posting Key Description of Posting Key for the posting key Usage

01 Customers invoices Customer Debit

02 Reverse Credit Memo Customer Debit

03 Bank Charges Customer Debit

05 Outgoing Payment Customer Debit

Payment

06 Differences Customer Debit

08 Payment Clearing Customer Debit

09 Outgoing debit posting Customer Debit

11 Credit memos Customer Credit

12 Reverse Invoice Customer Credit

13 Reverse Charges Customer Credit

15 Incoming Payment Customer Credit

16 Payment differences Customer Credit

18 Payment Clearing Customer Credit

19 Outgoing credit posting Customer Credit

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 Account Type use
Posting Key Description of Posting Key for the posting key Usage

21 Credit memos Vendor Debit

22 Reverse Invoice Vendor Debit

25 Outgoing Payment Vendor Debit

26 Payment differences Vendor Debit

28 Payment Clearing Vendor Debit

29 Incoming debit posting Vendor Debit

31 Vendors invoices Vendor Credit

32 Reverse Credit Memo Vendor Credit

35 Incoming Payment Vendor Credit

36 Payment differences Vendor Credit

38 Payment Clearing Vendor Credit

39 Incoming credit posting Vendor Credit

40 G/L account G/L Account Debit

50 G/L account G/L Account Credit

70 Debit Asset Asset Debit

75 Credit Asset Asset Credit

80 Inventory Taking G/L Account Debit

81 Costs G/L Account Debit

82 Inventory Difference G/L Account Debit

83 Price Difference G/L Account Debit

84 Consumption G/L Account Debit

85 Change in Stock G/L Account Debit

86 GR/IR debit G/L Account Debit

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 Account Type use
Posting Key Description of Posting Key for the posting key Usage

89 Stock Inward Movement Material Debit

90 Inventory Taking G/L Account Credit

91 Costs G/L Account Credit

92 Inventory Difference G/L Account Credit

93 Price Difference G/L Account Credit

94 Consumption G/L Account Credit

95 Change in Stock G/L Account Debit

96 GR/IR Credit G/L Account Credit

99 Stock Outward Movement Material Credit

General Ledger Posting (With Local Currency):-

2. Post GL Document (FB50):- General ledger postings are made at Company code level, the process is called

R-2-R (Record-To-report)

Every posted document will have 2 levels of data

1. Document header data:- Field status of doc reference and header text are controlled from document type.

2. Document Line item data:- Field status of GL line item are controlled by field status group assigned to GL
account.

 Transaction Code:- FB50

 Navigation:- Accounting-Financial Accounting-General Ledger-Posting-FB50-Enter G/L account
Document.

Click on Company Code (F7)

Document Date : Currency : INR

Posting Date :

Document Type : SA G/L A/c document

G/L Acct D/C Amount in doc curr Value date

200000 (Bank A/c) Debit 250000 ------------

100000 (Share Capital A/c) Credit * ------------

Enter

Click on Simulate (F9)

Save

Note: - In one GL account document we can enter up to a maximum of “999” line items.

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3. GL Document Display(FB03)

Every posted document will have 2 views --- [Link] View [Link] Leger View

Double Click on FB03-Display

Click on Document list (Shift+F8)

Company Code :

Document Type : SA

Double click on document no.

We can see Document Display in ECC 6.0 onwards Entry View & General Ledger View

[Link] General Ledger Balance (FS10N)

G/L Account : 100000 (Share Capital A/c)

Company Code : IBL

Fiscal Year : 2019

Execute(F8)

Note:- Ledger balance can be displayed period wise overall posting values in a fiscal year.

[Link] Account Line Item Display (FBL3N)

GL Account : 100000 (Share Capital A/c)

Company Code : IBL

Execute(F8)

Hold Documents:- (FB50)

In SAP Hold documents used for temporary purpose.

 When we do not have complete information or clarity, we can hold the document for the time being.
 When a document is held it is saved under held documents folder under Tree on Tab.
 Later on, we collect the required information from the concerned party, complete and post the document.

[Link] Hold Document Program (SE38)

Program : RFTMPBLU

Execute (F8)

Select no termination for read error

Execute (F8)

Message – No conversion necessary ,all held documents are correct

2. Create Hold Document (FB50)

3. Display Hold Document List (FB50/FB11)

4. Convert Hold Document into Normal Document (FB50)

5. Post Hold Documents (FB50)

6. Delete Hold Documents (FB50)

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[Link] Hold Document (FB50) Example:- Wages A/c

 Transaction Code:- FB50

 Navigation:- Accounting-Financial Accounting-General Ledger-Posting-FB50-Enter G/L account
Document.

Click on Company Code (F7)

Document Date : Currency :INR

Posting Date :

Document Type : SA G/L A/c document

G/L Acct D/C Amount in doc curr Value date

400002 (Wages A/c) Debit 25000 ------------

200000 (Bank A/c) Credit * ------------

Enter

Click on hold document (F5)

Temporary Document Number : 12345

Click hold Document

A message displayed TEMPFEB was held

[Link] Hold Documents (FB50) Example:- Wages A/c

 Transaction Code:- FB50

 Navigation:- Accounting-Financial Accounting-General Ledger-Posting-FB50-Enter G/L account
Document.

Click Tree on button on the tool bar(Shift+F2)

Open Held document folder (F5)

Double click on hold doc no Hold 13/05

Change amount

Enter and Save

Simulate Tab (F9):-

In this tab we can check the GL account was posted correctly or not.

Ex:- 40 - Debit - GL Account

50 - Credit - GL Account

Park Documents:-

SAP FI also provides an option with Limited Authorization Amount for Posting.

 When we do not have “Authority “ to post a transaction, we can park it, once document is parked , it
is saved under park folder in the code (FV50)

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  After a document is parked, junior accountant will inform the senior about park the parked
document.
 Senior Accountant go to FV50 open the park document – he will check it, make the changes if any
required and will post the document.
 Thus, in case of parking, one person will the document and another person will post the document.

1. Create Park GL Document (FB50/FV50)

2. Post/Change Park Documents (FV50)

3. Display Park Documents (FBV3)

4. Display Changes Park Documents (FBV5)

5. Convert Parked Document into Normal Document (FV50)

6. Delete Park Documents (FV50/FBV0)

1. Park GL Account Document:-

 Transaction Code:- FV50

 Navigation:- Accounting-Financial Accounting-General Ledger-Document-Parked
Documents-FV50-Post/Delete: Single Screen Transaction

Click on Company Code(F7)

Document Date : Currency :INR

Posting Date :

Document Type : SA G/L A/c document

G/L Acct D/C Amount in doc curr Value date

200000 Debit 150000 ------------

100000 Credit * ------------

Enter

Click on Simulate (F9)

Save

2. Post/Delete/Change Parked Documents (FV50)

Click Tree on

Open park document folder

Double click on park doc no

Click post (Shift+F11)

Reference Documents:-

 Using one document as a reference to post another document.

 To make transaction posting Faster & Easier.

There are 3 Types

[Link] Assignment Template (AAT)

[Link] Documents

[Link] Documents

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[Link] Account Assignment Template (AAT) (FB50):- (Wages a/c Entry is used)

 Generally used for a day purpose.(Short term use)

 When we have a requirement for one or two days, we create a template, use it to meet out requirement
and delete it once the purpose is over.

EX:-If an entry that to be posted multiple times or repetitively in one day.

In this scenario finance department employee can create that entry as a template and use as many times
required in that day for posting later, we can delete that template.

EX:- Business announced bonus to their 100 employees to be paid 31/03/2019

Since the fields in the document like document date, posting date, Debit GL, Credit GL, We can

Create a template/reference document with the values for the above fields and use for the day purpose.

1.1 Create Account Assignment Template :-(FB50)

Enter below minimal field values to save in AAT
Document Date, posting date, Debit GL (Bonus GL & Credit GL Bank GL)
Go to Menu bar- Select Edit-select account assignment template-save assignment Template

Enter template name – “Bonus for the year” click continue

1.2 Post bonus transactions to employees using AAT (FB50)

Click tree on
Open Account assignment templates folder
Double click on “bonus for the year” template
After the purpose is served, we can delete the template by right clicking on it and select account
assignment template.

2. Sample Documents:-

 Samples is used for long term purpose.

 Samples are created for documents which we post regularly on daily basis, and use them daily to post
transaction faster.
 We do not delete them. ([Link] A/c Entry is used)

Maintain Number Ranges for Sample Documents (FBN1)

Sample Document Number Range (X2) (Ex: 1001 to 1500)

Create Sample Documents (F-01)

Post Sample Documents (FBR2)

Change Sample Document (FBM2)

Display Sample Document (FBM3)

Display Changes Sample Document (FBM4)

Delete Sample Document (F.57)

NOTE:- Do not propose amounts – to change amounts

3. Recurring Documents: - Reference document used to post periodic entries.

Reference Documents are used when date and amount are fixed. They are 3 conditions satisfy

 Fixed Amounts
 Fixed Accounts
 Fixed Intervals (Time gap)

Definition: If an entry occurs every month on a fixed date for fixed amount against fixed debit and credit GL’s
repetitively, then create a recurring document and use for postings on a regular interval.

EX: Rent, rent amount of Rs.100000/- paid to owner on every month 1st date.

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 Maintain Number Range for Recurring Documents (FBN1)

Recurring Documents Number Range (X1) 1501 to 3500)

Create Recurring Documents (FBD1)

Change Recurring Documents (FBD2)

Display Recurring Documents (FBD3)

Display Changes Recurring Documents (FBD4)

Delete Recurring Documents (F.56)

Posting Recurring Documents (F.14) --- By Creating a batch Input Session

Recurring Entry Documents (F.15)

Open Item Management:- Open item management is used to cover outstanding liabilities and prepaid expenses.

GL accounts can be created by activating “Open Item Management” indicator in the master record, for which
clearing is required in future.

EX:-Outstanding payables & Receivables

There are 2 conditions should be met to create a GL account with his option

[Link] GL account should be a balance sheet type account(Liability or Asset), but not all the balance sheet
accounts open itemly managed accounts.

[Link] GL account should require clearing in future

EX:- Outstanding Exp (Liability) & Prepaid Exp (Asset)

[Link] Exp Clearing Scenario:-

Entry 1: Post outstanding Expenses on month end

Dr Rent A/c

Cr Rent payable A/c

Entry 2 : Clearing in future

Dr Rent payables A/c

Cr Bank A/c

1.1 :- Create Rent payables G/L A/c --- (FS00) (Rent payables A/c)
1.2 :- Post Outstanding Exps A/c --- (FB50)
1.3 :- Open Item Report --- (FBL3N) (Rent payables A/c)
1.4 :- Clear O/S Exps/Post Outgoing pymts --- (F-07)
1.5 :- Clear Open Item Report --- (FBL3N) (Rent payables A/c)

2. Prepaid Expenses Clearing Scenario:-

Entry 1: Posting of Prepaid Expense

Dr Prepaid Expense A/c
Cr Bank A/c
Entry 2 : Clearing Prepaid Expense
Dr Insurance A/c
Cr Prepaid Expense A/c
2.1:- Create Prepaid Exp G/L A/c --- (FS00) (Prepaid Exp A/c)
2.2:- Post Prepaid Exps A/c --- (FB50)
2.3:- Open Item Report --- (FBL3N) (Prepaid Exp A/c)
2.4:- Clear GL account /Prepaid Exp --- (F-03)
2.5:- Clear Open Item Report --- (FBL3N) (Prepaid Exp A/c)
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Reversal Documents:-

Reversal has lot of importance in SAP. In SAP many important fields cannot be changed after a document has
been posted.

To correct or change any document the only option we have reversal of the document.

Reversals the wrong entry and repost the fresh entry.

1. Individual Reversal (FB08)

2. Mass Reversal (F.80)

3. Reset cleared item Reversal (FBRA)

1. Individual Reversal (FB08):- Only one document can be reversed at a time.

Document no : 2

Company code :

Fiscal year :

Reversal reason : 01

Save

2. Mass Reversal (F.80):- Many documents can be reversed at a time. The document numbers can be
continuous or random.

Company code :

Document no : 17 to 19

Fiscal year :

Document type :

Reason for reversal : 01

Deselect test run

Execute (F8)

3. Reset cleared item Reversal (FBRA):-

 It is used in case of clearing documents. Clearing document is document which has cleared an open item.
 Cleared items are the documents in SAP that do not have any pending obligations. These documents are
used to offset the dues of vendor, customer and G/L accounts.

Clearing document : 2001

Company code :

Fiscal year :

Save

Select resetting & reverse option

Reversal reason : D2

Enter & save

Interest Calculations:-

There are 2 types:

1. Balance Interest Calculation -- ‘S’ Type --- GL Accounts

2. Item Interest Calculation -- ‘P’ Type --- Vendors and Customers

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Account Payables (AP)-Sub Ledger:-
Accounts Payable is a sub module of SAP FI used to manage and record Accounting data for all the
vendors, In SAP sundry creditors are called accounts payables. It handles vendor invoices, payments and
advances to vendors.

We can maintain vendor specific information such as address details of the vendor, bank details and also
payment terms and conditions details of a vendor.

Within AP sub ledger we will post vendor business transactions, these sub ledger postings are updated to
GL through AP-GL reconciliation process.

AP-GL Reconciliation Process

AP sub ledger integrates with general ledger via reconciliation process.

Reconciliation GL account is created in FS00, the same GL account will be assigned to each and every vendor
created in AP sub ledger.

 Reconciliation GL account is the bridge between AP sub ledger and General ledger, the business
transactions posted in sub ledger automatically updates General ledger via this account.
 ** We cannot post directly to a reconciliation type GL account.

Vendor:- Vendor is a party from whom we buy goods and services in return we pay for them.

1. Define Vendor Account Group (OBD3)

2. Create Number Range for Vendor Accounts (XKN1)

3. Assign Number Range to Vendor Accounts Groups (OBAS)

4. Define Tolerances (Vendors) (OBA3)

5. Maintain Number Ranges 19,15,17 for KR,KZ,KA document types respectively (FBN1)

KR -- Vendor Invoice – 19

KZ -- Vendor Payment -- 15

KA -- Vendor Document -- 17

6. Create Vendor Reconciliation Account (FS00) -- (Sundry Creditors A/c)

7. Create Service Exp’s G/L Master Record (FS00)-- (Ex:-Transport Exps A/c)

8. Create Vendor Master Record (FK01) -- (Ex:-Tata Consultancy Services Ltd)

 Vendor can be created in 3 ways

1. Internally - System will decide
2. Externally - User will decide
3. By name - A to ZZZZ alphabetical series

Every vendor master record will have 3 segments data.

 [Link] data - Vendor address & bank details

 2. Company code data - Reconciliation GL account, payment terms etc.
 [Link] organization data - (only for MM FI Vendor)
 Note: Once a vendor master record is created under a vendor account group, it is not possible to change
the group of the vendor.

9. Change Vendor Master Record (FK02)

*** Vendor List: T Code (F.40)

Posting Keys:- (OB41)

Vendor Account - Debit - 25

Vendor Account - Credit - 31

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 Special G/L - Debit - - 29A

Special G/L - Credit - - 39A

9. Enter Vendor Invoice (FB60)

Click on company code (F7) :

Vendor :

Invoice date : Today date

Posting date : Today date

Amount : 100000 Curr : INR

G/L Account D/C Amount in [Link]

--------- (Service/Purchase a/c) Debit *

Enter

Click on simulate (F9)

Save

[Link] Display the Documents (FB03)

[Link] Display the Balances of a GL Accounts (FS10N)

[Link] Check Vendor Open Items (FBL1N)

[Link] Check Vendor Balance (FK10N)

14. Outgoing Payments/Vendor Payment ( Manual Clearing ) (F-53)

[Link] Payment --- (F-53)

[Link] Payment --- (F-53)

[Link] Payment--- (F-53)

Vendor payment (F-53):-

Document date : Type : KZ Company code :

Posting date : Period : Currency/Rate :

Bank Account

Account : (Bank a/c)

Amount :

Value date :

Open item selection

Account : (Vendor a/c)

Account type : K

Enter

Go to menu bar – document – simulate – save

Note: Select invoice against which invoice we are paying, deselect remaining invoices. Select means Blue colour
and deselect means black colour.

Note: Amount entered and assigned amount should be same.

15. See Reports --- (FBL1N)

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Open Item Symbols:-

1. (Yellow) Bell Symbol - Due - Pay immediately

2. RED Symbol - Overdue - After due date we will pay

3.12 Symbol - Not Due - We have more time to pay

14(B).Partial Payment (F-53):- In case of partial payment original invoice will remain open until fully paid up.

 Create vendor Invoice (FB60) Rs.30000/-

 Check the Open items (FBL1N)
 Vendor Payment (F-53) Rs.10000/-

FBL1N in Vendor Invoice 30000/-

Partial Paid Amount 10000/-

Balance 20000/-

14.(C)Residual Payment (F-53) :- In Case of residual payment the original invoice will be cleared and new
open item is created for the balance amount.

 Create Vendor Invoice (FB60) Rs.30000/-

 Check the Open items (FBL5N)
 Vendor Payment (F-53) Rs.5000/- (Use Residual Tab)

FBL1N in New Open Item Amount - Rs.25000/-

Terms of Payments (or) Payment Term (OBB8):- Payment terms is a 4-digit character key, related to
payment agreed between our company and an external party.

 Document Date:- Date on the Invoice document.

 Baseline Date:- Generally the Invoice document date will be considered as baseline date to
calculate payment due date to apply payment terms and create cash discount line item.
 Posting Date :- Date used for Accounting purpose.
 Entry Date:- System generated date.
 Block Key:- By using block key, we can stop payment against that invoice.
 Payment Method:-The Payment method determines how payments are to be made

Ex:-By check, bank transfer, or bill of exchange

1. Create Terms of Payments (Cash Discount Taken A/c) (OBB8)

2. Creation of Bank charges & Cash Discount Taken G/L Account (FS00)

Assign GL Account for automatic Postings (OBXU) Cash Discount Taken A/c -- SKE Transaction

Assign GL Account for automatic Postings (OBXK) Bank Charges A/c -- BSP Transaction

3. Enter Vendor Invoice (FB60) Rs.40000/- and payment term (0040) cash discount taken payment
term and bank charges Rs.600/-

4. Post Outgoing Payment (F-53)

Entry is:-

25 - BTSL (Vendor) - Debit - 40000

40 - Bank Charges - Debit - 600

50 - Bank - Credit - 39400

50 - Cash Discount Taken - Credit - 1200

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Instalment Payment term:- In step you can determine whether an invoice amount is to be divided into partial
amounts with different due dates.

1. Define Instalment Payment Term (OBB8)

2. Define Terms for Payment for Instalment Payments

Pymt Terms Instalment % Payment Term

0044 1 50 0001

0044 2 30 0040

0044 3 20 NT60

Save (Ctrl +S) and enter

Note:- Terms of Payment Key will be assigned in vendor/customer master records or transactions.

3. Enter Vendor Invoice (FB60) Rs.100000/-and add Payment Terms (0044) Instalment Payment
term and Bank Charges Rs.2000/-

4. Post Outgoing Payment (F-53)

5. Note:- In Payment Term Rs.20000/- deselect at the time of posting.

Entry is:-

25 - BTSL - Debit 80000

40 - Bank Charges A/c - Debit 2000

50 - Bank A/c - Credit 81100

50 - Cash Discount Taken A/c - Credit 900

Click on Document-Simulate-Save

Down Payments (Advance To vendors):- Down payments sometimes also referred to as “Advance payments”.
A down payment is a payment made or received before the physical exchange goods and services.

Special GL transactions:- In SAP Advance/Down payments made to vendors or received from customers are
called as Special GL transactions denoted by Special GL indicator “A” symbol.

Sundry Creditors a/c (Liab+Recon.a/c) Advances to vendors(Asset+ Recon a/c)

Total payable to ALL vendors - 100000 Total already paid to ALL vendors - 30000

Balance amount – 70000

This to accounts will work opposite.

1. Create Advance to Vendor G/L Account (Asset + Recon A/c) -- (FS00)

(Note: - Only balances in local Currency not ticked)

G/L Account : 200010 (Advance to vendor A/c)

Company Code :

Click on Create

Go to Type /Description Tab

17
Account Group : ASST (Assets)

Select Balance Sheet Account

Short Text : Advance to vendor A/c

G/L Acct Long Text : Advance to vendor Account

Go to Control Data Tab

Recon. Account for acct type : K (Vendors)

Select Line Item Display

Sort Key : 012 (Vendor number)

Go to Create/bank/Interest Tab

Field Status Group : G067 (Reconciliation Accounts)

Save

2. Assign Advance to Vendor Account -- (OBYR)

Execute

Double Click on

K A Dwn pmt Down payment on current assets

Chart of Accounts :

Enter

Recon. Acct : 100010 (Sundry Creditors A/c)

Special G/L Account : 200010 (Advance to Vendors A/c)

Save and enter

Two Scenarios:-

 100% Down Payment

 Partial Payment

100% Down Payment:-

1. Down Payment (F-48) Type KZ -15 (Vendor payment)

Entry:-

29A Vendor a/c Dr XXXX

50 To Bank a/c Cr XXXX

2. See Report (FBL1N)

 Enter vendor number :

 At the bottom from type section – Select Special G/L transactions
 Execute (F8)

3. Post Vendor Invoice (FB60) Rs.10000

Entry:-

40 - Expenses a/c Dr XXXX

50 - To Vendor a/c Cr XXXX [Link] -KR - 19

4. See Report (FBL1N)

5. Clear Vendor (F-44) (Match & Clear)

Entry:-

(Payment clearing) 27 - Vendor a/c Dr XXXX

(Special GL Credit) 39A - Vendor a/c Cr XXXX

18
6. See Report (FBL1N)

 Select Cleared Items

Partial Payment:-

1. Down Payment (F-48) Type KZ -15 (Vendor payment)

29A Vendor a/c Dr XXXX

50 To Bank a/c Cr XXXX

2. See Report (FBL1N)

 Enter vendor number :

 At the bottom from type section – Select Special G/L transactions
 Execute (F8)

3. Post Vendor Service Invoice (FB60) 10000

Entry:-

40 - Expenses a/c Dr XXXX

50 - To Vendor a/c Cr XXXX [Link] -KR - 19

[Link] Report (FBL1N)

[Link] advance amount to invoice to down payment and clear rest of the amount later – (F-54)

TOTAL - 10000

Partial Payment - 3000

Balance - 7000

Enter document date :

Vendor Account :

Enter Relevant Invoice :

Enter

Enter transfer posting amount : complete Down payment

Document – Simulate – Post

Entry:-

(Payment difference) 26 - Vendor a/c Dr XXXX

(Special GL Credit) 39A - Vendor a/c Cr XXXX

Document type -- 17 -- KA -- Vendor document

[Link] Report (FBL1N)

 Select Open Items

 Observe that Spl GL amount turned into normal

7. Post Outgoing Payment (F-53) (Or) APP Run (F110)

 Select Down payment amount and the invoice amount and Simulate & Post.

Entry:-

Vendor a/c Dr XXXX

To Bank a/c Cr XXXX Document type – KZ- 15

19
Vendor Credit Memo (FB65):-

Whenever there are purchase returns, we need to reduce vendor credit balance for the value by creating
vendor debit memo.

Step 1: Post vendor invoice – FB60 – Rs.10000/-

Step 2: Post purchase returns by creating vendor credit memo – FB65—Rs.4000/-

Step 3: Make remaining payment 6000 by applying credit memo amount to the invoice.

House Banks &Check Management:-

House Bank:- House Bank is a bank account with check book facility.

House bank of a company code is represented by a bank id through which you can process payment transactions
.It is used for the purpose of payment programme, check deposit, automatic payment program (APP) and bank
reconciliation.

A house bank in SAP identified by a ‘5’ character alphanumeric code. Each house bank ID is unique within a
company code can have multiple house banks.

Each house bank in SAP system is associated with a country key representing the country where the bank is
located.

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

1. House Bank:-

 House bank represents a branch of bank. A house bank may consist of one or more bank accounts.
 The bank which is used for payment transactions for the company is called as house bank.
 It is identified by 5 character alphanumeric code.

2. Bank ID:-

It’s an ID for the house bank. The company code uses for transaction in the SAP system you use the bank ID and
account ID to specify bank details. Bank ID and account ID are used, for example for automatic payment
transactions to determine the bank details for payment.

3. Bank Key:-

Bank key is a unique key used by bank for transfer of money from one bank to another bank online. Each key
represents a particular bank branch. Generally you will use SWIFT code as bank key.

4. Account ID:-

Account ID represents a particular bank account at a particular branch. Let’s assume you have 3 bank account at
HDFC bank. The house bank will be HDFC bank. Individual bank accounts represent an account ID. Every bank
account has 3 GL accounts.

1. HDFC Main bank

2. HDFC check issue a/c

3. HDFC check deposited a/c

1. Define House Bank GL Account -- (FS00):-

Create as if a regular G/L Account created, but only considerable things FSG – G005 and for every bank GL
account Relevant to cash flow check box should be selected.

NOTE:- this indicator determines the G/L Account is a cash flow account.

20
1. Define House Bank GL Account -- (FS00):-

Create as if a regular G/L Account created ,but only considerable things FSG – G005 and for every bank GL
account Relevant to cash flow check box should be selected.

NOTE: - this indicator determines the G/L Account is a cash flow account.

G/L Account : 200000 (Bank A/c)

Company Code :

Click on Create

Go to Type /Description Tab

Account Group : ASST (Assets)

Select Balance Sheet Account

Short Text : Bank A/c

G/L Acct Long Text : Bank Account

Go to Control Data Tab

Select Only Balances in local Currency

Select Line Item Display

Sort Key : 001 (Posting Date)

Go to Create/bank/Interest Tab

Field Status Group : G005 (Bank Accounts)

Select Relevant to cash flow

Save

2. Create House Bank: - (FI12):-

Execute

Company Code :

Enter

Click on New Entries (F5)

House Bank : ICICI

Bank Country : IN

Bank Key : 123456

Click on create

Bank Name : ICICI Bank

Street : Ameerpet

City : Hyderabad

Bank Branch : Ameerpet Branch

Enter

Double Click on Bank Accounts

Click on New Entries (F5)

Account ID : ICICC

Description : ICICI Current Account

Bank Account : 1234567

G/L Account : 290100

21
Currency : INR

Save and enter

[Link] Check lots (Cheque Book) (FCHI) :-

Execute

Paying Company Code :

House bank : ICICI

Account ID : ICICC

Click on Change(Shift+F5) :

Click on Create (Shift+F5)

Lot Number : 1

Check number : 100100

To : 100199

Short Info : ICICI Bank Check Lots

Purchasing date :

Enter & Save

Check Management:-

Pre requisite – Vendor Invoices are cleared using the House bank GL account

 Post Vendor Invoice (FB60)

 Clear invoice via the above GL account (F-53)

 Document No :- 1500000037 (Example)

 Issue Check manually-FCH5

 To issue the check first we have to make the payment posting F-53 and generate the Payment Document
number.

 The Payment Document Number is specified in check issue screen- FCH5

1. Manual Check Creation:- (FCH5)

 Post Vendor Invoice (FB60) Rs.50000/-

 Clear invoice via the above GL account (F-53)
 Document No :- 1500000037 (Example)

Payment Document No : 1500000037

Paying Company Code : IBL

Fiscal Year : 2019

House Bank : ICICI

Account ID : ICICC

Check number : 100100

Enter & Save

**Check IBL ICICI ICICC 100100 Created manually.

22
2. Unused Check Void (FCH3):- Unused check can be voided due to many reasons like printing problem,
destroyed or unusable etc.

Paying Company Code : IBL

House Bank : ICICI

Account ID : ICICC

Check number from : 100101 to 100104

Void Reason Code : 14 (Check misplaced)

Enter

Click on Void(Shift+F5)

** Checks 100101 to 100104 have been voided.

[Link] Issue Checks (FCH9):- If any check that was issued to a vendor and on a later date the vendor
updated the check cannot be deposited for various reasons, that check need to be voided(cancelled) and
updated to SAP System.

 Manual Check Creation-FCH5

3.1 Issued Check Voided – a. only cancel the check and issue a new check

Paying Company Code : IBL

House Bank : ICICI

Account ID : ICICC

Check number : 100100

Void reason code : 15 (No balance)

Click on Void(Shift+F5)

** Check 100100 Voided, payment doc not reversed.

4. Cancel Payment(FCH8):- If any invoice by mistake cleared and issued with a check, we can cancel the
issued check and also reverse document reset to open status of the invoice.

 Post Vendor Invoice (FB60)

 Clear invoice via the above GL account (F-53)
 Document No :- 1500000037 (Example)

Manual Check Creation - FCH5

Check No : 100105

** 100105 check created manually.

Paying company code : IBL

House Bank : ICICI

Account ID : ICICC

Check number : 100105

Void reason code : 14 (Check Misplaced)

Reversal Reason : 01

Posting Date : 25.04.2019

Posting Period : 1

Click on Cancel Payment

** Payment for check 100105 was cancelled, reverse Document 1700000003

23
 Open Item : 50000 (FBL1N)

Outgoing Payment (F-53)

Document No : 1500000039

Create manual Creation – FCH5

** Check IBL ICICI ICICC 100106 created manually

5. Encashment Checks – Change check information (FCH6):-

At the time of bank reconciliation process, the business would come to know about the issued checks
encashment date subsequently update in the system.

Paying Company code : IBL

House Bank : ICICI

Account ID : ICICC

Check No : 100106

Enter

Check Encashment date : 25.04.2019 (Payment Date)

Save

** Check IBL ICICI ICICC 100106 Successfully saved.

[Link] Register (FCHN) :- All the check details for a check lot.

Here we have 2option like-

1. without line items - To see the check balance only

2. with line items - To see the check balance with the clearing document

Paying company code : IBL

House Bank : ICICI

Account Id : ICICC

Execute (F8)

Total Checks Details:-

 100101 - 100104 --- Voided by SAPUSER---- Check Misplaced

 100100 --------- Voided by SAPUSER---- Stolen
 100105 --------- Voided by SAPUSER---- Check Misplaced
 100106 ------------  Bharat Transport Services Ltd – Hyderabad – Rs.50000/-

7. Define Void Reason Codes (FCHV):- FCHV is used to define the Void Reason code.

Execute

Click on New Entries (F5)

Reason : 05

Void Reason Code : Check Theft

Save & enter

24
Check Management T Codes:-

[Link] [Link] Description Information

1 FCHI Create check lots Separate check lots for ACH/WIRE and check.

2 FCH1 Display Check Put any check number to know the details
Information

3 FCH2 Payment Document View Payment Document Details

Display

4 FCH3 Void Checks Void Check or range of checks

5 FCH4 Renumber Checks Can Assign New numbers

6 FCH5 Create Check information Create Information

7 FCH6 Change Check Change Information

information

8 FCH7 Reprint a Check Check Reprint

9 FCH8 Cancel Check payment Voids and reverses payment, makes AP

document open again

10 FCH9 Void Issued Check Voids only

11 FCHN Check Register See All Check Details

12 FCHU Add Reference to Invoice Run this T-code add number to reference or
assignment field in the invoice.

13 FCHV Define New Void reason Define New Void reason codes
codes

14 FCHR Online cashed Checks Encashment date of the check

Automatic Payment Program(APP):-

Automatic payment program simplifies the payment process by overcoming difficulties in manual payment
process.

 The Automatic payment program in SAP FI is used to identify the due and overdue items and process a
huge list of vendor invoices to make payments in single time.
 APP helps in fetching all the due and overdue invoices for a wide range of vendors and makes the
payment possible before the net due date which in turn earns a good reputation to the organization.
 APP will check all the open invoices, calculate cash discount available and makes the payments along
with clearing the vendor.
 By using APP, we can post special GL transactions i.e. down payment to vendor by creating down
payment request.

Advantages:-

 Saves time
 Accurate

25
1. APP Configuration [Link] :-(FBZP)

2. APP Run [Link] :-(F110)

APP Configuration:- (Consultants) (FBZP) APP Run :- (End Users) [Link] (F110)

6 Steps:-

[Link] methods in country [Link] parameters

[Link] methods on company code [Link] Proposal

[Link] company codes [Link] Proposal

[Link] company codes [Link] payment run

[Link] bank [Link] Payments

[Link] determination [Link] print run & Print checks

_________________

[Link] number range for APP document type

(OBA7)

[Link] Payment method, House bank in Vendor

Master Record (FK02)

FBZP Configuration:-

1. Payment methods in country:-

Navigation:-SPRO-SAP Reference IMG-Financial Accounting(New)-Accounts Receivable and Accounts

Payable-Business Transactions-Outgoing Payments-Automatic Outgoing Payments-Payment
Method/Bank Selection for Payment Program-Set up Payment Methods per Country for Payment
Transactions

Execute

Click on New Entries (F5)

Country : IN

Payment Method : C

Description : Check

Select Outgoing Payments

Select Check

Select Allowed for Personnel Payments

Select Street, P.O. Box or P.O. box postal code

Document type for payment : ZP (Payment Posting)

Clearing Document : ZV (Payment Clearing)

Payment medium program : RFFOUS_C (Standard Check Program)

Save and Enter

26
2. Payment methods in Company code:-

Navigation:- Same Navigation

Execute

Click on New Entries (F5)

Paying Company code :

Payment Method : C

Minimum amount : 100

Maximum amount : 99999999

Select Foreign Business Partner allowed

Select Foreign Currency allowed

Select Customer/Vendor bank abroad allowed

Go to Form Data

Form For the payment medium : F4-International-double click check

(With Check Management) F110_PRENUM_CHCK

Drawer on the form : Authorized Signature

Save and enter

[Link] Company Codes:

Navigation:- Same Navigation

Execute

Click on New Entries(F5)

Paying company Code :

Minimum amount for Incoming payment : 100

Maximum Amount for Outgoing payment : 100

Click on forms

Form for the payment advice : F4-International-double click payment advice note
F_110_IN_AVIS

Click on Sender details

Text Id : ST (Standard Text)

Letter header : F_0001_HEADER

Footer : F_0001_FOOTER

Sender : F_0001_SENDER

Save and enter

4. All Company Codes:-

Navigation:- Same Navigation

Execute

Click on New Entries (F5)

Paying company Code :

Spl G/L transactions to be paid : AFP

Save and enter

27
Note:-

 A : Down Payments on Current Assets

 F : Down Payment Request
 P : Payment Request

5. House Bank :- House bank is already created in House Bank Chapter.

6. Bank Determination:-

Navigation:- Same Navigation

In this step we will prioritize the bank accounts by giving ranks to release outgoing payments: Rank 1

ICICI amount 10Lakhs,Rank 2 SBI available amounts 5Lakhs, so that system releases 1st 10 lakh outgoing
payment from ICICI next releases from SBI.

Days maintained as 999, system assumes that the specified amount for outgoing payments is always available in
the house bank.

Execute

Go to position button

Paying Company code :

Enter

Select_____

Double click on Ranking Order

Click on New Entries (F5)

Payment Method : C

Currency : INR

Rank Order : 1

House Bank : ICICI

Double click on Bank Accounts

Click on New Entries (F5)

House Bank : ICICI

Payment Method : C

Currency : INR

Account ID : ICICC

Bank sub Account : ICICI Bank GL Account

Double Click on Available amounts

Click on New Entries (F5)

House Bank : ICICI

Account ID : ICICC

Days : 999

Currency : INR

Available for Outgoing payments : 99999999

Save and enter

28
7. Maintain number range 20 for Document type ZP ([Link]:-OBA7)

Check Document types ZP & ZV intervals

Company code :

Click on change interval

Click on insert interval (Shift+F1)

No : 20

From Number : 2000000000

To Number : 2099999999

Enter

Save and enter

8. Maintain Term of payment, Payment method and house bank in vendor master record:-[Link]:-
(FK02)

Vendor :

Company Code :

Company Code Data

Select payment transactions

Payment terms : 0001 (Immediately)

Payment method : C

House Bank : ICICI

Save

APP Run – F110:-

 FBL1N - Check any open item

 FB60 - Create Vendor Invoice Rs.60000/-
 F110 - APP Run

Run Automatic payment program – ([Link]:- F110)

Generally, companies would make payments to creditors on a weekly or fortnightly basis, in SAP by using APP
program business can make payments against huge volume of invoices posted during the one week or fortnight.

Navigation:- Accounting-Financial Accounting-Accounts Payable-Periodic Processing-F110-Payments

Run Date : Today date

Identification : APP12 (5 Characters Allowed)

Click on Parameter Tab

Posting Date (clearing document posted date)

Docs entered up to (Cut-off date to consider invoice posted up to)

Company Codes :

Payment method : C (Multiple payment methods can be used in one APP run)

29
Next p/date : _______ (After 7 Days) APP program will consider invoices which
due date is falling from today to next 7 days.

Though we have given next payment run date as after 7 days SAP will not stop APP run during this 7 days. This
is only to do with to pick the invoices which due date is falling in next 7 days.

Vendor : 620501

Save

Go to Status Tab

Observe Status is Parameters have been entered

Go to Additional Tab

Select Due date check

Select payment selection in all cases

Select line items of the payment documents

Save

Go to Printout/data medium Tab

RFFOUS_C : Enter Variant ICICI (Ex:C1)

Click on Maintain Variants (F5)

Select For all Selection screens

Click on continue

Enter

Programs run date : Today date

Identification feature : 1234

Paying Company Code :

Payment Method :

House Bank :

Account ID :

Check lot number :

Select Print Checks

Select Print payment advice notes

Select Print payment summary

Printer : LP01

Printer : LP01

Printer : LP01

Select Print Immediately

Select Print Immediately

Select Print Immediately

Keep blank Number of sample printouts field

One time go back click F3

Save values – Click on Yes

Meaning : APP payments from ICICI bank

Save

Go to Status Tab
30
Click on Schedule proposal (Shift+F1)

Select Start Immediately

Select Create payment medium

Enter

Keep on enter until Status becomes Payment proposal has been created

Click on Edit proposal (Shift+F4)

All accounting clerks

Enter

We can block a particular invoice amount by selecting payment option-A blocked for payments to skip payment in
this APP run

Click F3 twice to go back to initial screen

Click on Pmnt run (F7)

Select Start Immediately

Select Create payment medium

Enter

Keep on press Enter until Status is Payment run has been carried out and Posting orders:___ generated,____
completed

Click schedule print button (F6)

In the schedule print pop up box remove ? mark and place print variant name(Ex:-C1)defined in previous steps

Enter

Go to Menu Bar-System-Services-Output control

Execute(F8)

Select spool no.

Click on Display Contents (F6)

APP Scenarios:-

Free Selection Option (3rd Tab):-

Free Selection option can be used to include or exclude the items from the proposal based on a given set
of parameters.

FBL1N - Check any open items

F110 - APP Run

Click on free Selection tab

When we need vendors only from India

Click on vendor master record

Click on country

Values : IN O Exclude

If we select exclude values Indian vendors not picked whether we not select it will be picked Indian vendors.

Whether we want Indian vendors but not from Hyderabad.

Click on vendor master record

31
Click on City

Values : Hyderabad O Exclude

If we select exclude values Hyderabad vendors not picked whether we not select it will be picked Hyderabad
vendors.

Errors in Proposal:-

When the proposal is blank :-

Error will come on as company codes IBL/IBL do not appear in proposal 24.06.2019 1234 ;Correct.

When Proposal is blank error will get on three reasons.

1. When there are no open item.

2. When there are open items but they do not qualify to enter into proposal.

3. When there are open items but they have been already picked up in another proposal.

NOTE:- Once a proposal has been created either you go for payment run or delete the proposal.

Cash Discount Payment term in Combination with next APP run date:-

APP next run date is important to pick the items in due dates. It will be calculating the discount items
whether items have dropdown discounts on APP next run date it will pick up that item otherwise it will not pick
up that items and it will pay after that period.

Create Vendor Invoice (FB60) Rs.50000/- and add payment terms :-0040(Cash Discount)

 10 days - 3%
 20 days - 2%
 30 days - net

APP run - F110

Run Date : 30.05.2019

Identification : 1234

Click on Parameters Tab

Company Code Payment Method Next /p date

IBL C 13.06.2019

Vendor : 620501

Click on Additional Log

Select Due date check

Select payment selection in all cases

32
Select line items of the payment documents

Vendor : 620501

Save

Go to Printout/data medium Tab

RFFOUS_C : Enter Variant ICICI (Ex: C1)

Save

Status Tab:-

 Parameters have been entered FB60— Rs. 50000/-

 Payment proposal has been created
 Payment run has been carried out 3% - 1500/-
 Posting orders 1 generated 1 completed 48500/-

Go to Menu Bar-System-Services-Output control

Execute(F8)

Select spool no.

Click on Display Contents (F6)

Check amount Display ------ Rs.48500/- after discount.

Individual Payment requested by the Vendor:-

 Go to Vendor Master Record (FK02) APP Box

 Select Individual Payment Check Box

Block an item in Proposal (FK02):-

After proposal run proposal will be created. Click on edit proposal and click on payment item again click
on payment item, you will get a box you have to select block item and save.

 Payment block - A (Blocked for Payment)

Reallocate Option in APP:-

Reallocate Option is available in APP to change the payment method or House bank after a proposal has
been created.

 Payment Method
 House bank

Minimum Cash Discount:-

The Minimum Cash discount limit is matching to discount given in payment items then only APP will pick it
otherwise it will not pick it.

Go to FBZP

Click on All Company Codes

Outgoing payment cash discount from ___%

Save

33
1. Vendor Invoice (FB60) Rs.70000/- (Add payment terms 0040) – Save

2. Open items – FBL1N

3. APP Run -F110

Due date : 23.06.2019

Next date : 10.07.2019

70000 - 3% - 2100

Maximum Cash Discount:-

Go to FBZP

Click on All Company Codes

Company Code :

Specify the Maximum cash discount ___%

Save

Minimum &Maximum Cash Discount :-

Minimum Cash Discount limits will not work if maximum cash discount is always taken.

Go to FBZP

Click on All Company Codes

Company Code :

Outgoing payment with cash discount from ___(Ex: 5% This is not working )

Maximum cash Discount ___ (Ex: 3% We get it)

Save

Tolerance Days for Payable:-

Go to FBZP

Click on All Company Codes

Company Code :

Tolerance days payable : 10 Days

Save

APP Run : F110

Due date : 23.06.2019

Identification : 1234

APP Run : F110:-

Due Date : 23.06.2019

10 Days (30.06.2019) Not Picked up

34
APP Run : F110:-

Due Date : 23.06.2019

10 Days (10.07.2019) Working

Save

Down Payments to vendors process through using APP:-

1. Advance to vendors A/c (Special GL A/c) (FS00)

G/L Account : 200010 (Advance to vendor A/c)

Company Code :

Click on Create

Go to Type /Description Tab

Account Group : ASST (Assets)

Select Balance Sheet Account

Short Text : Advance to vendor A/c

G/L Acct Long Text : Advance to vendor Account

Go to Control Data Tab

Recon. Account for acct type : K (Vendors)

Select Line Item Display

Sort Key : 012 (Vendor number)

Go to Create/bank/Interest Tab

Field Status Group : G067 (Reconciliation Accounts)

Save

2. Assign the account in “OBYR” clicking “F” symbol.

Recon Account - 100002 (Sundry Creditors A/c)

Special GL Account - 200010 (Adv. To Vendor A/c)

Save and enter

3. Create Down Payment Request – ([Link]:-F-47)

Enter Document& Posting Date

Document type : KA (Vendor Document)

Vendor Account : 620501

Target spl GL indicator : A

Click on New item

Amount : 50000/-

Due on : 30.05.2019

Text : Down payment request

35
Save

[Link]: 1700000011 successfully created. Document type: KA-17-Vendor document

Entry:-

39F - Vendor a/c XXXX

4. Vendor Line item Display ([Link]:FBL1N)

Select noted items at the bottom of the screen

5. Run APP ([Link]:-F110)

6. Vendor Line item Display ([Link]:FBL1N) Rs.50000/-

Select Special GL Transactions

7. Create Vendor Invoice ([Link]:-FB60) Rs.50000/-

8. Match & Clear ([Link]:-F-44)

Vendor Account : 620501(BTSL)

Company Code :

Special GL Ind : A

Click on Process open Items

Single Line item Rs.50000/-

Save

Entry:-

001 27 620501 BTSL Dr 50000/-

002 39A 620501 BTSL Cr 50000/-

Partial Payment Using APP:-

[Link] Down Payment Request – ([Link]:-F-47)

Enter Document& Posting Date

Document type : KA (Vendor Document)

Vendor Account : 620501

Target spl GL indicator : A

Click on New item

Amount : 20000/-

Due on : 30.05.2019

Text : Down payment request

Save

[Link]: 1700000012 successfully created.

[Link] Line item Display ([Link]:FBL1N) Rs.20000/-

 Select Noted items at the bottom of the screen

3. Run APP ([Link]:-F110) Rs.20000/-

36
4. Vendor Line item Display ([Link]:FBL1N)

 Noted to Special GL transactions Rs.20000/-

5. Create Vendor Invoice ([Link]:-FB60) Rs.50000/-

6. Vendor Line item Display ([Link]:FBL1N)

 50000 (-) Normal

 20000 (+) Special GL transactions

7. Transfer Amount ([Link]:- F-54) Rs.20000/-

Entry:-

26 (Payment Difference) BTSL a/c Dr 20000

39A (Special GL Credit) BTSL a/c Cr 20000

8. APP Run ([Link]:-F110) Rs.30000/- or (F-53) we will pay for the balance.

Partial Payment Through APP:-

Step 1 :- “OBXT” clicking “P” (Payment Request) symbol.

Chart of accounts : IBCA

Enter

Recon Account - 100002 (Sundry Creditors A/c)

Special GL Account - 200002 (Adv. To Vendor A/c)

Save and enter

Step 2:- Check Debit and Credit posting keys in “OBXP”

Transaction ZAF payment request

Posting Key

Debit Key : 29

Credit Key : 39

Spl GL Indicator : P

Save

Partial payment:-

1. Post Vendor Invoice (FB60) Rs.50000/-

Document No :-1900000053

2. Post payment request (F-59) Rs.10000/- against the invoice of Rs.50000/-

Enter Command field in /NF-59

Document No : 1900000053

Company Code : IBL

Fiscal year : 2019

Enter and enter

37
Change amount : 10000/-

Text : Partial payment through APP

Save

3. A noted item will be created for Rs.10000/-

4. This noted item gives information to APP regarding partial payment to be made

5. Block the invoice – FBL1N- Rs.50000/-

Go to FBL1N

Double click on line item Rs.50000/-

Click on change display/change mode (Shift+F1)

Pmnt Block - “A” (Blocked for Payment)

Save

[Link] APP – F110 - To make the partial payment Rs.10000/-

7. Systems-Services-Output control

 Execute(F8)
 Spool no : 10975
 Open the check : Rs.10000/-
 Check No : 140
 Amount : 10000/-

Next:-

Go to FBL1N

Double click on line item Rs.40000/-

Click on change display/change mode (Shift+F1)

Pmnt Block - Deselect or free for payment

Save

 Run APP – F110 - To make the partial payment Rs.40000/-(Remaining Amount)

7. Systems-Services-Output control

 Execute(F8)
 Spool no : 10975
 Open the check : Rs.40000/-
 Check No : 142
 Amount : 40000/-

Printing and Reprinting of Checks:-

1. Manual issue and Manual printing of check :[Link]:(F-58)

 Create vendor invoice (FB60) Rs.30000/-

 See Report : FBL1N
 30000/- Check the open items

Enter Command Field : /NF-58

Company code : IBL

Payment Method : C

House Bank : HDFC

38
 Check lot number : 1

Click on enter payments

Amount : 30000/-

Vendor : 620501 (Infosys Services Ltd)

Click on process open items

Amount : *

Save

Document 1500000034 was posted in company code IBL

Print Job was generated

 Go to Menu Bar-Document-Display

Entry:-

25 Infosys Services Ltd Dr 30000/-

50 SBI Bank A/c Cr 30000/-

 Go to Menu Bar-Systems-Services-Output Control

 Execute (F8)
 Open check : 30000/-

[Link] Void Old Check and Reprint New Check Manual ([Link]:-FCH7)

Paying Company Code : IBL

House Bank : HDFC

Account ID : HDFCC

Check number : 161

Check lot : 1

Go to Menu Bar-Check-Reprint (Shift+F1)

Check 161 Voided, reprinted on check 162

Go to Menu Bar-Systems-Services-Output Control 161- Old Check

Execute (F8) 162- New Check

Check : 162

[Link] Reprint the Same Check again ([Link]:- FBZ5)

Enter Command Field : /NFBZ5

Document No : 1500000034

Company Code : IBL

Fiscal Year : 2019

Payment Method : C

Check lot : 1

Go to Menu Bar-Check-Print-Old check

Select : LP01

39
 Enter

Print Job was generated

Go to Menu Bar-Systems-Services-Output Control 162- Old Check

Execute (F8) 162- New Check

Check : 162

4. Reprinting of the checks issued through APP:-

Void checks and reprint new checks

1. Enter vendor invoice (FB60) Rs.50000/-

2. APP Run (F110)

Run date : 04.05.2019

Identification : 147

Click on Parameter Tab

Posting Date (clearing document posted date)

Docs entered up to (Cut-off date to consider invoice posted up to)

Company Code : IBL

Payment method : C

Next p/date : 05.05.2019

Vendor : 620501

Save

Go to Status Tab

Observe Status is Parameters have been entered

Go to Additional Tab

Select Due date check

Select payment selection in all cases

Select line items of the payment documents

Save

Go to Printout/data medium Tab

RFFOUS_C : Enter Variant ICICI (Ex:C1)

Click on Maintain Variants (F5)

At the bottom of the screen

Reprint the checks

Select void and reprint checks from payment run already printed

Check number : 100121 To ______

Void Reason Code : 15 (Check Damaged)

Save (2 times)

[Link] to Menu Bar-Systems-Services-Output control

Execute (F8)

Check : 100123
40
Form Closing:-

100121 : APP Run

100122 : Form Closing

100123 : APP Run

100124 : Form Closing

Payment Method Bank Transfer DME :-

Data Medium Exchange Method:-

Step 1:- Create DME format Tree (DMEE)

Step 2:- Create Payment Formats (OBPM1)

Step 3:- FI Consultant Jobs:-

a) Create New payment Method for Bank Transfer – DME (FBZP)

b) Assign New Payment Method in Company Code

c) Configure Bank determination for New Payment Method.

Step 4:- Create and Assign Selection Variant (OBPM4)

Next

AL11 Directory

Step 5:- Update Vendor Master with Bank details and new payment method (FK02)

Next

FBL1N - Check any open item

FB60 - Create Vendor Invoice

FBL1N - Check open item

Step 6 :-
APP Run - F110
Go to Menu Bar-Environment-Payment Medium-DME Administration – Click on DME Administration
Select the program from a list
Notepad/Document.

Extended Withholding Tax:-

Withholding tax nothing but TDS (Tax Deducted at Source). It is an Income tax Act 1961 Law. Withholding
tax is an income tax which is deducted at the source of the revenue. The party that is subject to tax does not
remit the withholding tax to the Tax authorities himself.

As SAP system allow defining two different tax types in withholding tax namely one for invoice posting and
one for payment posting. Client requirement can be achieved with standard functionality.

Tax collected will be deposited in a separate GL accounts can be made automatic assignment , so at the
time of posting automatically tax account will be updated.

All the withholding settings can be done using Country India Version (CIN) so that the requisite forms will
be automatically updated and available for printing.

The following section of income tax will be covered in exceeded withholding tax of SAP.

41
Section Description

192 TDS on Salaries

193 TDS on Interest on Securities

194A TDS on Interest other than securities

194C TDS on Payments to contractors

194H TDS on Commission and Brokerage

194I TDS on Rent

194J TDS on Prof & Tech Services

195 Payment to foreign nationals

206C Tax Collected at source

Sources of Incomes Payer Gross TDS

Salaries Employer 1200000 60000

Rental Income Tenant 300000 40000

Interest Income Banks 100000 10000

Business Income Customer 400000 50000

Capital gains Buyer 1000000 100000

Total 3000000 260000

Capital Gains :- A profit from the sale of property or an investment.

Tax Slabs:- For above incomes.

Income range per annum Tax rate Tax

Up to 250000 No tax 0

250000 to 500000 5% 12500

500000 to 1000000 20% 100000

Above 1000000 30% 600000

Total - 712500

TDS already paid - 260000

Tax Payable - 452500

42
Section Keys:-

Recipient Type:- it is a party who is receiving income based on this tax percentage may change.

Tax types:-

Some countries TDS at the time of invoice.

Some countries TDS at the time of payment.

In India it is whichever is earlier.

Section Code:- where the business deducted tax.

Business Code:- Local tax office (Ex : Hyderabad)

Configuration Steps for Withholding Tax:-

[Link] withholding tax country

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Basic settings-Check withholding

tax countries

[Link] withholding tax keys

Same Path Above

[Link] Reasons for Exemption

Same Path Above

[Link] Maintain types of Recipient (OB97)

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Basic settings-Maintain Types of

Recipient

[Link] Business Places/Section Codes

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Basic settings-Define Business

Places

[Link] Factory calendars to Business Places

Same Path Above

[Link] withholding tax type for Invoice posting

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Calculation-withholding tax type-

Define withholding tax type for Invoice posting

[Link] withholding tax type for Payment posting

Same Path Above

[Link] Recipient Types

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Basic settings-Check Recipient

Types

[Link] Tax due Dates

Same path-India-Maintain Tax due dates

[Link] Withholding tax codes

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Calculation-withholding tax codes-

Define withholding tax codes

[Link] withholding tax types to company codes

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Company code-Assign withholding

tax types to company codes

43
[Link] Extended withholding tax

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Company code- Activate Extended

withholding tax

[Link] of TDS on Contractors A/c (FS00)

[Link] Accounts for Withholding Tax to be Paid Over

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Postings- Accounts for Withholding

Tax- Define Accounts for Withholding Tax to be Paid Over

[Link] Document type for remittance challan payment posting

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Postings- India-Remittance

challans-Document types-Specify Document type (Accounts Payable)

[Link] Business Places

SPRO-IMG-Cross Application Components-General Application Functions-Nota fiscal-CNPJ Business Places-Define

Business Places

[Link] Section codes to Business Places

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Basic settings-South Korea- Assign

Section Codes to Business Places

[Link] number range group to business places (T code : SM30)

20. Maintain number range group to Section codes (T code : SM30)

[Link] number group for Remittance challans

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Postings- India-Remittance

challans-Document types-Maintain Number Groups

[Link] Number Ranges to Number Groups

Same path- Assign Number Ranges to Number Groups

[Link] Number Range for Remittance challans

Same path- Maintain Number Range for Remittance challans

[Link] Number Groups and SAP Script Forms

SPRO-IMG-F.A(New)-F.A.G.S(New)-Withholding tax-Extended Withholding Tax-Postings- India-Withholding tax

certificate for vendor and customers- Maintain Number Groups and SAP Script Forms

[Link] Number Ranges to Number Groups for certificates

Same path

[Link] Number Range for TDS Certificates

Same path

[Link] Company Code Settings

SPRO-IMG-Logistics-General-Tax on Goods Movements-India-Basic settings-Maintain Company Code Settings

[Link] W/tax Details in the Vendor Master Record (FK02)

[Link] Vendor Invoice with Withholding Tax (FB60)

[Link] Remittance Challan (J1INCHLN)

31. Bank Challan Update (J1INBANK)

32. Issue TDS Certificate Print (J1INCERT)

44
Account Receivables (AR)- Sub Ledger:-
Accounts Receivable is one of the sub ledgers in SAP FI modules, which deals with customer business
transactions.

It handles customer invoices, incoming payments, advances or down payments from customers etc…

Through reconciliation process the postings made against customer sub ledger accounts are recorded in the
general ledger.

AR-GL Reconciliation Process

AR sub ledger integrates with general ledger via reconciliation process.

A reconciliation GL account is created in FS00, the same GL account will be assigned to each and every
vendor created in AR sub ledger.

 Reconciliation GL account is the bridge between AR sub ledger and General ledger, the business
transactions posted in sub ledger automatically updates General ledger via this account.
 ** We cannot post directly to a reconciliation type GL account.

Customer:- Customer is a party to whom we sell goods and services in return we receive payment for them.

[Link] Customer Account Group (OBD2)

2. Create Number Range for Customer Accounts (XDN1)

3. Assign Number Range to Customer Accounts Groups (OBAR)

4. Maintain Number Ranges 18,14,16 for DR,DZ,DA document types respectively (FBN1 or OBA7)

DR -- Customer Invoice -- 18

DZ -- Customer Payment -- 14

DA -- Customer Document -- 16

6. Create Customer Reconciliation Account (FS00) -- (Sundry Debtors A/c)

7. Create Service Exp’s G/L Master Record (FS00)-- (Ex:- Service Revenue or Sales A/c)

[Link] Customer Master Record (FD01) -- (Ex:-Distributor Customer A/c Grp)

9. Create Customer Invoice (FB70) -- (Rs.50000/-)

Click on company code (F7) :

Customer :

Invoice date : Today date

Posting date : Today date

Amount : 50000 Curr : INR

G/L Account D/C Amount in [Link]

--------- (Sales revenue a/c) Credit *

Enter

Click on simulate (F9)

Save

10. Customer List -- (F.20)

Posting Keys for Customer:-

01 - Debit - Customer

15 - Credit - Customer

45
Entry View is:-

01 Customer A/c Dr 50000/-

50 To Sales A/c Cr 50000/-

General Ledger View is:-

01 Sundry Debtors A/c 50000/-

50 To Sales A/c 50000/-

10. To See the Customer Line items (FBL5N)

[Link] See the Customer Balance (FD10N)

12. Incoming Payments (F-28)

Document date : Type: DZ Company code :

Posting date : Period: Currency/Rate :

Bank Account

Account : (Bank a/c)

Amount : 50000

Value date :

Open item selection

Account : (Customer a/c)

Account type : D

Enter

Go to Menu bar – Document – Simulate - Save

Entry View is:-

40 - Bank A/c Dr 50000/-

15 - To Customer A/c Cr 50000/-

General Ledger View is:-

40 - Bank A/c Dr 50000/-

15 - Sundry Debtors A/c Cr 50000/-

Open Item Symbols:-

1.(Yellow)Bell Symbol - Due - Pay immediately

[Link] Symbol - Overdue - After due date we will pay

3.12 Symbol - Not Due - We have more time to pay

13. See Reports --- (FBL5N)

14. Partial Payment (F-28):- In case of partial payment original invoice will remain open until fully paid up.

 Create Customer Invoice (FB70) Rs.30000/-

 Check the Open items (FBL5N)
 Customer Payment (F-28) Rs.10000/-

FBL5N in Customer Invoice 30000/-

Paid Amount 10000/-

Balance 20000/-
46
[Link] Payment (F-28) :- In Case of residual payment the original invoice will be cleared and new open
item is created for the balance amount.

 Create Customer Invoice (FB70) Rs.30000/-

 Check the Open items (FBL5N)
 Customer Payment (F-28) Rs.5000/- (Use Residual Tab)

FBL5N in New Open Item Amount - Rs.25000/-

Terms of Payments (or) Payment Term(OBB8):- Payment terms is a 4-digit character key, related to
payment agreed between our company and an external party.

 Document Date:- Date on the Invoice document.

 Baseline Date:- Generally the Invoice document date will be considered as baseline date to
calculate payment due date to apply payment terms and create cash discount line item.
 Posting Date :- Date used for Accounting purpose.
 Entry Date:- System generated date.
 Block Key:- By using block key, we can stop payment against that invoice.
 Payment Method:-The Payment method determines how payments are to be made

Ex:-By check, bank transfer, or bill of exchange

1. Create Terms of Payments (Cash Discount Given A/c) (OBB8)

2. Creation of Bank charges & Cash Discount Given G/L Account (FS00)

Assign GL Account for automatic Postings (OBXI) Cash Discount Given A/c -- SKT Transaction

3. Enter Customer Invoice (FB70) Rs.50000/- and payment term (0060) cash discount payment term

[Link] Incoming Payment (F-28)

Entry View is:-

40 - Bank a/c Dr 48500

40 - Cash Discount given a/c Dr 1500

15 - Customer a/c Cr 50000

General Ledger View is :-

40 - Bank a/c Dr 48500

40 - Cash Discount given a/c Dr 1500

15 - Sundry Debtors a/c Cr 50000

With Bank Charges Entries :- Bank Charges Rs.400

Entry View is:-

40 - Bank a/c Dr 48100

40 - Bank Charges Dr 400

40 - Cash Discount given a/c Dr 1500

15 - Customer a/c Cr 50000

47
General Ledger View is :-

40 - Bank a/c Dr 48100

40 - Bank Charges Dr 400

40 - Cash Discount given a/c Dr 1500

15 - Sundry Debtors a/c Cr 50000

Instalment Payment Terms:- In step you can determine whether an invoice amount is to be divided into partial
amounts with different due dates.

[Link] Instalment Payment Term (OBB8)

[Link] to OBB9 and Specify the no of instalment, percentage, and payment terms that are associated
with each instalment.

Pymt Terms Instalment % Payment Term

0065 1 50 0001

0065 2 30 0060

0065 3 20 NT60

3. Enter Customer Invoice (FB70) Rs.100000/- and payment term (0065) instalment payment term
and bank charges Rs.600/-

4. Post Incoming payment (F-28)

5. Note:- In payment term Rs.20000/- deselect at the time of posting.

Entry View is:-

40 - Bank a/c Dr 78500

40 - Bank Charges Dr 600

40 - Cash Discount given a/c Dr 900

15 - Customer a/c Cr 80000

General Ledger View is :-

40 - Bank a/c Dr 78500

40 - Bank Charges Dr 600

40 - Cash Discount given a/c Dr 900

15 - Sundry Debtors a/c Cr 80000

Customer Down Payments:-

1. Create Advance from Customers Special GL Account (Liability + Reconciliation a/c) (FS00)

(Note:- Only Balances in Local Currency Not Ticked)

G/L Account : 100010 (Advance from customer a/c)

Company Code :

Click on Create

Go to Type /Description Tab

Account Group : LIAB (Liabilities)

Select Balance Sheet Account

48
Short Text : Advance from customer a/c

G/L Acct Long Text : Advance from customer acount

Go to Control Data Tab

Recon. Account for acct type : D (Customers)

Select Line Item Display

Sort Key : 031 (Customer number)

Go to Create/bank/Interest Tab

Field Status Group : G067 (Reconciliation Accounts)

Save

2. Assign in “OBXR” Clicking “A” Symbol.

Execute

Double Click on

D A Down pmt Down payment

Chart of Accounts :

Enter

Recon. Acct : 200005 (Sundry Debtors A/c)

Special G/L Account : 100010 (Advance from customers A/c)

Save and enter

Two Scenarios:-

1.100% Down Payment

2. Partial Down Payment

1.100% Down Payment:-

 Customer wants Goods & services worth Rs.50000/-

 Customer has to pay advances for full value Rs.50000/-

1. Advances Payment from Customers (F-29) Rs.50000/- (FBL5N in Special GL (-)

Entry:-

40 - Bank a/c Dr 50000

19A - Customer a/c Cr 50000

Document type – DZ-14 series saved

2. Create Customer Invoice (FB70) Rs.50000/-(FBL5N in Normal (+)

01 - Customer a/c Dr 50000

50 - To sales a/c Cr 50000

Document type – DR-18 series saved

3. Match and Clear (F-32)

09A - Customer a/c Dr 50000

17 - Customer a/c Cr 50000

49
2. Partial Down Payment:-

 Customer wants Goods & services worth Rs.50000/-

 Customer has to pay advances for full value Rs.20000/-

1. Advances Payment from Customers (F-29) Rs.20000/- (FBL5N in Special GL (-)

Entry:-

40 - Bank a/c Dr 20000

19A - Customer a/c Cr 20000

Document type – DZ-14 series saved

2. Create Customer Invoice (FB70) Rs.50000/-(FBL5N in Normal (+)

01 - Customer a/c Dr 50000

50 - To sales a/c Cr 50000

Document type – DR-18 series saved

3. Transfer from Special to Normal (F-39)

Entry:-

09 - Customer a/c Dr 30000

16 - Customer a/c Cr 30000

Document type – DA-16 series saved

4. Balance Payments from Customer (F-28) Rs.30000 (-)

Entry:-

40 - Bank a/c Dr 30000

15 - Customer a/c Cr 30000

Document type – DZ-14 series saved

Interest Calculations:- There are 2 types

1. Balance Interest Calculation - S Type - GL Accounts

2. Item Interest Calculation - P Type - Vendors/Customers

1. Balance Interest Calculation:- “S” type

Balance Interest is interest Calculation on the balance of the account.

Ex:-

Loan - 1000000

Paid - 300000

Balance - 700000

In this example interest will calculate on balance amount Rs.700000/-

50
Steps:-

1. Define Interest Calculation types – Interest Indicator “S” type - OB46

2. Prepare for account balances interest calculation - OBAA

3. Define Reference Interest Rates - OBAC

4. Define Time Dependent Terms - OB81

5. Specify Interest Rates - OB83

6. Create Bank Loan Account - FS00

7. Create Interest Expenses Account - FS00

8. Assign the account for Account Determination - OBV2

9. Specify Interest Indicator in Bank Loan Account - FS00

10. Post backdated Loan transaction - FB50

11. Calculate Interest calculation - F.52

12. Display document - FB03

13. Ledger Balance of amounts - FS10N

2. Item Interest Calculation:- “P” type

Interest Calculation on customer/Item wise

Ex:- XYZ Customer

@24% Per Annum

01-06-2019  400000*24/100*48/365

20.06.2019  500000*24/100*28/365

30-06-2019  200000  Paid

15-07-2019  700000 *24/100*2/365

Balance 1600000

In this case can’t calculate interest on balance because the sales made on different dates so the
calculation of interest will be individual so, we have to calculate item wise interest.

2. Item Interest Calculation:- “P” Type

If any customer is failed to make payment by the due date, the business may impose interest on the
overdue of customer invoice amounts.

This procedure can be done in SAP by using item interest calculation method.

Steps:-

[Link] Interest Calculation types – Interest Indicator “P” type - OB46

2. Prepare for account balances interest calculation:-

Navigation:- SPRO-SAP Reference IMG-Financial Accounting-A/R & A/P- Business Transactions-Interest

Calculation-Interest Calculation Global Settings-Prepare Item Interest Calculation

3. Define Reference Interest Rates - OBAC

4. Define Time Dependent Terms - OB81

5. Specify Interest Rates - OB83

51
6. Create Interest Income Account - FS00

7. Create Customer Master Record - FD01

8. Assign the account for Account Determination - OBV1

9. Specify the Interest Indicator in Customer Master Record - FD02

10. Post backdated Customer Invoice - FB70

11. Calculate Item Interest calculation - FINT

12. Customer Line Item Report - FBL5N

13. Display document - FB03

Dunning Procedure:-
 Dunning procedure is a correspondence procedure to send remainders letters to customers regarding
overdue items from them.
 No Accounting entries are generated out of dunning.
 Dunning levels  Maximum “9” levels, the content in each level will be change.
 In dunning levels “8” Normal notices and “1” is Legal notice.

Dunning Steps:-

1. Define Dunning Procedure (FBMP)

 Click on New Procedure

 Click on Dunning Levels
 Click on Dunning Charges
 Click on Minimum amounts
 Dunning Texts
 Click on New company code
 Again, click on dunning text EnterBackSave

2. Assign dunning procedure to customer (FD02)

3. Post backdated customer invoice (FB70) Rs.50000/-

4. Run Dunning Procedure (F150)

Goods and Service Tax (GST):- Steps:-

1. Create Access Sequence Keys - 2 (OBQ2)

 JGSI  Input Access Sequence Key

 JGSO  Output Access Sequence Key

2. Create Condition Types - 12 (OBQ1)

For Input Condition types

 JICG - Input tax CGST

 JISG - Input tax SGST
 JIIG - Input tax IGST
 JIUG - Input tax UGST

For Non-Deductible Input tax condition types

 JICN - Input CGST Non-Deductible

 JISN - Input SGST Non-Deductible
 JIIN - Input IGST Non-Deductible
 JIUN - Input UGST Non-Deductible

52
For Output Condition types

 JOCG - Output tax CGST

 JOSG - Output tax SGST
 JOIG - Output tax IGST
 JOUG - Output tax UGST

[Link] Account Keys - 9 (OBCN)

 JIC - Input tax CGST

 JIS - Input tax SGST
 JII - Input tax IGST
 JIU - Input tax UGST
 JOC - Output tax CGST
 JOS - Output tax SGST
 JOI - Output tax IGST
 JOU - Output tax UGST

Predefined by SAP System (Non-Deductible items)

 NAV - Separate Line item

 NVV - No Separate Line item

[Link] Tax Procedure (OBYZ)

Step Condition Type From To Account Key

100 BASB - -

110 JICG 100 100 JIC

120 JISG 100 100 JIS

130 JIIG 100 100 JII

140 JIUG 100 100 JIU

150 JICN 100 100 NVV

160 JISN 100 100 NVV

170 JIIN 100 100 NVV

180 JIUN 100 100 NVV

200 JOCG 100 100 JOC

210 JOSG 100 100 JOS

220 JOIG 100 100 JOI

230 JOUG 100 100 JOU

5. Assign the Tax Procedure to country India (OBBG)

6. Create GL A/c’s for GST Receivable & Payable (FS00)

 200016 - CGST Receivable

 200017 - SGST Receivable Input tax is called Receivable
 200018 - IGST Receivable
 200019 - UGST Receivable

 100016 - CGST Payable

 100017 - SGST Payable Output tax is called Payable
 100018 - IGST Payable
 100019 - UGST Payable

Save

53
7. Assign the accounts for account determination (OB40)

For Input

 JIC - 200016
 JIS - 200017
 JII - 200018
 JIU - 200019

For Output

 JOC - 100016
 JOS - 100017
 JOI - 100018
 JOU - 100019

Save

8. Create Tax Codes (FTXP)

Country: IN

Tax Code: Tax code contains Tax Percentages.

9. Make the GL Accounts to tax calculative (FS00)

GL Expenses Account (Ex: 400000)

Click on change

Click on Tax Category -- *

Select posting without tax allowed

Save

Select Sale Revenue Account

Click on change

Click on Tax Category -- *

Select posting without tax allowed

Save

10. Post Vendor Invoice (FB60) Rs.100000/-

11. Post Customer Invoice (FB70) Rs.150000/-

12. To See the GL account Balance (FS10N)

13. To Set off Receivables against Payables (F-03)

14. To Clear Tax Payable (F-07)

15. To See the Payable/Receivable Balances (FS10N)

Bank Reconciliation Statement (BRS):- To match main bank GL account balance with actual bank
account balance as bank statement.

We are doing BRS for two main important reasons.

1. Check issued but not cleared

2. Check deposited but not cleared

What we do in BRS is

54
1. Purchase Process:-

Vendor Invoice (FB60) Rs.40000/-

40 - Relevant Expenses a/c Dr 40000

31 - Vendor a/c Cr 40000

Vendor Payment (F-53) Rs.40000/-

25 Vendor a/c Dr 40000

50 Bank a/c Cr 40000

Actually we pay the amount through check so the payment will not done immediately . Instead of these entry we
create check issue account.

At the time of check issue entry is

25 Vendor a/c Dr 40000

50 Check issue a/c Cr 40000

This will also called as Bills Payable issue entry.

When check was cleared in bank at the time, we post the entry in BRS as

40 - Check issue a/c Dr 40000

50 - Bank a/c Cr 40000

This will also called as Bills Payable clearing entry.

2. Sales Process:-

Customer Invoice (FB70) Rs.70000/-

01 - Customer a/c Dr 70000

50 - Sales Revenue a/c Cr 70000

Check Receipt from Customer (F-28) Rs.70000/-

40 - Bank a/c Dr 70000

15 - Customer a/c Cr 70000

Check deposited but not cleared immediately so we create check deposited a/c instead of Bank.

40 - Check Deposit a/c Dr 70000

15 - Customer a/c Cr 70000

The entry is Bills Receivable Deposit Entry

After we received bank statement, we see the check is cleared we will post the entry in BRS

40 - Bank a/c Dr 70000

50 - Check Deposited a/c Cr 70000

The entry is Bills Receivable Entry.

Step: 1 T Code: - (OT83)

 Create Account Symbols (OT83)

 Assign the accounts for account determination
 Create Posting Keys
 Define Posting Rules

2. Assign Business Transactions for Check Deposit (OT53)

3. Create Screen Layout for Check Deposit (OT45)

4. Assign Business Transactions for BRS (OT52)

55
5. Create Screen Layout for BRS (OT43)

6. Create GL A/c’s (FS00)

 Main Bank Account already created (200000)

 HDFC Check Issue Account (200001)
 HDFC Check Deposited Account (200002)

7. To See GL Account Balance (FS10N)

8. Post Customer Invoice (FB70) Rs.300000/-

9. Check Deposit Screen (FF68)

10. BRS Screen (FF67)

11. Post Vendor Invoice (FB60) Rs.100000/-

12. To make Vendor Payment (F-53) Rs.100000/-

13. To Issue Check to payment Document (FCH5)

14. To do BRS Screen (FF67) Rs.100000/-

15. To Display Document (FB03)

Entry:-

40 - Check Issue A/c Dr 100000

50 - Bank A/c Cr 100000

Electronic BRS:-
We have to create external transactions of bank.

External transactions of bank is NCHR, NCHP, NCHG

NCHR - Check deposited cleared in bank

NCHP - Check issued cleared in bank

NCHG - Bank Charges

After creation of external transactions we have to assign posting rules what we define for transactions in BRS.

NCHR - SPL2

NCHP - SPL3

NCHG - SPL4

1. Assign External transactions with the postings rules (OT83)

Note:-We have two bank formats

1. MT940

2. BAI2

We use MT940 and we have say in interviews also MT940 format

[Link] See the GL Account Balance (FS10N)

[Link] Customer Invoice (FB70) Rs.500000/-

[Link] Receipt Clear Customer (FF68)

[Link] Vendor Invoice (FB60) Rs.300000/-

[Link] Create Payment Document (F-53) Check Issue A/c (200001) Rs.300000/-

[Link] Issue Check (FCH5)

[Link] Upload Bank Statement (FF_5)

56
Cash Journal - Petty Cash :-

The cash journal is a sub ledger of Bank Accounting. It is used to manage a company’s cash transactions.
In cash journal negative amount not posted. Cash journal is a 4 digit alphanumeric key. The system automatically
calculates and displays the opening and closing balances, and the receipts and payment totals. You can run
several cash journals for company code. You can also carry out postings to G/L accounts, as well as vendor and
customer accounts.

The cash journal is a single screen transaction. This means that you can enter, display, and change cash
journal documents on one screen.

1. Create Petty Cash GL Account (FS00)

2. Create a Cash Journal (FBCJC0)

3. Create Number Range for Cash Journal Document (FBCJC1)

4. Assign Business Transactions to be used in Cash Journal (FBCJC2)

5. Print Parameters for Cash Journal (FBCJC3)

6. Cash Journal Posting (FBCJ)

Bad Debts:-

 Bad Debts is nothing but Non-Recoverable Debt.

 Customer open item in FBL5N – which is included in sundry debtors.
 In this sundry debtor some customers will not pay the payment within the due date.
 For that customer we send dunning documents also then also they did not pay the payment.
 At the time that customer will be treated as bad debts.
 For that bad debts we have maintain separate a/c is called as provision for doubtful debts.
 We transfer the doubtful amounts means non-recoverable amounts will transfer to provision for bad and
doubtful debts from sundry debtors.
 Like this we make a provision for that non-recoverable amounts after some years it will transferred to bad
debts expenses account.

Steps:-

1. Create a GL account for Provision for bad and doubtful debts (FS00)

2. Assign the account in “OBXY” clicking “E” Symbol. (“E“ for Reserve for Bad debts)

3. To transfer the doubtful debts to provisions (F-30)

In Sub ledger entry is:

09E - Customer a/c Dr 100000

17 - Customer a/c Cr 100000

In General ledger entry is:

09E - Provision for Bad &doubtful debts a/c Dr 100000

17 - Sundry Debtors a/c Cr 100000

If Customer pay the payment after some days

[Link] Clear Customer Payment (F-28)

In Sub ledger entry is:

40 - HDFC Bank a/c Dr 100000

19E - Customer a/c Cr 100000

57
In General ledger entry is:

40 - HDFC Bank a/c Dr 100000

19 - Provision for Bad &doubtful debts a/c Cr 100000

If customer will not pay the money after some years also the it will become bad debts.

For the process we need to create bad debts GL account and transfer the provision to bad debts
account.

[Link] GL account for Bad Debts Exp a/c (FS00)

[Link] Provisions for Bad Debts (F-30)

In Sub ledger entry is:

40 - Bad debts a/c Dr 100000

19E - Customer a/c Cr 100000

In General ledger entry is:

40 - Bad debts a/c Dr 100000

19 - Provision for Bad &doubtful debts a/c Cr 100000

Entries for Bad debts in sub ledger & and general ledger is:-

Reasons for transaction Sub Ledger Entries General Ledger Entries

To transfer customer normal to Customer a/c Dr [Link] Bad &

special(Provisions)
To Customer a/c Cr doubtful debts a/c Dr

To S/ Debtors a/c Cr

If Customer pay Bank a/c Dr Bank a/c Dr

To Customer a/c Cr To [Link] [Link] a/c Cr

If Customer not pay Bad debts a/c Dr Bad Debts a/c Dr

To Customer a/c Cr To prov. for [Link] Cr

Bill of Exchange:- It is a letter of credit and it is a type of exchangeable document.

Sundry Debtors Bill Exchange a/c (Special GL A/c) - OBYN - “W” Symbol

HDFC Bill Discounted A/c (Liability) - OBYK

“W” - Bills of Exchange Receivable

Reason for transaction Sub Ledger Entries General Ledger Entries

Post Customer invoice Customer a/c Dr Sundry Debtors a/c Dr

(FB70) To Sales a/c Cr To Sales a/c Cr

Receive B/E payment Customer a/c Dr S/Debtors B/E a/c Dr

(F-36) To Customer a/c Cr To Sundry Debtors a/c Cr

58
For Discounting B/E in Bank a/c Dr
Bank (F-33)
---- Bank Charges a/c Dr

To HDFC Bill [Link] a/c Cr

If Customer pays HDFC Bill Dis a/c Dr HDFC Bill Discounted a/c Dr

(F-20) To Customer a/c Cr To S/Debtors B/E a/c Cr

If Customer does not pay HDFC Bill Discounted a/c Dr

(FB50)
To HDFC Bank a/c Cr

----

To Configuration bills of exchange we need to create two GL accounts and assign the GL accounts for account
determination.

[Link] Sundry Debtors Bill of Exchange GL account (FS00) 200003

[Link] HDFC Bill Discounted account (FS00) 100003

[Link] the accounts for account determination (OBYN) (Sundry Debtors a/c)

[Link] Bank Account, Sundry Debtors and HDFC Bill Discounted A/c (OBYK)

[Link] Customer Invoice with NT30 (FB70) Rs.200000/-

[Link] of Exchange Payment from Customer (F-36)

[Link] Discounting with the bank (F-33)

[Link] Customer pays the payment (F-20)

Asset Accounting (Sub Ledger):-

 Asset accounting is a Sub Ledger.
 Asset accounting is used for managing and monitoring fixed assets.
 In financial accounting, it serves as a sub ledger to the general ledger, providing detailed information on
transactions involving fixed assets.
 In asset accounting we can Buy,Sell,Transfer,Lease,Develop,Scrap,mortgage,Depreciate,Revaluate etc.
 For this we have to create many reconciliation accounts and many reconciliation processes.
 Assets are divided into asset classes.
 Reconciliation GL account is the bridge between AA sub ledger and General ledger, the business
transactions posted in sub ledger automatically updates General ledger via this account.
 ** We cannot post directly to a reconciliation type GL account.

59
For Depreciation Accounting Entry is

In Normal Accounting:-

40 - Depreciation A/c Dr XXXX

75 - To Asset A/c Cr XXXX

 Depreciation Exp is Expenses for the year.

In SAP:-

40 - Depreciation A/c Dr XXXX

75 - To Accumulated Depreciation A/c Cr XXXX

 Accumulated Depreciation is the cumulative depreciation on the asset till date.

 Acquisition Value : Purchase value of the asset.
 Net Book Value : Acquisition Value – Accumulated Depreciation

100000-30000=70000

(A.V – A.D= Net Book Value)

Asset Class:- Asset class is a set of similar assets grouped together for asset management for purpose.

Chart of Depreciation:- Chart of depreciation is the highest organization unit in asset accounting. We have to
copy either Germany chart of depreciation or Indian Chart of depreciation.

It contains depreciation areas such as

1. Book Depreciation (Postings to accounts)

2. Tax Depreciation |

3. Cost Depreciation |-- Only for information

4. Group Depreciation |

 A Maximum of “99” Depreciation areas can be maintained per asset.

Depreciation Methods:-

1. Straight Line Method (SLM)

2. Written down Value method (WDV)

Depreciation Keys :- Rate + Method

 5% SLM Rate
 5% WDV Rate

Transaction Types:-

100 - External acquisition

110 - In-house production

210 - Retirement with revenue

Asset debit:-

The debit can be use of external acquisition (Outside purchase) / In house production /Inter unit transfer
Intercompany purchase.

With transaction type we will come to know because of what it is debited.

60
Posting Keys:-

70 Asset Debit

75 Asset Credit

Asset accounting is based on 4 rules:-

1. Sub asset master is to be created with reference to main asset master.

2. Main asset master is to be created with reference to asset class.
3. Account determination is specified in asset class.
4. For account determination we assign GL accounts based on the nature of transaction.

Asset Class:-

 Asset class is a set of similar assets grouped together for asset management for purpose.
 Any number of asset classes can be created (Unlimited)
 To create asset class, we need “3” pre requisites
[Link] Determination (It allows 8-character alphanumeric code)
[Link] Layout (It allows 4-character alphanumeric code)
[Link] Range (It allows 2-digit numeric code)

1. Account Determination:- Account determination controls which account has to be picked up for which asset
transaction and for each asset class.

2. Screen Layout:- Screen layout controls the screen layout and parameters for each asset class. It determines
which fields are required, optional and supressed in the asset master record.

3. Number Ranges for asset class:- It contains the asset account number that is asset record number for each
class.

Configuration Steps:-

Chart of Depreciation:- Chart of depreciation is the highest organization unit in asset accounting. We have to
copy either Germany chart of depreciation or Indian Chart of depreciation.

[Link] Chart of depreciation:-

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Organisational Structure-Copy reference

chart of depreciation/Depreciation area ([Link]:- EC08)

a) Define Copy reference Chart of Depreciation

b) Specify depreciation of the Chart of Depreciation
c) Copy/delete depreciation areas

2. Assign input tax indicator for Non-taxable acquisitions

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Integration with general ledger-Assign

Input tax indicator for Non-taxable acquisitions

3. Assign Chart of Depreciation to Company Code (T Code : OAOB)

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Organisational Structure- Assign Chart of

Depreciation to Company Code

4. Account Determination

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Organisational Structure-Asset Classes-

Specify Account Determination

5. Create Screen Layout

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Organisational Structure-Asset Classes-

Create Screen Layout Rules

61
6. Define Number Ranges for Asset classes(T code : AS08)

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Organisational Structure-Asset Classes-

Define Number Range Interval

7. Define Asset Classes (T Code : OAOA)

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Organisational Structure-Asset Classes-

Define Asset Classes

[Link] Depreciation areas for the Asset Classes (T Code : OAYZ)

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Valuation-Determine Depreciation areas in

Asset Class

[Link] of 15 General Ledger Masters (T Code : FS00)

 200000 - Land

 200005 - Buildings

 200010 - Plant & Machinery

 200015 - Furnitures & Fixtures

 200020 - Vehicles

 200025 - Asset Under Construction

 100200 - Accumulated Depreciation-Building

 100205 - Accumulated Depreciation-P&M

 100210 - Accumulated Depreciation-F&F

 100215 - Accumulated Depreciation-Vehicles

 300102 - Revenue from Sale of asset A/c

 300103 - Profit on Sale of Asset A/c

 400302 - Loss on Sale of Asset A/c

 400303 - Loss on Sale of Scrapping Asset A/c

 400500 - Depreciation Expenses A/c

We are using Only Building Asset Class :-

Only 7 GL Accounts:-

 200005 - Buildings

 100200 - Accumulated Depreciation-Building

 300102 - Revenue from Sale of asset A/c

62
  300103 - Profit on Sale of Asset A/c

 400302 - Loss on Sale of Asset A/c

 400303 - Loss on Sale of Scrapping Asset A/c

 400500 - Depreciation Expenses A/c

[Link] the Account for Account Determination (T Code : AO90)

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Integration with general ledger-Assign GL

Accounts

11. Define Number range for Depreciation Document Type (AF) (T Code : OBA7)

12. Define Posting rules for Depreciation Posting (T Code : OAYR)

13. Define Rounding off rules for Depreciation (T Code : OAYO)

14. Define Screen Layout for the Asset Master Records

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Master Data-Screen Layout-Define Screen

Layout for Asset master Data

15. Define Screen Layout for Depreciation Areas (T Code : AO21)

Path: SPRO-SAP Reference IMG-Financial Accounting-Asset Accounting-Master Data-Screen Layout-Define Screen

Layout for the Depreciation Areas

[Link] Depreciation Key (T Code : AFAMA)

Depreciation Key is the required field needs to be given at the time of creation of asset. It contains
calculation methods such as

[Link] Method - Standard-0014

[Link] Balance Method - Standard-001

[Link] Control Method - (T Code : AFAMP) (006)

[Link] Method - (T Code : AFAMS) (SLM & WDV Methods)

If we need to do depreciation, we need some information.

1. Period:- Start Date and End Date – It is controlled by Period Control Method.

2. What method:-SLM/WDV – It is controlled by Multilevel method.

SLM — Straight Line Method  SLM Depreciation is calculated on the Acquisition Value.

WDV — Written Down Value  WDV Depreciation is calculated on the Net Book Value.

 Declining Balance Method is used in case of fluctuation/factoring.

 Base Method is for how many years asset will be there in it give general information.

 To Create Period Control Method (AFAMP)

 To Create Multilevel Method (AFAMS)
 To Create Depreciation Key (AFAMA) (0014,001,006 and KS1)

63
17. Creation of Asset Master Record (AS01)

18. Asset Explorer (T Code : AW01N)

It provides us information about each individual asset i.e. the values of the asset, depreciation planned
and posted for the asset, net book values, and individual asset related entries.

Sub Asset: - Is asset under main asset. It is created and maintained under main asset. The purpose of
maintaining a sub asset is to treat the sub asset differently from main asset. Either we want depreciate it
differently or sell it off separately from main asset.

Create Sub Asset Master Record (AS11)

[Link] of Asset for Cash (F-02)

To See Asset Explorer (AW01N)

20. Create Asset Master Record (AS01)

21. Acquisition of Sub Asset on Credit with Vendor (F-90)

22. Creation of Sub Asset Master Record (AS11)

23. Acquisition of Asset for Cash (F-02)

24. Creation of Sub Asset Master Record (AS11)

25. Acquisition of Sub Asset on Credit with Vendor (F-90)

Asset Explorer (T Code : AW01N)

26. Depreciation Run (T Code: AFAB):-

Depreciation Run is executed to post depreciation on the assets. It is a period end process which applies to
all assets under the company code.

Note:- Depreciation Run can done as a Background Process Only. It cannot be done in front end.

Depreciation Run can be done in 4 ways.

1. Unplanned - Middle of the year.

2. Planned - This run is a planned period wise

3. Repeat - Only one previous month

4. Restart - Abruptly disturbed in middle.

64
Retirement of Assets: - Removing the assets from the company code.

27. Retirement with revenue for cash (Sale for cash) (T Code : ABAON)

28. Retirement with revenue with customer (Sale on Credit) (T Code : F-92)

29. Retirement without revenue (Scrapping) (T Code : ABAVN)

30. Transfer of Assets Within the Company Code:- (T Code : ABUMN)

Transfer of asset is done for the following reasons.

1. If the asset was created under wrong asset class and we want to change the asset class.

2. When we want to split the asset into two parts. We create two master records and transfer the values from
existing asset to new asset.

Scenarios:-

[Link] Value:-

Scrap Value is the Residual Value of the asset after useful life of the asset. If we want to consider scrap
value in depreciation, we have to do related configuration for scrap value.

There are two ways in which we can include scrap value in depreciation calculation.

[Link] specifying the scrap value of the asset in the asset master record.

[Link] creating the cut off value key and scrapping the cut off value key in depreciation key.

 If we want to apply the scrap value to only one asset, we can use first method.
 If we want to apply the scrap value on a percentage basis to many assets, we can use the second
method.

To bring in scrap value into depreciation calculation. We have two options

1. Scrap Value at Asset Master Record Level

2. Cutoff Value Key

1. Scrap Value at Asset Master Record Level:-

a)Check depreciation screen layout whether scrap value is allowed (T Code : AO21)

B)Change depreciation key (T Code : AFAMA)

c) Go to AW01N and note down current values (T Code : AW01N)

D)Post Scrap Value in Asset Master Record (T Code : AS02)

e) Go to check values in Asset explorer (T Code : AW01N)

65
2. Cutoff Value Key :- Cut off value key can be used to apply scrap value as percentage to multiple assets.

a) Create a cut off value key (T Code : ANHAL)

b) Assign Cut off Value Key in the Depreciation Key (T Code : AFAMA)

32. Revaluation of Assets:-

Sometimes the asset values may increase or decrease on account of market forces. This will happen
irrespective of what asset value and depreciation we are maintaining in our books of accounts.

When there is such change in value of the asset, we may want to revaluate it and recognise that change in
value in our books of accounts.

Steps:

[Link] Depreciation Area to Allow Revaluation (T Code : OADB)

2. Create GL Accounts (T Code : FS00)

 Revaluation of Building A/c (200001)

 Revaluation of Revenue A/c (100202)

3. Assign Accounts for Account Determination (T Code : AO90)

4. Limit Transaction Type (T Code : OAXJ)

5. Check Revaluation is Permitted or not (T Code : OABW)

6. Check Posting rules (T Code : OAYR)

7. Post Revaluation of Asset (T Code : ABAW)

8. Check AW01N and click on Recalculate option (T Code : AW01N)

33. Unplanned Depreciation:-

Unplanned depreciation will be done at any time for an asset. Ex: Damage, Accidents etc…

When damage/accidents happen to an asset at that time we calculate unplanned depreciation to that asset.

Steps:-

1. Change Depreciation Area to Permit Unplanned depreciation postings (T Code : OADB)

2. Create GL Accounts (T Code : FS00)

 Unplanned Depreciation Exp A/c (400501)

 Unplanned Accumulated Depreciation A/c (100201)

3. Assign Accounts for Account Determination (T Code : AO90)

4. Post Unplanned Depreciation (T Code : ABAA)

5. To See/Check Unplanned Depreciation Values (T Code : AW01N)

66
[Link] Catch up and Smoothing:-

when we change the depreciation rate in the middle of the year then the system will try to post the
difference in the depreciation values in the immediately following period this is refer to as Asset Catch up.

Asset Catch up:- Asset Catch up will happen system automatically when the depreciation rate is changed.

Steps:-

[Link] to AW01N check asset values and note down the current depreciation values for period and year.

[Link]/Increase Depreciation from 10% to 20%.

 Go to AFAMS and Create New Multilevel Method – SP3 with 20% depreciation.
 Go to AFAMA Depreciation Key – SPL1 and change Multilevel Method to SP3.

[Link] to AW01N – Check depreciation values for the periods and year. Observe that change 20%
depreciation will apply for all coming periods.

The difference (Backlog)in the depreciation for periods already posted and new depreciation will be
planned to be posted in the next following period. This is known as “Asset Catchup”

Smoothing:- If we apply smoothing the difference between depreciation already posted and new depreciation
will be spread over the remaining months equally.

 To Apply Smoothing – Tick Smoothing indicator in “OAYR”

35. Legacy Assets (AS91):-

[Link]-end Closing in Asset Accounting:-

Asset accounting is a Sub Ledger and it should be closed before the closure of general ledger as the
general ledgers gets the inputs from the sub ledgers.

If GL is closed before asset sub asset inconsistencies may arise in asset reconciliation.

For Asset Year Closing:-

Steps:-

[Link] depreciation runs for all the periods in the fiscal year to be closed.

2. Create the Retained Earnings a/c as assign in (T Code : OB53)

3. Go to AJRW and change the asset fiscal year to new year – By executing the background job.

4. Create document number ranges for new fiscal year (T Code : OBH2)

[Link] Posting Periods for the new fiscal year (T Code : OB52)

6. Run depreciation Test run for first period of new year (T Code : AFAB)

7. Close Previous Asset fiscal year by going to the (T Code : AJAB) directly do the main run.
67
Igrowsoft SAP FICO Interview Questions:-

Finance

[Link] is SAP implementation – Customizing/Configuring SAP ERP software in sync with client business
needs/requirements

which procedure will be followed by sap partners to implement sap for new clients

Globally accepted and SAP suggested practice “ASAP Methodology”

[Link] about ASAP methodology procedure?

For a successful SAP implementation, ASAP methodology is a complete end to end Road map which consist of 5
phases

1. project preparation – To understand client business, project scope and to determine project schedule along
with each phase timelines and to get to know each individual of the implementation team.

A “Kick off meeting” will be held at client location, to introduce implementation team to client core team members
and to draw roles and responsibilities of each individual.

2. Business blue print – The implementation consultants are responsible to understand the client existing
business processes (AS IS) in the legacy system and to gather all the business requirements and design the SAP
solution (TO BE) in a document known as in SAP terminology BBP document.

The BBP document would be submitted to Finance department head in SAP terminology FI BPO – business process
owner, the BPO would review the BBP document and suggest if any amendments are required and approves the
BBP. Approval procedure called as BBP sign off.

3. Realization – The SAP solution proposed in the BBP document would be realized/configured/customized in the
SAP Development server/Golden Client and tested in the Development server unit testing client.

As a consultant we will prepare configuration & unit test case documents in this phase

4. Final preparation – All the implementation consultants would release their customizing requests (TR) and
request BASIS consultants to move the config changes to QA server to perform integration testing (FI – MM, FI-
SD) and UAT.

User training will be provided and user manuals will be prepared

Cutover strategy will be built and executed – all the legacy system master data and transactional data will be
uploaded to 1st QA system next PRD system.

5. GO Live – The day client starts using SAP Production server is called as GO live date.

Post implementation support – Generally implementation partners will provide 100 hrs or 2 months of free support
for each module.

[Link] are the roles and responsibilities of FICO consultant in the 2nd phase of implementation?

We will conduct business workshops to understand existing business processes, will distribute AS IS Q&A
templates to finance BPO’s and end users to get the business requirements.

[Link] is a version management in BBP document ?

Initial draft of the BBP would be prepared and submitted to business, if they come up any changes requirement
that would be handled through maintaining newer version in the BBP document

[Link] is BBP signoff?

After all the business requirements are gathered and documented in BBP document and submitted for the
acceptance of the business, the BPO & PMO would give their approval for SAP system configuration by signing off
on the BBP document.

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[Link] is SAP FI organization structure?

Client – Company – Chart of accounts – Company code

[Link] is a client?

Client is the highest organizational unit in SAP system, which will have its own set of data applicable to all
company codes all other organizational units in the system

[Link] many clients can be maintained in one SAP server?

In one server, from 000 to 999 as many as 1000 clients can be created by Basis team. Generally in DEV server 3
clients would be maintained, in QA and PRD one client would be maintained.

[Link] is company & company code and which org unit creation is mandatory in SAP?

Company is a group which consist of N number of company codes EG; Reliance group

Company code is a legal entity for which a self contained set of accounts can be drawn for purpose of external
reporting EG: Rel Petrol, Rel Power, Rel Capital

Company creation is optional, company code creation is mandatory activity in SAP

[Link] is chart of accounts (COA)?

A list of GL accounts

[Link] many types of chart of accounts are available in SAP? Which one is mandatory?

3 types – 1. Operational COA 2. Group COA 3. Country specific COA

Operative COA is mandatory one which will be used for day to day transactions posting

[Link] is a chart of depreciation (COD)?

COD is the highest organizational unit within AA sub ledger, which will consist of different depreciation areas to
control how the depreciation is calculated, posted and reported.

[Link] is a Controlling area and what it controls?

In SAP CO module controlling area is the highest org unit, which will be used to generate cost reports for
management reporting/internal reporting purpose.

[Link] a controlling area be assigned with multiple company codes?

Yes, provided all the company codes must use same operative COA though they maintain in different currencies

[Link] is local currency?

Company code currency is known as local currency in SAP

[Link] is a Fiscal year and what are the standard variants?

Fiscal year is a financial year that is being followed by business, EX: standard FY variants –

1. V3 – Apr to March 2. V6/PS – July to June 3. K4 – Jan to Dec

[Link] many normal & special periods can consist in a Fiscal year?

12 normal and 4 special periods can be defined in a one Fiscal year

[Link] is a special period and why do we need in SAP?

Special periods are extension to closed fiscal year and used to post audit adjustment entries and takes posting
date as any date of the 12th posting period.

EX: if a transaction to be posted in spl period 13 i.e. April or spl period 14 i.e. May the document can have posting
date as any date in the 12th period i.e March but generally posting date would be considered as 31 st of March.

[Link] is a field status variant and what it consist of?

Field status variant consist of field status groups which are used/assigned at the time of GL account creation.

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[Link] status group what it controls?

At the time of transaction entry/ document posting users will have N number of fields ready for input, these fields
can be controlled as Required/optional/suppressed from the field status group.

[Link] is the relevance of document types in SAP and at what level they will be maintained?

To differentiate between different types of business transactions eg: Vendor invoice & payment, customer invoice
& payment, general ledger document etc. SAP provided differentiating factor at the time of document entry itself is
document type. Eg: SA, KR, KZ , DR , DZ & AA etc.

[Link] keys importance in FI module?

To determine line item in the document DR/CR side, posting keys are used in FI.

[Link] the time of document entry, from where we can control line item field status?

a. from FSG, assigned to the GL account master record

b. from posting keys FSG

[Link] are the different types of account groups in FI and what do they control?

Generally in FI we have 3 types of account groups are available to create master records –

a. GL account group (OBD4) b. Vendor account group (OBD3) c. Customer account group (OBD2)

Account groups controls field status of a master record at the time of creation

[Link] is the central task of a GL account?

a. whenever there is a business transaction, GL accounts are the primary source to record in the General ledger

b. For all sub ledger postings to integrate with GL, reconciliation GL accounts are the source to update GL

C. For internal reporting in controlling module, the cost data will flow from FI to CO. The Expense GL accounts in
FI will carry the cost from FI to CO by the mean Primary cost elements.

26.A GL account can be created at how many levels?

3 levels –

a. Chart of account level – FSP0

b. Company code level – FSS0

c. Centrally – FS00 (COA & Co Code)

[Link] is the maximum length of a GL account master record?

Maximum10

Minimum 6

[Link] is the importance of “only balances in local currency” field in GL account master record?

Or, can I post a foreign currency transaction to a GL account which is checked with the above
indicator?

Yes, we can post in non-local currency, but the ledger balances will only display in local currency and cannot be in
transaction currency

[Link] is open item management importance in GL master record? Which accounts are managed with
this option?

Only balance sheet type accounts can be managed with this option and more over only those accounts which
requires clearing in future.

We can say there are 2 conditions to maintain a GL account with open item management option

Condition 1 – The GL account should be Balance sheet account

Condition 2 – Requires clearing in future EX: Outstanding expenses, prepaid expenses & Bank loans etc.

When the line items posted & displayed to this account will be shown in OPEN status until they get clearing in
future.
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[Link] is the importance of Line item display in GL account master record?

It is very important to select this indicator for each and every GL master record, if not the business cannot have
track of item wise postings display.

[Link] is the sort key relevance in GL master record?

Based on sort key selection, at the time of document entry system will automatically copies onto the assignment
field. EX: sort key as Posting date, system will copies posting date onto the line item automatically and at the time
of display the line items will be sorted based on posting date.

[Link] business don’t want their users to create GL accounts, from where we can restrict creation of
GL accounts?

In the chart of accounts create/change screen we have an option Status “Blocked”, if we activate that indicator
users cannot create GL accounts.

[Link] do we restrict postings against a particular GL account?

Change that particular GL account by selecting Block indicator for the company code.

[Link] a GL account document what are the data levels it consist of?

2 levels – Document header level data & Line item level data

We can get posted data from header level in SAP table BKPF, line item level in BSEG

[Link] is workflow process, how it is relevant to FI module?

Generally workflow process is one of the solution to a GAP identified during blue print phase.

EX: 2 tier Workflow process for posting documents –

1. Accountant enters voucher details in SAP and saves the information. Now SAP has to trigger an email to the
chief accountant for review

2. chief accountant receives an email to his SAP inbox. He reviews the document and approves for posting. If he
rejects SAP has to send an update email to the accountant on the same.

Workflow process will be customized by technical team via ABAP workflow process.

To maintain Distribution list for email notifications – SO23

SAP inbox to verify received emails – SBWP

We can identify whether workflow process is triggered for a document by going to document display screen and
click on Icon beside the title of the screen

[Link] to identify ABAP program name for a particular transaction code?

a. enter the transaction on the command line

b. from the transaction screen – go to menu bar – click system – click status – from system status pop up screen
– note down the program name under SAP data section

[Link] to define a background job?

T – code – SM36

Enter Job name – Recurring batch job

Click on Step icon (F6)

Enter ABAP program name –

Enter variant created in step 2 –

Click check

Click Save

Go back

Save

You will get a message Job recurring batch job saved with status: scheduled
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Click on Start condition

Click on immediate

Click save

You will get a message job saved with status : Released

Step 4: process batch input session – SM35

Select the job name –

Click on process

Click on display errors only

Click extended log

Enter

Exit batch input session

Enter job name – Recurring batch job

Click execute

Select the batch job

[Link] is PO based and non PO based invoicing?

If a vendor invoice posted in the system through a process –

a. PO Raised by purchase department

b. Goods received by stores department

c. Invoice received by Finance department against the PO in the above step

This procedure called PO based invoicing (MIRO)

Non PO based – Direct procurement procedure, which only involves FI AP sub ledger area (FB60)

[Link] many segments of data makes a vendor master record?

a. General data – Client level

b. company code data

c. purchase organization data

[Link] is a vendor reconciliation account? Which level/segment this account is assigned in the
vendor master record?

It is the bridge between AP sub ledger and general ledger, whenever a posting made against a vendor sub ledger
account backend system updates to reconciliation account in general ledger which is assigned to vendor master
record company code segment.

[Link] we post directly to a reconciliation type GL account?

It’s not possible, reconciliation accounts are meant for GL update via sub ledger postings.

[Link] we create a VENDOR master record without giving a numeric value but with alphabets?

Yes, by maintaining vendor account group number range interval from A to ZZZZZZZZZZ and External number
range check box selected. It accepts alphanumeric values for vendor master record.

[Link] P2P cycle?

Purchase to payment is a process of procurement which involves or integrates FI AP module with MM –

Steps –

1. PR creation by stores – ME51N

2. PO creation by purchase dept. against to PR – ME21N – No FI doc (No Accounting Entry)

3. Goods receipt (GR) – MIGO

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Accounting entry –

89 - INV RM a/c (BSX) Dr XXXX

96 - To GR/IR clearing (WRX) Cr XXXX

4. Invoice receipt (IR) – MIRO

Accounting entry –

86 - GR/IR clearing a/c (WRX) Dr XXXX

31 - To - Vendor a/c Cr XXXX

This entry will be in FBL1N

FB60 - Non Po Based invoice from FI Side

MIRO - PO Based Invoice from MM Side

5. Payment – APP (F110)

Accounting entry –

25 - Vendor a/c Dr XXXX

50 - To Bank check issue a/c Cr XXXX

[Link] we get accounting document at the time of PO creation?

No, it’s just a commitment with vendor to provide the material

[Link] is the T-Code for FI-MM integration for configuration?

OBYC, assign GL accounts against MM transaction keys for automatic postings

EX: For transaction key BSX assign inventory raw material balance sheet GL account

[Link] is the movement type used at the time of goods receipt?

101 – for Goods receipt

[Link] is the t-code used to set clear status for GR IR GL account line items posted during a month?

F.13

[Link] is APP program and what it does?

Basically to make payments and clear vendors by using different payment methods in a mass procedure.

System will check all the open invoices and picks up the invoices based on the due date calculation according to
payment terms and creates cash discount line items automatically.

[Link] I make a payment to customer using APP and in which situation?

Yes, the scenario is customer returned the goods a credit memo will be created for that customer that requires
clearing.

Customer down payment but goods are not delivered – customer requires clearing

[Link] I make down payment to a vendor using APP and what configuration steps are required?

Yes, a down payment request should exist for a vendor to make down payment.

In the APP configuration, set up all company codes for payment transactions step we need to assign special GL
indicators for vendors.

[Link] is the relevance of baseline date in APP?

To determine invoice due date app program will consider baseline date as a start date, generally invoice document
date would be the baseline date.

[Link] is the importance of next payment run date in the parameters tab?

Based on next payment run date system will consider the invoices which due date is falling before the next run
and picks those invoices also in this app run.

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[Link] I gave next payment run date after 15 days, can I run APP before that day?

Yes, this date is only to make system understand to pick open invoices which due date is crossing before that day.

[Link] “exception handling process” in APP?

In the additional log tab, we need to select logging types – due date check, payment method selection in all cases
and line items of the payment documents.

[Link] of variant maintenance in APP program?

Variant controls from which house bank the checks need to be issued and also the output print from a configured
printer.

Reprint checks using variant in APP –

If a check or couple of checks are not printed properly during previous APP run, we can void/cancel those checks
and reprint in the current APP run.

[Link] I maintain multiple variants for check printing, if yes what is the purpose?

Yes, the purpose is to issue checks from different house banks as per the ranking order configuration.

[Link] successful APP run, where can I get the payments information?

1. from APP screen we can go to edit – payments – payment list

2. additional log payment run log

[Link] tables in which the APP data stored?

REGUP & REGUH

[Link] is AR and with which SAP other module it integrates?

AR is a sub ledger within SAP FI area, postings made to AR sub ledger accounts are directly updated to General
ledger through Reconciliation process.

AR closely integrates with SAP SD module.

60.A customer master record is consist of how many segments data?

If a customer is created only in FI area will consist of 2 segments data –

a. General data b. Company code data

If the customer is extended for SD area also there will be one more segment –

c. Sales organization data

[Link] business wants to create a customer record with their own interested number, how do we handle
this?

For the customer group number range interval, select the external indicator and save it.

Every time a new customer created the user has to provide the customer number externally.

[Link] master record fields control, from where we control this?

From customer account group level we can control master record fields.

[Link] is SO based and non-SO based customer invoicing?

If a sale order created, delivery completed and billing document created in SD area there will be a customer
invoice generated in FI (Doc type RV) this is called PO based customer invoicing

If a customer invoice posted (doc type DR) directly in FI area is called non PO based customer invoicing

[Link] is unknown customer down payment?

If customer makes a down payment in bulk for future sales is called unknown customer down payment. The
customer open invoice items can be cleared using this down payment amount.

Every time, a new customer special GL residual item will be created for rest of the down payment amount.

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[Link] is Dunning correspondence procedure relevance in SAP?

For the customer overdue invoice amounts, by using Dunning correspondence we can remind the customer by
sending letters

[Link] many maximum letters we can send?

9 levels and 9 letters

[Link] is the difference between each level or each letter

Text in the letter

[Link] there any accounting entry for dunning charges?

No, it’s a static figure appear on dunning notice

[Link] is O2C cycle?

Order to cash the process involves FI and SD module integration

Explain O2C process cycle, FI-SD integration?

1. sales order creation – VA01 -- No FI doc (No Accounting Entry)

2. delivery to customer – VL01N

Accounting entry –

81 - Inc/Dec in FG a/c (GBB VAX) Dr XXXX

99 - FG a/c (BSX) Cr XXXX

3. Sales Billing customer – VF01

Accounting entry –

01 - Customer a/c Dr XXXX

50 - To Sales a/c Cr XXXX

This entry will be in FBL5N

FB70 - Non SO based invoice

VF01 - SO based invoice (or) PGI Based (PGI- Post Goods Issue)

4. Incoming payment – F-28

Accounting entry –

40 - Bank a/c Dr XXXX

15 - To Customer a/c Cr XXXX

[Link] entries at the time of Check issue and check deposit also contra entries at the time of
BRS?

At the time of check issue:

Vendor ac Dr

To Check issue ac Cr

At the time of check deposit:

Check deposit ac Dr

To Customer ac Cr

[Link] of BRS?

To match Main bank GL account balance with actual bank account balance as bank statement
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[Link] steps for BRS implementation?

1. Create account symbols

2. Assign GL accounts to account symbols

3. Define posting rules for business transactions

4. Assign business transactions to posting rules

[Link] of interpretation algorithm in BRS configuration?

Based on interpretation algorithm system differentiates between payment documents and check numbers and
makes automated entries at the time of BRS.

[Link] we post negative amounts to a cash journal?

Cash journal allows payments only up to available balance in the CJ.

[Link] are the 4 rules of asset accounting?

1. Sub asset master created with reference to main asset

[Link] asset master created with reference to asset class

[Link] the asset class we specify account determination

4. For account determination we assign GL accounts for postings

[Link] is chart of depreciation?

Chart of depreciation is the highest organizational unit in Asset accounting subledger which consist of depreciation
areas

[Link] is a depreciation area?

How a depreciation is calculated on an asset during the useful life of the asset and posted to general ledger

[Link] is put to use date in asset accounting?

Generally put to use date is considered as capitalization date from which the depreciation calculation will be
started

[Link] is the control point to control asset master record fields like optional suppress display?

From the screen layout rule assigned to the asset class

[Link] is business requirement which is - a particular asset depreciation always should be posted to
a particular cost centre, what is your solution?

Assign the particular cost centre in the asset master record at time dependent tab cost centre field.

[Link] is asset smoothing and catch up activities?

Asset smoothing – if this configuration change activated in the asset class, for any asset if depreciation key
changed mid of the fiscal, the difference depreciation amount will be adjusted equally to remaining periods in the
fiscal year.

EX: As per current depreciation key every month depreciation is Rs.1000 and calculated for 6 months.

Due to depreciation key changed impact, the to be calculated depreciation is Rs.1500 every month, since already
we passed 6 periods and need to calculate and adjust depreciation of the closed periods to the future periods. In
this case every month 2000 for rest of the 6months

Asset catch up – for the above same scenario if we do not select smoothing check box the adjustment depreciation
will be posted to immediate next period.

[Link] do we create existing legacy assets data in SAP?

Through Legacy asset take over values procedure we will create clients existing assets in SAP – AS91

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[Link] we post asset legacy data using AS91 transaction is there any impact general ledger balance
sheet?

No, the takeover values ex: acquisition, depreciation and derived net book value are only updated in asset sub
ledger tables.

We need to manually post FI transaction to update the general ledger.

[Link] are planned & unplanned depreciation RUN procedures?

Planned depreciation Run – as per the depreciation interval rule ex: monthly, quarterly etc. calculation of
depreciation on a regular interval is planned depreciation.

Unplanned depreciation Run – if depreciation is not being calculated as planned and business would like to
calculate depreciation till date (current period) we can run depreciation in unplanned mode to calculate for all the
previous months.

[Link] of asset entries?

With customer – Asset acquisition value – 100000, accumulated depreciation – 60000, sale of asset value –
50000.

Entry:- (6 Line items)

01 Customer A/c Dr 50000

50 Revenue from sale of asset A/c Dr 50000

75 Accumulated Depreciation A/c Dr 60000

40 Revenue from sale of asset A/c Cr 50000

70 Asset A/c Cr 100000

50 Profit on sale of asset A/c Cr 10000

Scenario – if last month depreciation calculated as planned, in the current month found that there was an asset
which was purchased last month not posted in the asset sub ledger.

[Link] do we calculate depreciation for this particular asset?

We can run the depreciation in “repeat run” mode, so that system will identify the new assets which are added to
the last period and make a depreciation posting.

Note: this provision is only applicable for the last run depreciation period

[Link] are the prerequisites to create a vendor master record?

a. Vendor account group

b. vendor number ranges

c. vendor tolerances

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 Controlling
[Link] is the need of controlling module implementation for any business?

Basic purpose is high level management internal reporting about costing.

EX: A department cost report for a month, A product making charges report in a batch, plant wise financial
statements reports, profitability analysis reports.

[Link] organization structure?

Client -> operating concern -> Controlling area -> Segments -> Profit center -> Cost center

[Link] is period in lock in controlling?

In FI we have posting period variant to open and close periods in an year to make postings, similarly in CO we can
open or close periods by lock or unlock option against individual business transactions ex: COIN – CO through
postings from FI, KOA0 Actual settlement

[Link] is a primary cost element?

Expenditure GL account in FI will be created as primary cost element in CO with Category 01 to carry cost from FI
to CO to update CO records.

[Link] a controlling area be assigned with multiple company codes?

Yes, the relation between controlling area to company code is 1:N, is called as cross company code cost
accountancy

[Link] is a secondary cost element?

Secondary cost elements are used to settle cost from one cost object to other object within CO area. EX:
Assessment cycle to reallocate cost from one cost center to other cost center, at the time of real internal order
settlement to cost center

[Link] is a cost center and its purpose in CO?

Departments in an organization are created as cost centers in controlling module, the purpose is to track individual
department wise cost.

[Link] is a cost center category?

To identify similar departments by assigning a differentiating factor which is cost center category, cost centers will
be created.

[Link] is cost center budgeting?

In CO cost center budgeting is macro level, for a fiscal year each period wise we can allocate budget amounts to
cost centers later budget reports can be generated to see the variance between planned & actual consumption of
budget.

[Link] is cost center planning?

In CO cost center planning is micro level, each period wise we can plan department wise expenses. EX: Finance
cost center planning for the period 11/2013, with a combination of cost center and cost element later on we can
generate variance reports.

[Link] are the cost objects in controlling and their priority?

The primary cost objects are Cost center, internal order and WBS elements, these are used to capture cost at the
time of cost origin.

Priority – 1. WBS element 2. Real internal order 3. Cost center

We have more cost objects like profitability segments, sale orders & production orders etc

[Link] are the cost allocation methods and what is the purpose?

If during the cost origin the cost captured under a cost object, on a later point of time the cost needs to be
distributed to other objects.

EX: canteen expenses initially paid by finance cost center on month end the cost needs to be allocated to other
cost centers. Finance CC to HR CC and Sales CC etc.

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[Link] allocation Methods:

1. Reposting of CO line items – with reference to original FI document the cost will be allocated from the cost
object in the FI document to other cost objects line item wise.

2. Manual reposting of cost – with the combination of cost center and cost element we can manually allocate cost
to other cost centers

3. distribution cycle – on the month end, the cost captured under a cost center can be distributed to other cost
centers using segments.

The segment will have details like source cost center, receiver cost center cost distribution rules.

When the cost distributed using distribution cycle, in the receiver cost center we can trance the original cost
element details

4. assessment cycle – this is also used as an allocation method on period end to distribute cost.

When the cost allocated using assessment cycle the cost will be attached to secondary cost element and settled to
receiver cost center, we cannot get the tracing factor in the receiver cost center about which cost has been
received

[Link] is a statistical key figure and its importance?

SKF is a base to allocate cost between cost centers.

EX: Salaries can be allocated Based on number of employees; rent can be allocated based on the area of
occupation

[Link] is an internal order and how many types are therein internal order and how many types are
there?

Internal order is a cost object to capture cost of a specific job, activity or an investment project. EX: a particular
vehicle expense during a month, construction of a building budgeted amount capture and control

in CO we have 2 types of internal orders

1. Statistical internal order - Only for the reporting purpose, the cost will be captured under statistical internal
order and does not settle to any other cost objects

2. Real internal order - it’s a real cost object at the time of cost posting and requires settlement to other cost
objects on the month end

[Link] an internal order captured cost needs to be updated to a default cost center how do we manage?

In the internal order master record control data tab we have a field Actual posted Cctr – assign default cost center
in that field so that system will derive cost center at the time of document entry.

[Link] do we differentiate between statistical & real orders?

At the time of order creation we have an indicator “Statistical order” available in control data tab, if we activated
this the order will be statistical if not it’s a real order

Procedure for real internal order settlement to other cost objects?

1. define allocation structure in which specify source cost elements – ex: salaries rent etc and also specify
settlement receiver category ex: cost center

2. allocation structure is assigned to settlement profile – which talks about how the cost will be settled ex:
percentage, amount etc.

3. settlement profile is assigned to internal order type

4. real internal orders will be created with reference to order type and settlement rule maintained in the order
master record

[Link] is budget availability control in CO?

In controlling module we can control the budget through internal orders. Ex: capital expenditure like construction
of a building. We can create building as an internal order and assign budget to it. Every time expenses incurred
towards building construction SAP allows up to the budget amount fully consumed.

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[Link] is profit center accounting?

By implementing profit center accounting, profitability reports can be generated plant/branch/location wise.

General definition is a geographic location where in expenses are incurred to manufacture a product and revenues
are generated by selling that product.

[Link] the expenses and revenues are updated to a profit center?

At the time of expense posting user needs to enter cost center, in the cost center master record profit center is
assigned through cost center to profit center derivation expenses will be updated in a profit center.

Revenues will be updated to profit centers through default account assignment – OKB9

[Link] is the need of a dummy profit center?

Whenever system cannot derive profit center onto line item, it updates to dummy profit center. On the month end
management will take a decision on how to distribute values in the dummy profit center.

[Link] we create P&L and Balance sheet statements profit center wise?

Yes, we can create additional P&L and balance sheet statements profit center wise to generate profitability reports.

Postings made against balance sheet accounts will be updated to relevant profit center with the combination either
company code and plant OR company code and business area

[Link] is the use of product costing and what are the methods available?

To estimate a single product cost product costing module will be used –

a. product cost by sale order - MTS

b. product cost by production order - MTO

c. product cost by period – Product cost collector

[Link] is CO – PA?

Controlling profitability analysis, by using which profitability reports can be generated for different dimensions.

Profitability segment in CO- PA is also a cost object, whenever operating concern is configured in system new
tables will be generated to store the META data – apart from COPA in no other place new tables can be generated.

[Link] is a profitability segment?

It’s a combination of few characteristics or one characteristic is a segment – EX: customer master data

[Link] are characteristics and value fields?

If customer master is a characteristic then customer number is a value field

If sale order is a characteristic, quantity in the sale order is value field

[Link] many tables will be generated when COPA is configured?

4 tables will be generated –

Table 1 – Actual data

Table 2 – planning data

Table 3 – segment data

Table 4 – totals

[Link] is a report painter?

In COPA we will configure output reports for the predefined characteristics and value fields this process is called
report painter configuration.

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SAP FICO INTERVIEW QUESTIONS:-

[Link] me about FI Organizational structure?

Ans: Client | Operating Concern |Controlling area1 Controlling Area 2 | Co. Code 1 Co. Code 2| Bus area 1 Bus
area2 Bus Area3 Bus Area 4
2. How many Normal and Special periods will be there in fiscal year, why do u use special periods?
Ans: 12 Normal posting period and 4 special periods are in the fiscal year which can be used for posting tax and
audit adjustments to a closed fiscal year.
[Link] do you open and close periods?
Ans: PPV is used to open and close the periods based on a/c types considering GL Accounts. Tr. Code. OB52.
4. What do you enter in Company code Global settings?
Ans:
4 digit Alphanumeric key.
Name of the company
City
Country
Currency
Language
Address
[Link] is document type, and what does it control? Examples.
Ans: Document type is nothing vouchers containing line items. Several business transactions can be identified
within a particular document type.
It controls the document number ranges.
It controls the Header part of document
IT controls the line item level of the document
Helps filing of physical document
6. What is posting key and what does it control?
Ans: These are special classification keys. Two character numerical key it controls the entry of line items.
Posting key determines Account type, Debit/credit posting, Field status of transaction.
7. What is field status group, what does it control?
Ans: FSG is mandatory field in ! GL Creation. You use this field to define which fields are displayed when you post
business transactions to a G/L account.
A field may have one of the following statuses.
- Suppressed
- Display
- Optional
- Required
8. What is a chart of account and how many charts of accounts can be assigned to a company?
Ans: Chart of account is a list of all G/L accounts used by one or several company codes.
For each G/L account, the chart of accounts contains the account number, account name, and the information that
controls how an account functions and how a G/L account is created in a Company code.

You have to assign a chart of accounts to each company code. This chart of accounts is the Operating chart of
accounts and is used for the daily postings in this company code.

81
You have the following options when using multiple company codes. You can use the same chart of accounts for all
company codes

If the company codes all have the same requirements for the chart of accounts set up, assign all of the individual
company codes to the same chart of accounts. This could be the case if all company codes are in the same
country.

In addition to the operating chart of accounts, you can use two additional charts of accounts If the individual
company codes need different charts of accounts, you can assign up to two charts of accounts in addition to the
operating chart of accounts. This could be the case if company codes lie in multiple countries.
The use of different charts of accounts has no effect on the balance sheet and profit and loss statement. When
creating the balance sheet or the profit and loss statement, you can choose whether to balance the company
codes which use different charts of accounts together or separately.

9. What does the definition of a chart of account contain?

Ans: chart of account key
Name
Maintenance language
Length of the GL Account Number
Controlling Integration
Group chart of accounts (Consolidation)
Block Indicator
10. Can one COA be assigned to several companies?
Ans: yes. One COA can be assigned to several companies.
11) What is account group and what does it control?
Ans: Account group determines which fields you can configure on the G/L master record. It is necessary to have at
least two one for B/S and another one for P&L a/c.
It controls the Number ranges of GL A/C.
The status of fields of the master record of GL belongs to company code area.
12) What is reconciliation account; can you directly enter documents in that a/c?
Ans: When you post items to a subsidiary ledger, the system automatically posts the same data to the general
ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger.
We can’t use reconciliation account for direct postings.
13) How do you control field status of GL master records and from where do you control?
Ans: Field status variant is maintained all FSGs.
14) What are the segments of GL master record?
Ans: -

COA Segment
A/C group
Nature of account
Short text
GL a/c long text
Trading partner
Group Account Number
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Company code segment
Account currency
Tax
Reconciliation a/c for a/c type
Open Item Management (OIM)

Line Item Display (LID)

Field Status Group (FSG)

15) What does Field status group assigned to a GL master record controls?
Ans: It controls the account assignments that are made to the account. Specifically, the field status group controls
whether postings to cost centres, internal orders, profitability segments and so on are required, not allowed
(suppressed), or optional.

16) What is Country and operational chart of account? Why do you use group chart of account?
Ans: Operational chart of account – Day to day activities It is mandatory.
Country COA – It’s used for the legal specific requirement of each country. It’s additional and optional. Group COA
used for consolidation of Company codes. This is for group consolidation purpose.

17) What are all the segments in a Customer/Vendor master record?

Ans:

Segments in Customer Segments in Vendor

[Link] Data [Link] Data

[Link] Code Segment 2. Company code segment

[Link] Area Segment 3. Purchasing organization Segment

18) What is open line item management? What do you mean by clearing open line items?
Ans: Open item management is further reconciliation function. OIM allows you to display the open and cleared
items and amounts in an account. OIM should be used if an offsetting entry is made for every line item posted in
the account. The a/c is reconciled and cleared against another account. Ex. Salary clearing account and GR/IR
Clearing account.

19) What is residual payment and part payment?

Ans:

Residual payment it clears original invoice with the incoming amount and creates new line item for remaining
outstanding amount.
Partial payment it leaves the original invoice amount and creates new line item for incoming amount.

20) What is internal and external number ranges?

Ans: Internal Number Ranges: Doc. No will be provided by the system automatically in serial order allotting the
next available progressive number. The number must be in numerical.
External Number ranges: Doc. No will be given manually by the end user. The system will not lock no
automatically in this case. User can pick the number randomly. Number may be an alpha numeric.

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FICO Interview Questions :-

1. How can be or in what way baseline date is important in Automatic Payment Program run?
The Baseline date is used to calculate the due date by taking into account the payment terms. On the APP, the
baseline date helps to pick the relevant invoices for payment. During the APP run when invoices are pulled into the
run, the system checks the ‘Next Payment Date’ before picking the invoices to be paid.
2. Please tell me the procurement cycle how it works?
Procurement cycle – a sales order is placed on a requirement made by a customer, after which it is passed on to
create a purchase order (this could either happen based on the requirements on the SO, or a planned SO). the
value flow gets passed on to FI at the time of goods movement. In the case of SD(Sales and Distribution), the
impact on FI happens only at the time of billing.
3. Difference between Depreciation , Accumulated Depreciation and APC? What is APC?
Depreciation – a decrease in the value of an asset due to wear and tear
Accumulated Depreciation – the total amount of depreciation calculated on a particular asset.
APC – refers to Asset transactions other than depreciation
4. What is GR/IR? What journal entries we should pass for this?
The GR/IR – the goods receipt/Invoice Receipt account is used to post to whenever goods that are not yet invoiced
have been received or when invoices arrive b4 the delivery of goods.
During the time between the invoice being created and delivery of goods, there can be a timing difference, in
order to accommodate this timing difference, a GR/IR account is maintained temporarily to record the flow.
5. What are the accounting entries take place in MM and SD?
Value from MM to FI is defined in OBYC…. on the material master the flow of values are assigned on the Costing,
accounting etc tabs where the system helps to post the necessary stock values to the appropriate GL accounts.
helps to determine, the GL accounts updated when there is a movement of goods.
SD-FI - VKOA
6. Can we assign one Controlling area to two different Company Codes (but the company codes having
different fiscal years/different currencies?
Company code should have the same financial year, may have different currencies.
You can assign 2 or more company codes to one controlling area as long as the chart of accounts are same.
Furthermore, if you have different fiscal year variant in the company code, then make sure that the number of
period remain the same.
7. While posting transaction, can we give cost centre / production order at time?
Yes, it is possible, but in such situation cost centre will be real and production order is [Link] you assign both
cost center and Prd Order then since Prod. Order are real co object, Cost center entry would be statistical.
8. Which Master data uploads will be done?
The question is not very clear. If you are talking about CO Master data. Then Cost center need to be uploaded.
You can use Data Transfer Workbench or write ABAP for it.
9. Can we run Payment Program giving ( Hdfc vendor details ) City bank in Payment run program
Yes can be possible, this can resolved through ranking order and bank optimization in FBZP.
You use further selection in proposal parameter, if you would like to filter the open item based on the city
10. What does document header control?
Field status.
11. After entering a document can you delete the entry? Can you change the document? Which fields’
can/not is changed?
Document header cannot be changed, after posting the document you cannot change. only if you want to change
the document the reversal entry.
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12. What is a special GL transaction?
The transaction other than A/P and A/R is called the special g/l transaction for ex: Bills of exchange, Interest
payable, acquisition
13. How do you reverse cleared documents?
By doing reversal posting.
14. What is base line date? Why is that used? Can this be changed?
For payment terms it is used. base line date is the due date.
15. How many statistical objects can be selected in when you post an FI document?
Only Two statistical objects can be selected in when you post an FI document.
Where CCtr, PCtr, OM are active?

Questions on conceptual understanding:

a) SAP R/3 definition and 3-Tier Architecture

b) ‘Real time integration’ advantage of SAP
c) ASAP methodology
d) Solution Manager
e) Client / Company / Company Code / Business Area
f) Business Area vs Profit Center Approach
g) How effective will be the Financial Statements generated through Business Areas
h) With Holding Taxes vs Extended WHT
i) Field Status Concepts (G/L master fields controlled through Account Group and Document entry through
Field Status Group set in the G/L master
j) Special G/L transactions
k) Open item management
l) Reconciliation Accounts
m) Subsidiary Ledgers
n) Sort key
o) Negative Postings Allowed
p) Special periods
q) Only balances in local currency
r) Important Posting keys for G/L, A/R, A/P, AA, Stock Entries
s) Assessment vs Distribution
t) Org. Structure for FI
u) Org. Structure for CO
v) Product Costing: How the values flow in the system

Configuration:

a) Extended With Holding Taxes configuration steps – right from creation of WH Tax Types, Codes to Annual
Return
b) FI-MM Integration (OBYC configuration with particular reference to Off-Setting entries)
c) FI-SD integration
d) Down Payments transactions
e) Interest – Balances / Arrears
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f) Asset Accounting: Asset Class, Main Asset, Sub-Asset, Group Asset, Dep. Areas, Dep. Key, Transaction No.s
(100- External acquisition, 210 – Retirement with Revenue, etc.), Imp. Transaction Codes.

[Link] is APC?
APC stands for Acquisition and Production Costs. The acquisition means any asset which you may acquire/
purchase externally. It includes invoice price and other related exp. Associated with it like customs, octroi, freight
which you add and arrive at total cost of acquisition for capitalisation of the [Link] ex Say a computer. The total
cost which you incurred for the acquisition of the computer including installation will be your APC
Production cost means any asset which is created internally within the organisation. This is normally created by
means of AUC and you go on adding cost to the AUC as and when you incurr exp. for the [Link] ex. say
addition to the office building. Therefore APC incudes any external acquisition or internal construction of exp.
which needs to be capitalised.
[Link] is a client?
Client in a SAP work environment is the highest organizational structure. Many clients can be found in each
system. QA (quality analysis) and Development are clients in Training and Production system.
[Link] is an authorization?
Authorization gives a SAP user permission to perform a given set of transactions.
[Link] is a user?
Anyone who is given access to the SAP system by the system (basis) administrator is known as a user.
[Link] is master data ?
Master data is used in an SAP system to represent the basic components of a procedure and to ensure data
integrity throughout the SAP business process. This guarantees that one common record is accessed for different
procedures. Example - a customer master record may be referenced by more than one functional module: FI
(financial) and SD (sales and distribution).
[Link] is the IMG?
IMG is Implementation Guide that SAP system developers use to customize the client they are working in.
[Link] is ASAP?
ASAP is Accelerated SAP, a project management software tool that is used on SAP implementations to guide the
project through different phases. ASAP can take a project from the designing of the "blueprint" through to "going
live". Accelerated SAP is SAP’s total process-oriented solution for accelerated implementation and continuous
optimization of R/3.
[Link] are the core modules of SAP ?
The core functional modules in SAP R/3 are Financial Accounting (FI) usually in combination with Controlling (CO)
or Treasury (TR) - Human Resources (HR), and logistic modules : Sales and Distribution (SD), Materials
Management (MM), Quality Management (QM), Plant Maintenance (PM), and Production Planning (PP).

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Account Payables(AP) Interview Questions

1. What are segments in Vendor Master ?

a. General Data segment

b. Company code segment

c. Purchase Organisation segment

2. What is Vendor Account Group ?

Vendor Account Group is to bifurcate the vendors like FI Vendors, MM Vendors, Foreign Vendors, Domestic
Vendors.

3. What are the steps for creating Vendor ?

1. Account Group of Vendor

2. Create Number ranges for Vendor account.

3. Assign number ranges for vendor account group.

4. Document types for vendor accounts

5. Create G/L master record for sundry creditor

6. Create vendor master record.

4. What is a special G/L Transactions ?

Special G/L transactions are transactions that are not normal business transactions with our business
[Link] are generally shown in different control ledgers and are not grouped with the normal transactions.
They include Bills of exchange, Down Payment, Bank Guarantees.

5. What is special purpose Ledger?

Special purpose ledger is used for reporting purpose. It receives the data from all modules and summarizes the
data for user defined reporting purpose.

6. What is Cash Management Group ?

In the cash management group customer and vendors are allocated to planning groups by means of an entry
made in the master record.

Vendor Master Group Customer Planning Group

E1 – Domestic vendor R1 – Customer Paying by bank

E2 – Vendors abroad R2 – Other domestic customers

E3 – Affiliate Company vendors R3 – Customer abroad

E4 – Major Vendor R4 – Affiliate company customers

7. At what level are the customers & Vendors codes are stored ?

The customer and vendor codes are at the client level, that means any company code can use the vendor and
customer code by extending the company code view in their master data.

8. How are the Vendor Invoice payment made ?

Manual Payments without the use if any output medium like cheques etc.

Automatic payment programs through cheques, wire transfers, DMS etc.

9. Can we change the reconciliation account in the vendor master ?

Yes, Reconciliation account can be changes in the vendor master provided that the authority to change has been
configured. Normally we should not change the reconciliation account.

10. What is the impact on the old balance when the reconciliation account in the Vendor Master is
changed ?

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Any change you make to the reconciliation account is prospective and not retrospective . The old items and
balances do not reflect the new account, only new transactions reflect the account.

11. How do you configure a special G/L indicator for the Vendor and Customer ?

You can use the existing special G/L indicator ID or create a new one. To update the chart of accounts and the
reconciliation account. Also the last steps you need to update the special G/L code.

12. What do you mean by Down Payment ?

Down Payment are used for short or medium Financing. Down payments are generally made before production.
Down payments must be displayed separately in the balance sheet.

13. Where we give the link for Down Payment posting ?

Special G/L to Reconciliation

14. How can you link vendor as a customer, customer as a vendor ?

Yes, it is possible, we can give the link in vendor master data under Control Data(XK02).

15. What are Payment terms ?

Terms of payment are the conditions established between business partners to settle the invoices.

16. In Payment Terms configuration, what are the options available for setting a default date ?

There are 4 options available

1. No Default 2. Posting date 3. Document date and [Link] Date.

Posting Date is “goods receipt date”.

Document date is “party bill date”.

Entry date is “Quality approved date”.

17. Where are the Payment terms for vendor master maintained ?

Payment terms for vendor master can be maintained at two places i.e in Accounting View and Purchasing View.

18. What are Terms of Payment ?

Terms of payment are the conditions to settle the invoices. The payment terms are used to determine base line
date for due date of invoices. Cash discount periods, Cash discount percentage.

Asset Accounting Interview questions

1. What is Chart of Depreciation ?

The Chart of Depreciation is a list of Depreciation Areas arranges according to business and legal requirement.

Chart of Depreciation is used in order to manage various legal requirements for the depreciation and valuation of
assets. Each company code is allocated to one chart of depreciation.

[Link] do you mean by Depreciation Area ?

Methods of calculation of depreciation. An area showing a valuation of fixed assets for a particular purpose. For
example, Book depreciation, Income Tax Depreciation, Costing depreciation.

3. What is Account Determination ?

One of the most important functions of the Asset class to be establish the connection between the Asset master
record and the corresponding accounts in the general ledger in Financial accounting. This connection is created by
the account determination key is asset class.

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4. What is screen Layout ?

Design of the records and design of the documents.

5. What is Asset Class ?

The Asset class is the main criteria for classifying assets. Every asset must be assigned to any one [Link] asset
class is nothing but a group of asset. For example of Asset classes are Plant & Machinery, Furniture & Fixtures,
Computer etc…

6. What is Depreciation key ?

A key for calculating depreciation [Link] is a direct link between asset and company [Link] we link
between the depreciation key and master record.

7. What is an asset master ? What does it control for sub asset master ?

An asset master represents the master record and information about a particular asset. According to the screen
layout of asset master, it controls the following sub assets

Sub assets master number assignment

Assignment of depreciation key

Determination of life asset

determination of assignment of group asset.

8. How many depreciation areas can be defined for a Company Code ?

Depreciation areas are not defined for company codes rather depreciation areas are defined for a chart of
depreciation, A maximum of 99 depreciation areas cab be maintained for a Chart of Depreciation.

9. What are the types of Depreciation methods ?

Base method

Decline value method

Maximum method

Multi level method

Period control method.

10. Is it possible to create an asset class automatically ?

Yes, There are two ways

1. Create an asset class with reference to an existing asset class

[Link] an asset class through the asset class transaction code(ANKL).

11. How many ways can you create the asset master record ?

With reference to an asset

Using the number functionality for similar assets.

Through an asset class(AS01).

12. What is the difference between COA and COD ?

The chart of Accounts is the index of G/L accounts. The Chart of Account can be global,country specific or industry
specific based on the need of business. The COD is the index of depreciation [Link] COD is only country
specific.

13. What are the segments in asset master ?

Master data segment

Depreciation segment.

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