Wednesday, July 16, 2008

Saturday, July 5, 2008

FI CONFIGURATION MANNUAL

SAP-FICO

Assign Company Code to Chart of Accounts:

For each company code, you need to specify which chart of accounts is to be used. Several company codes can use the same chart of accounts.

SPRO -> Financial Accounting -> General Ledger Accounting -> GL Accounts Master records -> preparations -> Assign Company code to chart of Accounts

TC-OB62

Company code Operating Chart of Accounts Country Spe Chart of Accounts

TCS COCA TCCA

TSL SOCA TCCA

Press Ctrl + S to save it

Define Accounting Group

When creating a G/L account. You must specify an account group

The account group determines:

  • The interval in which the account number must be
  • Which fields are required and optional entries when creating and changing master records
  • Which fields are suppresses when creating and changing master data.

It enables to control the layout of screens.

You use account groups to combine accounts according to the above criteria (for example, P&L account group, asset account group and material account group).

Note:

Account groups for G/L accounts are based on the chart of accounts.

SPRO -> Financial Accounting -> General Ledger Accounting -> GL Accounts Master Records -> Preparations -> Define Account Group TC-OBD4

Press New Entries

Chrt if A/cs Acc Grp Description From Number To

Number

COCA SHCP Share Capital 100000 100099

Ac Grp Description Number Range Number Range Number Range

OCA GCA CCA

SHCP Share capital 100000-100099 10000-10099 1000-1099

RSSP Reserves & Surplus 100100-100199 10100-10199 1100-1099

ACDP Accumulated

Depreciation 100200-100299 10200-10299 1200-1299

SCLN Secured Loans 100300-100399 10300-10399 1300-1399

USLN Unsecured Loans 100400-100499 10400-10499 1400-1499

CLPR Curr Liabilities & Prov 100500-100599 10500-10599 1500-1599

FAST Fixed Assets 200000-200099 20000-20099 2000-2099

CAST Current Assets 200100-200199 20100-20199 2100-2199

LNAD Loans Advances 200200-200299 20200-20299 2200-2299

SALE Sales 300000-300099 30000-30099 3000-3099

OTHR Other Incomes 300100-300199 30100-30199 3100-3199

IDST Ist/Dec in stocks 300200-300299 30200-30299 3200-3299

RMCS Raw Material Cons 400000-400099 40000-40099 4000-4099

PRSN Personal Expenses 400100-400199 40100-40199 4100-4199

MFGN Manufacturing Exp 400200-400299 40200-40299 4200-4299

ADMN Administrative Exp 400300-400399 40300-40399 4300-4399

INTR Interest Expenses 400400-400499 40400-40499 4400-4499

DEPR Depreciation 400500-400599 40500-40599 4500-4599

Define Retained Earnings Account:

You assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account.

At the end of fiscal year, the system carries forward the balance of the of the P&L account to the retained earnings account. You can define one or more P&L statement account types per chart of accounts and assign then to retained earnings account.

Your specification depends on the chart of accounts.

SPRO -> Financial Accounting - > General Ledger Accounting -> GL Accounts

Master Records -> Preparations -> Define Account Group TC –OB53

System define Transaction for Balance Carry forward BIL

Specify Chart Accounts P & L Statement G/L Account

COCA X 100100

SOCA X 100100

TGCA X 10100

TCCA X 1100

Ignore the warning message and enter Ctrl + S to save it.

ADITYA BANERJEE

SAP-FICO

Currency Settings:

Check exchange rate types

Exchange for different purposes for the same date are defined in the system as exchange rate types (you cannot delete existing entries).

If you need to carry out currency translations between a number of different currencies, you can simplify exchange rate maintenance by entering a abase currency for the exchange rate type. Instead of entering translation rates between every single currency, you then only need specify the translation rate between each currency and the base currency. All currency translations then take place in two steps into the base currency and from the base currency into the target currency.

You can define different exchange rates for each currency pair. You then differentiate between these exchange rates using the exchange rate type.

You need different exchange rates for the following purposes, for example:

- Valuation

- Conversion

- Translation

- Planning

Example:

The base currency is INR. You want to translate SGD to USD. To do this, the following entries must be made in the table for maintaining currency translation rates:

  • Ratio for SGD INR
  • Ratio for SGD INR

Translation from SGD to USD is then carried out automatically. The translation is done as through this exchange rate (SGD -> USD) was actually entered in the conversion table. In this example, the base currency (INR) is the To-currency and SGD or USD the from-currency.

SPRO General Setting’s currencies Check exchange rate types TC-OB07

Structure

The following exchange rate types exist:

G—Buying rate

B—Bank selling rate

M—Average rate

Define translation ratios for currency translation

In this activity, you enter the translation ratios for currency translation. You enter these ratios for each exchange rate type and currency pair. You also specify whether you want to use an alternative exchange rate type for specific currency pairs.

Example:

As of 01/04/2005 the exchange rate for INR to USD will be calculated.

SPRO General Settings currencies Define translation ratios for currency translation TC-OBBS

Press New Entries:

ExRt. Type From To Valid from Ratio (From) Ratio (to)

M USD INR 01.04.2005 1 1

Save it

Enter exchange rates

Exchange are required to:

  • Translate foreign currency amounts when posting or clearing or to check an exchange rate entered manually.
  • Determine the gain and loss from exchange rate differences.
  • Evaluate open items in foreign currency and the foreign currency balance sheet accounts.

Note:

The system uses the type M exchange rates for foreign currency translation when posting and clearing documents in the activity Enter Exchange Rates. An entry must exist in the system for this exchange rate types. The exchange rates apply to all company codes.

SPRO General Settings currencies Enter Exchange Rates TC – OB07

Press New Entries

ExRt. Type Valid From Ratio (From) From Dir Quot. Ratio (To) To

M 01.04.2005 1 USD 46 1 INR

SAP_FICO:

Maintain exchange rate Spreads:

In this activity you can derive the bank buying rate and/or bank selling rate using the

Average rate and the spread. By spread, we mean the difference between the average and buying rates or between average and selling rates.

You convert to the buying or selling rate by first determining the average rate, then adding or subtracting the spread from that average rate.

Example:

If the average rate between USD->INR is 46 and the spread is1.00,the bank buying rate derived is 45 the bank selling rate derived is.47

SPRO->General Settings-> Currencies->Maintain exchange rate spreads

Press New Entries

To make the calculation you must make the following entries inn this step:

M (rate type) USD (From) INR (To) Valid From (1.2.2005) 1.00(spread)

Save it.

Posting Period Variant

Define variants for Open posting period:

In this activity you can define variants for open posting periods.

Standard settings:

In the standard setting a separate variant for posting periods is defined for every company code. The name of this variant is identical to the company code name. Every company code is allocated to this variant with the same name. Thus nothing has changed in the system yet. Every company code has its own variant. If you want to and can continue working on this basis (For example, if you manage with only a few company codes)

You do not have to make any changes in the configuration.

If how ever ,you want to use identical variants in several company codes, you must change the default settings as desired in the “activities” section.

SPRO->Financial Accounting->Financial Accounting Global settings->

Document->posting periods->Define Variants for Open Posting Periods

TC---OBBO

Press New Entries

Variant Name Description

TPPV Tata Posting Period variant Save it

SAP_FICO

Assign variant to Company Code

In this activity you make the specification that is necessary to be able to work in several company codes with the same variant for open posting periods. For this reason, you assign the same variant key to the company codes you want to group together.

SPRO->Financial Accounting-> financial Accounting Global Settings->

Document->Posting Periods-> Assign variants to company code TC----OBBP

Company Code Variant

TCS TPPV

TSL TPPV

Ctrl + S to save

Open and Close posting periods

In this activity you specify for each variant which posting periods are open for posting

Two intervals are available for doing this(Period 1 and period 2).For every interval enter a lower period limit, an upper period limit and the fiscal year.

You close periods by selecting the period specifications so that the periods to be closed are no longer contained.

You specify G/L account number for your specifications .You determines the posting periods allowed for the sub ledger accounts via the corresponding reconciliation accounts. To do this, you specify the sub ledger account type, such as D or K, and the corresponding reconciliation account.

Caution

There must be at least one entry for each variant .This entry must have + in column A;

The columns: From acct” and “To account” may not be filled. In the columns for the

Posting periods, you specify the periods which are to be opened for the variant. Via further entries you determine more especially which periods are to be opened for which accounts.

SPRO->Financial Accounting->Financial Accounting Global settings->

Document->Posting Periods->Open and close posting periods TC_OB52

Press New Entries

Variant Assignment From period 1 to period 1 From Period2 To period 2

TPPV + 1-2005 12-2006 13-2005 16-2005

Save it

Thursday, July 3, 2008

SAP FI/CO TRAINING MATERIAL-FUNDAMENTAL


B.Jyotiraditya,ACA,MBA(FIN),SrSAP FI/CO CONSULTANT

SAP – FI/CO

SYSTEMS, APPLICATIONS AND PRODUCTS

IN DATA PROCESSING

Financial Accounting – General Topics

The Financial Accounting (F1) application component fulfills all the international requirements that must be met by the financial accounting department of an organization. It provides the following features:

1 Management and representation of all accounting data.

All business transactions are recorded to the document principle, which

provides an unbroken audit trail from the financial statements to the individual documents.

2 Open an integrated data flow

Data flow between financial Accounting and the other components of the SAP System is ensured by automatic updates.

3 Preparation of operational information to assist strategic decision-making within the organization.

Integration of Financial accounting with other component

All accounting-relevant transactions made in Logistics (LO) or Human Resources (HR) components are posted real-time to Financial Accounting by means of automatic account determination. This data can also be passed on to controlling (CO). This ensures that logistical goods movements (such as goods receipts and goods issues) are exactly reflected in the value-based updates in accounting.

The Financial Accounting application component comprises the following sub-components.

4 General Ledger (FI-GL)

5 Accounts Payable (FI-AP)

6 Accounts Receivable (FI-AR)

7 Assent Accounting (FI-AA)

Organizational Units and Basic Settings

Definition

Elements of the SAP System logical structure, important for Financial Accounting

Organizational units are used to structure business functions and for reporting. The Organizational units of Financial Accounting are used for external reporting purposes, that is. They fulfill requirements that your business is subject to from external parties. For example, legal regulations. The financial statements for example, are created based on the Organizational units of Financial Accounting.

Basic settings in Financial Accounting are Customizing settings that you have to make in order to be able to carryout process in Financial Accounting.

Use

You create your company-specific organizational structure in the SAP System by defining the organizational units and making the basic settings. Defining organizational units for Financial Accounting is obligatory, that is, you have to define these units in order to be able to implement the Financial Accounting component.

Organizational unit

Definition

Client

Obligatory

Company

Optional

Company Code

Obligatory

Business Area

Optional

Basic Settings


Chart of accounts

Obligatory

Fiscal year

Obligatory

Currencies

Obligatory

In the SAP System, you define the relevant organizational units for each component that you are implementing. For example, for Sales and Distribution, you define sales organizations, distribution channels, and divisions (product groups). Similarly, for Purchasing, you define purchasing organizations, evolution levels, plants, and storage locations. The organizational units are independent of one another at this stage.

Components and Organizational Units PAGE 4

Component

Organizational Units

Sales and Distribution

Sales Organization

Logistics

Purchasing Organization

Financial Accounting

Company Code

Controlling

Controlling Area

Human Resources

Employee groups

To transfer data between the individual components. You have to assign Organizational units to each other; you only make to need these assignments once in the system. Whenever you enter data subsequently. It is automatically transferred.

Define Organizational Units

Creaton of company (i.e., Group Company):

The smallest organizational unit for which individual financial statements can be drawn up according to relevant commercial law. A company can consist of one or more company code. All company codes with in a company must use the same transaction chart of accounts and the same fiscal year breakdown. The company code currencies be different.

A company has one local currency I which its transaction figures are recorded.

Tools – Customizing – Img (implementation guide) – Edit project – SPRO Select SAP Reference IMG button.

SPRO- Enterprise structure Definition – Financial accounting – Define company.

Select New Entries button

Company : TGCO

Company Name : Tata Group Companies

Address of Company: Optional Fields

Country : IN

Currency : INR

Language : EN

Ctrl+S to Save Data

Define Credit Control Area

In this step you define your credit control areas. The credit control area is an organizational unit that specifies and checks a credit limit for customers.

A credit control area can include one or more credit control area. It is not possible to assign a company code to more than one control area. With in a credit control area, the credit limits must be specified in the same currency.

SPRO- Enterprises Structure- Definition- PAGE 5

Financial Accounting- Define Credit

Credit Control Area TCCA

Currency INR

Update 000012

Fiscal Year V3

Ctrl+S to Save Data

Creaton of Company Code

Definition

Smallest organizational unit of external accounting for which a complete, self-contained set of accounts can be created. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, such as the balance sheet and the profit & loss statement, the definition of the Company code organizational unit is obligatory.

Use

The Company codes create a legally independent the SAP System with one company code. However, you can also define a company code according to other criteria. A company code could also be a separate, but not independent. Commercial place of work. This is necessary for example; if the place of work is actually situated in a different country and evaluations therefore have to be carried out in the appropriate national currency and in accordance with other tax and legal specifications.

If you want to manage the accounting for several independent companies simultaneously, you can set up several company codes in one client. You must set up at least one company code in each client.

To define a company code, choose the following in Customizing for the

SPRO- Enterprise Structure – Definition – Financial accounting – Edit, Copy, Delete, Check Company Code ---OX02

Double Click on Edit Company code Data

Select New Entries button

Company Code TCS

Company Name Tata Consultancy Services

City Hyderabad

Country IN

Currency INR

Language EN

Ctrl+S to save data and give Address Details

Select New Entries button

Company Code TSL

Company Name Tata Steel Limited

City Bangalore

Country IN

Currency INR

Language EN

Ctrl+S to save data and give Address Details

Define Business Area

Definition

Organizational unit of external accounting that corresponds to a specific business segment or area of responsibility in a company. Movements in value entered in Financial Accounting are assigned to business areas.

Financial statements can be created for business areas for internal purposes.

The definition of the business area organizational unit is optional.

Use

Business areas are used in external segment reporting (over and above company codes) based on the significant areas of operation of a company for example, product lines, and branches.

To define business areas, choose the following in customizing for the

SPRO - Enterprise structure - Definition - Financial Accounting - Define Business Area ----OX03

Select New Entries button

Business Area Description

HYD Hyderabad Business Area

BAN Bangalore Business Area

MUM Mumbai Business Area

DEL Delhi Business Area

Ctrl+S to Save data

Define Functional Area

Definition

Account assignment characteristic that sorts operating expenses according to functions.

For example:

Production

Administration

Sales

Research and Development

Use

If you want to use cost of sales operating expenses according to functions areas to sort your operating expenses.

You define your functional areas in Customizing under.

SPRO - Enterprise Structure - Definition - Financial accounting - Define functional Area

Select New Entries button

Functional Area Description

PRM Production

ADM Administration

SAL Sales

R & D Research and Development

Crtl+ S to Save Data

Maintain financial Management area

In this step. you create your financial management (FM) areas. The financial management area is an organizational unit within accounting which structures the business organization from the perspective of Cash Budget Management and Funds Management.
You define the functional characteristic of FM areas separately for both Cash Budget Management and Funds Management in the implementation guide for each of these areas.

SPRO - Enterprise Structure - Definition - Financial accounting - Define Functional Area

Select New Entries button

FM Area FM Area Test FM Area Currency

TFMA Tata Fin Management Area INR

Ctrl+S to Save Data

Assign Organizational Units

Assign company code to company

In this step you assign the company code which you want to include in this group accounting to a company

SPRO - Enterprise Structure - Assignment - Financial Accounting -Assign company code of company

Company Code Company

TCS TGCO

TSL TGCO

Ctrl+S to Save Data

Assign company code to credit control area

In this step, you assign company codes to a credit control area

SPRO - Enterprise Structure - Definition - Financial accounting - Assign company code to a credit control area

Company Code Company

TCS TCCA

TSL TCCA

Ctrl+S to Save Data

Assign business area to consolidation business area

In this step you allocate the business areas to consolidation business areas, as required for consolidations.

SPRO - Enterprise Structure - Definition - Financial accounting - Assign business area to consolidation business area

Business Area Consolidation Business area

HYD SOTH

BAN SOTH

MUM NOTH

DEL NOTH

Ctrl+S to save data

Assign company code to financial management area

In this IMG activity you assign each company code which is relevant to cash budget Management or Funds Management to FM area.

In the case cross company code Cash Budget Management/Funds Management. You can combine several company codes in a single FM area. You must assign all the company codes in question to the same FM area.

SPRO - Enterprise Structure - Definition - Financial accounting - Assign company code to financial management area

Company Code FM Area

TCS TFMA

TSL TFMA

Ctrl+S to Save Data

Fiscal Year

Maintain Fiscal Year Variant

Definition

Usually a period of twelve months for which a company regularly creates financial statements and check inventories.

The fiscal year may correspond exactly to the calendar year, but this is not obligatory. Under certain circumstances a fiscal year may be less than 12 months (shortened fiscal year)

Structure

A fiscal year divided into posting periods. Each posting period is defined by a start and finish date. Before you can post documents you must define posting periods. Which i turn define. The fiscal year.

In addition to the posting periods you can also define special periods for year end closing. In Gender Lender Accounts a fiscal year ca have a max of 12 posting periods and for special periods you can define up to 366 posting periods in Special Purpose Year?

Use

In order to assign business transactions to different term periods, you must define a fiscal year. with posting periods, Defining the fiscal year is obligatory.

You define your fiscal year as fiscal year variations which assign to your company code.

One fiscal year variant can be used by several company codes. You have the following options for defining fiscal year variants

· Fiscal Year same as Calendar Year

· Fiscal Year differs from calendar year. The posting periods can also be different to the calendar months

Apr -- Mar + 4 Special Periods V3

July -- June + 4 Special Periods V6

Oct -- Sep + 4 Special Periods V9

Jan -- Dec + 4 Special Periods K4

You define your fiscal year variants in customizing for Financial Accounting as follows:

SPRO - Enterprise Structure - Definition - Financial accounting Global settings – Fiscal Year – Maintain Fiscal year Variant (Maintain Shortened Fiscal Year)

TC---OB29

Select V3 Variant and Press Company as Button.

Define User Defined Variant Name T3 then save it

Then Double Click on Periods and Select Yes

Month Day Period Year Shift

1 31 10 -1

2 28 11 -1

3 31 12 -1

4 30 1 0

5 31 2 0

6 30 3 0

7 31 4 0

8 31 5 0

9 30 6 0

10 31 7 0

11 30 8 0

12 31 9 0

Assign Company Code to Fiscal Year Variant

For every company code, you must specify which fiscal year is to be used.

SPRO - Enterprise Structure - Definition - Financial accounting Global settings – Fiscal Year – Assign Company Code to a Fiscal Year Variant

Company Code Fiscal Year Variant

TCS T3

TSL T3

Chart of Accounts

Edit Chart of Accounts List

Definition

This 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 in a company code.

Use

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. You have the following options when using multiple company codes.

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B.Jyotiraditya,Head-Project,G-9 Prime It Solution,FICO Certified Consultant, has been working as Sr.Sap fico consultant and corporate trainer since 9years.Mr.Jyotiraditya also formed sap forum which is opened for all sap and non sap professionals to share their experience. Emailid:bjyotiraditya@gmail.com

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