SAP is one of the advance ERP softwares which has been providing the total business solution to the corporate world.The everincreasing demand of sap software in the business houses created the vacuum of SAPprofessional.We are striving to groom up a new breed of ERP professional by updating them with latest information.-B.JYOTIRADITYA,Sr.SAP FI/CO CONSULTANT
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
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
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
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
Friday, July 4, 2008
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.
about me
- Trainer SAP FICO
- Bangalore, Karnataka, India
- 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