SAP FI/CO TRAINING MATERIAL-FUNDAMENTAL

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

SAP – FICO

Company Code Global Settings

1. Define Organizational Units

Define Company Code

Define Credit Control Area

Edit, Copy, Delete, Check, Company Code -----------OX02

Define Business Area ---------OX03

Define Functional Area -------OKBD

Maintain Consolidate Business Area

Maintain Financial Management Area

2. Assign Organizational units

Assign Company Code to Company

Assign Company Code to Credit Control Area

Assign Business Area to Consolidation Business Area

Assign Company Code to Financial Management Area

3. Fiscal Area Year Variant:

Maintain Fiscal Year Variant ------OB29

Assign Company code to chart of accounts -----OB62

4. Chart Of Accounts:

Edit chart of accounts list ----OB13

Assign company code to chart of accounts ------ OB62

Define accounts group ------ OBD4

Define Retained Earnings Accounts ------ OB55

5. Currency Settings

Cheek Exchange rate types -----OB07

Define translation ratios for currency translation

Enter exchange rates ------ OBOS-F-62

Maintain exchange rates spreads

6. Posting Period Variants

Define Variants for open Posting Periods ------OBBS

Assign Variants to Company code -----OBBP

Open & Close Posting Periods ------OB52

7. Documents Types:

Define Document Types

8 Tolerance Groups:

Define Tolerance Groups for G/L Accounts -----OBA0

Define Tolerance Groups for Employees -----OBA4 PAGE 1

Assign Users to Tolerance Groups ----- OB57 PAGE 2

9. Field Status Variant:

Maintain Field Status Variants -------OBC4

Assign Company Code to Field Variants ----- OBC5

10. Global Parameters:

Enter Global Parameters ----- OBY6

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 PAGE 3

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.