SAP FI/CO TRAINING MATERIAL

B.JYOTIRADITYA,9885863446 EMAIL ID:bjyotiraditya@yahoo.com

SAP-FI/CO

SAP: Systems, application and products in data processing

FI: Financials: co: controlling

Version: 4.7 EE (Enterprise edition)

No. of co. working with 4.6b

4.6c

SAP Started in 1972 à Head quarters in Germany

ERP: Enterprise Resource Planning

ERP integrated all the function

It facilitate free flow of data among the functions/departments

ERP Packages:

SAP, Oracle, financials, peoples soft, BAAN, J. D. Edwards

1972 – SAP R/1 – Real time data processing

1980 – SAP R/2 – Included No. of countries and No. of currencies

1990’s – SAP R/3 – R/3 Stands for

Data structure:

1. Application server

2. Data base server

3. Presentation

1999 – My SAP.com – Web based

2004 – Net weaver - Integrates information, people and processes.

Areas to be covered under FI/CO

FI:

1. General ledger accounting

2. Accounts payable

3. Account receivable

4. Asset accounting

CO:

1. Cost element accounting

2. Cost centre accounting

3. Internal orders

4. Profit centre accounting

5. Product costing

6. Profitability analysis.

Integration of

1. Material Management Module to Financial

2. Sales & distribution module to financial module integrate

3. Production planning module to controlling module integration

4. Data take over

5. Closing Procedure

Reports:

In all the module systems gives around 2000 reports

You can attach the reports to favorites

Some important reports you can attach the reports on desk top.

Cross company code transactions:

India version: T. D. S, Excise and sales tax.

Companies Act: Schedule VI: Balance sheet and profit & loss A/C

Basic Settings:

Fiscal Year: Indian companies à April to March + 4 special periods

U. S à January to December

Example: Account year à April 2005 to March 2006

(12 + 4)

25/04/06 – Profitability by Account dept – 13

10/05/06 – Profitability by Management – 14

05/06/06 – Profitability finalized by Auditors – 15

Create a project

Customization with different scenarios

Testing

SMB (Small and medium business companies)

How to Open SAP

Open: Double click on SAP Logon Icon

Then double click on SAP class

First screen;

First field: Client: 2 clients

1. Development Client

2. Production Client

In the Implementation SAP

1. Consultants

2. Company Staff (Core Team Members)

The consultants they do the customization in development client.

The company staff will do the testing.

The customization will be transferred to client through transport requests.

In the production client you enter your day to day transaction.

Some companies they will give 3 clients

1. Development client

2. Testing client

3. Production client

Client: 800/000/810 – You can copy and give any number.

User: Cost of Package will depend on the No. of users Licenses.

100 Users License - used by 1000 Employees

It fixes the responsibility on employee.

User ID: SAP user: You can use small or capital letters (It’s not case sensitive)

Password: The length of password – Min3 – Max8.

(It can be Numeric, Alpha Numeric, Alphabets, and special characters.

Password is not case sensitive

Not possible to change password more than once in a day.

Latest 5 passwords can not be used

Password can not be restored.

* Money is the password.

Language: Along with the packages you can get 41 languages.

If the language not given or EN – Default English

If you give DE – all fields on screens in German.

Once you complete press Enter.

One user can work in Number of sessions at a time (window)

Maximum is six (6)

1^st Row is called Menu Bar

2^nd Row – standard tool bar.

3^rd Row is called Title bar.

4^th Row is called Application tool bar

5- SAP Menu

Last Row is called Status bar

√ (Tick) is called Enter.

Beside Tick there is Box  called command field.

To open a new session from to Menu bar select systems à Create session.

To move from one session to another session

Use Alt + Tab

To close the session the path is from Menu Bar Systems à End session

How to use Transaction codes (TC)

Standard codes one common in all over the world

To go back to SAP easy access screen

Use /N in command field and press enter

Example:

For posting of Transaction:

F-02 Account display

(FS10N)

/N is command field and press enter à Easy Access

Use FS10N in command field – you can directly enter into Accounts display

/N FS10N – change session with new transaction code.

/o FS10N – create session with new transaction code.

How to close the system:

*From the Menu bar select system Log off.

Select yes button to Log off

How to unlock screens:

*Tools à Administration à Monitor à Lock Entries (Transaction code is /NSM12)

Select list button

From the Menu bar select Lock entry delete all.

Press yes button to delete all lock entries.

How to activate Transaction codes

Path: From the Menu select extras à setting à Display Technical Name (check) Box à Enter

Set start Transaction You can make screen as default screen

How to set start transaction:

From the Menu select extras set start transaction

Give the transaction code ‘f-02’ (start Transaction)

Press enter

Creation of project

Group à Companies à Units

In SAP – Group is called as company

Company is called as company code.

Unit is called as Business areas. Aravind group

Aravind Mills Ltd (AML companies Ltd) ()

Aravind Steels Ltd (ASL)

Aravind Chemicals (ACL)

Hyd

Mumbai

Bangalore

Hyd

Mumbai

Bangalore

Hyd

Mumbai

Bangalore

.The consultant does customization at company code level

The company or group is only for information.

Define Company:

Path; SPRO à Enterprises Structure à Definition à Financial AccountsàDefine Company. (T.CODE-/NOX15)

The company or Groups is only for Information

This is called customization area (or) configuration area (or) Implementation area.

1^st button is called IMG documentation (Description path about Company)

2^nd button is called IMG activity.

If you want to customization select IMG Activity.

Double click on IMG Activity Button

Select New Entries Button.

Enter company name AVG (optional)

Company name is Aravind group

Name of the Company2 à if groups has any second Name

Street à Ameerpet

Postal Code à 500 000

City à Hyderabad

Country à one button is called drop down button or pull down button

For country select drop down button à 236 Countries

Select IN à for India.

Language key: select drop down button à 41 languages

Select EN for English

Currency: select the drop down button – 183 Currencies.

Select INR – Indian Rupee.

Select Save button or (ctrl + s)

Before saving, the screen gives you latest transport request

Select create request button (F8)

Short description - FI Basic settings for Aravind Mills Ltd

Press enter à Press Enter once again to saving the request.

You can see the system data saved.

It can saved in client 800 AML Company

Define Company code:

Tools à Customizing à IMGà Edit Project à SAP reference IMG buttonà

(SPRO) à Enterprises structure à definition à Financial Accounting à Edit, copy, delete, check company code. (T.CODE-/NOX02)

Double click on IMG Activity button.

Double click on Edit company code data

Select new entries button.

Company code à AML (Max 4 characters)

Company Name à Aravind Mills Ltd

City à Hyd

Country à IN

Currency à INR

Language à EN

Once you can complete the data, select save button or (ctrl + s).

It gives a big screen

Title: Company

Name: Aravind Mills Ltd.

Address: Street à Ameerpet

Postal code à 500 000

City à Hyd

Country à IN

Once you complete press Enter

You can enter it gives you latest request

To choose your request à select drop down button beside

Requests number à it gives the entire request.

Select your request number à press Enter to save in the request.

It saved in two places

1. Client 800

2. Request

Assign company code to company: (T.CODE-/NOX16)

Path is SPRO à Enterprise structure à Assignment à Financial Accounting à Assign company code to company.

Double click on IMG Activity button.

Shortcut:

Select position button à Give you company code AML press Enter.

For company code (AML) Assign Company (AVG) select save button or (ctrl + s)

Press Enter to save your request.

Define Business Areas: (T.CODE-/NOX03)

Business Areas assignment to company code is not required.

The same Business area can be used by any company code.

Path: SPRO à Enterprises structure à definition à financial accounting à define business area

Double click on IMG Activity button

Select new entries button.

Code May be numerical or Characters – Max 4

Code: AMH à Hyderabad business Area.

AMB à Bangalore Business Area

AMM à Mumbai Business Area

Select save button or (ctrl + s)

Select drop Box.

Press enter to save in your request.

Chart of Accounts:

1. Common set of Accounts à accounting coding should be same, and then only you can compare and consolidate between company code or business areas.

2. Separate set of Accounts:

3. Group chart of Accounts:

In this case you have to give 2 No (Company code Number + Group code Number)

*Companies they follow common set of Accounts

Chart of Accounts name

Description

Maintenance language

Length of the Account Number à Max 10 digits

But companies are normally using 6 digits.

Path of chart of Accounts

SPRO à Financial Accounting à General Ledger Accounting

G/L Accounts à Master Records à Preparation à Edit chart of Accounts list

Double click on IMG Activity button (T.Code OB13)

From the Menu select system status à short cut

Select New Entries button

Chart of Accounts ---> AML (Max 4 characters)

Description à Chart of Accounts for Aravind Group

Maintenance Language --> Select English

Length of G/L Account no: enter 6

Controlling integration à Select Manual creation of cost element

Group chart of Accounts à Blank

Under status à Blocked à Deselect Blocked Check Box

Use of Block is to avoid duplicate Accounts creation.

Once you complete you can select save button

Press Enter to save in your request.

Assign Company Code to chart of Accounts:

Path: SPRO àFinancial Accounting à General Ledger AccountàG/L Accounts à Master Records à Preparations à Assign company code to chart of Accounts. (T. code OB62)

Select Position Button

Give the Company code AML à press Enter.

For the company code AML assign chart of accounts AML

Select save button or (ctrl + s) button

Press Enter to save your request.

Account Groups:

1. Liabilities - 1.series

2. Assets - 2.series

3. Income- 3.series

4. Expenditure- 4.series

Path: SPRO à SAP Ref IMG à Financial Accounting à General Ledger Accounting à G/L Accounts à Master Records à Preparations à Define Account Group (Transaction code OBD4)

Select New Entries button.

Chart of Accounts:

Give the chart of Accounts --> AML

Chart of accounts	Account group	Name	From Account	To Account
AML	SCPL	Share Capital	100000	100099
AML	RSPL	Reserves & Surplus	100100	100199
AML	ACDN	Accumulated depreciation	100200	100299
AML	SCLN	Secured Loans	100300	100399
AML	UNSL	Unsecured Loans	100400	100499
AML	CLPR	Current liabilities &provisions	100500	100599
AML	FAST	Fixed assets	200000	200099
AML	CAST	Current Assets, Loans and advance	200100	200199
AML	SALE	Sales	300000	300099
AML	OTHR	Other Income	300100	300199
AML	INCR	Increase/Decrease in stocks	300200	300299
AML	RMCN	Raw Material consumption	400000	400099
AML	PRSN	Personnel Cost (Staff cost)	400100	400199
AML	MFRG	Manufacturing	400200	400299
AML	ADMN	Administration	400300	400399
AML	INTR	Interest	400400	400499
AML	DEPR	Depreciation	400500	400599

Once you complete select save button or (ctrl +s) save in your request.

Retained Earnings Account:

Year Ending

P&L Account Balance à Surplus in P&L A/Cs transfer to Reserves & Surplus.

Balance sheet Account balance à carry forwards to next year à Opening Balance for next year.

Assign one Account for retained earnings à 100100.

Path: SPRO à Financial Accounting à General Ledger Accounting à G/L Accounts à Master Records à Preparations à Define Retained Earnings Accounts. (T. Code OB53

Give your chart of Accounts AML

Press Enter.

P&L Statements Accounts Type Account

X 100100

Select save button or (ctrl + s)

It gives the Message, Account 100100 not created in chart of Accounts AML

Ignore the message press Enter. Press Enter once again to save in your request.

Fiscal Year

Indian Company – Apr to March + 4 Special Periods –V3

U.S.Company - Jan to Dec + 4 Special Periods -K4

How to convert Calendar your Periods to Accounting your periods

Path: SPROà. Financial Accounting à Financial Accounting Global settings à fiscal year à Maintain fiscal year variant (Maintain shortened fiscal year) (T. Code OB29)

Select position button

Give fiscal year variant –V3

Enter

Select fiscal year variant – V3

Double click on period’s folder

Select back arrow (or) F3

Select new entries button

Fiscal variant à Give A3 - Max 2 characters

Description à April – March + 4 special periods

Deselect- year dependant check Box

Deselect calendar year check Box

No. of posting periods 12

No. of special periods 4

Once you complete select save button (or) (ctrl +s)

Save in your request

Select fiscal year variant: A3

Double click on period’s folder

Select new entries button.

Conversion table:

Month	Days	Period	Year shift
January (1)	31	10	-1
February (2)	29	11	-1
March (3)	31	12	-1
April (4)	30	1	0
May (5)	31	2	0
June (6)	30	3	0
July (7)	31	4	0
August (8)	31	5	0
September(9)	30	6	0
October (10)	31	7	0
November (11)	30	8	0
December (12)	31	9	0

Once you complete select save button or (ctrl + s)

Assign company code to a fiscal year variant

SPRO à Financial Accounting à Global Settings à Fiscal Year à Assign Company Code to a fiscal year variant (T.Code is OB37)

Select position Button

Ignore the Message press Enter

Give your Company Code AML

Press Enter

For company code AML, Assign Fiscal Year variant V3 (or) A3

Select save button (or) (ctrl + s)

Ignore the Warning Message Press Enter

Press Enter to save in your request.

Document Types and No. Ranges

Stores (factory)	Sales (Depot)	Accounts(City office)
RE	RV	SA	Document type
03	02	01	Number Range
200001 To 300000	100001 To 200000	1 To 100000	Number Range Intervals

Path: SPRO à Financial Accounting à Financial Accounting Global Settings à Document à Document Header à Define document types. (T. Code OBA7).

Select position Button

Give the document type SA.

Press Enter.

Select Type: SA

Select details button

Note down to No. Range 01

Select No. Range Information button.

Give your company code AML

Screen Shows:

Intervals à It show what no. we are give

Status à Change status à how many documents we have posted.

Intervals à Change intervals à to give document Number.

Select change Intervals button.

Select Intervals button.

Give the Number Range – 01.

Year – 2006

From Number1 to Number 100000

Current Number – 0

Deselect External check box.

Press Enter

Select save button.

Number range intervals can not be transferred to production client.

Ignore the message. Press Enter.

SAP also gives voucher numbers in two ways.

Example:

Scenario: - I

01	2006	1 – 100000
01	2007	1 – 100000
01	2008	1 - 100000

Same session for each year.

Scenario: -II

01

9999 (Any year)

(We do not know how many document we have posted in each year)

Note: Companies normally follows Scenario I.

Field status variant & field status groups

At the time of entry the system gives 70 fields.

Examples: Quantity, text, business area, value date.

(Around 140 fields to use, all the fields are (70 debits + 70 credits).

You can make any field as

1. Surplus field – Field will not be visible.

2. Required field – To enter the values.

3. Optional field – Choice to enter or not enter.

Entry lay out based on field’s selection in the field status group which is assigned to G/L Account.

Field Status group one Created under field status variants and field status variant is assigned to company code:

Example: Cash A/C Dr

To Share Capital A/C

Equity share capital (General)	Text & Business area	Required fields
Cash Account	Text & Business area	Required fields
Bank Account	Text & Business area & Value date	Required fields

Path: SPRO à Financial Accounting à Financial Accounting Global settings à document à Line Item à Controls à Maintain field status variants.

Select field status 1000

Select copy as button

Change the field status variant AML

Field status name:

Field status variant for AML

Press Enter

Select copy all button.

No. of dependent entries copied 45.

Enter.

Select save button (or) (ctrl + s).

Save in your request

Select field status variant AML

Double click field status group folder

Select G001 – General and double click on General data.

Text make it required entry field.

Select next group button.

Select next page or page down button.

Select required entry for business area.

Select save button (or) (ctrl + s).

Select 005 Bank Accounts and double click.

Double click on general data.

Text field make it required entry field.

Select new group button.

Select next page (or) page down button.

Business area make it required entry field.

Select next group button 2 times.

Value date make it required entry field.

Press save button

Assign company code to field status variant:

Path: SPRO à Financial Accounting à Financial Accounting Global settings à document à Line item à controls à Assign company code to field status variants.

Select position button.

Give your company code AML.

Enter.

For company code AML, Assign field status variant AML

Save, save in your request.

Posting periods:

a. Define posting period variant.

b. Assign posting periods to company code.

c. Define open and close periods for variant.

April, 2006 to March 2007 à Fiscal year 2006

If company is completed quarterly results

July 2006 to March 2007

(4, 2006) to (12, 2006)

Define posting period variant:

Path: SPRO à financial accounting à financial accounting Global settings à document à posting periods à define variants open posting periods.

Select new entries button.

Give the variant AML.

Give the name à posting period variant for AML.

Select save button (or) (ctrl + s).

Save in your request

Assign variants to company code:

Path: SPRO à Financial Accounting à Financial Accounting Global settings à document à posting periods à Assign variants to Company code.

Select position button.

Give your company code AML.

Press Enter.

For Company code AML – Assign variant AML.

Save, save in your request.

Define open and close posting periods:

Path: SPRO à Financial Accounting à Financial Accounting Global settings à document à Posting periods à Open and close posting periods.

Select New Entries button.

Select variant AML.

A – for Account Type.

Select + variant for all accounts type

From Account – Blank

To Account – Blank.

From period 1 is = 4 (July)

Year is 2005.

To period is = 12 (March)

Year is 2006.

If Audit is not over (March 2006 to March to 2006)

(13, 2005) (13, 2005)

From period 13 (special Period) – Year 2005

To Period 13 (Special Period) –Year 2005

Authorization Group:

Authorization will give to some persons like Manager (Accounts) –ID,

Dy. Managers (Accounts) – ID at user level.

Once you complete select save button (or) (ctrl + s).

Press enter to save in your request.

Path for posting periods at user level:

Path: Accounting à Financial Accounting à General Ledger à Environment current setting à Open and close posting periods (T. Code is S _ALR _ 87003642).

How to give the transaction code when you get SPRO

Path: SPRO à from the Menu select additional information, once again additional function à display key à IMG activity.

Note down the last 4 (OBBO) (OB52) (OBBP).

OB52 (is open and closing periods).

Open Item Management

Used for vendors/customers/Balance sheet Accounts where clearing is required

Out standing expenses A/C

Bank cash	15,000	Salaries	1,00,000
		Wages	1,00,000
		Rent	15,000

We can see the items in three ways:

1. Open Item: We can see only outstanding – Payable Item.

2. Cleared: We can see only cleared Item – Paid Item.

3. All: We can see all items included Paid/Payable Items.

Tolerance Group:

	Amount	Percentage
A	1000	0%
B	0	5%
C

If you commission is payable 100020à only paid 100000 the remaining balance (20/-) may be transferred to payment difference Account (or) payable (Partial payment).

Disadvantages:

a. It given at account level and not at transaction level

b. No flexibility.

Path: SPRO à Financial Accounting à General Ledger Accounting à Business transactions à Open item clearing à clearing differences à define Tolerance group for G/L Accounts.

Select new entries button.

Company code: AML

Tolerance group: Blank.

Name of tolerance group: Tolerance group for AML.

Debit amount – 0

Credit amount – 0

Percentage of debit – 0

Percentage of credit – 0

Deselect value date (VD) check box

Select save button (or) (ctrl + s)

Save in your request

Value date (effective date)

If I received term loan from I.D.B.I on 15/07/06

If I deposited in Bank on 17/07/06

Document date: 17/07/06

Posted date: 17/07/06

*Value date: 15/07/06 à(effective date)

Tolerance group for employees

Here we give user wise upper limits for posting

Amount per document

Amount per open item Account item

Open item: Vendors/customers.

Cash discount

Payments difference we can accept.

*Path: SPRO à Financial Accounting à General Ledger Accounting à business transactions à Open item clearing à clearing differences à

Select new entries button

Group Blank

Company Code à AML

Amount document – 9999999999

Amount for open item account item – 9999999999

Cash discount per line item: 10%

Permitted payment differences: Blank

Select save button or save button

Press enter to save your request.

BASIC SETTINGS -CHART OF ACCOUNTS

SAP – FICO

CLASSIFICATION OF CHART OF ACCOUNT

· 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 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.

Structure

Charts of accounts can have three different functions in the system:

· Operating chart of accounts

The operating chart of accounts contains the G/L accounts that you use for posting in your company code during daily activities. Financial Accounting and Controlling both use this chart of accounts.

You have to assign an operating chart of accounts to a company code.

· Group chart of accounts

The group chart of accounts contains the G/L accounts that are used by the entire corporate group. This allows the company to provide reports for the entire corporate group.

The assigning of an corporate group chart of accounts to a company code is optional.

· Country – specific chart of accounts

The country – specific chart of accounts contains the G/L accounts needed to meet the country’s legal requirements. This allows you to provide statements for the country’s legal requirements.

The assigning of an country-specific chart of accounts to a company code is optional.

SPRO Financial Accounting General Ledger Accounting GL Accounts Master Records Preparations Edit Chart of Accounts. TC – ob13

Press New Entries

Chart of Accounts : TCCA

Description : Tata Country Specific Chart of Accounts

Language : English

Length of GL Accounts : 4

Controlling Integration : Manual Creation of Cost Elements

Ctrl + S to Save

Press New Entries

Chart of Accounts : TGCA

Description : Tata Group Chart of Accounts

Language : English

Length of GL Accounts : 5

Controlling Integration : Manual Creation of Cost Elements

Ctrl + S to Save

Press New Entries

Chart of Accounts : COCA

Description : Tata Consultancy Operating Chart of Accounts

Language : English

Length of GL Accounts : 6

Controlling Integration : Manual Creation of Cost Elements

Group Chart of Accounts : TGCA

Ctrl + S to Save

Press New Entries

Chart of Accounts : SOCA

Description : Tata Steel Operating Chart of Accounts

Language : English

Length of GL Accounts : 6

Controlling Integration : Manual Creation of Cost Elements

Group Chart of Accounts : TGCA

Ctrl + S to Save

BASIC SETTINGS SAP-FICO

SAP – FICO

ADITYA BANERJEE,ACA,MBA(Finance),SAP Certified consultant

E-MAIL:bjyotiraditya@yahoo.com

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.

SAP FI/CO TRAINING MATERIAL

COPREHENSIVE STEP BY STEP NOTES
Material Cost for FI:Rs.7500 for US $250+Postal charges$35
US CONSULTANTS MAY CONTACT FOR 4.7EE SAP INSTALLATION CDS AND GUIDE LINES.
PROJECT MATERIAL i,e.AS -IS,TO-BE AND BLUE PRINT INR Rs.3500 US $150
ONLINE TRAINING PROGRAMME :ONLY US
COURSE CONTENTS:
Fundamentals of FI using New General Ledger Functionality
CONTROLLING PART IS IN PROGRESS
Introduction – the concept of the New General Ledger

• Documents and document splitting

• Integration with Financial Accounting subsidiary ledgers and with Controlling (real-time

integration of Controlling into Financial Accounting)

• Closing operations


Using the New GL Functionality, we will work on the following:

1. Organization Structure

• Client

• Chart of accounts

• Company code

• Credit control area

• Sales organization

• Purchasing organization

• Chart of depreciation

• Controlling area

2. Master Records

• GL accounts

• Customers

• Vendor

• Banks

• Account groups

• Number ranges

• General Ledger

• Sub-ledger

3. Documents

• Document header

• Line items

• Document type

• Special document types

• Document number ranges

• Posting keys

• Field status definition

• Payment terms

4. Posting periods

• Posting periods

• Fiscal Year

5. Accounts/line items

• Display formats

• Allocation fields

• Work lists

6. Foreign Currency

• Foreign Currency keys

• Parallel currencies

• Exchange rates

7. Other special features

• Fast entry

• Inter-company transactions

• Hold data

• Document parking

8. Reference documents

• Actual documents

• Sample documents

• Account assignment models

• Recurring documents

9. Reports

• Delivered reports

• Variants

10. Incoming payments

• Partial Residual payments

• Foreign currency

• Payment advices

11. Account analysis

• Payment history

• Credit limit

• Clearing procedures

12. Outgoing payments

• Payment program

13. Clearing

• Selection options

• Reset cleared items

14. Closing using New GL

• Month- end closing

• Yearend closing

15. Preparing a Balance Sheet

• Foreign Currency

• GR/IR clearing

• Accrual / Deferral documents

17. Valuating Foreign Currency

• Open items

• Balance Sheet accounts

18. Financial Statements

• Main structures

• Financial statement versions

Cost Controlling

19. Overhead cost controlling

• Tasks in overhead cost controlling

• Organization units in CO

20. Master data in Cost element and cost center Accounting

• Master data and transaction data

• Cost elements

• Cost center

• Statistical key figures

21. Transaction - Based posting

• Number assignment for CO documents

• Account assignment logic

• Automatic and default account assignment

• Transaction-based posting in CO

22. Information system

• Standard reports

• Report painter

• Report tree
Advanced FICO using New GL Functionality

Course : Advanced FICO using New GL Functionality

Type : (3 weekends - 6 days 9 AM to 4 PM)

1. Integration of FICO with other SAP

• MM Integration & Invoice verification

• SD Integration & Billing

2. Special General Ledger Transactions

• Down Payments

• Guarantees

3. Periodic allocations

• Periodic reporting

• Distribution

• Assessment

• Valuation with activity prices

• Actual cost splitting

4. Planning in cost center accounting

• Planning scope and techniques

• Versions

• Planning screens

• Distribution keys

• Plan cost splitting

• Planning aids

5. Internal Orders

• Master data and structures

• Order types

• Status management

• Real and statistical orders

• Actual posting and commitments

• Planning and Budgeting

6. Period closing in Overhead cost controlling

• Period lock

• Variance calculation

7. CO Information System

• Standard reports

• Report painter

• Report tree

8. Fixed Assets Accounting

• Organizational Units in Fixed Assets Accounting

• Depreciation Areas

• Different depreciation methods

• Transactions in Fixed Assets Accounting

• Fixed Assets Reports

FREE INTERVIEW QUESTIONS AND ANSWERS DOCUMENT TO BE PROVIDED