SAP Fi275091377345052

g
SAP Fi Co

2011
MEGHANATH REDDY.A
9700079666
5/5/2011
MEGHANATH REDDY.A

1. How to open SAP
Double click on SAP log
Double click on ECC Server

2. Client: Client is an Independent Organizational unit in SAP and is having
Master data and own set of tables

i) Videocon will purchase SAP
based on Number of user Licences.
ii) Along with package we get clients like 000/001/006/800
000 and 001 only program without data.
800 client ides client program with data
Ides stands for International demonstration and education system

iii) Team Members from:
Videocon Group
a) Project manager
b) Accounts manager
c) Cost accountant
d) Purchase manager
e) Sales manager
f) IT staff

iv) Videocon team: prepare
v) Wipro team: Study as is process and understand the requirements of Videocon
team, prepare to be process what is to be done in SAP to need the
Videocon team.
vi) Basis consultant copies 000 client in the server and gives any name required by
Videocon team

Videocon
SAP implimentation co
A asreddy.ariga@gmail.com SAP
SAP log on Icon
Server
s an Independent Organizational unit in SAP and is having
Master data and own set of tables
purchase SAP package form SAP India BGL- Cost of the package is
based on Number of user Licences.
package we get clients like 000/001/006/800
only program without data.
800 client ides client program with data
Ides stands for International demonstration and education system

Wipro Group
a) Project manager
Accounts manager b) Fi consultant
c) Co consultant
d) MM consultant
e) SD consultant
f) ABAP programmer
g) Basis consultant
prepare is process existing process and what is required from SAP
Study as is process and understand the requirements of Videocon
prepare to be process what is to be done in SAP to need the
Basis consultant copies 000 client in the server and gives any name required by
Videocon
SAP implimentation co
Wipro
Consulting co
SAP - Fi <Page 2>
s an Independent Organizational unit in SAP and is having its own

Cost of the package is
Ides stands for International demonstration and education system demo client

programmer
existing process and what is required from SAP
Study as is process and understand the requirements of Videocon
prepare to be process what is to be done in SAP to need the requirement of
Basis consultant copies 000 client in the server and gives any name required by
MEGHANATH REDDY.A asreddy.ariga@gmail.com SAP - Fi <Page 3>

vii) Development server Production server
I I
Wipro team do settings Transport request
(Do customization)
Videocon do testing team
In the end development server customization will be transported to production
server client through transport request
Production server client is alive client where we enter our day to day data
When consultants do the settings once again in production server, client if they make
any mistakes are there corrected by Wipro team.
When we transport from development to production server we will not get any
mistakes.
In some implementations: 3 servers

Development server Testing/Quality Production server
I I I
Client Client Client

(Do customization)
Videocon team do testing

SAP Landscape: Arrangement of server
Development -------------- Production
Or
Development ------- Testing/Quality --------- Production

Client: 800
ECC Stands for ERP Central component.

3) User:
i) Cost of the package is based on Number of user licences.
ii) It fixes responsibility on Employee.
SAP users it is not case sensitive we can use small letters or capital letters
4) Password:
i) Password is case sensitive if we create password with small letters we have to
use only small letters.
ii) Length of password Min 6 Max 40 digits.

iii) In the password we can use Numerical / Alphabets / Alphanumeric / Special
characters like.

iv) Not possible to change password more than once in a day.
v) System will not allow us to use latest previous 5 passwords
Eg: 1/4/2011--------------- abcdef
10/4/2011-------------changed password to xyz123
22/4/2011 -------------we want to change to abcdef system will not permit
vi) If we forget the password it cannot be restored in live environment basis
person deletes old password and gives a new password -- india123 (small
letters)
5) Language: Along with package SAP has given 41 languages if we dont specify separately
if takes English by default of we can used En for English.
If we enter DE the menu will be in German.
If the company is having 2 servers
Development server Testing/Quality Production server
I I I
Client Client Client

(Do customization)
Videocon team do testing

Client : 800
User : sap user
Password : india123
Language : -
press enter
If Employees 2 select

Employee 1 Employee -2
1
st
Radio button cant work can work
2
nd
Radio button can work can work
3
ed
Radio button can work cant work

In training institutes we have to select always 2
nd
Radio button then press enter

1
st
Row: Manu bar
2
nd
Row: Standard tool bar
3
ed
Row: Title bar
4
th
Row: Application tool bar
Last Row: Status bar

In 2
nd
Row there is a tick- it is called enter beside tick there is a box it is called command
field one user can work in number of session (widows) at a time max 6 sessions

6) How to create a new session
Path:
From the menu bar select system --------- > create sessions

7) To move from one session to another session use ALT+TAB

8) How to end a session
From the menu bar select system -------- > End session.

9) To check which SAP version we are using from the menu bar Select system ------------ >
Status.
Component version SAP ECC 6.0 ---Enter
10) How to close SAP: from the menu bar select system < Log off then select Yes.

11) How to use transaction code (T/C)
Option 1 Option 2
Go through the path and post document use transaction code F-02 in command
path: field and press enter
Accounting<Financial accounting< we can create our own codes- they
General ledger < Posting <General should start with y or z
Post F-02

12) How to go back to SAP Easy access screen in command field Enter /N

13) How to activate transaction codes in SAP menu:
from the menu bar select Extras ---------- > settings
Select display technical names check box

14) How to change session with new screen (New transaction code)

Posting of document Account Balance display
(F-02) (FS10N)
We are in posting of document F-02 Screen after posting we want to see account
balance display (FS10N)

Step -1: Use /N in command field and press enter to go back to SAP easy access screen
Step -2: Use FS10N in command field and press enter to go to account balance display
screen.

Instead use /NFS10N in command field and press enter
F-02 screen will not appear
FS10N screen will appear

15) How to create session with new screen (new transaction code)
Posting of document Account Balance display
(F-02) (FS10N)

We are in posting of document F02 screen after posting we want to see account
balance display FS10N after seeing the balance we want to post one more document
in F02 in command field
Use /OFS10N create new session with transaction code FS10N
/ N for change
/ O for create

16) How to set start transaction to make one screen is beginning screen
Eg: User cashier He use always document entry session F-02 when he open SAP he
has to get this screen by default. From the menu bar select Extras ----------- > set
start transaction.
Transaction code F-02 press enter
We get a message transaction F-02 set as transaction.

17) To remove set start transaction: from the menu bar select Extras ------------ > Set start
transaction
Transaction code blank presses enter.

18) How to unlock Screen:
Tools ------ > administration --------- > monitor -------- > lock entrees (SM12)
The transaction code is SM12 select list button, from the menu bar select lock entrees
delete all, select yes button for the message delete all lock entrees


FI BASIC SETTINGS:

1) Enterprise structure or Organization structure creation

SAP:
GROUP COMPANY VIDEOCON GROUP

Company Company code Videocon Videocon Videocon
Steel Ltd chemicals Industries
Ltd Ltd

Units Business areas HYD - BGL HYD BGL HYD BGL

The consultant do the customization (settings) at company code level company code is a
legal entity all the settings will be done at company code level company or group is only for
information
The consultants in the beginning do the settings for one company code after words they
copy the customization including accounts to other company codes in one step and make
changes where ever required.
Now we are going to do settings for company code called Videocon steels Ltd.

Define company (Group) Optional (OX15)
Path: Tools -----> customization ---- > IMG (implementation guide) ---- > SPRO Execute
project.
Select SAP reference IMG button
We get customization area
Or
Configuration area
Or
Implementation area
Enterprise structure ----------- > Definition ------- > Financial accounting ----- > Define
company
Select IMG activity button
Select new entry button
Company : VGP (max 6 )
Company name : Videocon Group
Name of company 2 : -

Detailed information

Street : Ameer pet
Po Box : -
Postal code : 500034
City : Hyderabad
Country : Select drop down button or pull down button select IN for India
Language : Select drop down button or pull down button select En for
English
Currency : Select drop down button or pull down button select INR for
Indian rupee

Select save button or Crtl + S
Development server Production server
I I
Client Client

Wipro team do settings (do customization) Transport request

Videocon team do testing team

By default gives the latest transport request we have to create our own transport request
and save in the request.
We need to create separate request for each and every step.
All Fi Basic settings will be saved in one request
General ledger ,, 2
nd ,,
Accounts payable ,, 3
ed ,,
Accounts receivable ,, 4
th
,,
Assets accounting ,, 5
th ,,
Controlling ,, 6
th ,,
How to creation our own request: Select create button or F8 give short description
Create request
Request
Short description: Fi Basic settings for Videocon steel Ltd. Press enter Once again to save in
the message data was save.
Data was save in 2 places
i) Client 800
ii) Transport request

Define company code: (OX02)
Tools ----- > customization ----- > IMG --- > Execute project SPRO
Select SAP reference IMG button

SPRO: Path up to select SAP reference IMG button is same
SPRO NO SPRO
I I
Consultant Job End user job
Path:
SPRO ------ > Enterprise structure --------- > definition --------- > financial accounting ------- >
Edit, Copy, delete, check company code.
Select IMG activity button double click on edit company code data.
Select new entries button

Company : VSL
Company name : Videocon steel Ltd.
Additional data
City : Hyderabad
Country : IN
Currency : INR
Language : EN
Select save button or crtl+s

Title : Company
Name : Videocon steels Ltd.
Street : Ameerpet
Postal code : 500034
City : Hyderabad
Country : IN
Press enter to select our request select drop down button select request number
Select CRTL + F find enter Videocon press enter double click on request number. Select
your request number press enter to save in your request we get a message data was saved.

3) Assign company code to company (OX16)
Path: SPRO ----- > Enterprise structure -------- > Assignment -------- > financial accounting ----
----- > Assign company code to company
Select position button company code enters VSL press enter.
For company code VSL Assign Company VGP select save or CRTL + S press enter to saving
your request.

4) Define business areas (OX03)
Path: SPRO ---- > Enterprise structure ------- > definition --------- > financial accounting ----- >
Define business area
Business area Description

VSLH Hyd business area
VSLB Bangalore business area

Select save or CRTL + S

Press enter to Save in your request
Note: assignment of business areas to company code is not required.

Company Videocon steel Ltd. Videocon chemicals Ltd.

(VSL) (VCL)
1) Posting of document F-02 VSL accountant VCL accountant
Company code VSL VCL
Business area HYD HYD
With out giving company code we cant post to business area
2) Account balance display FS10N
Company code VSL VCL
Business area HYD HYD
I I
Hyd data of company code Hyd data of company code
VSL only VCL only

At the time of posting we are giving the combination of company code and business area at
the time of account balance display we are giving the combination of company code and
business area so assignment of business area to company code is not required the same
business area can be used by number of company codes in the client (800 client)
Hyd In charge
Company code : VSL + VCL
Business area : Hyd

How to view transaction code: when the screen shows code SPRO
Path: SPRO
From the menu bar select additional information -------- > additional information --------- >
display key ------- > IMG activity
We get additional information column
Note down the last 4 characters OX15

3) Chart of accounts (Set of accounts):
Company code: VSL VCL VIL
Option-1
All company codes use the same

Chart of accounts all company codes
Will use same account coding
Salaries account number 400000 400000 400000
we can easily compare or consolidated

Option- 2
Each company codes will have
Separate chart of accounts account
Coding is not common
Salaries account number 400000 300000 200000
At the same time they want to
Compare or consolidate it is possible
By using group chart of accounts
Company codes
VSL VCL VIL Group
chart of
account
salaries account number 400000 300000 200000 100000
At the time of account creation to
Each company code we give
2 numbers
Salaries account number
Company code number 400000 300000 200000
Group account number 100000 100000 100000
Companies follow option -1

Here we specify:
i) What is the chart of account code
ii) Description of chart of account code
iii) Maintenance Language
iv) Length of account number (Max -10 digits we are using 6 digits)
v) Are we follow option -1 or option 2

Chart of accounts (Set of accounts): (OB13)
Path: SPRO ------> financial accounting -------- > General ledger accounting ------ > G/L
accounts ------- > Master data -------- > Preparation --------- > Edit chart of accounts list
To give the transaction code OB13 from the number select system status- short cut enter
select new entries button.
Chart of account : VSL
Description : chart of accounts for Videocon group
Maintenance Language : Select English

Length of G/L account number: 6 digits (max 10)
Group chart of account : ---
Select save button or CRTL + S
Press enter to save in your request.

Assign company code to chart of accounts: (OB62)
Path: SPRO ------ > Financial accounting ------- > General Ledger accounting ----- > G/L
Accounts------ > Master data ----- > Preparation ------ > Assign company code to chart of
accounts.
Transaction code OB62
Select Position button
Company code : VSL
Press enter for company code VSL assign chart of accounts VSL
Select save button of CRTL+S
Press enter to save in your request

Define account group:
After wards we create accounts:
100000 Equity share capital
100001 Cash account
100002 Preference share capital
100003 SBI current accounts
Say we create 1000 accounts
Requirement:
We want to see only current assets balances or transactions we have to verify each and
every account and add the respective accounts in this example we have to add account
number 100001 and 100003 it takes so much time
Or
We are preparing profit & Loss accounts and Balance sheet for the item share capital we
have to verify each and every account and assign the respective accounts in this example
account number 100000 and 100002 it takes so much time to get balances directly or to
prepare Profit & Loss account and Balance sheet easily SAP has given assets group.

The structure is
Chart of account VSL
I
Account share capital 100000-100099
Groups current assets 200000- 200099
I
Accounts

We are creating cash account we can use any number within the range given for current
assets i.e. 200000-200099 when we create SBI current account we use any number within
the range given for current assets i.e. 200000-200099
When we want to see current assets in the report we give select account group current
assets only current assets balances or transactions will appear.
While preparing balance sheet for share capital item we assign accounts 100000-100099 if
account is created and posted the balance will appear and if the account is not created the
balance will not appear.
While creating account groups we take clients balance sheet and create the account groups
after implementation also he wants to see his balance sheet the way he used to get.
All Liability accounts should start with 1 series
All Asset accounts should start with 2 series
All Income accounts should start with 3 series
All Expenditure accounts should start with 4 series
The user is posting to salaries account with is an expenditure account at the time of posting
to salaries account he gives 4 only expenditure account will appear.

Define accounts Group: (OBD4)
Path: SPRO ------ > financial accounting ----- > General ledger accounting ----- > G/L
accounts------- > Master data -------- >Preparations ------- > Define account group.
The transaction code is OBD4

Chart/acct accts group name from acct to acct
VSL SCPL Share capital 100000 100099
VSL RSPL Reserves& Surplus 100100 100199
VSL ACDN Accumulated depreciation 100200 100299
VSL SCLN Secured Loans 100300 100399
VSL VNSL Un Secured Loans 100400 100499
VSL CLPR Current liabilities and provisions 100500 100599
VSL FAST Fixed Assets 200000 200099
VSL CAST Current assets/Loans& advances 200100 200199
VSL SALE Sales 300000 300099
VSL OTHE Other Income 300100 300199
VSL INCR Increase/ Decrease stock 300200 300299
VSL RMCN Raw material consumption 400000 400099
VSL PRSN Personnel cost 400100 400199
VSL MFRG Manufacturing cost 400200 400299

VSL ADMN Administration cost 400300 400399
VSL INTR Interest 400400 400499
VSL DEPR Depreciation 400500 400599

Select your request and press enter to save in your request.

Why we are using 6 digits:
6 digits 4 digits 10 digits
100000 100099 Share capital 1000 1099 1000000000-10.....99
100100 - 100199 Reserves& Surplus 1100 1199
100200 100299 Accumulated depreciation 1200 1299
100300 100399 Secured Loans 1300 1399
100400 100499 Unsecured Loans 1400 1499
100500 100599 Current liability 1500 - 1599
200000 200099 fixed assets 2000 2099

If we use 4 Digits:
After wards we have to create with 1 series 10 account groups new account groups have
come on liabilities side or we have consumed all 100 accounts for liability group.
New group: Differed tax liability
We can create with 1 series only 4 account groups
Last number with 1 series 1999
Already we have used 1599
Balance available 400
For each group we are keeping 100 accounts
We can crate with 1 series 400 accounts/ 100 accounts= 4
Accounts group
We cant use 2 series / 3 series/ 4 series/ then we have to go for 5 series.
The user at the time of posting to liability account he enters 1 if the accounts is not there he
has to use 5

If we use 6 Digits:
After wards we have to create with 1 series 10 account groups new account groups have
come on liabilities side or we have consumed all 100 accounts for liability group.
New group: Differed tax liability
We can create with 1 series 994 account groups
Last number with 1 series 199999
Already we have used 100599

Balance available 99400
For each group we are keeping 100 accounts
We can crate with 1 series 99400 accounts/ 100 accounts= 994
Accounts group
Say all 100 accounts are consumed for secured loans we create secured loan- II 100600
100699
6 digits most preferred number

Define retained earnings Account: (OB53)
In the year end
All profit & loss accounts transfer to surplus in P&L account (Resurves&Surplus)
Balances
Balance sheet accounts carry forward to the same accounts opening balances in
The same account balances the next year

Here we specify what is our retained earnings account this step is required in the year end
not during implementation, SAP has made mandatory this step during implementation if the
consultant does not do this step, in the year end system cannot transfer P&L account
balances to surplus in P&L account and balance sheet account balance cannot be carried
forward to next year to the same account as opening balance.
So far we have crated chart of account of accounts and account group we have not created
the accounts specify one account number for this purpose though accounts are not created
generally we specify an account given for reserves & surplus account group i.e., 100100
100199 we specify account number 100100 will be our retained earnings account when we
start creating the accounts the first account to be created is account number 100100 surplus
in P&L account.

Balance sheet:
Net result is profit we show under reserves & surplus on liabilities side.
Net result is loss we show under miscellaneous Expenditure ( to the extent not written off)
on asset side.

We give account 100100 surplus in P&L account we give a condition it the net is profit show
under Reserves & Surplus and net is loss under Misc., Expenditure.

Define retained earnings Account: (OB53)
Path: SPRO ----- > Financial accounting ------ > General Ledger accounting ---------- > G/L
accounts -------- > Master data -------- > Preparations ------ > Define retained earning
account the transaction code is OB53.
Chart of account : VSL enter


P & L statement account type Account
X 100100
Select save or CRTL + S we get message account 100100 not created in chart of accounts
VSL Ignore the warning message press enter to save in your request.

Fiscal year: Fiscal year variant
Indian companies: April to March + 4 special periods V3
U.S. Companies: Jan to Dec + 4 special periods K4
Some companies: July to June +4 special periods V6
Oct to Sept + 4 special periods V9
April 2010 to Dec 2011 in normal accounting we call it as year 2010-11
In SAP we call is as Fiscal year 2010

Jan2010 to Dec 2010 Fiscal year 2010
July 2010 to June 2011 Fiscal year 2010
Oct 2010 to Sept 2011 Fiscal year 2011

2010 2011 Fiscal year
April 2010 to March 2011 9 3 2010
July 2010 to June 2011 6 6 2010
Oct 2010 to Sept 2011 3 9 2011
If we get above 6 months in the next year take next year as Fiscal year otherwise same year

April, 2010 to March, 2011 Fiscal year 2010
1 12 13 14 15 16
Normal Periods Special periods
Special Periods are part of March
For yearend adjustments purpose SAP has given special periods usage of special periods
optional. To get the profitability at different stages special periods are used.

Why special periods are required:
April, 2010 March, 2011 - Fiscal year -2010
20-3-2011 Accounts department released profitability up to Feb, 2011 to management
profitability figure should not be changed.
We open the periods from March, 2011 to March, 2011 for posting it means user can post
transactions only for March, 2011
In SAP we open March, 2011 to March 2011
12, 2010 12, 2010
31-3-2011 The next day new accounting year will start March Profitability cannot be
declared on 31
st
March, 2011

Next accounting year: April, 2011 March2012 Fiscal year 2011.
1, 2011 12, 2011
On 31
st
March, 2011 we have to open the periods for posting March, 2010 to March, 2012
12, 2010 12, 2011
It means users can post transactions for March, 2011, April, 2011, May2011 and up to
March, 2012

15-4-2011 Accounts department released profitability for the year end 31
st
March, 2011.
Accounts department has shown profitability to Management
Management is asking them to pass adjustment entries.
Management adjustment entries are posted by accounts department 18-4-2011.
Posting data: 31-3-2011 to update last year ledger.
Entry date : 18-4-2011
Profitability finalised management
Audit by auditors
Auditors are asking us to post number of rectification entries.
Posting data: 31-3-2011 to update last year ledger
Profitability finalised by auditors
Todays requirements on 2
nd
May, 2011 we want to see profitability finalised by accounts
department
We cannot get in March after wards we have posted management adjustment entries and
auditors rectification entries.
Or
Auditors are asking us to show the rectification entries list
We cannot get list separately March transactions include normal posting/management
adjustments and auditors rectification entries.
To get accounts department profitability separately of auditors rectification entries list
separately SAP has given special periods.
It can come in the same months or in any month accounts department released profitability
in April. Management profitability finalised April
Auditors profitability finalised in April.
i) Accounts department profitability
ii) Management profitability
iii) Auditors profitability
We can get 5 stages profitability

How special periods will be used:

15-4-2011 Accounts department released profitability for the year end 31
st
March, 2011.
Accounts department has shown profitability to Management

Management is asking them to pass adjustment entries.
Management adjustment entries are posted by accounts department 18-4-2011.
Posting data: 31-3-2011 to update last year ledger.
Period 13
Profitability finalised management
Audit by auditors
Auditors are asking us to post number of rectification entries.
Posting data: 31-3-2011 to update last year ledger
Period 14
Profitability finalised by auditor
In report:
1 12 Account department profitability
1 13 Management profitability
1 14 Auditors profitability
14 14 Auditors rectification entries list.

SAP most only calendar year period it doesnt know our accounting year periods, How to
convert calendar year period to our accounting year periods.

Eg: 1
Month Days Period Year shift April,11 March,12 Fiscal year 2011
a) It is coming in which calendar year 2011
b) we are calling it as part of which fiscal year
2011
There is no change in year
year shift 0
Jan 2012
a)it is coming in which calendar year 2012
b) we are calling it as part of which fiscal
year
2011
year shift -1
when we post an entry with 1-1-2012
date it
has to update 2011 ledger and not 2010
ledger
Jan 1 31 10

-1

Feb 2 29 11 -1

Mar 3 31 12 -1

April 4 30 1 0

May 5 31 2 0
June 6 30 3 0
July 7 31 4 0
Aug 8 31 5 0
Sept 9 30 6 0
Oct 10 31 7 0
Nov 11

30 8 0
Dec 12

31 9 0


Eg:2
Month Days

Period

Year
shift

April,11 March,12 Fiscal year 2011
Jan 1 31 4 0 a) It is coming in which calendar year 2011
b) we are calling it as part of which fiscal
year
2012
year shift +1
when we post an entry with 1-10-2011
date it
has to update 2012 ledger and not 2011
ledger
Jan 2012
a)it is coming in which calendar year 2012
b) we are calling it as part of which
fiscal year 2012
year shift 0
Feb 2 29 5 0
Mar 3 31 6 0
April 4 30 7 0
May 5 31 8 0
June 6 30 9 0
July 7 31 10 0
Aug 8 31 11 0
Sept 9 30 12 0
Oct 10 31 1 +1
Nov 11 30 2 +1
Dec 12 31 3 +1

Maintain fiscal year variant: (OB29)
Path: SPRO ------- > Financial Accounting --------> Financial accounting global settings ------->
Fiscal year ------- > Maintain fiscal year variant (Maintain shortened fiscal year)
The transaction code OB29

Select position button fiscal variant V3 enter. Select fiscal variant V3 double click on periods
folder select back arrow of F3 select new entries button.

Fiscal year variant : A2
Description : April March, 4 special periods
Deselect on year dependent check box
Deselect calendar year check box
Number of posting periods : 12
Number of special periods : 4

Select save button or Crtl+S press enter to save in your request.
Select fiscal variant (F.V) A2 double click on periods folder select new entries button.

Month Days Period Year shift
Jan 1 31 10

-1

Feb 2 29 11 -1

Mar 3 31 12 -1

April 4 30 1 0

May 5 31 2 0
June 6 30 3 0
July 7 31 4 0
Aug 8 31 5 0
Sept 9 30 6 0
Oct 10 31 7 0
Nov 11

30 8 0
Dec 12

31 9 0

Save
Why deselect year dependent check box:
If you select your dependent check box when you save the conversion it will ask for with
year when we specify it is for year 2011 the conversion is applicable only for that year every
year we have to create the conversion if we deselect year dependent check box it will not
ask the conversion is for which year it is available for all years.

Why to deselect calendar year check box:
If we select calendar check box January will be taken as period 1 and April will be taken as
period 4
Our requirement is January should be period 10 and April should be period 1 so deselect
calendar year check box.

Assign company code to a fiscal year variant: (OB37)
Path: SPRO ------ > Financial accounting -------- > Financial accounting globel settings ----- >
fiscal year ---------> Assign company code to a fiscal year variant
The transaction code is OB37
Select position button ignore the warning message press enter
Company code VSL press enter for company code VSL assign fiscal year variant V3 or A2
select save button or CRTL + S ignore the warning message press enter to save in your
request.

Posting periods
In this step we define which periods are for posting s
April, 2011 to March, 2012 Fiscal year, 2011
Profitability for April should not be changed
To open periods for posting: May, 2011 to June, 2011
In SAP we define: 2, 2011 - 3, 2011
Open and close posting periods

Open means from period i.e. May, 2011
Close means to period i.e. June, 2011

Company codes VSL VCL VIL
Option 1:
All company codes will
Open and close periods
At the same time
i) Define posting period
variant say X
ii) Assign posting period
variant company code/ X TO VSL Y TO VCL Z TO VIL
codes..
iii) Define open and close
posting periods for
variant for
X- 2, 2011 3, 2011

Option 2:
Each company code will
Open and close periods
At different times
Company codes VSL VCL VIL
From May, 2011 from April, 2011 from April, 2011
To June, 2011 to June, 2011 to June, 2011
i) Define posting period
variant X,Y and Z
ii) Assign posting period X TO VSL Y TO VCL Z TO VIL
variant to company
code/codes
iii) Define open and close FOR X FOR X FOR X
periods for variant I I I
2, 2011-3, 2011, 1, 2011 2, 2011 1, 2011 3, 2011
Requirement:
Current year we want to open May, 2011 to June, 2011 previous year audit is not over to
open previous year March, 2011

SAP has given 2 columns
1
st
column mandatory May, 2011 to June, 2011
2, 2011 to 3, 2011

2
nd
column optional
Previous year to open April, 2010 March, 2011 fiscal year 2010
March, 2011 to March, 2011
12, 2010 -12, 2010
User can post transactions
In the current year May, 2011 to June, 2011
In the previous year March, 2011

1) Define posting period variant: (OBB0)
Path: SPRO ---- > Financial accounting -------- > Financial accounting global settings ------
> Document -------- > Posting periods --------- > Define variants for open posting periods
Select new entries button.
Variant : VSL
Name : Posting period variant for VSL
Select save or CRTL + S

2) Assign variant to company code: (OBBP)
Path: SPRO ---- > Financial accounting -------- > Financial accounting global settings -------
-----> Document -------- > Posting periods --------- > Assign variant to company code
Select position button
Company code : VSL
Press enter
Company code : VSL
Assign variant VSL
Select save or crtl +s

3) Open and close posting periods: (OB52)
Path: SPRO ---- > Financial accounting -------- > Financial accounting global settings -------
--- > Document -------- > Posting periods --------- > Open and close posting periods
Select new entries button.
Variant : VSL
A for accounting type : select +valid for all account types
From account : Blank
To account : Blank
From period. 1 : 2 (May)
Year (fiscal) : 2011
To period : 12 (March)
Year (fiscal year) : 2011
From period.2 : 12(Marche)

Year : 2010
To period : 12
Year : 2010
AU.GU (Authorization group) : Blank
Select save button or crtl + s

Authorization group: Blank
Open and close periods screen is required every month in live environment in production
sever client on one will have access to customization area. SAP has given same screen at end
user area when it is available at end user area the user misuse. SAP has given authorization
object to user IDs Manager accounts and deputy Manager accounts only the authorization
persons can make changes to posting periods at end user area

Posting periods entry at end user area:
Path: accounting------- > Financial accounting --------- > General ledger ------- > Environment
------- > Current settings--------- > Open and close posting periods S_ALR_87003642
Select position button posting period variant VSL
Press enter.

Document type and number ranges:
In normal accounting accounts persons only will post all entries, He get voucher numbers
continuously, In SAP vouchers we call it as document.
At the time of demo we have discussed
Stores accounts sales
Person person person
(Factory) (City office) (Depot)
Material receipt 1
Payment to party 2
Sales at depot 3
Receipt from customer 4
Accounts person does not know which document number he has to take printing we are not
getting document numbers serially
To get the document number serially SAP has given
Document types:
Document type SA RE RV
(General ledger) (Purchase) (Sales)
I I I
No. Range 01 02 03
Number range interval 1 - 100000 100001 200000 200001- 300000
All purchase document number will be 100001,100002,100003 onwards

All sales document numbers will be 200001,200002,200003 onwards
We are getting the document numbers continuously at each place by seeing the document
number we can tell where it is generated.
In a year say for SA all 100000 documents are consumed when we post an entry after wards
system gives error message stating no range interval is available then we give available
numbers in this example 300001 400000
Path:
SPRO ------- > Financial accounting ------------ > Financial accounting global settings -------- >
Document --------- > Document header --------- > Define document types.
The transaction code is OBA7
Document type : SA
Press enter
Select type SA G/L account document
Select details button
Number range : 01
Select number range information button
Company code : VSL
Select change interval button
Select interval button
No. Range : 01
Year : 2011
From number : 1
To number : 100000
Current number : 0
Deselect EXT check box
EXT stands for External
Press enter select save or crtl+s
Ignore the warning message press enter
Number range interval will not be transported to production server client
1) Consultant is an outsider he does not know how many documents are required for each
area.
2) Everyone wants to have 1 100000 series which cannot be given in live environment
before entering the data in production server client all departments heads sit together
and decide.

What will be purchase document numbers
What will be sales document numbers
What will be general ledger document numbers
Whatever number range interval we have given in this client for testing purpose.


Why to deselect external check box
If we select external check box at the time of posting we have to specify what should be the
document number daily we post number of entries we cannot track which number is used
When we deselect external check box document number will be taken internally first
document number will be 1 and the next number will be 2.

For giving number range intervals SAP has given 2 options

Option 1: Option 2:
Year specific Common for all years
01-2010, 1-100000 50000 50001 01-9999, 1-100000 52000 52001
01-2011, 1-100000 2000 2001 52002
(01 SA, means number range) 9999 means any year
a) Posting of document with current
date
Entry date 6-5-2011 Companies follow Option 1
Posting date 6-5-2011 in option 2 we dont know how many
b) Posting document with 31
st
March documents we have posted for each year
2011 date
Entry date 6-5-2011
Posting date 31-3-2011

Field status variant and field status group:
At the time of posting on screen we get around 70 fields
Eg: Quantity/ Text (Narration)/Cost centre/ Value date/Business area
For any document we should have minimum:
1 debit 70 Fields
1credit 70 Fields
Total 140 Fields
If we start filing up each and every field, for posting one document it takes so much time.
SAP has given the facility to make any field as:
Suppers Required Optional
Quantity
If we make quantity field suppress the field will not appear with question mark or tick mark
without giving value to the field we cannot go to next screen.
If we make quantity field optional the field will appear on screen our choice to enter values
or not
Account to Account the selection varies for sales/Purchase/Account quantity fields is
required, for salaries account quantity field is not required say we have 1000 accounts we
have to create 1000 screens which takes time.
SAP has given common group i.e., field status group:

General accounts
Bank accounts
Material accounts
Cost accounts
Steps:
1) At the time of creation of account assign field status group
2) For field status group we specify which field is required / which field is optional /
which field is suppress.
3) At the time of posting the user will enter the account number the fields on screen
will appear based on fields selection to the field status group which is assigned in
account.
4) Field status groups are created under field status variant and field status variant is
assigned to company code/codes

E.g. 300000 sales account
1) At the time of account creation i.e. 300000 sales account assigned field status
group Material account
2) For field status group Material accounts
3) At the time of posting the user will enter account no.300000 sales account no.
Screen quantity field will appear with tick mark or question mark

E.g. 400100 salaries account
1) At the time of account creation i.e. 400100 salaries account assign field status
group general
2) For field status group general specify quantity field suppress
3) At the time of posting the user will enter account no: 400100 salaries account no
screen quantity field will not appear.

Afterwards we create 2 accounts and post entry:

Cash account Dr ------------------------------------------------- Bank account
I
To Equity share capital ------- General Text Business value date
I field area field
Text Business required entry
Field area
Required entry
Path: SPRO -------- > Financial accounting ----------- > Financial accounting global settings ----
-------- > Document --------- > Line Item -------- > Controls --------> Define field status variant
Select field status variant
1000 IDES Group

Select copy as button or F6
Change field status variant 1000 to VSL
Change field status name to field status variant for VSL
Press enter
Select copy all button
We get a message number of dependent entries copied: 47
Press enter select save button or crtl + s
Select field status variant VSL double click on field status groups folder
Double click on field status group G001 that is General (with text, allocation)
Double click on general data for text select Req.Ent radio button
Select Next group (Shift+F6) button
Select Next page or (Page down) button 2 times for business area select Req.ent Radio
button select save or crtl+s
Double click on field status group G005 that is Bank accounts (obligatory value date)
Double click on General data text select Req.Ent radio button select next group button or
shif+F6
Select Next page (page down) button 2 times, business area select Req.Ent radio button
Select Next group button or shift+F6, 2 times value date select Req.Ent Radio button select
save or crtl+s

Value date: It means effective date for cash and bank accounts we required value date field
E.g: we have taken term loan from IDBI
Company is having account in SBI
IDBI has given cheque date 7/5/2011 to VSL
VSL is deposited the cheque in SBI on9-5-2011 at the time of posting
Document date : 9-5-2011
Posting date : 9-5-2011
Save in SAP we have interest calculations IDBI calculates interest from 7-5-2011 where as in
SAP it calculates interest from 9-5-2011 there will be mismatch in interest calculations SAP
has given value date field.
At the time of posting
Document data : 9-5-2011 7-5-2011 not modifiable
Posting date : 9-5-2011 7-5-2011 not modifiable
Value date : 7-5-2011 modifiable
Save

Interest will be calculated in SAP also from 7-5-2011.

Assign company code to field status variant:

Path: SPRO -------- > Financial accounting ----------- > Financial accounting global settings ----
-------- > Document --------- > Line Item -------- > Controls --------> Assign company code to
field status variant
Company code :VSL
Press enter for company code VSL assign field status variant VSL
Select save or crtl+S

Tolerance Group:

Receipt/payment transactions
Mandatory area
Related area open Item management
Vendors/Customers/Balance sheet accounts
Where clearing is required
Outstanding expenses a/c
Salaries a/c 500000
Wages a/c 600000
Bank a/c 50000 Rent a/c 50000
In the month end or year end there will be number of credits and number of debits we dont
know which item is pending and how much is pending SAP has given open item
management account. At the time of payment against which provisions when we specify it,
it is against rent provision that item will be cleared

We can see the account Item 3 ways
If we select:
i) Open item radio to button : Payable transaction salaries and wages
ii) Cleared Item radio button : paid transactions rent and bank
iii) All Items : payable + paid
The same logic will apply for vendors and customers at any point of time we can see bill
wise payables in case of vendors and bill wise receivable in case of customers.
Tolerance groups for G/L Accounts
(2 types)
G/L Accounts
(Tolerance Group)
Employee
(Tolerance Group)

SAP has given tolerance i.e. payment differences. It can be amount tolerance or percentage
tolerance or both it can be debit or credit
Steps:
1. Create tolerance groups say A/B/C and D
2. Specially amount or percentage or both to tolerance group
Tolerance Group Amount Percentage
A 100 -
B - 5%
C 100 5%
D 0 -
3. Assign tolerance group in general ledger account for outstanding expenses account
assigned tolerance group A
4. At the time of payment system checks
Payable amount
Payment amount
If the difference is within tolerance group amount the system will transfer automatically the
difference amount to sundry balances written off account or payment difference account
and clear the transaction.

E.g: Outstanding expenses a/c
Salaries a/c 500000
Wages a/c 600000
Bank a/c 50000 Rent a/c 50000
Bank a/c 100000 Commission 100005

Payable amount 100005
Payment amount 100000
5
If the difference amount RS: 5 is with tolerance group amount i.e. 100 system transfers
automatically Rs: 5 to sundry balances written off account or payment difference account
and clear the provision.
Entry

Commission provision
1) Commission Dr 100005
To Outstanding exp 100005
2) Payment
Outstanding expenses Dr 100005
To bank 100000
To sundry balance written off account 5


Disadvantages:
1) It is given at account level and not at transaction level tolerance amount

e.g: Outstanding expenses a/c
Salaries a/c 500000 500
Wages a/c 600000 500
Bank a/c 50000 Rent a/c 50000 50
Bank a/c 100000 Commission 100005 100

2) There is no flexibility:
In the difference amount is within tolerance group amount without asking us it is
clearing automatically and transferring Rs. 5 to sundry balance written off account
It should ask us and transfer
When we assign tolerance group D in outstanding expenses a/c
Payable amount 100005
Payment amount 100000
5
Payable or Not payable

Rs.100000 will be shown Transfer Rs. 5 to sundry balances
As part payment written off a/c and clear the transaction
manully
It is mandatory area we have to use tolerance groups
Say we have 1000 accounts we have to assign tolerance group D in all accounts which take
time
In live environment
Company code : VSL
Tolerance group: Blank
Amount : 0

When we crate the accounts we keep tolerance group field blank system expects we have
crated tolerance group blank and already assigned

Define tolerance group for G/L accounts:
Path: SPRO --------- > Financial accounting ------------ > General ledger accounting ---------- >
Business transactions --------- > Open item clearing ----------- > Clearing difference ---------- >
Define tolerance group for G/L accounts
Company code : VSL
Tolerance group : Blank
Description tolerance group for VSL

Debit posting : 0
Percentage : 0
Credit posting : 0
Percentage : 0
Select save or crtl+s

Define tolerance group for employees:
Path:
SPRO --------- > Financial accounting ------------ > General ledger accounting ---------- >
Define tolerance group for employees

Here we give user wise upper limits for posting for each user we specify:
Amount per document
Amount per open Item account Item
Cash discount
Payment differences
Say we have 1000 users we have to create 1000 scenarios which take time
SAP has given shortcut method i.e. tolerance group

Tolerance group A Tolerance Tolerance
100000 1000000 10000000 amount per document
100000

1000000

10000000

amount per open item
account item
0% 5% 10% cash discount
0% 0% 0% payment different

In accounts department
City office cashier
Branch office cashier
Factory cashier assigned tolerance group A
Accountant 1
Accountant 2
Accountant 3

Deputy Manager (Accts) assigned tolerance group B
Manager (Accts)

General Manager (Accts) assigned tolerance group C

In the live environment / training institutes we crate tolerance group blank

User Company Code Tolerance group
Sap users VSL Create with A Keep blank

Sup users XYZ To create only with A Keep blank

Sap users ABC To create only with A keep blank

Define tolerance group for employees:
Path: SPRO --------- > Financial accounting ------------ > General ledger accounting ---------- >
Define tolerance group for employees

Group : Blank
Company code : VSL
Amount per document : 9999999999
Amount per open item account item : 9999999999
Cash discount per line item : 10%
Permitted payment differences : Blank
Save or press enter to save in your request.

Assign country to tax procedure:
Here tax procedure means sale tax procedure.
At the time of demo we have discussed in Fi we have sub modules

General Accounts Accounts Asset
Ledger payable receivable accounting

Purchase Sales
Sales tax Sales tax
Formulas posting for country we should assign sales tax procedure though general ledger
posting it is not required without sales tax procedure assignment it will not allow us to post
the entries.
Sales tax procedure:
Purchase Sales
Base Amount (A) x Base Amount (A) x
Excise Duty(B) %on x Excise Duty(B) %on x

Basic + Excise (C=A+B) x Basic + Excise (C=A+B) x
Sales tax (D) %on C Sales tax (D) %on C
Vendor credit x Customer debit x
For country is assign tax procedure available in the system. For country US Tax US(sales tax
USA) and for country India Tax INN (Sale tax India) tax US is available in all clients (000/800)
tax INN is available only in client 000.
We assign:
For country IN: Tax US (Sales tax USA) Temporary assignment

Assign country to calculation procedure:
Path: SPRO ------------ > Financial accounting ---------- > Financial accounting global settings -
----------- > Tax on Sale/Purchase ---------- > Basic settings ------------- > Assign country to
calculation procedure
Country : IN (for INDIA)
Press enter
For country IN assign procedure select Tax US Sale Tax USA

Enter global parameters: (OBY6)
Path: SPRO ------------ > Financial accounting ---------- > Financial accounting global settings--
---------- > Company code ---------- > Enter global parameters
Give the company code VSL press enter select company code VSL select details (F2) button.
Select business area fin. Statement check box
It means we required the reporting unit wise
Select propose fiscal year check box
Document no. Range interval
01-2011 1100000 20000
Next year: April, 2012 March, 2013 fiscal year 2012
01-20121100000
Say we have not given no. Range interval for fiscal year 2012 we are posting a transaction
with 01-04-2012 date it cannot post since there is no number range interval available for the
year 2012.
SAP has given an option:
If we select propose fiscal year check box it takes number from previous year 2011. For
posting on 01-04-2012 it takes the number 20001
Say we have given number range intervals
01-20121100000 20000
01-99991100000

When we post an entry with 01-04-2012 date it takes number from fiscal year 9999 i.e.
document no.1
What is the use of selecting proposal fiscal year check box:
If we dont give number range interval for any year, if we select proposal fiscal year check
box it takes number from fiscal year 9999 (if available)or immediate previous fiscal year.

Select define default value date check box
It proposes to days dates as value date.

Select negative postings permitted check box.
When we reveres transaction it reduce from the same side

Select additional data button
TDS no. ABCD12345Y
PAN no: AP10N1234J
Select back arrow select save or crtl+s press enter to save in your request.

Company code VSL
I
Business area HYD BGL
I I
Business place Factory City office Factory City office

1) Permanent number (PAN) this is for Income tax return filing purpose pan will be
obtained at company code level, Income tax department gives pan when we file
from 49A 10 digits alphanumeric
2) Tax deduction at source number (TAN/IN SAP TDS No.) this is for TDS return filing
purpose, Income tax department gives TAN at company code level / Business areal
level/ Business place level when we file from 49 B we get TDS no. 10 digits alpha
numeric.

END USER AREA
General ledger master or G/L Master creation:
Chart of Account Company Code Centrally
Level level
1) Account No. 1) Account currency chart of accounts level
2) Accounts group 2) only balances in field + Company code
3) Is it a profit &Loss a/c local currency level field
4) Is it all balance sheet a/c 3) Tolerance group
5) Description of account 4) Open item management
i) Short text max 20 characters 5) Line item display

ii) Long text max 50 characters 6) Sort key
7) Field status group

Accounts to be created:
1) Surplus in P & L account Reserves and surplus 100100 -100199
2) Equity share capital Share capital 100000 - 100099
3) Cash account Current assets, Loans & 200100 - 200199
Advances

1) To check account group for giving account number
Path: SPRO -------- > Financial Accounting --------------- > General ledger accounting ------
------ > G/ L Accounts -------------- > Master Data ------------ > Preparations ------------->
Define Account Group
The T.R Code OBD4
Enter
i) Creation of General ledger Master:
Path: Accounting --------- > Financial Accounting ------------- > General ledger ------------- >
Master Records ------------ > G/L Accounts ---------- > Individual Processing --------- >
Centrally the TR. Code FS00
Give G/L Accounts : 100100
From the menu bar select G/L accounts ---------- > Crate account group
Select Reserves & Surplus.
Select balance sheet account radio button
Short text : surplus in P&L account
G/L account long text : Surplus in P& L account
Short text will appear the time of document display and G/L account Long text will
appear at the time of ledger display
Select control data tab
Select only balances in legal crcy.(currency) check box
Select Line Item display check box
Tolerance group blank
Sort key select 001 posting date
Select create/bank/interest tab field status group select G001 general (with text
allocation)
save
ii) G/L Account : 100000
Company code : VSL
Select with template button
G/L account 100100 Surplus in P&L account

Company code : VSL
Press enter
Select Type/Description TAB
Change account group to Share capital
Change short text : Equity Share capital
Change G/L account long text : Equity Share capital
Other fields are common select save or crtl+s
iii) G/L Account : 200100
Company code : VSL
Give G/L account 100100 Surplus in P&L account
Company code : VSL
Press enter
Account group change to Current Assets, Loans & Advances
Change short text : Cash account
Change G/L account long text : cash account
Select create/bank/interest tab
Field status group change to G005 bank accounts (Obligatory value date)
Select relevant to cash flow check box

To give the Accounts created:
Select drop down button beside G/L account we get Match code screen
Give the company code: VSL
Enter

Posting of transaction:
Path: Accounting ------------- > Financial Accounting --------- > General ledger ---------- >
posting ------ > General Posting F-02
i) Document data: Normal posting document date and posting date will be same in case
of purchase here we entry party bill date we can enter the date 11-5-2011 manually of
press F4 it gives calendar select F2 it gives todays date.
ii) Posting date: By default it gives server date ledger updation is based on posting date
we can enter the date manually or press F4 and select F2
iii) Document Number: in document types and no. Range (OBA7) we have deselected
external check box if we select external check box here we have to specify what should
be the document number
iv) Reference: In case of purchase party bill number
v) Type: SA we have noted down the no. Range no -1 for 01 we have given number
range internal 1 100000 deselected external check box document no. Will be taken
internally. First document no will be 1 and 1and next document number will be 2

vi) Period: Period will be updated automatically based on posting date.

Document date: 12-5-2011
Type : SA
Company code: VSL
Currency : INR
System does not know debits and credits to differentiate between debit and credit SAP
has given posting keys
Posting key 40 GL account debit
Posting key 50 GL account credit
Pstky (posting key) :40
Account select drop down button
G/L long text : *cash*
Company code : VSL
G/L account : 2*
Press enter
Select 200100 cash account enter
Give the amount 500000

For account 200100 cash account field status group: G005
Text field business area value date
Required entry field in enter global parameters we have
Select define default value date propose
Todays date as value date

Business Area:
Select VSLH (Hyderabad business area)
Text : Equity share capital receipt
Pstky : 50
G/L account: credit
Account select drop down button
Press enter select 100000 Equity share capital press enter
Amount enters *
Star means debit amount and credit amount equal
Business area : VSLH
Text : +
Enter and SAVE
+ copies the latest line item narration in the same document
Eg: Month end provision
Salaries account Dr 200000
(Salaries provision for May)

Rent a/c 100000
(Rent provision for May)
To outstanding expenses *(it takes 300000)
(If we use + it takes rent provision for May)
If we have more than one debit enter text provision for May
Press enter
From the menu bar select Document ------- > simulate
In one document we can have up to 999 line Items (Max)
Debit amount will be posted without any sign and credit amount will be posted with
minus sign
We get a message document was posted in company code VSL

How to view the latest posted document:
From the menu bar select document --------- > display key select display document
Header button or F5

1) Define company (Group) Videocon VGP Optional
2) Define company code VSL
3) Assign company code to company assigned VSL to VGP (optional)
4) Define business areas VSLH for Hyderabad and VSLB for Bangalore at the time of
posting we have given VSLH
5) Define chart of accounts VSL assigned to company code VSL
I
Created accounts Share capital 100000 100099
Groups Current assets 200100 200199
I
Credited 100000 Equity share capital account and 200100 cash account
6) Specified 100100 will be our retained earnings account
7) Define fiscal year variant V3 (April to March) assigned to company code VSL
8) Define posting period variant VSL and assigned to company code VSL define periods
from May 2011 June, 2011 we are able to post document with May date.
9) Document type and No. Ranges
Type SA
I
No. Range 01
I
No. Range intervals 1 100000 (deselect external check box)
First document it has taken 1 internally
10) Created field status variant VSL and assigned to company code VSL created 2 fields
status group

G001 text field and business area required
G005 text field, value date and business area required at the time of posting it has
asked the above fields

11) Tolerance groups
G/L account tolerance GRP (group) Blank not assigned at the time of acct creation
Employees tolerance GRP Blank with 9999999999 able to post amount
500000
12) Assigned text procedure tax Us to country India to allow G/L postings

Display document:
Path: Accounting -------------- > Financial accounting ----------- > General ledger ------------ >
Document ---------- > Display (T.R Code FB03)
Select document list button
Document type : SA
Select Execute button (F8)

To view latest one week posted documents:
Enter date: 6-5-2011 to 13-5-2011
Select Execute button (F8)

To view self document (document posted by me with SA)
Select own document only check box
Select Execute button F8

To view document posted by a specific user:
Deselect own document only check box
From the menu bar select Edit -------- > Dynamic Selections
Give the User name : SAP USER
Select Execute button F8
Double click on document no.1

Change document:
Path: Accounting ----------- > Financial Accounting ------------ > General ledger -------- >
Document---------- > Change (FB02)
Give the document no.1
Company code: VSL
Fiscal year : 2011
Enter

Dsouble click on first line Item cash account in document segment or Item date we can
change only
i) Value date field
ii) Assignment field
iii) Text field (other field cant be change)
Select display document Header F5 button
In document Head data we can change only
i) Reference field
ii) Document Head text field

Display account balance:
Path: Accounting --------- > Financial Accounting ---------- > General ledger ---------- > Account
------------ > Display balances (FS10N) or (FAGLB03)

How to vied more than one account at a time:
Select multiple selection button or right arrow button beside G/L Account

To view random account no. Balances:
Under single value select account no.s:100000 and 200100 select copy button or F8
To view continues account number balances
Press select Interval tab
Give the lower limit: 100000
Upper limit : 100099
Select copy F8 button

To Exclude an account from the range:
Select exclude single values tab
Give the single value 100050

To Exclude a range of accounts:
Select exclude interval tab
Lower limit : 100060
Upper limit : 100069

To view only one account transactions:
Select drop down button beside G/L account give the company code: VSL
Enter select G/L account 100000 Equity share capital
Company code : VSL
Fiscal year : 2011

Select Execute F8 button
Double click on cumulative balance amount 500000
Select call up document over button F9
Select back arrow

How to create our own Iine layout:
Eg: document posting text amount
Number date amount
1 1000
2 2000
3 3000
4 4000
10000
Select change layout (crtl + F8) button
Select the field which are not required under column content in this example document
type and document date.
Select right arrow button or Hide selected fields button
From the Hidden fields column select posting date and select text select left arrow button
show selected fields button

Change column positions Length
Document no. Position 1
Posting date position 2
Text position 3 35
Amount in local currency 4
For amount in local currency select total check box select copy button

How to save the layout:
Select save layout button or crtl + F12
Option: 1 Option: 2
User specific Common to all
Available only to this user available to all users
i)select user specific check box i)deselect user specific check box
ii)save with any name ii)save with /any name

Layout: /VSL
Deselect user specific check box
Description: G/L accounts standard for VSL
Select save button select back arrow 2 times

Select Execute button F8 double click on cumulative balance amount 500000

How to select our layout:
Press select save layout button or crtl+F9
Select /VSL

How to make our layout as default layout:
From the menu bar select settings ----------- > Layout ------------ > Administration
Select /VSL check box
Select define default setting button or shift + F8
Select back arrow 3 times change G/L account to 200100 cash account
Select Execute F8 button double click on cumulative balance amount 500000

Error message:
There is number item category assigned for a/c 200100 cash account
Document splitting is active
We have to deactivate document splitting
Path: SPRO ---------- > Financial Accounting (New) ---------- > General Ledger Accounting
(New) ---------- > Business transactions ------------ > Document splitting ------------- > Active
document splitting
Deselect document splitting check box

Sample document:
This is used for making month end provisions
Every month end:
Salary a/c dr
Wages a/c dr
Bonus a/c dr
Rent a/c dr

To Outstanding Expenses a/c

We can create sample document template sample document template will not update the
records every month end by copying the template and by changing the amounts we can
post the entries.

Advantages:
i) It saves our time

ii) We will not forget any provisions

Steps:
1. Define number range intervals for no. Range X2
Document type SA SA
I I
Number Range 01 X2
I I
No. Range intervals 1 100000 5000000 5100000
Posted the entry It should not update records
Up date records to store in the system

2. Creation of 3 General Ledger Masters:
A. Salaries account personnel cost
B. Rent account Administration cost
C. Outstanding expenses Current Liabilities & Provisions
i) To check account groups for giving account number OBD4
ii) Creation of general ledger masters FS00
3. Creation of sample document DoC No. 5000001
4. Posting of transaction by copying sample document template by changing the amount
document no.2
Define no. Range Interval for no. Range X2
Path: SPRO ----------- > Financial Accounting ------------- > Financial Accounting Global
settings ---------- > Document ------------- > Document no. Ranges --------- > Define
document no. Ranges (TR. Code FBN1)
Select change intervals button
Select Interval button

No : X2
Year : 2011
From number : 5000001
To number : 5100000
Enter and save
Ignore the warning message press enter.

i) To check accounting groups for giving account number (T.R. Code OBD4)
Chart of account: VSL
Enter personnel cost range 400100 400199
Administrative cost range 400300 400399

Current liabilities & Provisions range 100500 100599

ii) Creation of general ledger masters: FS00
1. Give the G/L account :400100
Company code : VSL
G/L account : 100000 (Equity share capital)
Company code : VSL
Press enter
Change account group to personnel cost
Select P & L statement Account radio button
Change Short text to salaries account
Change G/L account long text to Salaries account
All other fields are same. Select save button or crtl + S

Company code : VSL
G/L account : 400100 (Salaries account)
Company code : VSL
Press enter
Change account group to Administration cost
Change Short text to Rent account
Change G/L account long text to Rent account
All other fields are common. Select save button or crtl + S

Company code : VSL
G/L account : 100100 (Equity share capital)
Company code : VSL
Press enter
Change account group to current liabilities & Provisions
Change Short text to Outstanding Expenses account
Change G/L account long text to Outstanding Expenses account
Select Open Item Management check box


Creation of sample document:
Path: Accounting ---------- > Financial Accounting ---------- > General ledger ------------ >
Posting -------- > Reference document ------------ > Sample document F-01
Type : SA
Company code : VSL
PSKY : 40
Account : 400100 (Salaries account)
Enter
Amount : 500000
Text : Salary provision for
PSTKY : 40
Account : 400300 (Rent account)
Enter
Amount : 100000
Text : Rent provision for
PSTKY : 50
Account : 100500 (Outstanding expenses)
Enter
Account : *
Text : Provisions for
Select display document over view button
We get a message document 5000001 was stored in company code VSL
Posting of transaction by copy sample document template by changing the amount (F-02)
Give F-02
From the menu bar select document -------------- > post with reference
Give the document number : 5000001
Company code : VSL
Fiscal year : 2011
Select display line items check box
Enter
Change the amount : 600000
For text : add may
Press enter

If no provision is required for any expenditure item
Amount : 0
Enter
Line item adding 0 will not update the records it will be ignore.
Amount : 0
Press enter
Ignore the warning message
Press enter
Amount : *
Text : +
Document-------------- > Simulate
And save
We get a message document was posted in company code VSL
Press enter

Foreign currency transaction (FC transaction):
1. Check exchange rate type
i) Bank buying rate Export G Type
ii) Bank selling rate Imports/Expenditure B Type
iii) Average rate MM/SD Users M Type
Path: SPRO --------- > SAP Net weaver ----------- > General settings ---------- > Currency ----
------------ > Check Exchange rate types
Select position button exchange rate type B enter
2. Define transaction ratios for currency transaction
------------ > Define translation ratios for currency translation
Giving conversion factors for 2 currencies
USD : INR
1 : 1
JPY : INR
100 : 1
EUR : INR
1 : 1
GBP : INR
1 : 1
ITL : INR
1000 : 1


Presentation:
JPY : INR
100 : 1 =40 Rs
Or
1 : 0.01 =0.40
If we follow the conversion factor follow continuously
For all the years dont change in between if we change in between it gives wrong result
this is given at client level (800 clients) and not at company code level.
Path: SPRO --------- > SAP Net weaver ----------- > General settings ---------- > Currencies --
-------------- > Define translation ratios for currency translation
Ignore the warning message select YES button select new entries button

Ex Rt From To Valid from Ration from Ratio to
G USD INR 1-5-2011 1 1
B USD INR 1-5-2011 1 1
M USD INR 1-5-2011 1 1

Select save button
Select description G/L customization for VSL

Enter Exchange rate:
------------ > Enter Exchange rates (OB08)
This is called forex table we can enter daily quotation/ week end quotation/ Month end
quotation for each day and for each type we can enter only rate.

Ex Rt Valid from From Dir quot To
G 13-5-2011 USD 45 INR
B 13-5-2011 USD 45.50 INR
M 13-5-2011 USD 45.10 INR

Press enter
Select save button


Path for Exchange rates entry at End user area:
Path: Accounting ------------ > Financial accounting -------------- > General ledger ---------- >
Environment --------- > Current settings -------- > enter transaction rates
S_BCE_68000174
Exchange rate Type : B
From currency : USD
To currency : INR
Enter

End user area foreign currency postings (FC Postings)
Option: 1 Option: 2
When change rate in not entered When exchange rate is entered at the
At the time of posting it takes rate from time of posting
Forex table, it takes latest posting date
Rate
10-5-2011 40
13-5-2011 45.50
Entry date 17-5-2011
Posting date 12-5-2011 it takes Rs: 40
Same day we have bank buying rate, Bank selling rate and average rate to take Exchange
rate type based on document type

Doc type:
SA GL postings Take B Type Bank selling rate

KR FI purchase Take B Type Bank selling rate
RE MM Purchase Take B Type Bank selling rate

DR Fi Sales Take G Type Bank buying rate
RV SD sales Take G Type Bank buying rate

1) To enter default exchange rate type B for document Type SA (TR code: OBA7):
Select Type SA
Under default values: Exchange rate type for foreign currency documents select B
bank selling rate;
Save press enter to save in your request.
2) Posting of transaction F- 02
Give the document date : 17-5-2011

Type : SA
Company code : VSL
Rate : USD
PSKY : 40
Account : 400100 (salaries account)
Enter
Give the amount : 1000 (dollars)
Text : Salaries posting
PSKY : 50
Account : 200100
Enter
Amount : *
Text : +
From the menu bar select document ---------- > Simulate to In INR
Select display currency button

Option: 2
When exchange rate is entered at the time of posting
1) Posting of transaction F-02
Type : SA
Company code : VSL
Currency : USD
Rate : 50 Rs.
PSKY : 40
Account : 400100 (salaries account)
Enter
We get a warning message exchange rate 50 deviates from table rate 45.50 by
9.89%
Amount : 1000 (Dollars)
Text : Salaries posting
PSKY : 50
Account : 200100 (Cash account)
Press enter
Amount : *

Text : +
Document--------------- > Simulate and save.

Document parking:
This is used for approvals (Release procedure) in live environment cashier before
making the payment in SAP we have system approval
Cashier SR.Person
1) Enter transactions and park once he gets message from cashier he will
Parking will not update the records verify the document. Before release he can
It takes our regular document number make all changes to the document then
He will inform to Sr. Person for release releasing updates the records.
Release.
Steps:
1. Posting of transaction and park by cashier
2. To check account balance whether parking up dates
Records it should not update
3. System message to SR. person for release by cashier
4. Display park document and change amount/ account head and date then release by
sr. Person
5. To check account balance weather releasing up dates records it should update
6. System message to cashier about release by sr. Person
7. Display changes to the released document by cashier

1) Posting of transaction and path: Accounting ------------- > Financial Accounting ------------
> General ledger ------------ > posting ------------- > General document parking (F-65)
Type : SA
Company code : VSL
PSKY : 40
Account : 400100 (Salaries)
Enter
Amount : 5555
Text : Park document testing
PSKY : 50
Account : 200100 (Cash account)
Enter
Amount : *
Text : +

Select over view button select save button or crtl + s
We get message document 5 VSL was parked.
2) To check account balance whether parking updates or not: (FS10N)
Give the G/L account : 400100 (salaries)
Company code : VSL
Fiscal year : 2011
Select execute button double click on cumulative balance amount.
3) System message to Sr. Person for release:
From the menu bar select system -------------- > Short message
Title : PL release DOC No.5
Recipient : SAP USER (user id of senior person)
Recip. Type : select SAP log on name
Select Expr. Mail check box
Select send button or shift F8
From the menu bar select System ----------- > Create session
4) Display park document and change amount / account head and date then release:
Path: Accounting ---------- > Financial Accounting ------------- > General Ledger ---------------
> Document ----------- > Park document ------------ > Post/ Delete FBVO
Company code : VSL
Entered by : SAP USER ( user id of cashier)
Select execute button
Double click on document no. 5
To change the dates
Select document header button
Change document date : 17-5-2011
Select back arrow
To change amount and account number
Select fast data entry button
Change debit amount : 4000
Credit amount : 4000
We get a message document 5 was posted in company code VSL
To check account balance whether releasing updates record or not (FS10N)
Give G/L account : 400300
Company code : VSL
Fiscal year : 2011
System message to cashier about release
Path: from the menu bar select System --------------- > Short message

Title : Document no.5 release with changes
Recipient : SAP USER (user id of cashier)
Recipient type : Select SAP log on name
Select Expr. Mail check box
Select send button
From the menu select System ------------- > Create session

Display changes to the release document:
Path: Accounting ------------ > Financial Accounting ---------- > General Ledger------------ >
Document ----------- > Park Document ------------- > Display changes (FBV5)
Company code : VSL
Document no : 5
Fiscal year : 2011
Enter
Select all changes button

HOLD DOCUMENTS

This is used for adjustments purpose
Eg: 1
Scrap sale accounting
Scrap is sold for 100000 to account for in the books 200000

Cash a/c dr 100000
To scrap sale 100000 hold the document
Hold document will not update records when we hold a document it will ask for a
temporary document number
Once Rs 80000 is given to management
Delete hold document and post

Cash a/c dr 20000
To scrap sale 20000

Eg: 2
Loans/ Advances to directors
Companies act prohibits giving loans / Advances to directors. Hold the document when
the amount is taken by them delete hold document once the amount is returned

Eg: 3
Stores Department advances:

Stores department takes advance in the morning and gives the account in the evening in
normal accounting we keep IOU slips (i owe you) in SAP when they give advance in the
morning pass the entry and hold the document once they give the account in the evening
delete the entry and post entry for purchases

Eg: 4
Sometimes we know either debit or credit
Hold the document once we get either credit or debit complete the document and post
physical cash balance = book balance +/- hold documents amount.

Steps:
1) Run a program RFTMPBLU for conversion of hold documents
2) Creation of hold documents
i) By giving debit and credit
ii) By giving only credit
3) Display hold document and delete 2(i)
4) Display hold document and complete 2(ii) then post

1) Run a program RFTMPBLU for conversion of hold documents:
We have the old version 4.7 EE version same hold documents are there in the old
version when we upgrade to new version ECC 6 by executing new version.
We are going for new version ECC 6 directly still we have to run this program this
program is given at client level and not at company code level.
Path:
Tools --------- > ABAP work bench ------------- > Development ------------- > ABAP Editor
(SE38)
Program : RFTMPBLU
Select no. Termination for read error check box
2) Creation of hold documents:
Use the transaction code: F-02
Type : SA
Company code : VSL
Psky : 40
Account : 400300 (rent a/c)
Enter
Give the amount : 100000
Text : Hold documents testing

Psky : 50
Account 200100 (cash a/c)
Enter
Amount : *
Text : +
From the menu bar select Document-------------- > Hold
Give the temporary no : VSL1234
Press enter we get a message document VSL1234 was held.

Use the transaction code : F-02
Type : SA
Company code : VSL
Psky : 50
Account : 200100 ( cash account)
Enter
Give the amount : 5000
Text : hold document testing
From the menu select Document -------------- > Hold
Temporary document number: VSL
Enter
We get a message document VSL was held
3) Display hold document and delete 2(i):
From the menu bar select Document ----------- > Get held document (F5)
Keep the cursor and document no: VSL1234
Select delete button
Select yes button

4) Display hold document and complete 2(ii) then post:
From the menu bar select Document ----------- > Get held document (F5)
Double click on document VSL
Psky : 40
Account : 400100 (salaries a/c)
Enter
Amount : *

Text : +
From the menu bar select Document ------------- > Simulate and save
Enter
Select back arrow
Select document List button

RECURRING DOCUMENTS

This is used when the date is fixed and amount is fixed
Eg:1
Insurance payment from 1
st
May 2011 to 30
th
April,2012
Prepaid insurance a/c dr 120000
To bank 120000
Every month end
Insurance Exp dr 10000
To prepaid insurance a/c 10000

Eg:2
Hire purchase instalments payable RS: 50000 for 12 months
Car a/c dr 600000
To hire purchase loan a/c 600000
Every month 19
th

Hire purchase loan a/c dr 50000
To bank 50000

Steps:
1) Define no. Range interval for number range x1 (for recurring document template
puose)
For X1 2011 5100001 5200000
2) Creation of recurring document template it will not update the records it takes
no.5100001
3) Display recurring document
4) Posting of transaction by using recurring document number by way of batch input
session it takes regular number.
5) Display document posted
6) Display recurring document

1) Define no. Range interval for number range x1:
The transaction code : FBN1
Company code : VSL

No : X1
Year : 2011
To number : 5200000
Enter and save
Press enter

2) Creation of recurring document template:
Path: Accounting -------------- > Financial Accounting -------------- > General Ledger ------
------ > Posting --------- > Reference Documents ------------ > Recurring Document
(FBD1)
Company code : VSL
First run on : 1-5-2011
Last run on : 1-4-2012
Interval in months : 01 (per month)
Document type : SA
Pstky : 40
Account : 400300 (rent account)
Enter
Amount : 20000
Text : Rent payment
Pstky : 50
Account : 200100 (cash account)
Enter
Amount : *
Text : +
Select display document over view button
Save we get a message document 5100001 was stored in company code VSL
3) Display recurring document:
Path: Accounting ---------- > Financial Accounting ---------- > General ledger -------- >
Periodic Processing -------------- > Recurring entries -------- > List (F.15)
Company code : VSL
4) Posting of transaction by using recurring document number by way of batch input
session:

Path: Accounting ---------- > Financial Accounting ---------- > General ledger -------- >
Periodic Processing -------------- > Recurring entries -------- > Execute (F.14)
Company code : VSL
Document no. : 5100001
Fiscal year : 2011
Settlement period : 1-5-2011
Batch input session : VSL
We get a message session VSL was created.
To post the batch input session:
From the menu bar select System ----------- > Services ---------> Batch input ------------ >
Session
Select session name: VSL
Select process button
Select display errors only radio button
We get a message processing of batch input session completed
Select Exit batch input button
5) Display document posted: (FBO3)
6) Display recurring document: (F.15)
Company code : VSL

Month end provisions

Option: 1 Option: 2
Accrual/Deferral documents Open item management (sample document)

Option: 1
Accrual / Deferral documents
i) Salary provision on 31-5-2011 by accountant
Salaries account dr 100000
To outstanding exp 100000
ii) Reversal of provision on 1-6-2011 by accountant
Outstanding exp dr 100000
To salaries account 100000
iii) May salary payment on 5-6-2011 by cashier
Salary a/c dr 105000
To cash account 105000
Salaries account
31-5-2011 100000

5-6-2011 5000 1-6-2011 100000
Outstanding exp a/c
31-5-2011 100000
1-6-2011 100000
Profitability effect:
May profitability 100000
June profitability - 5000
(Due to may salary) 105000

Option: 2
Open item management

i) Salary provision on 31-5-2011 by accountant
Salaries account dr 100000
To outstanding exp 100000
ii) May salary payment on 5-6-2011 by cashier
Outstanding exp dr 100000
Salaries account 5000
To cash account 105000

Salaries account
31-5-2011 100000
5-6-2011 5000
Outstanding exp a/c
31-5-2011 100000
5-6-2011 100000

Profitability effect:
May profitability 100000
June profitability - 5000
(Due to may salary) 105000

Companies follow option 1
If we follow 2
nd
option
In live environment provisions will be made by accountant payment will be made by
cashier should know how much provision accountant has mad and clear outstanding
expenses to that extent tracking of provisions are required by cashier.
In 1
st
option the provision is reversed automatically on 1
st
of June cashier debits
salaries and credit cash tracking of provision is not required.


Option: 1
Accrual / Deferral documents:
Steps: 1. Define reversal reason and reversal reason should allows us to reverse on any day
2) Creation of accrual / deferral documents
i) Rent provision with 21-5-2011
ii) Salary provision with 31-5-2011
3) Reversal of accrual / deferral documents in one step

1) Define reversal reason and reversal reason should allows us to reverse on any day:
Path: SPRO ------------- > IMG -------------- > Financial Accounting ------------ > General
Ledger Accounting ----------- > Business transactions --------------- > Adjustment posting /
Reversal ----------- > Define reason for Reversal
R (reason) :12
Text : Accrual / Deferral Rev reason for reversal
Select Negative posting check box
Select Alt.Pos. dt check box
Save
Select negative posting check box
When we reverse a transaction it reduce from the same side
When we post a wrong entry we have to reverse the transaction and pass correct entry
or pass rectification entry.
1) Equity share capital receipt:
Cash a/c dr 200000
To Equity share capital 200000 doc. no.1

2) Preference share capital receipt:
Cash a/c dr 300000
To Equity share capital 300000 doc. No. 2

Reversal
3) Reversal of document no. 2
Equity share capital dr 300000
To cash a/c 300000 doc. No. 3

4) To pass correct entry:
Cash a/c dr 300000
To Preference share capital 300000 doc. No .4

Rectification:

Equity share capital 300000
To Preference share capital 300000 doc. No. 3

Account balance display FS10N
Equity share capital
Period Debit Credit Balance Cumulative balance
2 300000 500000 500000 500000
300000 200000 200000

Cash flow statement:
Option: 1 Option: 2 Option: 3
Reversal nega- Rectification Reversal negative posting
tive posting selected
Not selected
Opening Cash and 0 0 0
Bank balances
Add. Inflow
Equity share capital 500000 500000 200000
Preference share capital 300000 300000

Less: Out flow
Equity share capital 300000
Closing Cash and bank 500000 500000
Balances
Wrong Wrong Correct

Select Alternative posting date check box.
If we dont select this check box system will allow us to reveres only on the date of posting
Salary provision on 31-5-2011
Reversal is possible on 31-5-2011

Our requirement:
To reverse next month 1 st select alternative posting date check box we can
Reveres on any day

2) Creation of accrual / deferral documents:
Path: Accounting ------------- > Financial Accounting ------------- > General Ledger ------------
---> Periodic processing ------------- > Closing --------- > Valuate ------------ > Enter Accrual /
Deferral document (FBS1)

Document date :21-5-2011

Company code : VSL
Reversal reason : 12
Reversal date : 1-6-2011
Pstky : 40
Account : 400300 (rent account)
Enter
Amount : 200000
Text : Rent provision
Pstky : 50
Account : 100500 (outstanding exp)
Enter
Amount : *
Text : +
Document -------------- > Simulate and save

TR code: FBS1
Reversal reason : 12
Reversal date : 1-6-2011
Pstky : 40
Account : 400100 (salaries a/c)
Enter ignore the warning message
Press enter
Amount : 500000
Text : Salary provision
Pstky : 50
Account : 100500 (outstanding exp)
Enter
Amount : *
Text : +
From the menu bar select Document ----------- > Simulate and save.

Reversal Accrual / Deferral document:
Path: Accounting ------------- > Financial Accounting ------------- > General Ledger ------------
---> Periodic processing ------------- > Closing --------- > Valuate ------------ > Reverse accrual
/ Deferral document (F.81)

Company code : VSL
Reverse posting date: 1-6-2011
Select test run check box
Select reverse documents button
Select back arrow

Open Item Management:
This is used for Vendors / Customers / Balance sheet accounts where clearing is required
Which type of balance sheet accounts we use:
i) Where there is provision payment after wards
Eg: outstanding exp
ii) Where there is a recovery payment afterwards
Eg: PF / TDS
At the time of creation of account we have to select open item management
checkbox
Out standing Expenses a/c
Salaries a/c 200000
Wages a/c 300000
Bank 100000 Rent 100000
When we see the account in the month end or yearend we will have number of credits and
number of debits sometimes we make full payment and sometimes we make part payment
we dont know which item is pending and how much is pending SAP has given open item
management concept at the time of making payment system will ask we are making the
payment against which provision when we specify the amount is paid against rent provision
that item will be cleared we can see the account in 3 ways
If we select:
i) Open Item radio button: Payable transactions i.e. salaries and wages.
ii) Cleared Items radio button: paid transactions i.e. rent and bank
iii) All Items radio button : payable + paid

3 scenarios:
1
st
scenario 2
nd
scenario 3
rd
scenario
Full clearing partial clearing residual Items method
Method Method
Provision amt and when we make part payment we use partial clearing method
Payments amt same or residual method.

1 st scenario full clearing:
1 ) Rent provision
F -02

Type : SA
Pstky : 40
Account : 400300
Enter
Amount : 12000
Pstky : 50
Account : 100500
Enter
Amount : *
Text : +
From the menu bar select Document ----------- > Simulate and SAVE

3) How to view open Item Managed Account transactions:
Path: Accounting ------------- > Financial Accounting ------------- > General Ledger ---------------
> Account ---------- > Display / Change line Item (FBL3N)
G/L Account : 100500
Company code : VSL
Select open items radio button
Select normal items check box
Select Execute button

Outgoing payment with clearing:
Path: Accounting ------------- > Financial Accounting ------------- > General Ledger --------------->
Posting ----------- > Outgoing payment (F 07)
Type : SA
Company code : VSL
Clearing Text : Outgoing payment
Account : 200100
Amount : 12000
Text : Outgoing payment
Account : 100500
Account type : S (comes by default)
S stands for G/L account
Select process open item button
Reveres documents will not appear for clearing:

Double click on payable account 12000
From the menu bar select Document -------------- > Simulate and SAVE
4) To view open item management account transactions (FBL3N):
G/L account : 100500
Company code : VSL
Select cleared items radio button
Select Normal items check box
Select back arrow

To view open item managed account transactions (FBL3N)
Partial clearing method Residual Item Method
Outstanding expenses a/c Outstanding expenses a/c
OI: OI:
Rent 18000 cr Rent 19000 cr 18500 cr
Cash 1000 dr ______
17000 cr 18500 cr
CI:
Rent 19000 cr
Rent 19000 dr
0
1) Rent provision Rent provision
Rent a/c dr 18000 Rent a/c dr 19000
To outstanding 18000 To outstanding 19000
2) Making payment of 1000 Making payment of 500
Using partial clearing method using residual items method
Outstanding dr 1000 outstanding dr 19000 cleared
To cash 1000 to cash 500
To outstanding 18500
Residual means balance payable
OI means open Items
CI means cleared items
Companies follow option 2 partial clearing method. In case of vendors, when we make 2
nd

part payment we will have bill copy with us. Bill amount shows 18000 and SAP also shows
18000.
If we follow residual items method, in case of vendors for 2
nd
part payment bill amount
shows 19000 and SAP balance shows 18500

In case of vendors and customers by using partial clearing method we can see bill wise
outstanding also.
Option: 2
Partial clearing method:
Rent provision
F-02
Type : SA
Company code : VSL
Reference no : 3456 (Bill no)
Pstky : 40
Account : 400300
Enter
Amount : 18000
Pstky : 50
Account : 100500
Enter
Amount : *
Text : +
Document ---------- > Simulate and SAVE
Outgoing payment using partial clearing method: F 07
Type : SA
Company code : VSL
Reference no : 3456
Clearing text : Outgoing payment
Account : 200100
Amount : 1000
Account : 100500
Keep the cursor on the amount field of the line item against which we want to adjust
Select partial payment tab
Its create payment amount column
Double click on net amount 18000
Double click on payment amount 18000

From the menu select Document ------------ > Simulate
It give a message correct the marked line items
Double click on blue font line item
Text : +
Save
Company code : VSL
Select change layout button
From the Hidden fields column select reference
Select amount in local currency under column content
Select left arrow or show select fields button
Select copy button keep the cursor on reference
Select Subtotal or CRTL F1 button

To make balance payment of 17000 clear provision 18000 cr and part payment 1000 debit
all the items will go to cleared items F -07

Type : SA
Company code : VSL
Reference : 3456
Account : 200100
Amount : 17000
Account : 100500
Double click on payable amount 18000
Double click on part payment 1000
From the menu bar select Document ------------- > Simulate and SAVE

Company code : VSL


3
rd
scenario: Residual items Method
Rent provision
F 02
Type : SA
Company code : VSL
Pstky : 40
Account : 400300
Enter
Amount : 19000
Pstky : 50
Account : 100500
Enter
Amount : *
Text : +
Document ----------------- > Simulate and SAVE

Making payment of RS. 500 using residual items method F -07
Type : SA
Company code : VSL
Account : 200100
Amount : 500
Account : 100500
Select process open items button
Keep the cursor on the amount field of the line item against which we want to adjust
Select residual items tab
It creates Res.Items column
Double click on net amount 19000
Double click on Resi. Items amt
From the menu bar select Document ----------- > Simulate
It gives a message correct the marked line items

Text : +
3. To view open item managed account transactions (FBL3N)
Company code : VSL
Select Execute button.

How to make open items Initially inactive at the time of clearing:
Or
Error message: the difference is too large for clearing
When we make payment for one provision in F 07 all open items are selected
automatically to make inactive the open items in the beginning when we make payment we
double click only that provision
Path: Accounting ------- > Financial Accounting ------------- > General Ledger -------- >
Environment ------------- > User parameters ---------------- > Editing options (FB00)
Select open item tab
Select selected items initially inactive check box
Select save button
We get a message the option were entered in the user master records

REVERSALS
When we post a wrong entry we have to go for reversals or rectification entry.
Types of Reversals:

1 2 3 4 5
Individual document Reversal of Mass Cleared item Accrual / Deferral
Reversals reversed reversal reversal reversal
Document
1) Individual document reversal:
i) to reversal one document at a time
ii) we have to give reversal reason
iii) At the time of reversal if we dont give reversal posting date it takes original
document posting date in such a case that period should be open.
Eg: 1) we have posted a document 5-4-2011 doc.no.1
2) Once the profitability is released for April open periods from May 2011 to June 2011
2, 2011 to 3, 2011
3) Ledger verification on 25-5-2011 doc.no. 1 posted on 5th April is wrong
4) To reversal document no.1
Go to reversal area document no.1

Company code : VSL
Reversal reason reversal posting date blank
Save
It cant reverse
If we dont give reversal posting date it takes original document posting date i.e. 5-4-
2011 since April period is not open it cannot reverse
Path: Accounting ---------- > Financial Accounting ------------- > General Ledger ------------ >
Document ------------- > Reverse ----------- > Individual reverse (FB08)
Document no : 1
Company code : VSL
Fiscal year : 2011
Reversal reason : 01 Reversal in current period
Posting date : Blank
Select display before reversal button
Select back arrow
From the menu bar select Document -------------- > Display
Select display document Header button(F5)
Select display document header button
Enter
Select back arrow.

Why reversed document is taking type AB
1. We have posted documents
1
2
3
4
5 Reversals for 1
6 Reversals for 2
2. We want to see only reversed documents
3. Document types and number ranges- OBA7
Document type SA AB
I I
No. Range 01 01
Bellow no. Range reverses Doc. Type: AB
4. document display FB03
Company code : VSL
Document type : SA Original document

: AB Reversal document
2. Reversal of Reversed document:
We have to reverse doc.no 2 by mistake we have reversed document no.1 it has
generated document no.19 to reverse doc.no. 19
Use T.R Code F-02
From the menu bar select Document --------------- > Post with reference (shif+F9)
Document no : 19
Company code : VSL
Fiscal year : 2011
Select generate reverse posting check box
Select display line item check box
Enter
Once again enter
Change text : Reversal for Doc.no.19
Enter
Text : +
Enter select save or crtl + s
Enter
From the menu bar select Document ------------ > Display
3. Mass Reversal:
i) to reverse more than one document at a time we use mass reversal
ii) the Doc. To be reverse may be continuous numbers or random numbers
path: Accounting ---------- > Financial Accounting ----------- > General Ledger -------------- >
Document ------------ > Reverse --------------- > Mass reversal (F.80)
Company code : VSL
To reverse random doc.nos
Select multiple selection button beside Doc.no.
Under single value
Enter 2
4
Select copy button
Reason for reversal : 01
Select reveres Doc.button

4. Cleared items reversal
i) To view open item managed account transaction FBL3N
Company code : VSL

Outstanding expenses
OI:
22-5-2011 13 bank 12000 dr 22-5-2011 12 Rent 12000 cr
22-5-2011 13 Bank 12000 dr
0
Before encashment by the party we have given stop payment instruction to bank to
honour the cheque.
The bank entry should be reversed
The account will appear
CI:
22-5-2011 12 Rent 12000 cr
Rent amount is coming as cleared or paid which is not correct rent should be as open or
payable
We cannot reverse cleared items directly in FB08
i) reset cleared items to make is as open items deline between provision and
payment
OI:
22-5-2011 12 Rent 12000 cr
Now rent is appearing as open or payable.

Reset Cleared Items (FBRA)
Path: Accounting ------- > Financial Accounting ------- > General Ledger ------------ >
Document ------------ > Reset Cleared Items (FBRA)
Clearing document : 13
Company code : VSL
Fiscal year : 2011
Select resetting and reverse button
Reversal Reason : 01 (Reversal in current period)
Enter
We get a message clearing 13 reset
Enter
Enter
To view open item managed account transactions (FBL3N):
Company code : VSL


INTEREST CALCULATIONS

Interest calculations
Balance interest calculation Item interest calculation
S type P type
GL accounts Vendors and customers

1 ) Define interest calculation type:
Path: SPRO ----------- > Financial Accounting -------------- > General Ledger Accounting ----
------- > Business transactions --------------- > Bank Account interest calculations ------------
-- > Interest Calculation Global settings ---------- > Define Interest calculation types
Int.ID : V1
Name : 10% monthly
Int.calc.type : S (Balance interest calculation)

2 ) Prepare Account balance interest calculation:
Path: SPRO ----------- > Financial Accounting -------------- > General Ledger Accounting ----
------- > Business transactions --------------- > Bank Account interest calculations ------------
-- > Interest Calculation Global settings ---------- > Prepare Account balance interest
calculation (OBAA)
Interest. Cal. Indicator : V1
Interest calc. Freq : 01 (1month)
Calendar type : G
Select balance plus int. check box
Select save button of crtl +s

3 ) Define reference interest rates:
SBI Rupee term loan
10-4-2011 Receipt 100000
10-7-2011 10000

There are 2 methods
1) On 100000 @ 10% from 10-4-2011 to 31-3-2012 100000 X 10% X 357/366 =9754
On 10000 @ 10% from 10-7-2011 to 31-3-2012 10000 X 10% X 265/366 = -724
9030
2) On 100000 @ 10% from 10-4-2011 to 31-3-2012 100000 X 10% X 92/366 = 9754
On 90000 @ 10% from 10-7-2011 to 31-3-2012 90000 X 10% X 265/366 = 6516
9030

When we borrow interest rate charged by bank 10%
When we repay interest rate credit given by bank 10%
When the account is having debit balance 10%
(Loan balance)
When the account is having debit balance 8%
(Repayment is more than loan)

Steps:
1. Create reference interest rates i.e. V2 and V3
2. Give reference interest rate for V2 10%
V3 - 8%
3. Assign reference interest rate to account having credit balance and account having
debit balances
Account having credit balance V2
Account having debit balance V3
4. For interest indicator assign account having credit balance and account having debit
balances
A/c having credit balance
For interest indicator V1
A/c having debit balance
5. Interest indicator is assigned in loan account

A/c having credit balance V2 10%
SBI term loan V1
A/c having debit balance V3 8%

Define Reference interest Rates:
Path: SPRO ----------- > Financial Accounting ----------- > General Ledger Accounting -------
------- > Business transactions ------------------- > Bank Account Interest calculation ---------
-- > Interest Calculation -------------- > Define Reference interest Rates (OBAC)
Transaction : OBAC
Reference interest rate : V2

Long text : 10% interest a/c having credit balance
Description : 10% interest a/c credit
Date : 1-4-2011
Currency : INR
Save
Select next entry button
Ref. Int. Rate : V3
Long text : 8% int. a/c having debit balance
Description : 8% int a/c debit
Date from : 1-4-2011
Currency : INR
Save
Define time dependent terms:
Path: SPRO ----------- > Financial Accounting ----------- > General Ledger Accounting -------
------- > Business transactions ------------------- > Bank Account Interest calculation ---------
-- > Interest Calculation -------------- > Define time dependent terms.

Int. Cal. Indicator : V1
Currency key : INR
Eff. From : 1-4-2011
Sequential number : 1
Term : credit interest: balance interest calcu.
Reference interest rate : V2
Int. Cal. Indicator : V1
Currency key : INR
Eff. From : 1-4-2011
Sequential number : 2
Term : Debit interest: balance interest calc.
Ref. Interest rate : V3
Save

Enter interest values:
Path: SPRO ----------- > Financial Accounting ----------- > General Ledger ------------ >
Accounting -------------- > Business transactions ------------------- > Bank Account Interest
calculation ----------- > Interest Calculation -------------- > Enter interest values (OB83)


Reference interest rate valid from int.Rate
V2 1-4-2011 10
V3 1-4-2011 8
Save

Creation of 2 General ledger Masters:
i) SBI rupee term loan secured loan 100300 100399
ii) Interest account interest rate 400400 400499
a) To check account groups for giving account numbers (OBD4):
Chart of accounts : VSL
Enter
Secured loan 100300 100399
Interest 400400 - 400499
b) Creation of General ledger Masters FS00
1) G/L account : 100300
Company code : VSL
Company code : VSL
Enter
Change the account group: Secured Loan
Change short text : SBI rupee term loan
Select Create / Bank / interest tab
Filed status group : G005
Interest indicator : V1
Save

2) G/L account : 400400
Company code : VSL
Company code : VSL
Enter
Select type / Description tab
Account group : Interest
Change short text : Interest account
G/L account long text : Interest account
Other fields are common select save button or crtl + s


Assignment of accounts for Automatic postings:
Path: SPRO ------------- > Financial Accounting ---------------- > General Ledger Accounting
------------------ > Business transactions --------------- > Bank account interest calculation ---
----------- > Interest posting -------------- > Prepare G/L Account balance interest
calculation (OBV2)
Select symbol button F8
Select account button
Enter
Account symbol : 0002
Currency : INR
Account symbol : 2000
Currency : INR
G/L account : ++++++++++ (10 times)
Save
Entry
Interest account dr 0002 interest paid
To SBI rupee term loan 2000 G/L account paid
For each symbol we can assign only one account
For symbol 0002 interest paid assign 400400 interest a/c
For symbol 2000 GL account paid assign 100300 SBI rupee term loan
If more than one:
Term loan for symbol 2000 assign ++++++++++ ( 10 times) (any account number)
Earlier we have discussed length of G/L a/c no. Max 10 digits we using 6 digits
Why cant we use 6 times plus:
At the time of posting equity share capital receipt - Debit
200100 cash a/c and credit 100000 equity share capital first it takes 0000200100 debit
and 0000100000 credit when we save it saves 200100 debit and 100000 credit
If we use 6 times plus for loan account it takes first 000010 (actual loan a/c no. 100300)
it cannot post
How system takes our account number:
100300 SBI rupee term loan
100301 IDBI rupee term loan
100302 ICICI rupee term loan
At the time of interest calculation we have to specify for which loan account interest is
to be calculated say we are specify loan a/c no 100300 for interest calculation this
number will be replaced in ++++++++++ (10 time)


END USER AREA
1) To open posting periods (OB52)
Pstg. Per. Var : VSL
Enter
Var : VSL
Form prer.1 : 1
Year : 2011
To period : 12
Year : 2011
Select save button or crtl + S
2) Term loan receipt: F-02
We have bank account with IDBI Bank
We have taken loan from SBI, SBI has given cheque dated 10-4-2011
Cheque deposited in IDBI Bank account on 12-4-2011
At the time of posting
Document date : 12-4-2011 not modifiable
Posting date : 12-4-2011 not modifiable
Value date : 10-4-2011 modifiable

F-02
Type : SA
Company code : VSL
Pstky : 40
Account : 200100 (cash)
Enter
Amount : 100000
Value date : 10-4-2011
Text : SBI Rupee term loan receipt
Pstky : 50
Account : 100300 (SBI rupee term loan)
Enter
Amount :*
Text : +
Document ------------ > Simulate and SAVE

3) Term loan Repayment: F-02
Repayment date : 10-7-2011
If we give IDBI cheque 10-7-2011 to SBI they send it for clearing once it is cleared in
their account from that date only they give the credit.
It is cleared in bank on 12-7-2011 in SAP interest credit will come from 10-7-2011
We give cheque date : 8-7-2011

F-02:
Type : SA
Company code : VSL
Pstky : 40
Account : 100300 (SBI Rupee term loan)
Enter
Amount : 100000
Text : SBI Rupee term loan repayment
Pstky : 50
Enter
Amount : *
Text : +
Document --------------- > Simulate and SAVE
4) Interest Calculation:
Path: Accounting ------------ > Financial Accounting ------------- > General ledger --------
--- > Periodic processing ------------ > Interest calculation------------ > Balance interest
calculation (F.52)
G/L account : 100300 (sbi rupee term loan)
Company code : VSL
Calculation period : 1-4-2011 to 31-3-2012
Select back arrow
To view line item wise interest
Select additional line check box

Select back arrow
Interest rate changed from 10% to 12% form 1-6-2011
On 100000 @ 10% from 10-4-2011 to 31-5-2011
On 100000 @ 12 % from 1-6-2011 to 9-7-2011
On 90000 @ 12% form 10-7-2011 to 31-3-2012
Open one more session with OB83 enter interest values.
Reference interest : V2
Valid from : 1-6-2011
Int.Rate : 12
Save press enter to save in your request
Come to the first session
Select back arrow
Change the calculation period from 1-4-2011 to 30-4-2011
Select post interest settlement check box
Select up date master record check box
Session name : VSL
Posting to business area : VSLH
Posting date of session : 30-4-2011
Document date of session : 30-4-2011
Value date of session : 30-4-2011
Posting segment text : Interest for April
To post the batch input session
Form the menu bar select System ------ > Services ------ > Batch input ------ > Session
Select session name: VSL
Select process / Foreground radio button
Go on select enter till we get the message
Process of batch input session completed
Select exit batch input button

To view the document posted (FB03)
Enter

To view GL master SBI Rupee term loan: (FS00)
GL Account : 100300 (SBI rupee term loan)
Company code : VSL

From the menu bar select G/L Account---------- > Display
Select create / Bank / Interest tab
Key date of last int. calculation up to which date we have calculated interest
Date of last int. Run 29-5-2011 on which date we have run the interest calculations

1) Compound interest calculation and simple interest calculation:
Compound interest calculation Simple Interest calculation
SBI rupee term loan SBI rupee term loan
10-4-2011 -100000 10-4-2011 -100000
30-4-2011 - 575
When we run interest calculation For symbol 2000 Assign account 100520
On 30-4-2011 575 Rs is credited interest payable account when we run
To loan account when we run interest calculation RS 575
When we calculate interest for will be credited to a/c 100520 no 30-4-2011
May it calculation on 100575 when we calculate interest for may it
Calculation on 100000
2) Interest posting also to different accounts
400400 interest on SBI loan
400401 interest on IDBI loan
400402 interest on ICICI loan
For symbol 0002 interest paid assign a/c 400400 interest on SBI loan say we are
calculating interest for loan account100301 IDBI rupee term loan a/c use transaction
code F.52
Interest calculation it creates a batch input session select process foreground it shows
debit 400400 interest on SBI Loan.
Change the account no to 400401 interests on IDBI loan

3) The company wants to calculate interest monthly
1
st
month 10-4-2011 to 9-5-2011
2
nd
month 10-5-2011 to 9-6-2011
Use transaction code OBAA i.e. prepare account balance interest calculation
For V1 settlement day enter 9

FOREIGN CURRENCY BALANCES REVALUATION (FC BALANCES REVALUATION)

SBI foreign currency term loan
I
Long term working Fixed Assets purchase
Capital I
Local assets Imported assets
Eg: 30-5-2011 100000 USD 45 4500000

31-3-2013 50 5000000
Exchange loss 500000
Indian accounting standards (AS) 11
Foreign currency balances are to be revaluated with closing rate and gain or loss to change
to P&L account
1) Creation of 3 General ledger Masters:
i) SBI FC term loan Secured loan
ii) Exchange Gain Other income (300100 300199)
iii) Exchange Loss Administration cost
a) To check account groups for giving account numbers(OBD4)
Chart of accounts: VSL
Enter
b) Creation of General Ledger Masters FS00
1) G/L account : 100301
Company code : VSL
G/L account : 100300 (SBI rupee term loan)
Company code : VSL
Enter
Change short text : SBI FC term loan
G/L account long text : SBI FC term loan
Account currency : USD
Deselect only balances in local currency check box
Select Create / Bank / Interest tab
Interest indicator : Blank
Remove dates
Save

2) G/L account : 300100
Company code : VSL
G/L account : 400300 (rent)
Company code : VSL
Enter
Select Type / Description tab
Change account group : Other income
Change short text : Exchange Gain
G/L long test : Exchange Gain
Save

3) G/L account : 400301
Company code : VSL
G/L account : 400300 (rent)
Company code : VSL
Enter

Change short text : Exchange Loss
G/L long test : Exchange Loss
Save

Define accounting principles:
Path: SPRO -------------- > Financial Accounting (New) --------- > Financial Accounting
Global settings (New) ----------- > Ledger ----------- > parallel accounting ---------------- >
Define accounting principles
Accounting principles : V1
Name / Description of accounting principle: Indian accounting standards
Save

Assign accounting principle to ledger groups:
Path: SPRO -------------- > Financial Accounting (New) --------- > Financial Accounting
Global settings (New) ----------- > Ledger ----------- > parallel accounting ---------------- >
Assign accounting principle to ledger groups.
Target ledger group : 0L (zero)
Description : Leading ledger
Save

Define valuation Methods:
Path: SPRO ----------- > Financial Accounting (New) ------------- > General Ledger Accounting
(New) ------------- > Periodic processing ---------- > Valuate --------------- > Define valuation
method.
Valuation method : VSL1
Description : FC Valuation for VSL Bank selling method
Select always evaluate radio button

Document type : SA
Exch. Rate Type of debit balance: B(Bank selling rate)
Exch. Rate Type of Credit balance: B (bank selling rate)
Select determine Exch.Rate type from account bal. Radio button
Save

Define valuation areas:
(New) ------------- > Periodic processing ---------- > Valuate --------------- > Define valuation
areas.
Valuation area : VA
Valuation method : VSL1
Crcy.Type : Company code currency
Save

Assign valuation areas and Accounting principles:
(New) ------------- > Periodic processing ---------- > Valuate --------------- > Assign valuation
areas and Accounting principles.
Valuation area : VA
Save or crtl +S

Prepare automatic posting for foreign currency valuation:
(New) ------------- > Periodic processing ---------- > Valuate --------------- > Foreign currency
valuation ------------ > Prepare automatic posting for foreign currency valuation.(OBA1)
Double click on Exch.Rate Diff. Using Exch. Rate key
Select right arrow or change valuation area (F7)
Valuation area : VA
Enter
Exchange rate difference key : USD
Expense Account : 400301
E/R gains Account : 300100
Save


Assign exchange rate different key in loan account (FS00):
G/L account : 100301 (Sbi fc term loan)
Company code : VSL
From the menu bar select G/L Account ------------ > Change
Exchange rate difference key : USD
Save or crtl + s

ENDUSER AREA
1) SBI FC TERM LOAN RECEIPT: (F-02)
Type : SA
Company code : VSL
Currency / Rate : USD / 45
Pstky : 40
Enter
Press enter
Amount : 100000
Text : SBI FC term loan receipt
Enter
Pstky : 50
Account : 100301 (sbi fe term loan)
Enter
Amount : *
Text : +

2) To enter Exchange rates in forex table on 31
st
March2012 (OB08)

EX.RT VALID FROM FROM Dir.Quo TO
G 31-3-2012 USD 49.50 INR
B 31-3-2010 USD 50 INR
Save. Press enter to save in your request.


3) Foreign currency valuation:
Path: Accounting -------- > Financial Accounting ------------- > General Ledger ---------- >
Periodic processing -------------- > Closing ----------- > Valuate ------------ > Foreign currency
valuation (New) (FAGL_FC_VAL)
Company code : VSL
Valuation key date : 31-3-2012
Valuation area : VA
Select G/L Account balance tab
Select valuate G/L account balance check box
Select 1posting button
Select back arrow 2 times

Option: 1 Option: 2
Month end revaluation Year end revaluation

31-5-2011 100000 USD 45 4500000
30-6-2011 46
31-7-2011 48
31-3-2012 50
Exchange loss a/c
30-6-2011 loss 100000
(100000usd *(46-45))
31-7-2011 loss 300000 1-7-2011 reversed 100000
(100000usd*(48-45))
SBI FC loan a/c
31-5-2011 100000 usd 4500000
30-6-2011 100000
1-7-2011 Reversal 100000 31-7-2011 300000
Summary
Loss for June 100000
Loss for July (300000-100000) 200000
Loss up to July 300000

Steps for month end revaluation:
1) Enter month end exchange rate in forex table (OB08)
2) Use transaction code FAGL_FC_VAL i.e. FC valuation
i) Company code : VSL
ii) Valuation key date: Month end data i.e.30-6-2011
iii) Valuation area : VA
iv) Select execute postings check box

v) Posting date : 30-6-2011
vi) Reverse posting date : 1-7-2011
vii) Select reverse posting check box
viii) Select GL balances tab
ix) Select valuate G/L account balances check box
x) GL account : 100301 (Sbi fc term loan)
xi) Select execute button

Steps for yearend revaluation:
Enter year end exchange rate in forex table: (OB08)
Transaction code : FAGL_FC_VAL
Company code : VSL
Valuation key date : 31-3-2012
Valuation area : VA
Select create postings check box
Reversal posting date : Blank
Deselect reversal posting check box
Select G/L balances tab
Select valuate G/L account balances check box
G/L account : 100301 (sbi fc term loan)
To post the batch input session from the menu bar select System --------- >Services -----------
> Batch input ----------- > Sessions
Select session name : FAGL_FC_VAL
Ignore the error message press enter
Press enter
Ignore the error message
Press enter
Press enter
We get a message processing of batch input session completed
Select exit batch input button

Double click on first line item
System has posted the entry
USD INR
Exchange loss dr 0 500000

To SBI FC term loan 0 500000
We want to post the entry manually system will not post the entry the entry we have
discussed earlier line item having zero will not update the records.
We have to post:
USD INR
Exchange loss dr 0 500000
To SBI FC term loan 0 500000
When we run next time it calculates revaluation for 100001 USD which is not correct

Define accounting principles:
Company code: VSL Indian company assigned fiscal year variant V3, it updates ledger
0L leading ledger currency INR (Indian accounting standards)
Group in UK- currency GBP
To follow IFRS (International Financial Reporting Standards)

1) Define accounting principles:
V1 V2
Indian accounting standards International Financial Reporting Standards
2) Assign accounting principles to ledger Group:
V1 assigned 0L leading V2 assign L1 (UK Ledger)
Ledger (Indian ledger)
3) Define valuation Methods VSL1
Take bank selling rates
4) Define valuation Areas
VA VSL1 Company code currency VB- VSL1 Group currency
5) Assign valuation area to accounting principles
VA to V1 VB to V2
6) Assignment of accounts
VA VB
Exchange loss 400301 Exchange loss 400301
Exchange gain 300100 Exchange gain 300100

7) FC Revaluation run
Company code VSL Company code VSL
Valuation area: VA Valuation area: VB
USD to INR USD to GBP

End user area Customization area
Sap easy access screen SPRO Screen
We know the transaction Use the transaction code SPRO
Code we dont know select find button or CRTL +F

The path Search term: Fiscal year press enter
How to view path select fiscal year in area
Transaction code is given: financial accounting global setting enter
1) Use search_SAP_ Menu
In command field
Press enter
2) Search text entry
F-02 then press enters
To view what steps we have save in our request
Path: Tools ----------- > ABAP work bench ----------- > Over view ------------ > Transport
organizer (SE09)
Enter
Select customizing folder
Select local change request folder
Select Modifiable folder
Select GL customization for VSL folder
Select customizing task folder
Double click on enter exchange rates.

ACCOUNTS PAYABLE

This is a sub ledger (subsidiary ledger)
This is used when material management (MM) modules is not implemented for all types
of purchases i.e. material purchase and services.
When Material management module is implemented this is used for services where TDS
is to be deducted
Eg: legal and professional charges / Job work charges
In normal accounting entry for raw material purchase:
Purchase a/c dr
To party
In SAP
Inventory RM dr (General ledger)
To party (sub ledger)
Our trail balance will not match in trail balance only general ledger accounts will appear
When we simulate and save the entry it passes
Inventory (RM) dr (general ledger)
To party (sub ledger) sundry creditors RM (general ledger)
I
Reconciliation account
Or control account

Now our trail balance will match

Basic setting for accounts payable:
1) Creation of vendor account groups:
i) Vendors service parties Reconciliation account
ii) MM vendors material parties required entry field
2) Create number range for vendor account
3) Assign number range group to vendor account groups
4) Define tolerance groups for vendor
5) Creation of 2 general ledger masters
i) Inventory raw material Current assets, Loans & Advances
ii) Sundry creditors raw materials Current liabilities & Provisions
6) Creation of vendors masters
7) Document types and number ranges
KR vendor invoice
KZ vendor payment
KA vendor document for transfer/Reversal
8) Posting key
31 vendors credit
25 vendors debit
Eg: i) entry for purchases
Inventory raw material dr posting key 40
To party posting key 31
iii) Entry for vendor payment
Party a/c dr posting key 25
To bank posting key 50

1) Creation of vendor account group: (OBD3)
Path: SPRO ------------ > Financial Accounting ------------- > Account Receivable and Accounts
Payable --------------- > Vendor Accounts ------------- > Master data -------------- > Preparation
for creating vendors master data ------------ > Define Accounts groups with screen lay out
(vendors)
Account group : VSL1
Name : Fi Vendors for VSL
Double click on company code data
Double click on account management
Reconciliation account select Req.entry field
Cash management select suppress
Select save button or crtl s
Select create request button

Short description : AP customization for VSL
Press enter
Press enter to save in the request
Select next entry button or F8
Name : MM vendors for VSL
Reconciliation account select req.entry field
Cash management group select suppress
Save

1) Create number range for vendor account:
for creating vendors master data ------------ > Create number range for vendor account
(XKN1)
No : 26
From no : select drop down button select 4000201
To number : 4000300
Enter and save
Select interval button once agin
No : 27
From no : select drop down button select 4000301
To number : 4000400
Enter and save

2) Assign number range to vendor account groups:
for creating vendors master data ------------ > Assign number range to vendor account
groups
Enter
For group VSL1 assign no. Range: 26
For group VSL2 assign no. Range: 27

3) Define tolerance groups for vendor:
Path: SPRO ------------ > Financial Accounting ------------- > Account Receivable and
Accounts Payable --------------- > Business transactions --------------- > Out going payments
--------------- > Manual out going payments ----------------- > Define tolerance (Vendors)
Company code : VSL
Description : tolerance group for VSL
Select save

4) Creation of 2 general ledger masters:
FS00
Company code : VSL
G/L account : 200100 (cash)
Company code : VSL
Enter
Change short text : Inventory RM
G/L account long text : Inventory RM
Field status group : G001
Deselect Relevant to cash flow check box
Save.

TR code: FS00
Company code : VSL
G/L account : 100500 (outstanding exp)
Company code : VSL
Enter
Change short text : Sundry creditors RM
G/L account long text : Sundry creditors RM
Select Control data tab
Deselect only balances in local crcy. Check box
Reconciliation account for account type: Vendor
Deselect open item management check box
Sort key : 012(vendor number)

Select crate / bank / interest tab
Field status group: G067 (reconciliation acct)
Save.
5) Creation of vendor Master:
Path: Accounting ------------ > Financial Accounting ------------ > Account Payable --------- >
Master records ----------- > Maintain centrally ---------- > Create (XK01)
Company code : VSL
Enter
Name : ABC India limited
Street : Ammer pet
Postal code/ city : 500000 Hyderabad
Country : IN
Telephone no. : 040 -23351932
Select next screen button 3 times
Recon. Account : 100501 (sundry creditors RM)
Sort key : 012 (Vendor number)
Select next screen button
Paty. Terms : 0001 (payable immediately due net)
Tolerance group : blank
Select chk. Double inv
Save
We get a message vendor 4000201 was created in company code VSL
i) How it has taken Vendor no 4000201
Create vendor account
With account group VSL
I
Assigned no. Range 26
I
Given no. Range interval 4000201 4000300 not
Selected external check box
Vendor no: 4000201 is taken internally
ii) Select check box double invoice check box
MM module Only Fi module party bill 20-5-2011 20-5-2011
Purchase order
I Document date 3-6-2011 3-6-2011
Goods receipt Reference no party bill 1234 1234
I Vendor account 4000201 4000201
Save
Invoice verification Doc.no. 100001
Same invoice cant when 2
nd
person saves the entry the system

Be accounted number of gives a message document already posted with
Times the same party with no.100001 you want to
post once again.
6) Document types and No. Range (OBA7)
Select type KR vendor Invoice
Note down no. Range 19
Select no. Range information button
Company code : VSL
No : 19
Year : 2011
From no : 100001
To no : 200000
Enter and save
Select type KZ (Vendor payment)
No : 15
Company code : VSL
No :15
Year : 2011
From no : 200001
To no : 300000
Enter and save
Press enter
Select type KA vendor document
No. Range :17
Company code : VSL
No :17

Year : 2011
From no : 300001
To no : 400000
Enter and save
Press enter

HOUSE BANK
We give
Bank name
Bank branch address
Contact person

1
st
scenario:
SBI MAIN BRANCH
KOTI HYDERABAD
I
Current current current
Account 1 account 2 account 3

1 house bank
3 accounts ids (ID mean identification)

2
nd
scenario:

SBI MAIN BRANCH SBI RAJBHAVAN ROAD
KOTI HYDERABAD BRANCH HYDERABAD
I I
Current account 1 Current account 1
I I
1 house bank 1 house bank
1 account ID 1 Account ID
House bank will be created branch wise

Steps:
1) Creation of GL master SBI current account, Current assets, Loans & advances
2) Define house bank
3) Creation of check lots
Check from no
Check to no

Check USA English
Cheque British English
1) Creation of GL Master SBI current account (FSOO)
Company code : VSL
G/L account : 200100 (cash)
Company code : VSL
Enter
Change short text : SBI current account
G/L long text : SBI current account
Save

Define house bank:
Path: SPRO ---------- > Financial accounting ------------ > Bank accounting --------- > Bank
accounts ---------- > Define house banks (FI12)
Company code : VSL
Enter
House bank : SBI
Bank country : IN
Bank key : V1234
Bank key: BSR code of the branch
BSR stands for Basic statistical return
When we make TDS payment in the bank branch we have to specify BRS code
of the branch
Bank name : SBI
Street : Bank street
City : Hyderabad
Bank branch : Main branch
Enter
Double click on bank account folder
Account ID : SBI1
Description : SBI current a/c no 1
Bank account no : VSL1234
Currency : INR
G/L : 200105

Creation of check lots:
Path: accounting --------- > Financial Accounting ------------ > Account payable ---------- >
Periodic processing ------------- > Payments
Form the menu bar select Environment ------------ > Check Information ------------- > Number
Ranges (FCH1)
Paying company code : VSL
House bank : SBI
Account ID : SBI1
Select change button
Select create button
Lot number : 1
Check number : 500001
To : 500100
Select Non sequential check box
Short info : SBI
Purchase date : 4-6-2011
Enter

Manual payment Automatic payment
We write check manually System will verify the due dates
Pass entry manually it issue check automatically
Clear party a/c manually it passes entry and clear party
Update check register manually a/c automatically
Check lot can be sequential it will update check register
Or non sequential automatically
We can issue any check any time check lot should be only sequential
1
st
check issued by system will be
500001 and next check will be 500002

ENDUSER AREA

1) Purchase invoice posting:
Path: Accounting ----------- > Financial Accounting ------------ > Account payable ------------- >
Document entry -------------- > Invoice General (F-43)
Document date : todays date
Type : KR
Company code : VSL
Pstky : 31

Account : 4000201 (ABC India ltd)
Enter
Amount : 4000
Text : purchase invoice posting
Pstky : 40
Account : 200120 (inventory RM)
Enter
Amount : *
Text : +

2) To view vendor account transaction:
Path: Accounting ------------ > Financial Accounting --------------- > Accounts payable --------
-- > Account --------------- > Display / Changes line items (FBL1N)
Vendor account : 400201 select
Company code : VSL
Select open item radio button
Select normal item check box

3) To view GL Account balances (FS10N):
G/L account : 100501 (sundry creditors RM)
Company code : VSL
Fiscal year : 2011
Double click on cumulative balance 4000
To view vendor wise
From the hidden fields column
Select assignment field
Select amount in local currency under column content
Select left arrow or show selected fields button
Select copy button
100501 sundry creditors RM
Sort key 012 vendor number
Sort key updates assignment field automatically

Outgoing payment with clearing:

Path: Accounting ---------- > Financial Accounting ------------- > Account payable ----------- >
Document entry ------------ > Outgoing payment ----------- > Post (F-53)
Type : KZ
Company code : VSL
Bank data
Account : 200105
Amount : 4000
Open item
Account : 4000201
Account type : K (come by default)
K stands for vendor
From the menu bar Document ------------- > Simulate
Select save or crtl + s

To view vendor account transactions (FBL1N)
Vendor account : 4000201
Company code : VSL

Manual check creation:
Form the menu bar select Environment ------------ > Check Information ------------- >
Create ------------ > Manual checks (FCH5)
Check no : 500020
Save
Display checks register:
Display --------------- > Check register (FCHN)
Double click on check no 500020

Select accompanying document button

4000201 ABC India Ltd
Bill Amt purchase doc Check no
1 4000 200003 500001

2 4000 200002 500002
3 4000 200001 500020 History of this bill only
4 5000 200004 500005
5 4000
Assign check no. to payment doc. No.

Check encashment date up dation:
Base on bank statement we can enter in the system on which date the check is debited in
bank
Advantages:
If the party says he has not received the payment though it is paid we can tell him on which
check no issued and or which date it is debited in our bank
Bank reconciliation is easier:
Path: accounting --------- > Financial Accounting ------------ > Account payable
Change --------- > Additional info / cash (FCH6)
House bank : SBI
Account ID : SBI1
Enter
Check encashment date : 6-6-2011
Save

Display check register: (FCHN)
Keep the fields check no from, payment doc.no., amount paid(FC), Recipient, Date encash
Select copy button
Keep the cursor are on encashment date field
Sort in ascending order or CRTL F4 button
From the menu bar select List ---------- > Export ----------- > Spread sheet
Enter

Select table radio button
Enter
Enter once again

Delete encashment date Item from 1-6-2011 to 13-6-2011
Result:
If encashment date is blank or after 30-6-2011 checks issued but not presented

Unissued checks cancelation:
While writing check we have made a mistake before issuing to party we cancel the check
Path: accounting --------- > Financial Accounting ------------ > Account payable
Form the menu bar select Environment ------------ > Check Information ------------- > Void -----
------------ > Unused checks (FCH3)
House bank : SBI
Account ID : SBI1
Check number from : 500001
Void reason code : 06 (Destroyed /unusable)
Select void button

Display check register (FCHN):
Once the check lot is over all 100 checks are issued keep the cursor on check number from
to
Select sort in ascending order button
If any number is missing in between it means that check is misused

Creation of void reason code:
Path: SPRO --------- > Financial Accounting -------------- > Accounts receivable and accounts
payable -------------- > Business transactions ------------ > Outgoing payments ---------- >
Automatic outgoing payments ---------- > Payment media ------------ > Check management ---
----------- > Define void reason codes (FCHV)
Reason : 15
Void reason code : Stop payment for VSL
Save or crtl S

Deletion of check encashment data:
We have issued checks

Check no amount
500019 4000
500020 4000
In bank statement check no 500019 is debited by mistake is sap we have entered
encashment date for check no 500020
To delete encashment date data for check number 500020
Path: Accounting --------- > Financial Accounting ------------ > Account payable
Form the menu bar select Environment ------------ > Check Information ------------- > Delete --
-------- > Reset data (FCHG)
House bank : SBI
Account ID : SBI1
Select reset cashing data radio button
Select yes button

Display check register: (FCHN)
Encashed checks cant be cancelled
1) Purchase invoice posting F-43
ABC Inda Ltd
OI:
Purchase 4000 cr
2) Outgoing payment with clearing
ABC Inda Ltd
OI:
Bank 4000 dr Purchase 4000 cr
CI:
Purchase 4000 cr
Bank 4000 dr
0
3) Assign check no. To payment document no. FCH5

4) Display check register FCHN
Before encashment by party stop payment instructions given to bank, not to honour the
check in GL we have discussed cleared items cant be reverted deselect if we reverse bank
purchase is coming as cleared or paid which is not correct

5) Issued check cancellation:

i) Reset cleared items to make it as open items delink purchase and bank the
account will appear

ABC India Ltd
OI:
Bank 4000 dr purchase 4000 cr

ii) Reverse bank
ABC India Ltd
OI:
Purchase 4000 cr

iii) Cancel check

Cancel payment: (FCH8)
Path: Accounting --------- > Financial Accounting ------------ > Account payable
Form the menu bar select Environment ------------ > Check Information ------------- > Void -----
---------- > Cancel payment (FCH8)
House bank : SBI
Account ID : SBI1
Void reason code : 15 (stop payment for VSL)
Reversal reason : 01 (reversal in current period)
Select cancel payment button

To view account transaction: (FBL1N)
Company code : VSL

To view check register (FCHN)


ADVANCE PAYMENTS TO VENDOR
(DOWN PAYMENTS TO VENDOR)
Sundry creditors purchase advance advance to
(Liabilities side) payment vendors (asset side)
Payment purchase
Steps:
1) Creation of general ledger master advance to vendors, current assets, loans &
advances
200150 advance to vendors
2) Link between sundry creditors and advance to vendors

A advance (special indicator)
Sundry creditors advance to vendors
(Reconciliation account) alternative reconciliation a/c or special GL a/c
100501 sundry creditors RM 200150 advance to vendors
Vendor account 4000201 ABC India ltd assigned 100501 sundry creditors RM
i) Purchase
Purchase 4000201 100501 sundry creditors credit
Payment against bill 4000201 100501 sundry creditors debit
ii) Advance 4000201A 200150 advance to vendor
3) Advance payment posting
4) Purchase invoice posting
5) Transaction of advance from special GL to normal by clearing special GL items
6) Clearing of normal items
Vendor accounts will have 2 parts they are
Normal items
Special GL items
1. Creation of general master advance to vendors
(Current assets, loans & advances) (FS00)
Company code : VSL
G/L account : 100501 (sundry cr. RM)
Co.Code : VSL
Enter
Change the account group : Current assets, Loans & Advances
Short text : Advance to vendors
GL account long text : Advance to vendors
Other fields are common


2. Link between sundry creditors and advance to vendors
Path: SPRO -------- > Financial Accounting ----------- > Accounts receivable and payable ---
-------------- > Business transactions ------------ > Down payment mode ----------- > Define
alternative reconciliation account for down payment (OBYR)
Double click on SGL Ind A
Enter
Reconciliation account : 100501
Special G/L account : 200150
Press enter to save your request

3. Advance payment posting:
Path: Accounting ---------- > Financial accounting ------------ > Accounts payable ------------
-- > Document entry ------------ > Down payment --------------- > Down payment (F-48)

Type : KZ
Company code : VSL
Special G/L indicator : A
Bank
Account : 200105 (sbi ca a.c)
Amount : 25000
Text : Advance payment posting
Enter
Amount : *
Text : +

To view vendor account transaction (FBL1N)
Company code : VSL
Select special G/L transactions check box

4. Purchase invoice postin (F-43)

Type : KR
Company code : VSL
Posting key : 31
Account : 4000201
Enter
Amount : 25000
Text : Purchase invoice posting
Pstky : 40
Enter
Amount : *
Text : +
Document ------ > Simulate and save

Company code : VSL
Select back arrow3
Select special GL transaction check box
Along with normal items

Transfer of advance from special GL to Normal by clearing special GL items:
Path: Accounting ----------- > Financial Accounting ------------- > Accounts Payable -----------
> Document entry --------------- > Down payment ---------------- > Clearing (F-54)
Type : KA (vendor document)
Company code : VSL
Vendor
Account : 4000201
Text : Advance clearing
Select process down payment button
Transfer posting : 25000
Save


Company code : VSL
Select back arrow

Clearing of normal items:
Path: Accounting ---------- > Financial Accounting ---------- > Account payable -------------- >
Account ----------- > Clear (F-44)
Account : 4000201
Company code : VSL
Double click on credit 25000
Double click on debit 25000
Save

Company code : VSL
Vendor accounts
Normal accounts
6 5 25000 4 25000 sundry creditors(liabilities)

Special GL items
Adv to vendors 3 25000 5 25000
(Assets)

2
nd
Scenario:
Advance more, bill amount less:
Advance 200000
Bill amount 50000
i) Advance payment posting F-48 Vendor accounts
ii) Purchase invoice posting F-43 Normal accounts
iii) Transfer of advance from special GL 4 3 50000 2 50000

To normal F-54
iv) Clearing of normal items F-44 special GL items
Result: 1 200000 3 50000
Vendor special GL shows a balance of Rs: 150000 advance to vendors to be cleared
against future purchase

3ed Scenario:
Advance 10000
Bill amount 100000
i) Advance payment posting F-48 Vendor accounts
ii) Purchase invoice posting F-43 Normal accounts
iii) Transfer of advance from special GL 3 10000 2 100000
To normal by clearing special G/L items (F-54)
Special GL items
1 10000 3 10000
When we make balance payment of Rs 90000 double click on purchase amount 10000
and advance amount 10000 all the 3 line items will go to cleared items F-53

Terms of payment:
Earlier we have used system given terms of payment
0001 payable immediately due net
Path: SPRO ------------- > Financial Accounting ------------ > Accounts Receivable and
Payable ---------- > Business transactions --------------- > Incoming invoices / credit memos
-------------- > Maintain terms of payment
Payment terms
i) If we make the payment within 10 days from the goods receipt date 3% cash
discount
ii) If we make the payment within 20 days from the goods receipt date 2% cash
discount
iii) If we make the payment within 30 days from the goods receipt date

Payment terms : VSL1
Select customer check box
Select vendor check box
Under default for baseline date
Select posting date radio button
For term 1 : 3%
No.of days : 10
Term 2 : 2%

No. Of days : 20
Term 3 : -
No. Of days : 30
Press enter
Under default for base line date:
1) No. Default every day we purchase from same party
Payment terms
i) If we make the payment within 10 days from the month end date 3% cash
discount
ii) If we make the payment within 20 days from month end date 2% cash discount
iii) If we make the payment within 30 days from the month end date select no
default
at the time of posting of invoice
B line date : Blank
Enter manually month end date
2) Document date party bill date : 1-6-2011
3) Posting date goods receipt date : 5-6-2011 select
4) Entry date quality approval date : 9-6-2011

CASH DISCOUNT RECEIVED

Trade discounts are to be adjusted against purchase where as cash discount are to be
shown under other income

1) Creation of G/L master cash discount received other income (FS00)
GL account : 300101
Company code : VSL
G/L account : 300100 (exchange gain)
Company code : VSL
Enter
Change short text : Cash discount received
G/L account long text : Cash discount received
Save

2) Assignment of account for automatic posting:
Path: SPRO -------------- > Financial Accounting ------------ > Accounts receivable and
payable -------------- > Business transactions --------- > Outgoing payments ---------- >

Outgoing payments Global settings ------------ > Define Accounts for cash discount
taken (OBXU)
Enter
Account : 300101
Select save or crtl s

3) Purchase Invoice posting F-43
Type : KR
Company code : VSL
Pstky : 31
Account : 4000201
Enter
Amount : 100000
Payt.terms : VSL1
Text : Purchase Invoice posting
Enter
Ignore warning message press enter
Pstky : 40
Account : 200120
Enter
Amount : *
Test : +

4) To view vendor account transactions (FBL1N)
Company code : VSL
From the Hidden fields column select current cash discount amount
Select amount in doc.current under column content
Select left arrow or show selected fields button

Select copy button

Outgoing payment with clearing (F-53)
Type : KZ
Company code : VSL
Bank data
Account : 200105 (sbi c/a)
Amount : 97000
Open items
Account : 4000201
From the menu select Document ------------ > Simulate
Text : +
Save

The automatic payment program (APP)
The advantage of automatic payment program is system will be
Verify the documents
Issue checks
Pass entry and clear party account automatically
Generate payment advice
Update check register
The check lot should be sequential
APP will be used by cash rich companies
They run weekly/ every 10 days / fortnightly
We are not programmers we use system given payment program check format and
payment advice format before run we have to give bank wise ranking with available
amounts
BANK RANK AMOUNT
SBI 1 500000
IDIBI 2 300000
ICICI 3 200000
When we run APP it gives a proposal in the proposal it shows for which parties / for
which bill / from which bank system is going to issue checks
By block some invoices

For payment
We can edit the proposal or
By changing bank

Black some invoice for payment
Vendor1 vendor 2 vendor 3

Bill 1 100000 Bill 1 50000 Bill 1 25000
Bill 2 75000 Bill 2 75000 Bill 2 100000

SBI
200000
We can block bill no 2 for vendor 1 / bill no 1 for vendor 2 and bill no 2 for vendor 3
Change bank
SBI 1 500000
ICICI 2 100000
Vendor x is having account in icici he will inform to VSL to issue check from ICICI in the
run it takes SBI we can change the bank to ICICI

Setup payment methods for country for payment transactions:
Path: SPRO ---------- > Financial Accounting -------------- > Accounts Receivable and
account payable -------------- > Business transactions --------------- > Outgoing payment ----
-------- > Automatic outgoing payments ---------------- > Payment method / Bank selection
for payment program ------------ > Setup payment methods per country for payment
transactions
Country : IN
Payment method : V
Description : Check
Select outgoing payment radio button
Select check radio button
Document type for payment : KZ
Clearing document type : KA
Payment medium program : RFFOUS_C
Name of print data set : LIST1S
Save

Setup payment methods for company code for payment transactions:

for payment program ------------ > Setup payment methods per company code for
payment transactions
Payment method : V
Minimum amount : 100
Maximum : 9999999999
Select payment per due day check box
Select form data button
Form for the payment medium SAP Script : F110_PRENUM_CHCK
Drawer on the form: For Videocon steel Ltd.
: Authorized signatory
Save
Save in your request
Setup all company code for payment transactions:
for payment program ------------ > Setup all company code for payment transactions
Company code : VSL
Select separate payment per business area check box
Sp.G/L transaction to be paid : AFP
A for : Advance
F for : Down payment req.
P for : Payment req.
Save

1) Tolerance day for payable:
Todays run date : 10-6-2011
Next run date : 17-6-2011
Terms of payment : 0001 payable immediately
System will issue check in the next run date i.e. 17-6-2011

2) Outgoing payment with cash discount from:
Bank interest rate 18%
1.5% per month

Payment term 1:
If we make payment immediately we get 1% cash discount payable within 30 days
If we will issue check on the due date i.e. on 30Th day

Payment term 2:
It will issue check on 10-6-2011 run
3) Maximize cash discount:
Payment term: 1
It will issue check on the due date i.e. on 30
th
day
System will claim 1 % discount and makes the net payment.

Setup paying company code for payment transactions:
for payment program ------------ > Setup paying company code for payment transactions
Select forms button
From the payment advice SAP Script : F110_D_AVIS
Select sender details button
Text ID : ST (Standard text)
Letter header : F_0001_Sender
Footer : F_0001_Footer
Sender : F_0001_Sender
Save or crtl s

Creation of sequential check lot: (FCHI)
Company code : VSL
House bank : SBI
Account ID : SBI1
Lot number : 2
To : 101000
Deselect non sequential check box
Short info : SBI

Purchase date : todays date
Enter
Save or crtl s

Assign payment method in vendor master:
Path: Accounting ---------- > Financial Accounting ----------- > Accounts payable -------------
> Master Records ----------- > Maintain centrally ------------ > Change (XK02)
Vendor : 4000201
Company code : VSL
Company code data
Select payment transactions check box
Enter
Payment methods : V
Save
1) Payment block:
For this vendor we dont want to make payment in APP though the bills are due,
select *skip account.
2) Alter native payee:
VSL has to make payment to ABC India ltd. ABC India ltd has to make payment to
XYZ, ABC informs VSL to issue check in the name of XYZ we give XYZ account number
check will be in the name of XYZ and party clearing will be ABC.
3) Hose bank:
ABC is having account in ICICI, VSL is having account in ICICI, ABC informs issue checks
only from ICICI specify ICICI house bank
4) Individual payment:
For ABC 10 bills are due system will issue only one check ABC asks bill wise separate
check select individual payment check box 10 checks will be issued

Purchase invoice posting (F-43)
Type : KR
Company code : VSL
Pstky : 31
Account : 4000201
Enter
Amount : 150000
Text : Purchase invoice posting
Pstky : 40
Enter

Amount : *
Text : +
Document ------------- > Simulate and SAVE

Setup bank determination:
Path: Accounting ------------- > Financial Accounting ---------- > Accounts Payable -----------
> Periodic processing -------------- > Payment (F110)
From the menu bar select environment ------------- > Maintain configuration (FBZP)
Select bank determination button
Select paying company code : VSL
Double click on ranking order folder
PM (payment method) : V
Crcy : INR
Rank order : 1
House bank : SBI
Save
Save your request
Double click on bank accounts folder
House bank : SBI
Payment method : V
Crcy : INR
Account ID : SBI1
Bank sub account : 200105 (sbi c.a)
Save
Double click on available amounts folder
House bank : SBI
Account ID : SBI1
Days : 999
Crcy : INR
Available for outgoing payment : 500000
Save

Automatic payment program run:
Path: Accounting ------------- > Financial Accounting ---------- > Accounts Payable -----------
> Periodic processing -------------- > Payment (F110)
Run date : todays date

Identification : VSL1
Select parameter tab
Company code : VSL
Payment method : V
Next posting date : 18-6-2011
What is the importance of next posting date
1
st
run : 11-6-2011
Next posting run : 18-6-2011
Terms of payment:1
If we make payment within 10 days we get 3% cash discount due within 30 days.
System checks:
If we make payment on 11-6-2011 we get 3% discount
If we make payment on 18-6-2011 we get 3% discount
System will issue check in the next run i.e. 18-6-2011
Terms of payment2:
If we make payment immediately we get 3% cash discount due within 30 days
If we make payment on11-6-2011 we get 3% discount
If we make payment on 18-6-2011 nill
System will issue check in this run i.e. 11-6-2011.

Vendor : 4000201 to 4000300
Save
Select back arrow
Select proposal button
Select start immediately check box
Enter
Go on select enter
Till we get message
Payment proposal has been created
Select edit proposal button
Enter
Double click on vendor number
To block an invoice for payment double click on first bill amount
Payment block : A
Enter
Double click on second bill amount
Select relocated button
Payment method : V
House bank : SBI SBI1
Enter and save

We get a message payment proposal has been edited
Select pmnt run(payment run) button
Enter
Payment run has been carried out
For check printing select print out/ data medium tab
For the program : RFFOUS_C
Variant : V5
Select maintain variant button
Select for all selection screen radio button
Select continue button
Program run date : todays date
Identification feature : VSL1
Payment method : V
House bank : SBI
Account ID : SBI1
Check lot no : 2
Select print check check box
Printer : LP01
Select print immediately check box
Select print payment advice note check box
Printer : LP01
Select print payment summary check box
Printer : LP01
Number of sample print outs: 0
Select do not void any check check box
Select attributes button
Meaning : SBI dt 12-6-2011
Save
Select back arrow
Select save button
Once again select back arrow
To take check print
Select print out button
Bank Rank Amount
SBI 1 500000

IDBI 2 300000
When we run for printing select print out/data medium tab
For program RFFOUS_C Variant V5 Company code VSL
Business area VSLH
Payment method V
Bank SBI
Account ID SBI1
Check lot 2
Variant V6 Company code VSL
Business area VSLH
Payment method V
Bank IDBI
Account ID IDBI1
Check lot 1
Print job
Job name : (in place of?) V5
Enter
Enter once again
To view the check printing
From the menu bar select System --------- > Services ------------- > Output control
Select spool no check box 17200 for title check
Select display contents button

To view vendor account transaction (FBL1N)
Company code : VSL
Select clear items radio button
Clearing date : todays date
Double click on type KZ
Select call up document over view button
Enter
Form the menu bar select Environment ----------- > Check information
To view check register (FCHN)


CREDIT MEMO POSTINGS

We have made purchases from ABC India Ltd.
Material is not good
Return the material or reduce the agreed price

ABC Raises credit note on VSL VSL raises debit note on ABC
Document type: KG (Credit memo) (KA Vendor document)
I I
17 17
No need to give number range interval now
Path: Accounting ----------- > Financial Accounting --------- > Accounts Payable ------------ >
Document entry ----------- > Credit memo General (F-41)
Type : KG
Company code : VSL
Posting key : 21
Account : 4000201
Enter
Amount : 1000

Text : Credit memo posting
Pstky : 50
Account : 200120
Enter
Amount : *
Text : +
Document -------------- > Simulate and SAVE


ACCOUNT RECEIVABLE

This is also a sub ledger (subsidiary ledger)
When sales & Distribution (SD) module is not implemented this is used for scarp sales/
assets sales (other than product sales)
Entry for sales
Customer a/c dr Sub ledger
To sales General ledger
Our trail balance will not match in trail balance only general ledger accounts will appear.
When we save the above entry
Customer a/c dr Sub ledger Sundry debtors General ledger
To sales General ledger I
I
Reconciliation a/c or
Control account

Basic settings for accounts receivables:
1) Creation of customer account group.
We create 2 groups
i) Fi customer Scrap sales/Assets Reconciliation a/c
Sale parties Required entry field
ii) SD customer Product sales
Parties
2) Define no. Range for customer accounts
3) Assign number range to customer account groups
4) Creation of 2 GL masters
i) Sundry debtors current assets, loans & advances
ii) Sales account sales
5) Creation of customer masters
6) Document types and no. Ranges
DR customer Invoices
DZ customer payment
DA customer document for transfers/ Reversals
7) Posting key: 01 customer debit
15 customer credit
We test a scenario where vendor is a customer
ABC ABC
Sales 100000 purchase 100000
Purchase 20000 sales 20000
Net receivable 80000 Net payable 80000

When we receive / payment amount we have to clear vendors as well as customer
transactions.

Creation of customer account group:
Path: SPRO ----------- > Financial Accounting -------------- > Accounts Receivable and Payable -
--------- > Customer Accounts --------------- > Master Data ------------ > Preparation for crating
customer master data -------------- > Define accounts groups with screen layout (customers)
Name : Fi customer for VSL
Reconciliation account select required entry field
Save
Short Description: AR customization for VSL
Name : SD customers for VSL
Reconciliation account select required entry field
Save

Create number ranges for customer accounts: (XD1N)
customer master data -------------- > Create number ranges for customer accounts.
No : 11
From number : Select drop down button 3000601
To number : 3000700
Enter
No : 12
To number : 3000800
Enter and save

Assign no. Ranges to customer Account groups:
customer master data -------------- > Assign no. Ranges to customer Account groups
Enter
No. Range : 11
For group VSL2 assign no. Range 12
Save
Press enter save in your request.

Creation of 2 GL Masters: (FS00)
i) G/L account : 200110
Company code : VSL
G/L Account : 200150 (adv to vendors)
Company code : VSL
Enter
Change short text : Sundry debtors
GL long text : Sundry debtors
Recon.accont for account type : Customer (select from drop down button)
Sort key : 031 (customer no)
Select Crate / Bank / Interest tab
Field status group : G067
Save

ii) G/L account : 300000
Company code : VSL
G/L account : 300100 (exchange gain)
Company code : VSL
Enter
Account group : Sales
Change short text : Sales account
G/L long text : Sales account
Save


Creation of customer master:
Path: Accounting --------- > Financial Accounting ----------- > Accounts Receivable ------------ >
Master records ------------ > Maintain centrally ----------- > Crate (XD01)
Account group : Fi customers for VSL
Company code : VSL
Enter
Name : ABC India Ltd.
Country : IN
Vendor : 4000201
Select company code data button
Recon. Account : 200110 (sundry debtor)
Sort key : 031
Select payment transaction tab
Terms of payment : 0001
Save

Document type and number ranges: (OBA7)
Select type : DR
Number range : 18
Company code : VSL
No : 18
Year : 2011
To : 500000
Enter and save
Type : DZ (customer payment)
Number range : 14
Company code : VSL
No : 14

Year : 2011
To number : 600000
Enter and save
Type : DA (customer document)
Number range : 16
Select number range information button
Company code : VSL
No : 16
To number : 700000
Enter and save
Ignore the warning message.

END USER AREA
1) Sales invoice posting:
Path: Accounting ----------- > Financial Accounting ------------ > Accounts Receivable --------
--- > Document entry ------------- > Invoice General (F-22)
Document date : Todays date
Type : DR
Company code : VSL
Pstky : 01
Account : 3000601 (abc India ltd)
Enter
Amount : 500000
Text : Sales invoice posting
Pstky : 50
Account : 300000
Enter
Amount : *
Text : +


2) To view customer account transactions:
Path: Accounting ---------- > Financial accounting ------------ > Accounts Receivable ----------
> Account ----------- > Display / Change line items (FBL5N)
Customer account : 3000601
Company code : VSL
Select back arrow
To view vendor and customer transactions together
Select vendor items check box along with normal items

3) Incoming payment clearing vendor and customer transactions together:
i) Document type DZ should allow vendor transactions document type and number
ranges OBA7
When receivable amount is more: when payable amount is more
Select type DZ Select type KZ
Select details button Select details button
Bellow no. Range account Bellow no. Range account
Types allowed Types allowed
A Assets A Assets
D Customers Selected D Customers To selected
K Vendors To select K Vendors Selected
M Materials M Materials
S GL accounts Selected S GL accounts Selected
Normal entry Normal entry
Bank a/c Dr Vendor a/c Dr
To customer To Bank

i) Use the transaction code: OBA7
Select type : DZ (customer payment)
Select vendor check box
Save

ii) Incoming payment:
Path: Accounting ---------- > Financial accounting ------------ > Accounts Receivable ------
------- > Document entry ------------ > Incoming payments (F-28)

Type : DZ
Company code : VSL
Clearing text : Incoming payment
Bank data
Account : 200105 (sbi ca)
Amount : 497000
Text : Incoming payment
Open Items
Account : 3000601 (abc India ltd)
Account type : D (default)
D stands for customers
Select other accounts check box
Account type : K
Company code : VSL
Select standard open item check box
Account : 4000201
Double click on all open items
Select partial payment tab
Document ----------------- > Simulate and SAVE

To view customer account transactions: (FBL5N)
Company code : VSL
Select vendor items check box

ADVANCE RECEIPT FORM CUSTOMERS
(DOWN PAYMENT RECEIPTS FROM CUSTOMERS)

Sundry debtors sales advance advance form customers
(Assets side) receipt (liabilities side)
Receipt sales

Steps:
1) Creation of GL Masters advance from customers current liabilities & provisions

100502 advance from customers
2) Link between sundry debtors and advance from customers.

A advance (special GL indicator)
/ \
Sundry debtors Advance from customers
(Reconciliation account) (Alternative reconciliation account or special GL
account)
200110 sundry debtors 100502 advance from customers
3) Advance receipt posting
4) Sales invoice posting
5) Transfer of advance from special GL to normal by clearing special GL items
6) Clearing or normal items
Customer account
Normal account

Special GL items
1) Creation of GL master advance from customers: (FS00)
Company code : VSL
G/L account : 200110 (sundry debtors)
Company code : VSL
Enter
Change account group : Current liabilities & Provisions
Short text : Advance from customers
G/L long text : Advance from customers
Other fields are common
Select save

2) Link between sundry debtors and advance from customers:
Path: SPRO --------- > Financial Accounting -------------- > Accounts receivable and
Accounts payable ------------- > Business transactions --------------- > Down payment
received ----------- > Define reconciliation accounts for customer down payment (OBXR)
Double click on special GL indicator A
Enter
Recon. Account : 200110
Select save button


Advance receipt posting:
Path: Accounting ------------- > Financial Accounting ------------- > Accounts receivable ------
---------> Document entry ------------- > Down payment ------------- > Down payment (F-29)
Type : DZ
Company code : VSL
Customer
Account : 3000601
Special G/L indi. : A
Bank
Account : 200105 (sbi ca)
Amount : 75000
Text : Advance receipt posting
Enter
Amount : *
Text : +

Company : VSL
Select special GL transactions check box

Sales invoice posting: (F-22)
Type : DR
Company code : VSL
Pstky : 01
Account : 3000601
Enter
Amount : 75000
Pstky : 50
Account : 300000 (sales a.c)

Enter
Amount : *
Text : +
Document ------------- > Simulate and SAVE

Company code : VSL
Select back arrow
Select special G/L transactions along with normal items

Transfer of Advance from special GL to Normal by clearing special GL Items:
Path: Accounting ------------- > Financial accounting ----------- > Accounts receivable --------
-- > Document entry -------------- > Document payment -------------- > Clearing (F-39)
Company code : VSL
Customer
Account : 3000601
Text : Down payment clearing
Select process down payments button
Transfer posting : 75000
Save

Company code : VSL
Select back arrow
Clearing of normal items:
Path: Accounting ------------ > Financial Accounting ----------------- > Accounts receivables --
------------- > Account ---------- > Clear (F-32)

Account : 3000601
Company code : VSL
Select process open items radio button
Double click on debit 75000
Double click on credit 75000
Save
Company code : VSL
Select cleared item radio button

BILL DISCOUNTING
Companies will have 2 types of working capital limits with their bank
FUND BASED NON FUND BASED
(Amount will be given physically (Amount will not be given by bank)
By bank)
i) Cash credit against local sales i) Bank Guarantee (BG)
order
ii) Packing credit against export ii) Letter of Credit (LC)
sales orders Security: First charge on current assets
iii)Bank overdraft second charge on Fixed assets
iv)Bank bill discounting

Sales on 28-3-2011 terms of payment 90 days credit
I
Customer will make payment only on the due date i.e., before 26
th
June 2011
I
VSL required amount immediately discount bill with their bank on 28-3-2011 bank credits
amount immediately they charge 90 days interest from VSL
I
On due date bank will collect from customer
I
Customer makes payment Customer does not make payment to bank.
To bank Bank will collect from VSL we are finalising our
No Liabilities to VSL accounts for 31
st
March 2011 on 15-6-2011 today
We dont know whether the customer will make
Payment to bank for the bill or not
This type of liabilities we call it as contingent
Liabilities, Liability is uncertain in annual accounts

This will be shown in notes to accounts under
Contingent liabilities bills discounted with banks

Normal accounting SAP
1) Sales
Customer a/c Dr 50000 Customer a/c Dr 50000
To sales 50000 (sundry debtors)
To sales 50000
2) Bill of exchange payment
No entry Customer Special G/L (W) Dr 50000
(Sundry debtors bill of exchange)
To customer with CLRG 50000
(Sundry debtors)

3) Bill discounting
Bank a/c Dr 49000
Interest a/c Dr 1000
To bank bill 50000 Bank a/c Dr 49000
(Discount) Interest a/c Dr 1000
To Bank bill 50000
(Discount)

4) Report to view customer wise, Bill wise, Due date wise and Bank wise outstanding:
Not available Available in SAP
5) Reverse contingent liability
Bank bill Bank bill discount Dr 50000
Discount a/c Dr 50000 (with clearing)
To customer 50000 to customer SPL GL (W) 50000
(With clearing)
Sundry debtors bill of exchange
Presentation in SAP
Sundry debtors
Sundry debtors=
Sundry debtors bill of debit net amount
Exchange bank credit Zero
Bill discounting
Or
Dont assign the above 2 accounts in balance sheet they are required only for notes to
accounts
SBI IDBI
Limits 200000 300000

Already discounted -120000 -295000
80000 5000
Bank bill discounting -50000
30000 5000
Customer payment to bank 50000
80000 5000
Customer account
Normal items
1 50000 2 50000
Special GL Items
2 50000 5 50000
SBI Bill discounting
5 50000 3 50000

Creation of 2 GL masters: (FS00)
i) Sundry debtors bill of exchange current assets, Loans & Advances
ii) SBI bill discount secured loans

1) FS00
GL account : 200111
Company code : VSL
Company code : VSL
Enter
Short text : Sundry debtors (B/E)
G/L acct. Long text : Sundry debtors (Bill of exchange)
Save

2) G/L account : 100302
G/L account : 100300 (SBI rupee term loan)
Enter
Short text : SBI bill discount
G/L acct. Long text : SBI bill discount
Select open item management check box
Select create /bank / interest tab
Select post automatically only check box
Save


Link between sundry debtors and sundry debtors bill of exchange:
Path: SPRO ------------ > Financial Accounting ------------- > Bank Accounting ------------- >
Business transactions ---------------- > Bill of Exchange transactions ------------- > Bill of
Exchange receivable --------------- > Post bill of exchange receivable -------------- > Define
reconciliation account for bill of exchange receive (OBYN)
Double click on SPL GL indicator : W
Enter
Recon. Account : 200110
Save or crtl s

Link for bank current account, sundry debtors account and Bank bill discounting
account:
Path: SPRO ------------ > Financial Accounting ------------- > Bank Accounting ------------- >
Business transactions ---------------- > Bill of exchange transactions ------------- > Bill of
Exchange receivable --------------- > Post bill of exchange receivable -------------- > Present
bill of exchange receivable at bank -------------- > Define bank sub accounts (OBYK)
Bank account : 200105 (sbi ca)
Usage : select discounting
SGLI special GL indicator : W
Customer racon.ac : 200110
Bank sub account for liability : 100302 (sbi bill disc a/c)
Save

END USER AREA
1) Sales invoice posting: (F-22)
Type : DR
Company code : VSL
Pstky : 01
Account : 300060
Enter
Amount : 50000
Payt. Term : NT30 (net 30)

Enter
Press enter
Pstky : 50
Account : 30000 (sales a/c)
Enter
Amount : *
Busi.Area : VSLH
Text : +
Document -------------- > Simulate and SAVE

2) Bill of exchange payment:
Path: Accounting ---------- > Financial Accounting ----------- > Accounts Receivable ----------
--- > Document entry -------------- > Bill of exchange ------------ > Payment (F-36)
Type : DZ
Company code : VSL
Pstky : 09 (Special G/L debit)
Account : 3000601
SGL indicator : W
Enter
Amount : 50000
Text : Bill of exchange payment
Bus. Area : VSLH
Due on : 15-7-2011
Planned usage : Select discount
Domicile : SBI
Cent. Bank loc : Main branch, Hyderabad
Select choose open items button
Double click on receivable amount 50000
Document ----------- > Simulate and SAVE.

3) Bill discounting:
Path: Accounting --------------- > Financial Accounting ------------- > Accounts receivable ----
---------- > Document entry ------------- > Bill of exchange ------------- > Discounting (F-33)
Type : DA
Company code : VSL
Bank account : 200105 (sbi ca)
Busi. Area : VSLH

Amount : 49000
Text : SBI bill discounting
Pstky : 40
Account : 400400 (interest ac)
Enter
Amount : 1000
Bus. Area : VSLH
Text : +
Press select bill of exchange button
Document no : 500003

4) Report to view customer wise, bill wise, due date wise and bank wise outstanding:
Path: Accounting --------------- > Financial Accounting ------------- > Accounts receivable ----
---------- > Periodic processing -------------- > Bill of exchange processing ------------ > Korea
-------------- > Bill of exchange Management (S_ALR_87012213)
G/L account : 200111 (sundry Dr. Bill of exchange)
Company code : VSL
Special G/L Indicator : W
Usage : D (discounting)
Select discounted / collected radio button
Select current layout button
Keep the fields Due date Document date
Document no. Domicile
Customer Amount in local currency
Received from
Select copy button

5) Reverse contingent liability:
Path: Accounting ------------- > Financial Accounting ------------- > Accounts receivable ------
------ > Document entry ------------- >Bill of exchange ------------- > Reverse contingent
liability (F-20)
Type : DA
Company code : VSL
G/L account : 200111 (sundry dr. Bill of exchange)
Usage : select discounting
Due by : 31-7-2011

Customer : 3000601
Select edit line items button
Press enter
Select drop down button for command column
Select + set items to active
Save
Document ------------ > Display
If the bill is dishonoured:
The contingent liability become actual liability
Here also we have to reverse contingent liability and pass in (F-22)
Customer a/c dr sundry debtors
To SBI current a/c

Symbols:
+ set items to active
++ set items in block to active
- set item inactive
- - set items block to inactive
Eg: customer made payment to bank for bill no. 2,3 and 4
Customer ABC India Ltd.
Bill no or or
1 -
2 + ++
3 +
4 + ++
5

Eg: customer made payment to bank to bank for bill no 1 and 5
Customer ABC India Ltd.
Bill no or or
1 +
2 - - -
3 -
4 - - -
5 +


DUNNING (REMINDER)
If the customer does not make the payment as per terms of payment we can issue dunning
letters from SAP
We are not programmer we use system given letter formats

Terms used in dunning:
1) Dunning area: Dunning are can be company code as a whole region / location
Big companies: separate marketing head for each region the marketing head wants to
issue dunning letters only to his region customers. In this case dunning area will be
region
Small companies: on marketing head for the company code as a whole in this case
dunning area will be company code.
2) Dunning Levels: type of letters max 9 levels, we are using 4 levels
3) Dunning intervals or frequency: at what frequency we want to send the letters. Every 10
days
4) Grace period: 3 days
Eg: sale on 17-6-2011 terms of payment 0001 payable immediately due net
1
st
letter 2
nd
letter 3
rd
letter 4
th
letter
After20-6-11 after 30-6-11 after 10-7-11 after 20-7-11
Dunning charges:
For sending the letters we can collect dunning charges in the letters.
It can be amount or percentage
It can be level based
It will be shown only in the letter and it will not be posted to accounts.

1) Define dunning area:
accounts payable ------------- > Business transactions --------------- > Dunning ------------- >
Basic settings for dunning ------------- > Define dunning area.
Company code : VSL
Area : Blank
Text : Dunning area for VSL
Save
Save in your request.

Define dunning procedure:
accounts payable ------------- > Business transactions --------------- > Dunning ------------- >
Dunning procedure ------------ > Define dunning procedure (FBMP)

Dunn. Procedure : VSL
Name : Dunning procedure for VSL
Dunning interval in days : 10
No. Of dunning levels : 4
Line item grace period : 3
Interest indicator : 01
Select standard transaction dunning check box
Select dunning texts button
Company code : VSL
Select customer radio button
Enter
Deselect dunning by dunning area check box
Select separate notice per dunning level check box
Select yes button
Company code : VSL
Enter
Open one more session with tr. Code FBMP
Double click on procedure 0001
Company code : 0001
Enter
Come to the first session
Dunning level : 1
Form : F150_DUNN_01
Dunning level : 2
Form : F150_DUNN_01
Page down
Dunning level : 3 & 4
Form : F150_DUNN_02
Select dunning levels button
Select always dun? Check box for all four levels
Select changes button
Currency : INR
Enter

Select back arrow
Save

Assign dunning procedure in customer master: (XD02)
Path: Accounting ------------- > Financial Accounting -------------- > Accounts receivable -----
------ > Master records -------------- > Maintain centrally ---------------- > Change (XD02)
Customer : 3000601
Company code : VSL
Enter
Select company code data button
Select correspondence tab
Dunn. Procedure : VSL select
Select save

END USER AREA

1) Sales invoice posting: (F-22)
Document date : 12-6-2011.
Type : DR
Account : 3000601
Enter
Amount : 80000
Bus. Area : VSLH
Text : sales invoice posting
Pstky : 50
Account : 300000 sales
Enter
Amount : *
Bus. Area : VSLH
Text : +
Document ------------ > Simulate and save.

2) Dunning:
Accounting ----------- > Financial Accounting -------------- > Accounts receivable ------------ >
Periodic processing ---------------- > Dunning (F-150)
Run on : todays date
Identification : VSL1
Select parameter tab

Dunning date : todays date
Documents posting up to : todays date
Company code : VSL
Customer : 3000601 to 3000700
Save
Select back arrow
Select scheduled button
Output device : LP01
Select stat immediately check box
Select scheduled button
Dunning selection is completed
Select dunning print out button
Output device : LPO1
Select print button
Dunning print out is complete
Select dunning history button
Company code : VSL
Keep the cursor on amount
Select display dunning notice button
Keep the cursor on document no.
Select print preview button
Output deviece : LP01

3) To view customer master: (XD02)
Enter


SALE TAX

Purchase: local purchase with in state purchases VAT purchases, LST purchases
Outside state purchases CST purchases
Sales: local sales within state sales, VAT sales or LST sales outside state sales CST sales
Vat means: value added tax
LST means: local sales tax
CST means: Central sales tax
Sales tax is part of CIN (CIN stands for country India version)

Purchase Sales
Local Outside Local Outside
Basic price 100 100 500 500
Excise 8 8 50 50
Basic + Excise 108 108 550 550
VAT 4.32 79.75
CST 2.16 11
112.32 110.16 629.75 561

Credit vat added to debit vat cst
Receivable inventory payable payable
Payment to sales tax department:
1) Local sales Local purchase 79.75 4.32 = 75.43
2) Local sales cst purchases 79.75 0 = 79.75
3) Cst sales local purchases 11.4 3.2 =6.68
4) Cst sales cst purchases 11 0 = 11
When we purchase locally tax paid can be adjusted against tax payable on local
sales/outside state sales
When we purchase from outside state tax paid cannot be adjusted against tax
payable on local sales / outside state sale
1) Purchase from Andhra vendor
He makes payment to Andhra govt. Andhra Govt.

Sales to Andhra customer
Tax paid by the customer to VSL
VSL makes payment to Andhra Govt. Andhra Govt.

Sales to tamilnadu customer

2) Purchase from Karnataka vendor Karnataka Govt.
Tax paid by VSL to Karnataka vendor
He makes payment to Karnataka Govt.

Sales to Andhra customer Andhra Govt.
VSL makes payment to Andhra Govt.

Sales to tamilnadu customer
Tax paid on purchases from Karnataka cannot be adjusted
Excise rates based on products
In central excise we have act / rules / tariff
In central excise tariff rates are given for chapter ID
8 digits code
Chapter ID : 52000000
Product : Textiles
Rate : 8%
Central excise will be covered in the end
Now we are testing without central excise

1) Define tax procedure:
Path: SPRO ------------- > Financial Accounting ---------- > Financial Accounting Global
setting ----------- > Tax on Sales/Purchase ------------- > Basic settings --------------- > Check
calculation procedure --------------- > Double click on Define procedure.
Procedure : VSL TAX
Description : Sales tax India
Save
Select VSL TAX
Double click on control data tab folder

Step Condition type Description from To Acct. Key
10 BABS Base amount
20 MWVS Input tax 10 10 VST (input tax)
30 MWAS Output tax 10 10 MWS (output tax)
Save

Assign country to calculation procedure:
setting ----------- > Tax on Sales/Purchase ------------- > Basic settings -------------- > Assign
country to calculation procedure
Country : IN
Enter
For country IN assign procedure VSL TAX
Save

Define tax codes for sales and purchases: (FTXP)
setting ----------- > Tax on Sales/Purchase ------------- > Calculation -------------- > Define tax
code for sales and purchases.
Country : IN
Enter
Tax code : V1
Enter
Tax code : 4% input tax
Tax type : V (input tax)
Enter
Input tax tax percent rate : 4
Keep the cursor on output tax, tax percent rate select deactivate line button
Save
Tax code : V0 (zero): 0% input tax
Enter
Tax type : V (input tax)
Enter
Input tax tax percent rate : 0
Keep the cursor on output tax, tax percent rate
Select deactivate line button
Save

Tax code : A1
Enter
Tax code : 14.5% (output tax)
Tax type : A (output tax)
Enter
Output tax tax percent rate : 14.5
Keep the cursor on input tax, tax percent rate

Save

Tax code : A0 (zero)
Enter
Tax code : 0% (output tax)
Tax type : A output tax
Enter
Output tax tax percent rate : 0
Keep the cursor on input tax tax percent rate
Save

Assign tax codes for non taxable transactions: (OBCL)
setting ----------- > Tax on Sales/Purchase ------------- > Posting --------------- > Assign tax
code for non taxable transactions (OBCL)
Company code : VSL
Enter
For company code VSL Input tax code : V0
Output tax code : A0

Save

Creation of GL Masters: (FS00)
1) Vat payable current liabilities & Provisions
2) Vat receivables current assets, loans & Advances

FS00:
GL account : 100505
Company code : VSL
G/L account : 100500 (outstanding exp)
Company code : VSL
Enter
Change short text : Vat payable
G/L acct. long text : Vat payable
Tax category : * (all tax types allowed)

Select posting without tax allowed check box
Field status group : G041 (tax office clearing accts)
Save

GL account : 200155
Company code : VSL
G/L account : 100505 (tax payable)
Co.code : VSL
Enter
Select type / description tab
Account group : Current assets loans & Advances
Short text : Vat receivable
G/L acct long text : Vat receivable
Save

G/L account : 300000 (sales ac)
Co. Code : VSL
From the menu bar select G/L account ------------ > Change
Save
GL account : 200120 (inventory RM)
From the menu bar select GL account ------------ > Change
Save
Press enter

Assign of accounts for automatic postings: (OB40)
Path: SPRO ------------- > Financial Accounting --------------- > Financial accounting global
settings --------------- Tax on sales / purchases ---------------- > Posting ------------ > Define
tax accounts (OB40)

Double click on transaction VST input tax
Enter

Save
Account : 200155 (vat receivable)
Save
Select back arrow
Double click on transaction MWS output tax
Save
Account : 100505 (vat payable)
Save

In live environment, Fi consultant job
Creation of tax procedure
Creation of tax codes
Creation of GL accounts
Assignment of GL accounts

In MM module:
Purchase order Vendor no. 100001 material no.RM1
Qty 1 kg
Rate 100 Rs
Tax code V1

Goods receipt
Base amount 100 inventory RM a/c
Input tax V1 4% 4 account key VST 200155 vat receivable
Vendor credit 104

In SD module:
Sales order customer no. 500001
Material no. FGI
Qty 1 kg
Rate 500 Rs
Tax code A1

Delivery:
Base amount 500 sales
Output tax A1- 14.5% 72.5 account key MWS 100505 vat payable
Customer debit 572.50

Fi sales: direct posting
Customer a/c dr 572.5
To sales 572.5
When we simulate and save it posts
Customer a/c dr 572.5
To sales 500
To vat payable 72.5

END USER AREA
Sales invoice posting: (F-22) / FB70
Type : DR
Co. Code : VSL
Pstky : 01 (customer dr)
Account : 3000601
Enter
Amount : 572.50
Select calculate tax check box
Text : sales invoice posting
Pstky : 50
Account : 300000 (sales)
Enter
Amount : *
Tax code : A1 (14.5% output tax)
Text : +
From the menu bar select document -------------- Display


ASSET ACCOUNTING

This is also a sub ledger (subsidiary ledger)
1) Chart of depreciation:
All asset accounts customization steps will be made to chart of depreciation and chart of
depreciation will be assigned to company code/ Codes
We cant create chart of depreciation directly we have to copy existing chart of
depreciation and create.
We copy either Germany chart of depreciation or Indian chart of depreciation and create
our chart of depreciation

2) Depreciation area:
Book depreciation posting to accounts
Income tax depreciation
Costing depreciation for information / report
Group depreciation

3) Depreciation method
i) Straight line depreciation method (SLM)
Every year depreciation will be calculated on purchase cost.
Eg: asset purchase cost 100000
Depreciation 5%
1
st
year depreciation 100000 X 5% =5000
2
nd
year depreciation 100000 X 5% = 5000
ii) Written down value method or declining balance depreciation method (WDV)
Depreciation will be calculated on net book value every year
Eg: asset purchase cost 100000
Depreciation 5%
1
st
year depreciation 100000 x 5% = 5000
Net book value in the year end 100000 500 =95000
2
nd
year depreciation 95000 x 5% = 4750

4) Depreciation keys:
Rate + method
5% straight line depreciation key
5% written down value depreciation key

5) Posting key:
70 debit assets
70 credit assets


6) Transaction types:
100 External asset acquisition
110 In house production
210 Retirement with revenue (consideration)
250 Retirement without revenue (scrapping)
Eg: debit an asset
Asset debit can be due to external acquisition/ In house production / Inter unit transfer /
Intercompany transfer
By seeing the transaction type we can find out how the asset debit has come.

7) Asset accounting rules:
i) Sub asset master is to be created with reference to main asset master
ii) Main asset master is to be created with reference to asset class
iii) Account determination is specified in asset class
iv) For account determination we assign GL accounts based on the nature of
transactions.
Eg:
Account asset class main asset sub asset
Determination masters masters
i) Purchase 1) Land i) Free hold
200000 ii) Lease hold
Plant & Machinery 2) Buildings i) Factory
ii)Non factory

ii) Sale i) Dept A machinery motor
10-8-2006 22-6-2011
iii) profit on asset 3) Plant & ii) ii) Dept B
Sale machinery iii) Dept C
iv) Loss on asset
sale
v) Loss due 4) Furniture & i) Furniture &
To scrapping fixtures fixtures

vi) Depreciation ii) Office equipment

vii) Accumulated 5) Vehicles i) heavy vehicles
Depreciation ii) other
iii)General

6) Capital work i) Expansion 1
In progress ii) Expansion 2

When the items are called account determinations:
These items will decide to which GL accounts to be posted automatically
Additions to specify machines will be created as sub masters
Main asset will have always sub number zero

Main asset Sub asset
Machine 1 1- 0
Motor 1- 1
Additions 1- 2
To machine 1
When we want to see machine 1 with values we give 1- - 0
When we want to see motor with values we give 1- - 1
When we want to see machine 1 with additions we give 1
Eg: 1) purchase of Motor
Motor a/c Dr sub ledger 200000 plant & General ledger
1- - 1 Machinery
To bank General I
Ledger I
I
Reconciliation
Control a/c
Copy reference chart of depreciation / depreciation areas:
Path: SPRO ----------- > Financial Accounting ----------- > Asset accounting -------------- >
Organizational structures ------------ > Copy reference chart of Depreciation /
Depreciation areas.
Double click on
Copy reference chart of depreciation (EC08)
From the menu bar select Organi. Object------------- > Copy org. Obj
From chart of depreciation : 1IN (sample chart of depreciation India)
To chart of depreciation : VSL
Enter
Short description : Asset customization of VSL
Enter
We get a message chart of depreciation 1 IN coped to VSL
Enter
Select back arrow
Double click on specify description of chart of description

Chart of dep. : VSL
Enter
Change description : Chart of dep. For VSL
Save
Select back arrow
Double click on
Copy / Delete depreciation areas
Chart of depr. : VSL
Enter
Select dep. Area 20, 31, 32, 41, 51
From the menu bar select Edit ----------- > Delete.
Save

Assign chart of depreciation to company code:
Path: SPRO -------- > Financial Accounting ----------- > Asset accounting -------------- >
Organizational structures ------------ > Assign chart of depreciation to company code
Company code : VSL
Enter
For company code VSL assign chart of dep. VSL
Save or crtl + S

Specify account determination:
Organizational structures ------------ > Asset classes ------------ > Specify account
determination
Acct. Determination Name of account determination
VSL10000 LAND
VSL11000 BUILING
VSL20000 PLANT & MACHINERY
VSL30000 FURNITURE & FIXTURES
VSL31000 VEHICLES
VSL40000 CAPITAL WORK IN PROGRESS
Save


Create screen lay out rules:
Organizational structures ------------ > Create screen lay out rules
Select first 6 layouts
Select copy as button

Screen layout Name of screen layout
Change VSL1 LAND
VSL2 BUILING
VSL3 PLANT & MACHINERY
VSL4 FURNITURE & FIXTURES
VSL5 VEHICLES
VSL6 CAPITAL WORK IN PROGRESS
Enter and save

Define number range intervals:
Path: SPRO -------- >Financial Accounting ----------- > Asset accounting -------------- >
Organizational structures ------------ > Define number range intervals
Company code : VSL
No. Range : 01
From no. : 1
To no : 100000
Enter
Select interval button once again
No. Range : 02
From no. : 100001
To no. : 200000
Enter
No. Range : 03
From no. : 200001
To no. : 300000
Enter
No. Range : 04
From no. : 300001
To no. : 400000
Enter

No. Range : 05
From no. : 400001
To no. : 500000
Enter
No. Range : 06
From no. : 500001
To no. : 600000
Enter and save

Define asset classes:
Path: SPRO -------- >Financial Accounting ----------- > Asset accounting -------------- >
Organizational structures ------------ > Define asset classes
Asset class : VSL1000
Description : Free hold land
Short text : Free hold land
Account determination : VSL10000
Screen layout rule : VSL1 land
No. Range : 01
Select include asset check box
Select no. Auc or summary management of Auc radio button
Auc stands for Asset under construction
Save or crtl + s

Description : Factory building
Short text : Factory building
Screen layout rule : VSL2 Buildings
No. Range : 02
Save


Description : Dept A
Short text : Dept A
Screen layout rule : VSL3 (plant and machinery)
No. Range : 03

Description : Dept B
Short text : Dept B
Screen layout rule : VSL3 (plant and machinery)
No. Range : 03

Description : Furniture & Fixtures
Short text : Furniture & Fixtures
Screen layout rule : VSL4
No. Range : 04

Description : Vehicles & Others
Short text : Vehicles & Others
No. Range : 05

Description : Capital work in progress - General

Short text : CWIP - General
No. Range : 06
De Select include asset check box
Select line item settlement radio button
Save
1) Select include asset check box under inventory data.
Here inventory means Fixed assets inventory
Whatever assets we create under this class should be include in fixed assets inventory list
As per companies auditors, report order (CARO) auditor has to specify in audit report
whether fixed assets have been physically verified by the management or not small
companies in a phased manner.
When we create an asset master there is a field called last verification date.
Asset no. Last verification date.
1 31-3-2010
2 31-3-2010
3 31-3-2010
4 31-3-2010
5 31-3-2010
In the report we give
Verification date : 1-4-2010 to 31-3-2011
We get a list of assets physically verified during the year 2010 11
Asset no Last verification date
2 31-3-2011
3 31-3-2011
5 31-3-2011

2) Line item settlement for capital work in progress asset class:
Machine no 1 debit to capital
1-6-2011 work in progress

Fright payment:
10-6-2011 asset is ready for use on 23-6-2011 as Machine 1 in dept A
Commissioning charges 23-6-2011 settle capital work in progress line item wise to mach
line 1
We have not selected include asset check box for this class next year mach line no1 can
be verified in dept A and not in capital work in progress


Define screen layout for asset master date:
Path: SPRO ----------- > Financial accounting ------------- > Asset accounting -------------- >
Master data ------------ > Screen layout ---------------- > Define screen layout for asset
master data
Double click on
Define scr. layout for asset master data.
Select layout VSL 1 land
Double click on logical field group folder
Select 2 posting information
Double click on fields group rules folder
Capitalization date select required entry radio button
Select Mn. No check box
Select sub number check box
Select copy check box
We have created screen layout VSL1 land by copying layout 1000 afterwards we are
creating a layout XYZ by copying layout VSL1 whatever fields we have selected for VSL1
should be copied to XYZ also.
Select save button or Crtl + s

Select back arrow
Select 3 times dependent data
Double click on fields group rules folder
Cost centre select optional entry field
Select main check box
Select sub no. Check box
Business area select required entry field
Select Main. No check box
Select sub no. Check box
Save
Select layout
The same procedure is to be followed for layout VSL2 buildings,VSL3 Plant & Machinery,
VSL4 Furniture & Fixtures, VSL5 vehicles and VSL6 capital work in progress.

Define screen layout for asset depreciation areas: (A021)
Master data ------------ > Screen layout ---------------- > Define screen layout for asset
depreciation areas

Select screen layout 2000 depreciation on asset sub no. level
Double click on field group rules folder
Depreciation key select required entry field
Deselect class check box
Select Mn.no check box
Select Sub.no check box
Save

Determine depreciation areas in the asset class:
Valuation -------------- > Determine depreciation areas in the asset class
Chart of depreciation : VSL
Enter
Select asset class VSL1000 (free hold land)
Double click on depreciation areas folder
For area 01 deselect deactivation check box
Layouts select 2000 (depreciation on asset sub no. level)
For area 15 assign layout 2000
For area 30 assign layout 2000
Save
Select back arrow
The same procedure is to be followed for layout VSL 1100
VSL 2000
VSL 3000
VSL 3100
VSL 4000
1) For asset class VSL1000 land and VSL4000 capital work in progress no depreciation
should be calculated
When we create an asset master there is a field called capitalization date.
Capitalization date : land purchase date or Regn date capital work in progress we give
expansion start date
Depreciation rate : 0%
2) Select layout 2000 depreciation on asset sub number level
Main no Sub no. Capitalization date
Machine 1 1- - 0 10-8-2006
Motor 1- - 1 24-6-2011

Create of 15 general ledger masters: (FS00)

Account number Account number Parameters to maintain
to create to copy
1) 200000 Land 200110 i) Fixed Asset account group
2) 200005 Building 200000 Land ii) Range 200000 200099
3) 200010 Plant & Machinery 200000 iii) Reconciliation a/c for acct
4) 200015 Furniture & Fixtures 200000 type: Asset
5) 200020 Vehicles 200000 iv) Sort key: 018
6) 200025 Capital work in pro. 200000 v) Field status group G067

7)100200 Accumulated depr. 200000 i) Accum. Depr. account group
Building ii) Range 100200 100299
8)100205 Accumulated depr. 100200 iii) Reconciliation a/c for acct
Plant & Machinery type: Asset
9)100210 Accumulated depr. 100200 iv) Sort key: 018
Furniture & Fixtures v) Field status group G067
10)100215 Accumulated depr. 100200
Vehicles

11) 300102 Asset sale 300100 Ex.gain i) other income account group
ii) Range 300100 300199
iii) Sort key: 018
iv) Field status group G052
accounts for fixed asset
retirement
12)300103 Profit on asset sale 300100 Ex.gain i) other income account group
ii) Range 300100 300199
iii) Sort key: 018
General

13)400302 Loss on Asset sale 300103 profit i) administration account group
14)400303 Loss due to scrapping 400302 loss on ii) Range 400300 - 400399
asset iii) Sort key: 018
General
15)400500 Depreciation 400302 loss on i) Depreciation account group
asset ii) Range 400500 400599
iii) Sort key: 018
iv)Field status group G001
General


Assign of account for automatic postings:
Path: SPRO ------------- > Financial Accounting ------------ > Asset Accounting ------------- >
Integration with the general ledger ---------------- > Assign G/L accounts (AO90)
Chart of depreciation : VSL
Enter
Double click on account determination folder
Select account determination VSL 10000 Land
Double click on balance sheet account folder
Acquisition: Acquisition and production costs : 200000 land
Loss made on asset retirement w/o(without) reven : 400303 loss due on sales
Clearing account revenue from asset sale : 300102 asset sale a/c
Gain from asset sale : 300103 profit asset sales
Loss from asset sale : 400302 loss asset sale
Press enter save

Select account determination VSL11000 buildings
Acquisition: Acquisition and production costs : 200005
Press enter save

Double click on depreciation folder
Acc.depreciation account for ordinary depreciation : 100200
Expense account for ordinary depreciation : 400500
Save

Select account determination VSL20000 Plant & Machinery

Press enter save

Save

Select account determination VSL30000 Furniture & Fixtures
Press enter save

Save

Select account determination VSL31000 Vehicles
Press enter save


Save

Select account determination VSL40000 Capital work in progress
Press enter save

Specify document type for posting of depreciation:
Integration with the general ledger ---------------- > Post depreciation to the general
ledger ----------- > Specify document type for posting of depreciation
Double click on define document types (OBA7)
Select type AF depreciation posting
No.Range : 04
Company code : VSL
No. Range : 04
Year : 2011
To number : 800000
Select EXT check box
Enter and save
Press enter

For depreciation posting for : AF (document type)
04 2011 700001 800000 select external check box
As per ECC6 documentation we should not select external check box for old version like
4.7EE we have to select external check box.


For earlier version why to select:
When we post document we post 1 document at a time whereas in case of depreciation
postings, system will post a time number of documents for each month based on
depreciation accounts assignment for account determinations.

VSL 10000 Land
VSL 11000 Buildings
VSL 20000 Plant & Machinery
VSL 30000 Furniture & Fixtures
VSL 31000 Vehicles
VSL 40000 Capital work in progress

700001 Depreciation a/c Dr
To Accumulated depreciation Buildings
To Accumulated depreciation Plant & Machinery
To Accumulated depreciation Furniture & Fixtures
To Accumulated depreciation Vehicles

Specify intervals and posting rules:
Integration with the general ledger ---------------- > Post depreciation to the general
ledger ----------- > Specify intervals and posting rules
Select company code : VSL
Double click on posting rules folder
Select monthly posting radio button
Save

Specify rounding of net book value and/or depreciation:
Path: SPRO ------------- > Financial Accounting -------------- > Asset accounting ------------- >
Valuation --------------- > Amount specifications (company code / depreciation area) ------
-------- > Specify rounding of net book value and / or depreciation
Double click on rounding specification folder
Select area 01 book depreciation
Select arithmetic rounding radio button

Select automatic calculated depreciation check box
Save

Depreciation keys creation (Rate + Method):
5% SLM
5% WDV
1) Define base methods
2) Define declining balance method
3) Define multilevel method
4) Maintain period control method
5) Maintain depreciation key

First 4 steps will be assigned in 5
th
step and 5
th
step will be assigned in asset master

1. Define base methods:
Depreciation ------------ > Valuation Methods --------------- > Depreciation key ---------- >
Calculation methods -------------- > Define base methods
0014 Ordinary: explicit percentage (after end of life)
Ordinary depreciation
Percentage given in companies act should XIV
Once the net book value becomes zero no depreciation will be calculation
Assign acquired in 1991 100000
Rate of depreciation 5%
Accumulated depreciation for
20 years 5000 per year 100000
Net book value 0
No depreciation will be calculated

2. Define declining balance method:
Calculation methods -------------- > Define declining balance method
Chart of depreciation (Ch. Dep.) : VSL
Enter
001:
In some countries:
Acquisition value 100000
Maximum percentage 20
Decimal factors 2

1
st
year 5
2
nd
year 5
3
rd
year 5
4
th
year 5 20
First 4 years 100000 X 5% X98%
5
th
year onwards 100000 X 5%

3. Define multilevel method:
Calculation methods -------------- > Define multilevel method
Multi level method : V1
Depreciation : 5% SLM
Validity start : From ordinary depreciation start date
Save

Double click on levels folder
Acq.year : 9999
Year : 999
Periods : 12
Base value : 01 (acquisition value select)
Percent : 5
Save
Multi level method : V2
Description : 5% WDV
Validity start : From ordinary depreciation start date
Save
Double click on levels folder
Acq.year : 9999
Year : 999
Periods : 12
Base value : 24 (net book value select)
Percent : 5
Save


1) Validity start from ordinary depreciation start date in India from the date of capitalization
In some countries next month 1
st

When we create asset masters there will be 2 fields
India some countries
i) Capitalization date 27-6-2011 27-6-0211
ii) Ordinary depreciation 27-6-2011 1-7-2011
Start date
2) Acquisition year 9999 (any year)
If we give acquisition year 2011 - 5% rate is applicable for the assets acquired in year
2011 every year we have to create multilevel methods when we give year 9999 it is
available for all years
3) Years 999 (max no. Of years)
i) In case of 5% SLM method 100/5 =20 years
ii) In case of 1% SLM method 100/1 =100 years
iii) In case of 5 % WDV rate ?
iv) In case of 1% WDV rate ?
We are giving max. no. of years 999
Though we have given 999 years depreciation will not be calculated for 999 years in
define base methods we have specified once the net book value becomes zero dont
calculate depreciation
4) Periods 12 no. Of months in a year
5) Base value 01 acquisition value SLM asset
24 net book value WDV asset
6) Percentage 5 rate of depreciation
7) Reduction
Scrap value 1% 1000
99000
Cumulate depreciation at 5 % on 99000 till accumulated depreciation reaches 99000
8) REM life depreciation calculation 2 ways
Percentage useful life
Method method
India asset acquired 2006
Purchase cost 100000
Life 20 years
Depreciation p.a 5000
An existing company going for SAP in year 2011
depreciation calculated outside SAP up to 31-3-2011
select REM life check box in asset master creation give
life of asset 15 years.


Maintain period control method:
Calculation methods -------------- > Maintain period control method
Pre.c.meth (period control method) : 006
Description : VSL period control method
Acq. Year (acquisition year) : 01 (pro rate at period start date)
Additions in the next year (add) : 01 (pro rate at period start date)
Retirement year : 01 (pro rate at period start date)
Transfer year (trn) : 01
Save

Maintain depreciation key:
Calculation methods -------------- > Maintain depreciation key
Dep. Key : VSL1
Description : 5% straight line depreciation method
Select period control according to fiscal year check box
Select depreciation to the day check box
Save
Double click on assignment of calculation method folder
Dep. Type : ordinary depreciation select
Phase : select from the start of depreciation
Base method : 0014
Decl.bal.method : 001
Multilevel method : V1
Class : Straight line depreciation
Save
Select depr. Key : VSL
Select active button
Select save button
Select VSL1
Change the der. Key : VSL2

Description : 5% written down value depreciation method
Enter
Press enter once again
save
Select VSL2
Double click on assignment of calculation methods folder
Multilevel method : V2
Class : Decline balance depreciation (select)
Save

END USER AREA

Creation of main asset masters:
Path: Accounting --------------- > Financial Accounting ---------- > Fixed assets ------------ >
Assets ------------- > Crate ------------ > Asset (AS01)
Asset class : VSL2000 (dept A)
Co.code : VSL
Enter
Depreciation : Machine no 1
Capitalized on : 12-4-2011
Select time dependent tab
Select depreciation areas tab
D key : VSL1 (5% SLM)
Use life : 15 (years)
Periods : 6 (months)
Ordinary depre. start : 12-4-2011
Select save
We get a message asset 200001 sub number was crated
Crated asset master
With reference to asset class VSL2000 dept A

I
Assigned no. Range 03
I
No. Range interval 200001 300001
It has taken first number 200001 we have discussed earlier main asset will have always
sub number zero. It has taken the number 200001 sub number 0.


Creation of sub asset master:
Path: Accounting --------------- > Financial Accounting ---------- > Fixed assets ------------ >
Assets ------------- > Crate ------------ > Sub number -------------- > Asset (AS11)
Asset : 200001
Company code : VSL
Enter
Description : Motor
Capitalized on : 29/6/2011
D. key : VSL2
Use life : 15
Period : 4
O. dep. Start : 29-6-2011
Save
We get a message asset 200001 sub number 1 was created

Main asset purchase posting:
Path: Accounting -------------- > Financial Accounting ------------ > Fixed assets ----------- >
Posting ------------- > Acquisition ----------- > External Acquisition ---------------- > With
vendor (F-90)
Posting date : 10-4-2011 (past date)
Type : KR
Co. Code : VSL
Pstky : 31
Account : 4000201
Enter
Amount : 1000000
Bus. Area : VSLH
Text : Main asset purchase posting
Pstky : 70 (debit asset)
Account : 200001- 0 (machine)
Ttype : 100 (external asset acquisition)
Press enter
Amount : *
Text : +


Rule 2:
Main asset master to create with reference to asset class 200001 0 machine 1 created
with reference to asset class VSL2000 dept A
Rule 3:
Account determination is specified in asset class account determination VSL20000 plant
& Machinery specified in asset class VSL2000 dept A
Rule 4:
For account determination we assign GL accounts base on the nature of transaction
For account determination VSL20000 Plant & Machinery assigned GL account in case of
acquisition 200010 Plant & Machinery.

Sub asset purchase posting: (F-90)
Posting date : todays date
Type : KR
Co. Code : VSL
Pstky : 31
Account : 4000201
Enter
Amount : 200000
Bus. Area : VSLH
Text : Sub asset purchase posting
Pstky : 70
Account : 200001 1
Ttype : 100
Enter
Amount : *
Text : +
Document --------------- > Simulate and SAVE

Rule 1:
Sub asset master to create with reference to main asset master
200001 1 created with reference to main asset master 200001
Rule 2:
Main asset master to create with reference to asset class 200001 0 machine 1 created
with reference to asset class VSL2000 dept A
Rule 3:
Account determination is specified in asset class account determination VSL20000 plant
& Machinery specified in asset class VSL2000 dept A
Rule 4:
For account determination we assign GL accounts base on the nature of transaction

For account determination VSL20000 Plant & Machinery assigned GL account in case of
acquisition 200010 Plant & Machinery

Report to view each sub asset wise, year wise values:
Assets ------------ > Asset Explores (AW01N)
Co. Code : VSL
Asset : 200001 0
Fiscal year : 2011
Enter

To check depreciation calculations
Select display depr. Calculation button
Select period information button
Select back arrow
Select comparison tab
Change asset : 200001 1
Enter

Report to view all assets for a particular period:
Path: Accounting -------------- > Financial Accounting ------------ > Fixed assets -------------- >
information system ---------------- > Report on asset accounting ------------ > Asset
balances ------------ > Balance list ---------------- > Asset balances ------------ > By business
areas (S_ALR_87011965)
Press all selection button
Change the report date : 31-7-2011
Double click on dept A
Double click on machine no 1
Report date :30-4-2011
Select list assess radio button

Depreciation run:
Periodic processing ----------- > Depreciation run ---------------- > Execute (AFAB)
Co. Code : VSL
Fiscal year : 2011
Posting period : 1
Select planned posting run radio button

Execute
Ignore the warning message and select yes button

To see the error
Select error list button
Select back arrow
Deselect test run check box
From the menu bar select program ------------ > Execute in background
Enter
Enter once again

To select in Nights:
Select date/ type button
Schedule start date : todays date
Time : 22: 00: 00 (HH:MM:SE)
Select save button

To post immediately:
Select immediately button
Select save button
We get a message background job was scheduled for program RAPOST2000

To check whether the job is processed or not:
From the menu bar select System -------- > Services ----------- > Jobs ---------- > Overview
To see the document posted (FB03)
FB03
Document list button
Company code : VSL
Doc. Type : AF
Double click on document no.

Use transaction code AFAB depreciation run:
1) Planned posting run
Company code VSL
Fiscal year 2011
Posting period 2 (up to May)

Before executing depreciation run for May and after executing depreciation run for
April we have commissioned an asset with bank date
200002 - 0 machine no 2 25-4-2011
When we run depreciation system calculates depreciation
200001 0 machine no 1 1- 5-2011 to 31-5-2011
200002 - 0 machine no 2 25-4-2011 to 31-5-2011

2) Repeat:
Company code VSL
Fiscal year 2011
Posting period 1
Select repeat radio button
System checks for which assets depreciation was not calculated in 1
st
planned posting
run it calculates and posts depreciation only for those assets.
200002 0 machine no 2 25-4-2011 to 30-4-2011
Once this is over
Company code VSL
Fiscal year 2011
Posting period 2 (up to May)
200001 0 machine no 1 1-5-2011 to 31-5-2011
200002 0 machine no 2 1-5-2011 to 31-5-2011
Repeat run is possible only after planned posting run
Repeat run is possible only for the latest planned posting run
Eg: we have run depreciation up to July 2011 afterwards we have commissioned an
asset with April date repeat is possible only for July.
3) Repeat:
We have scheduled depreciation at night 10 pm at the time of processing the server
is down it cannot do processing
When we the job status in the next day it gives the message restart.
4) Un planned posting run:
Depreciation posting run not as per plan in live environment we use unplanned
posting run depreciation once run and posted cannot be reversed
i) Auditors will come for audit only after year end when we capitalized an asset they
say change to P&L a/c or when we change to P&L a/c they will ask us to capitalize
ii) We create 2 accounts which are not reconciliation accounts
Depreciation provisional
Accumulated depreciation provisional
iii) Every month end we use the report S_ALR_87011965 and post manual entry for
depreciation
40 depreciation provisional debit

50 accumulated depreciation provisional credit
Every month profitability will be correct
April 10000
May 10000

Mar 10000
120000
April 10000
May 10000

Mar 10000
120000
iv) After the year end once the audits is over pass rectification entries for assets based
on auditors suggestion
a) Reverse depreciation provisional in March

April 10000
May 10000

Mar 10000 March 120000
120000 120000
April 10000
May 10000

March 120000 Mar 10000
120000 120000
Depreciation provisional and accumulated depreciation provisional balance will be
zero
b) User transaction code AFAB
Company code VSL
Fiscal year 2011
Posting period 12 (up to March)
Select unplanned posting run
12 months depreciation will be posted in March


ASSET SALE

Asset sale: asset 200001 0 Machine no.1
Accumulated depreciation up to 30-4-2011 2596
Net book value as on 30-4-2011 997404
Asset sale on 1-5-2011 1001000
Profit on sale 3596

1) To make asset retirement field required entry field for field status group G052:
(OBC4)
Select field status variant : VSL
Double click on field status groups folder
Double click on field status group G052
Double click on asset accounting
Asset retirement select required entry field
Select save
Press enter save in your request

2) Path for asset sale:
Accounting --------- > Financial accounting ------------- > Fixed assets ---------- > Posting -----
----- > Retirement ------------ > Retirement W / Revenue ------------ > With customer (F-92)
Type : DR
Company code : VSL
Pstky : 01
Account : 3000601
Enter
Amount : 1001000
Text : Asset sale posting
Pstky : 50
Account : 300102 (asset sale)
Enter
Amount : *
Text : +
Document ---------- > Simulate
Select asset retirement check box

Enter
Asset no : 200001
Sub no. : 0
Transaction type : 210 (comes default)
: (210 stands for retirement with revenue)
Asset value date : 1-5-2011
Select complete retirement check box
Enter
01 customer debit 1001000
70 acc.depr. plant & Machinery 2596
40 asset sale 1001000 contra
50 asset sale 1001000
75 Plant & Machinery 1000000
50 Profit on sale 3596
In normal accounting we pass entry debit customer and credit plant & Machinery a/c
with Rs. 1001000 we calculate manually depreciation up to the date of sale and profit /
loss on asset sale and post entries manually in SAP it is calculating depreciation
automatically up to the date of sale and posting to accounts by using asset sale a/c.
Always asset sale account will have zero balance
If asset is sold on 18-5-2011

Asset 200001 0 machine no 1
Acc. Depr. Up to 17-5-2011 4000
Net book value as on 17-5-2011 996000
Asset sale on 18-5-2011 1001000
Profit on asset sale 5000
Entry on 18-5-2011
01 customer debit 1001000
70 acc.depr. plant & Machinery 4000
40 asset sale 1001000 contra
50 asset sale 1001000
75 Plant & Machinery 1000000
50 Profit on sale 5000

Depreciation a/c Accumulated depreciation a/c
30-4-2011 2596 18-5-2011 4000 30-4-2011 2596
31-5-2011 1404 31-5-2011 1404
(Depreciation run up to 17-5-2011) value will be zero

ASSET TRANSFER

In Hyd we have asset 200001 0 Machine no. 1
This we want to transfer to BGL unit on 1-5-2011
When we transfer we have to transfer at cost
We have to transfer acquisition value and accumulated depreciation
Up to the date of transfer depreciation will be calculated in Hyd adn from the date of
transfer it calculates in BGL
For Asset transfer we have 2 options
1
st
option 2
nd
option
Two steps method one step method
i)we crate asset master in AS01 create asset master and transfer
ii)transfer value

Asset transfer:
Path: Accounting ----------- > Financial accounting -------------- > Fixed assets ----------- >
Posting ------------- > Transfer ----------------- > Transfer within company code (ABVMN)
Company code : VSL
Enter
Asset : 200001 0
Text : Asset transfer
Select new asset radio button
Description : Machine no 5
Asset class : VSL2001 Dept B (Select)
Select master data button
Business area : VSLB
Select additional data button
Capitalized on : 1-5-2011
Depreciation key (D.key) : VSL1
Use life : 15
Prd (period) : 5
O. Dep. Start : 1-5-2011
Select back arrow
Enter
Save


To view document posted: (FB03)
Document no. : 31
Enter
When use 2 step methods
i) When we want to transfer no. Of assets at a time
ii) When asset to be transferred are to be created as sub assets in receiving unit
(BGL unit)

ASSET SCRAPPING
In hyd we have 200001 1 motor
This cannot be used / transferred / sold scrap the asset
Whatever not book values is there on the date of scrapping will be changed to P&L
account.
Impairment of assets (account standard 28)
When the realisable value of the asset is less than the net book value and future cash
flows are negative impair the asset (bring down the book value to net realisable value)
Eg: 1
Condition 1 realisable values are less than net book value.
Accumulated depreciation 40000
Net book value 60000
Realisable value 50000
Impair asset value by Rs 10000
Condition 2:
Future cash flows negative steps:
1) To check motor value as on 31-7-2011 - S_ALR_87011965

Use the transaction code: S_ALR_87011965
Press all selections button
Co.code : VSL
Report date : 31-7-2011
Select list assets radio button

Asset scrapping:
Path: Accounting ----------- > Financial accounting -------------- > Fixed assets ----------- >
Posting ------------- > Retirement ----------- > Asset retirement by scrapping (ABAVN)
Asset no. : 200001 1

Text : Asset scrapping
Save

Document no. : 32
Enter

CAPITAL WORK IN PROGRESS LINE ITEM SETTELMENT:
Machine no.1 Debit to capital work in progress
1-6-2011
Fright charges On 5-7-2011 the asset is commissioned as machine no.1
20-6-2011 settle capital work in progress to machine no 1 line item wise
Commissioning This is linked with co.
Charges 5-7-2011 this will be covered in the end.

Interview questions:
1) Shut down:
Factory has not worked for 1 month
We dont want to calculate depreciation for 1 month.
Start down period: from 1-6-2011 to 30-6-2011

Use transaction code: AS02 Asset master change:
Asset no : 200002
Sub no : 0
Select master data button
Select time dependant tab
Select asset shut down check box
Select more intervals button
Select new time interval button
Select add interval button
From data of new interval : 1-6-2011
Enter
For 1-6-2011 select shout down check box
Select add interval button
From data of new interval : 1-7-2011
Enter
Deselect shut down check box
Save.

2) Multiple shift factor: (Allowance)
Asset acquisition value 100000
Depreciation amount 5000
to split into fixed and variable variable 70%
3500 1500 (fixed)
Shift factor 1 : (100000*5%*70%*1)+1500=5000
Shift factor 2 : (100000*5%*70%*2)+1500=8500
Shift factor 3 : (100000*5%*70%*3)+1500=12000

Use transaction code: AS02 (asset master change)
Asset no : 200002
Sub no. : 0
Company code : VSL
Select depreciation areas button
Double click on book depreciation
Variable depreciation portion : 70
Select back arrow
Shift factor : 2
Save
Press enter

3) To keep asset scrap value Re. 1 or 5%
Use transaction code : AS02
Select depreciation areas button
Double click on book depreciation
Scrap value : 1
Save

4) Smoothing method and catch up method:
i) Catch up method:
Asset acquisition in April value 100000
Depreciation not run for April and May depreciation run only in June.
Company code : VSL
Period : 3(up to June)
System will post depreciation 3000 (3 months depreciation will be posted in June)
ii) Smoothing method:
Company code : VSL

Period : 3 (up to June)
Depreciation amount : 1000 (June depreciation)
Depreciation for 2 months: 2000
Depreciation will be spread for balance 10 months 2000/10=200
Depreciation for June 1000+200=1200
July 1000+200=1200
If we dont specify any method it takes automatically catch up method
Path: SPRO ---------- > Financial Accounting ------------- > Asset accounting ----------- >
Integration with the general ledger ------------- > Post depreciation to the general
ledger ------------- > Specify intervals and posting groups.
Double click on posting rules folder
Select smoothing check box
Save.

5) Change in method of depreciation or rate of depreciation:
Asset acquisition in 2006 100000
Rate 5% WDV for 5 years 22000
78000
To change to 5% SLM
Option 1: Prospective Method Option 2: Retrospective Method
i) Use Tc AS02 asset master i) Use TC- S_ALR_87011965
Change change the rate note down values with old rates
From VSL2 to VSL1 save Purchase cost 100000
It gives a warning message Depreciation 22000
Press enter Net book value 78000
ii) Use Tc- AS02 asset master change change the rate
from VSL2 to VSL1 save.
It gives a warning message ignore the warning
message press enter
iii) Use TC- S_ALR_87011965 note down values with
new rates
Purchase cost 100000
Depreciation 25000
Net book value 75000
iv) If there is an increase in depreciation post with date
1
st
April 2011 as unplanned depreciation Tc- ABAA
v) If there is decrease in depreciation post with dated
1
st
April 2011 as write up Tc- ABZU


6) Reversal of asset posting: (AB08)
Path: Accounting -------- > Financial Accounting ----------- > Fixed Assets ---------- > Posting
------------- > Reverse Document ------------ > Other Asset Document

7) Reversal of capital work in progress transactions:
Path: Accounting -------- > Financial Accounting ----------- > Fixed Assets ---------- > Posting
------------- > Reverse Document ------------ > Capitalize Asset U. Construction (AIST)

CASH JOURNAL
1) Cash journal will not accept negative cash balances.
2) Daily cash opening balance / receipts / payments and closing balances we can get
through cash journal.
3) Some companies they use this cash journal for petty cash purpose.

1) creation of GL master (VSL Hyd cash account)
FS00
Company code : VSL
G/L account : 200100 cash
Company code : VSL
Enter
Change short text : VSL Hyd cash account
G/L long text : VSL Hyd cash account
Select post automatically only check box
Save

Define number range intervals for cash journal documents:
Path: Financial Accounting -------------- > Bank Accounting ----------- > Business
Transactions -------------- > Cash Journal ------------ > Define number range intervals for
cash journal documents
Company code : VSL
Select change intervals button
Select intervals button
No : 01
To number : 600000
Enter
Save

Set up cash journal:
Transactions -------------- > Cash Journal ------------ > Set up cash journal
Company code : VSL
Cash journal no. : 0001
Currency : INR
Doc.type G/L acct : SA
Doc. Type Vendor payment : KZ
Doc. Type vendor payment : KZ
Doc. Type customer payment : DZ
Doc. Type to customer payment : DZ
Cash journal name : VSL Hyd cash book
Save

Create, change, delete business transactions:
Transactions -------------- > Cash Journal ------------ > Create, change, delete business
transactions
Company code : VSL
Business transaction type : R (select Revenue)
G/L Account : 300000
Cash journal bus. Tran : Revenue
Select account modifiable check box
Company code : VSL
Bus.Tarn. type : E (Expenses)
Cash journal business transaction : Expenses
Select account modifiable check box
Save or crtl + s
Press enter save in your request

Set up print parameters for cash journal:
Transactions -------------- > Cash Journal ------------ > Set up print parameters for cash
journal

Company code : VSL
Cash journal print program : RFCASH00
Report variant : DEMOEN
Correspondence (Corr) : SAP18
Save

END USER AREA

1) Posting to cash journal:
Path: Accounting ------------ > Financial Accounting ----------- > Journal ledger ------------ >
Posting ----------- > Cash journal posting (FBCJ)
Select change cash journal button
Company code : VSL
Cash journal : 0001
Enter
Select today button
Select cash receipts tab
Business transactions : Revenue
Amount : 8000
Text : cash sales
Select post button
Select cash payments tab
Business transactions : Expenses
Amount : 3000
Text : salaries payment
Select post button
Select print cash journal button
Ignore the message press enter

CLOSING PROCEDURE

In the year end what steps we have to do:
We do the steps in the last week of March 2012
Current year April2011 - March 2012 fiscal year 2011
Next year April 2012 - March 2013 fiscal year 2012


1) To carry forward vendor and customer balances to next year as opening balance
We have to do this exercise every year one time
Path: Accounting ------------ > Financial Accounting ------------ > Accounts payable --------- >
Periodic processing -------------- > Closing ------------- > Carry forward -------------- > Balance
carry forward (F-07)
Company code : VSL
Carry forward to fiscal year : 2012
Select select customer check box
Select select vendor check box
Select detail log check box

2) To carry forward asset balances:
We can open 2 years at a time
Fiscal year 2010 2011
To open 2012 we have to close fiscal year 2010

i) To check which year is closed for asset accounting
Path: Accounting ------------ > Financial Accounting ---------------- > Fixed Assets ------------ >
Periodic processing ------------- > Year end closing -------------- > Undo --------- > Entire
company code (OAAQ)
Company code : VSL
Enter

ii) To close fiscal year 2011 for asset accounting (this step optional)
Path: Accounting ----------- > Financial Accounting -------------- > Fixed Assets -------------- >
Periodic processing -------------- > Year end closing -------------- > Execute (AJAB)
Company code : VSL
Fiscal year to be closed : 2011
Deselect text run check box
Form the menu bar select program ---------- > Execute in background
Enter
Enter once again
Select immediate button
Select save button
We get a message background job was schedule for program RAJABS00


From the menu bar select System ---------- > Services -------------- > Jobs -------------- > Job
Over View

To view the result of the job:
Select RAJABS00 check box
Select spool button
Select spool no check box
Select display contains button
To close any year for asset accounting we have to post depreciation for all assets and for
all months.

iii) To open fiscal year 2012 for asset accounting:
Path: Accounting ----------- > Financial Accounting -------------- > Fixed Assets -------------- >
Periodic processing -------------- > Financial year change (AJRW)
Company code : VSL
New fiscal year : 2012
Deselect text run check box
Form the menu bar select program ---------- > Execute in background
Enter
Enter once again
Select immediate button
Select save button
We get a message background job was schedule for program RAJAWE00

From the menu bar select System ---------- > Services -------------- > Jobs -------------- > Job
Over View
To view the result of the job:
Select RAJAWE00 check box
Select spool button
Select display contains button


GL BALNACES

3) To carry forward GL balances:
Path: Accounting ----------- > Financial Accounting -------------- > General Ledger ---------- >
Periodic processing ----------- > Closing ------------- > Carry forward -------------- > Balance
carry forward (New) FAGLGUTR
Ledger : 0L
Company code : VSL
Carry forward to fiscal year : 2012
Select output list of result check box
Select balances in retain earnings account check box
Select retained earnings account button
Select back arrow
Select balance sheet accounts button

4) To copy number range interval for next year i.e. 2012:
Path: SPRO ----------- > Financial Accounting -------------- > Financial Accounting Global
settings -------------- > Document -------------- > Document number ranges ------------- >
Copy o fiscal year
Company code : VSL
To fiscal year : 2011
To fiscal year : 2012
Select yes button

5) To open posting periods for next year: (OB52)
Last week of March 2012
Form period 1 : April 2012 to March2013 Fiscal year 2012
To open April2012 May2012
1, 2012 2, 2012
From period 2 : April 2011 to March2012 Fiscal year 2011
To open March2012 March2012
12, 2011 12, 2011

Transaction code: OB52
Pstp.per. Var : VSL

Enter
Form period 1 : 1
Year (fiscal) : 2012
To period : 2
Year : 2012
Form period 2 : 12
Year : 2011
To period : 12
Year : 2011
Save

6) How to open special periods:
Accounts department released profitability for the year ended 31
st
March2012 on 15-4-
2012
Management adjustments we want to post in special periods

Form period 1 : April 2012 to March2013 Fiscal year 2012
To open April2012 May2012
1, 2012 2, 2012
From period 2 : April 2011 to March2012 Fiscal year 2011
To open March2012 March2012
13, 2011 13, 2011
Transaction code: OB52
Pstp.per. Var : VSL
Enter
Form period 2 : 13
Year : 2011
To period : 13
Year : 2011
Save.

7) How to post to special periods: (F-02)
Type : SA
Company code : VSL
Pstky : 40
Account : 400100
Enter

Change the period to : 13
Press enter
Amount : 500000
Text : salary provision
Pstky : 50
Account : 100500
Enter
Amount : *
Text : +
Document ------------- > Simulate and save.

8) To view account balance display: (FS10n)
Company code : VSL
Fiscal year : 2011
Select execute button.

REPORTS
1) How to create a folder:
Keep the cursor and favourites form the menu bar select Favorites ------------ > Insert
folder
Folder name : Fi reports
Enter
2) How to attach a report a folder:
Keep the cursor on fi report folder from the menu bar select Favorites ------------ > Insert
transactions
Transaction code : S_ALR_87011965 (asset balance)
Enter
3) How to attach a report on desk top:
Report: S_ALR_87011965
Select Generals a short cut button
Description : Development (select)
Enter
Select Ok button
From the menu bar select System ------------ > Log off
Double click on asset balances icon (desk top)

User name : SAPUSER
Password : india123
4) To view accounts list:
Path: Accounting ---------- > Financial Accounting ----------- > General Ledger ---------- >
Information System -------------- > General ledger reports -------------- > Master data --------
------ > Chart of Accounts ------------- > Chart of Accounts (S_ALR_87012326)
5) To view Journal:
Information System -------------- > General ledger reports -------------- > Document ----------
- > General -------------- >Document Journal ---------------- > Document Journal
(S_ALR_87012287)
Company code : VSL
Select line items only check box
Select segment text check box
Select Consecutive document check box
Select Classic list check box
6) Trail Balance:
Information System -------------- > General ledger reports -------------- > Account Balances -
------------- > Korea ----------- > Trail Balance (South Korea) S_ALR_87012310
Company code : VSL
Keep the fields G/L Account, G/L Account long text, Cl.Bal (closing balance)
Enter
To down load to Excel:
From the menu bar select List -------- > Export -------------- > Spread Sheet
Select table radio button
Enter
Enter once again.
7) To view Ledger:
Path: Accounting -------------- > Financial Accounting --------------- > General Leger --------- >
Periodic processing ------------- > Closing ----------- > Document ---------------- > Balance
audit trail -------- > All Accounts ------------- > General ledger from the document file
(S_ALR_87100205)

Company code : VSL
Keep the fields document number, posting date
From the Hidden fields column activate Text, Debit amount in local currency, Credit
amount in local currency, Cumulative balances;
Debit amount in local currency select total check box
Credit amount in local currency select total check box
Select copy button
Double click on document no 1
8) To view vendor list:
Path: Accounting ----------- > Financial Accounting ------------ > Accounts Payable ------------
> Information system ------------- > Report for Accounts payable accounting -------------- >
Master Data --------------- > Vendor list (S_ALR_87012086)
Company code : VSL
9) Vendor wise purchases:
Path: Accounting ----------- > Financial Accounting ------------ > Accounts Payable ------------
> Information system ------------- > Report for Accounts payable accounting -------------- >
Vendor balances -------------- > Vendor Balances (S_ALR_87012093)
Company code : VSL
10) Outstanding list of vendors:
Path: Accounting ----------- > Financial Accounting ------------ > Accounts Payable ----------
-- > Information system ------------- > Report for Accounts payable accounting -------------
- > Vendor: Items -------------- > List of Vendor open items for printing
(S_ALR_87012083)
Company code : VSL
Execute button

11) Age wise analysis of vendors:
Path: Accounting ----------- > Financial Accounting ------------ > Accounts Payable ---------
--- > Information system ------------- > Report for Accounts payable accounting ------------
-- > Vendor: Items -------------- > Vendor payment history with OI sorted list
(S_ALR_87012085)
Company code : VSL
Summarization level : 0
Select days overdue sorted list check box


12) Vendor advances report:
- > Vendor: Items -------------- > List of down payments open on key date vendor
(S_ALR_87012105)
Company code : VSL

13) Vendors Ledger: (Open + Cleared items)
- > Vendor: Items -------------- > List of vendor line items (S_ALR_87012103)
Company code : VSL
Execute button

14) Depreciation fore cast:
Path: Accounting ----------- > Financial Accounting ------------ > Fixed assets ------------ >
Information system ------------ > Reports on asset accounting -------------- > Depreciation
fore cast ------------- > Depreciation on capitalized assets (Depreciation simulation)
S_ALR_87012936
Company code : VSL
15) Fixed assets schedule as per schedule VI of companies act:
1 2 3 4 5
Gross block in Additions during sales/transfer Gross block accumulated
The beginning the year during the in the year depreciation
of year year end in the beginning
of year

6 7 8 9 10
Depreciation depreciation on accumulated net block net block in the
Of the year sale transfer depreciation in the year previous year
In the year end end
End

Path: Information systems ------------ > Accounting -------------- > Financial Accounting ---
---------- >Fixed Assets ----------- > Asset history sheet (AR02)
Company code : VSL
Select groups only button

Select change lay out button
Select all fields in column contains
Select right arrow button
Select line 2 tab
Select all fields
Select line 3 tab
Select all fields
Select line 4 tab
Select all fields
Select line 1 tab
Activate balance sheet item
Acquisition: Acquisition and production cost
APC FY start
Acquisition
Retirement
Transfer
Current APC
Dep. Fy start
Dep. For year
Dep. Retire
Dep. Transfer
Accumulated depreciation
Current book value
Bk. Val. Fy start
Select copy button
Select back arrow
Select list asset radio button
Execute
Select assets button
Double click on asset retirement

FINANCIAL STATEMENT VERSION (FSV) CREATION:
BALANCE SHEET AND PROFIT & LOSS ACCOUNT FORMAL CREATION:

In India: As per companies act schedule VI format.
In client 000 for India SAP has given schedule VI format BAIN
Summary Schedule Accounts

Liabilities:
Share capital Equity share capital 100000 Equity share capital
Preference share capital 100001 Preference share capital
Reserves & sur Surplus in P&L a/c 100100 Surplus in P& L a/c
Plus Capital reserve 100101 Capital reserve
General reserve 100102 General reserve

Secured loans Term loans 100300 SBI rupee term loan
100301 SBI FC term loan
Working capital loan 100350 SBI cash credit
100351 SBI packing credit
Unsecured loan Deposits 100400 Deposits from Public
100401 Deposits from Directors
In corporate deposits 100402 Deposits from xyz ltd
Interest free sales tax loan 100450 Interest free tax loan
By using 0 9 levels we can get all 3 versions it is time consuming in live environment
we create 2 versions
1 for summary
2 for schedules
Path: SPRO ------------- > Financial Accounting ---------- > General ledger Accounting ------
------- > Business transactions -------------- > Closing --------------- > Document -------------- >
Define financial statement version.
Financial statement version : VSL
Name : Balance sheet and profit & Loss account
Maintain language : EN
Select item keys auto check box
Save
Save in GL customization request
Select financial statement items button
Keep the cursor on VSL
Select crate items button
Give the items : Balance sheet
Profit & Loss account
Surplus/ loss carried to balance sheet
Enter
Double click on No text exists for Assets
Item : Assets
Enter
Keep the cursor on assets press select button

Keep the cursor on balance sheet select Reassign button f6
Select subordinate button
Enter
Double click on no text exists for liabilities + equity
Items : Liabilities
Enter
Keep the cursor on liabilities press select button
Keep the cursor on balance sheet select reassign button
Select subordinate radio button
Enter
Save
Keep the cursor on profit & loss account
Select create items button
Give the items : Income
Expenditure
Enter
Save

Keep the cursor on liabilities
Select crate items button
Give the items : Share capital
Reserves & Surplus
Secured loans
Un secured loans
Enter
Keep the cursor on assets
Give the items : Net fixed assets
Net current assets
Misc. Expenditure (to the extent not written off)
Enter
Keep the cursor on Income
Give the items : Sales
Other income
Increase / Decrease in stocks
Enter
Keep the cursor on Expenditure
Give the items : Raw material consumption

Personnel cost
Manufacturing cost
Administrative cost
Interest
Depreciation
Enter
Double click on no text exists for net result: profit
Item : Surplus transferred from P & L account
Enter
Keep the cursor surplus transferred from P & L account
Press select button
Keep the cursor on Reserves & Surplus
Select Reassign button
Enter
Double click on no text exists for net result: loss
Item : Loss transferred from P&L account
Enter
Keep the cursor on Loss transfer from P&L account
Keep the cursor on Misc. Expenditure (to the extent not written off)
Select Reassign button
Enter
Assignment of accounts:
We have to assign accounts to the last node
Keep the cursor on Share capital
Select assign accounts button
From account : 100000
To account : 100099
Select debit (D) check box
Select credit (C) check box
To account : 199999
Select D & C check box
Enter
Keep the cursor on Net fixed assets
To account : 299999
Enter

Keep the cursor on Sales
To account : 399999
Enter
Keep the cursor on Raw material consumption
To account : 499999
Enter
Keep the cursor on Surplus / Loss carried to balance sheet
To account : blank
Enter
To check whether all accounts have been assigned or not
Select check button
Select non assigned asset check box
Enter
Enter
Save
Liabilities:
Sources of funds:
100000 Equity share capital x
Share capital 100001 Preference share capital x x
100100 Surplus in P&L account x
100101 Capital Reserve x
Reserves & Surplus 100102 General reserve x x
100300 SBI Rupee term loan x
100301 SBI FC term loan x
100350 SBI Cash credit x
Secured loans 100351 SBI packing credit x x
100400 Deposits from public x
100401 Deposits from directors x
100402 Deposits from XYZ Ltd x
100450 Interest free x
Unsecured loans sales tax loan x

Total liabilities x
Double click on liabilities
Start of groups : Liabilities
End of group : Total Liabilities
Enter
Double click on share capital
Start of groups : Source of funds
End of groups : Share capital
Select display total check box
Enter
Double click on Reserves & Surplus
End of group : Reserves & Surplus
Enter
Double click on Assets
Start of groups : Assets
End of group : Total Assets
Enter
Double click on Net fixed assets
Start of groups : Application of funds
End of group : Net fixed assets
Enter
Double click on Misc. Expenditure (to the extend not written off)
End of group : Misc. Expenditure (to the extend not written off)
Enter
Double click on Profit & Loss account
Start of groups : Profit & Loss account
End of group : Profit / Loss for the year
Enter
Double click on Income
Start of groups : Income
End of group : Total Income
Enter
Double click on Sales
End of group : Sales

Enter
Double click on Expenditure
Start of groups : Expenditure
End of group : Total Expenditure
Enter
Double click on Raw material consumption
End of group : Raw material consumption
Enter
Double click on Surplus / Loss carried to balance sheet
Start of groups : Surplus / Loss carried to balance sheet
End of group : Surplus / Loss carried to balance sheet
Enter
Double click on No texts exists for P&L result
Item : Surplus / Loss carried to balance sheet
End of group : Surplus / Loss carried to balance sheet
Enter
Save

Open one more session and
Path: Accounting ------------ > Financial Accounting ------------- > General Ledger ------------
--- > Information system ---------------- > General Ledger report --------------- > Balance
sheet ------------- > Profit and Loss statement / Cash flow ------------ > General --------------
-- > Actual / Actual comparison ------------- > Balance sheet / Profit and Loss statement
S_ALR_87012284
Company code : VSL
Financial statement version : VSL
Reporting year : 2011
Reporting period : 1 to 16
Comparison year : 2010
Comparison period : 1 to 16
Select classical list radio button
Select special evaluation tab
Balance sheet type : 1 (standard financial statement)
Select output control tab
Company code summarization : 1 (balance sheet per company code)
Business area summarization : 1 (balance sheet per business area)

Summary report : 3
Comparison type : 1
Scaling : 5/2
Select back arrow
Select special evaluation tab
Display currency : USD
Key date for transaction : 31-3-2012
Exch. Rate type for transaction : B
Note:
Comparison type:
2011 2010
Sales 200000 50000
1) Percentage of Increase:

Current year Previous year x 100
Previous year

200000 50000 x 100 =300
50000
2) Percentage of Growth:

Current year x 100
Previous year

200000 x 100 = 400
50000
Scaling:
i) We want to see full rupee with paisa 0/2
ii) Full rupee without pise 0/0
iii) Rupees in lakhs without decimals 5/0
iv) Rupees in millions without decimals 6/0
v) Rupees in crores without decimals 7/0
vi) Rupees in lakhs thousands in decimals 5/2

Sales
Rupee in lakhs 5 987654321.45
100000
9876.5432145
2 9876.54

BANK RECONCILIATION

CHECK DEPOSIT BANK STATEMENT
I I
Manual Electronic Manual bank Electronic bank
Check deposit check deposit statement statement

We are not programmers we discuss manual check deposit / manual bank statement
For each bank current account we have to create
3 / 4 accounts a/c number should end with
1) Main bank account 0
2) Check issued account open item 1
3) Check deposit account open item 2
4) Clearing account open item 3

Say we have 100 bank current accounts we have to assign accounts 100 times for
automatic postings by using the unique number we can assign only one time
All main bank accounts assign +++++++++0
All check issue accounts assign +++++++++1
All check deposit accounts assign +++++++++2
All clearing accounts assign +++++++++3

Always main bank account balance and bank statements balance will be same
Open items in check issue account / check deposit a/c /clearing accounts are bank
reconciliation entries

Bank reconciliation flow:
Sales scenario:
1) Sales invoice posting F-22
Customer a/c dr 500000
To sales 500000
2) Check deposit received from customer in bank FF68
i) Bank key
ii) Bank account number
iii) Group Pay in slip number
iv) Transaction
v) Customer number
vi) Reference Bill number
vii) Amount
viii) Business area
Save

Automatic entry
Bank check deposit a/c dr 500000
To customer a/c with clearing 500000
3) Enter Manual bank statement FF67
a) If check deposit credit does not appear in bank statement open items in check
deposit a/c checks deposited but not credited
b) If check deposit credit appears in bank statement
i) Bank key
iii) Statement number
iv) Transaction
v) Reference Pay in slip number
vi) Bank Reference
vii) Amount
viii) Business area
Save
Automatic entry
Main bank a/c dr 500000
To bank check deposit a/c with clearing 500000

Purchase scenario:
4) Purchase invoice posting F-43
Inventory RM a/c Dr 100000
To vendor a/c 100000
5) Outgoing payment with clearing F-53
Vendor a/c dr with clearing 100000
To bank issue a/c 100000
6) Manual check cration: FCH5
Assign check no. To payment document no.
7) Enter manual bank statement
a) If check issue debit does not appear in bank statement open items in check issue a/c
check issued but not presented
b) If check issue debit appear in bank statement
i) Bank key
iv) Transaction
v) Reference
vi) Bank reference check number
vii) Amount
viii) Business area

Save

Automatic entry:
Bank check issue a/c dr with clearing 100000
To Main bank a/c 100000
Bank charges direct debit by bank
8) Enter manual bank statement
i) Bank key
iv) Transaction
v) Reference
vi) Bank reference
vii) Amount
viii) Business area
Save
Automatic entry
Bank charges a/c dr 1000
To Main bank a/c 1000

Main bank a/c Bank statement
3b 500000 7b 100000 100000 dr 500000 cr
8 1000 1000 dr
Check issue a/c
7b 100000 5 100000
Check deposit a/c
2 500000 3b 500000

Interview question:
What is the use of clearing a/c:
This will be used for unknown credits and unknown debits
Unknown credit of Rs 5000 in bank statement create a transaction as per transaction the
entry should be
Main bank a/c dr
To clearing a/c

Creation of G/L Masters FS00

GL account : 200130
Company code : VSL

Company code : VSL
Enter
Short text : IDBI Main bank a/c
G/L acct long text : IDBI Main bank a/c
Save

Company code : VSL
Company code : VSL
Enter
Short text : IDBI check issue a/c
G/L acct long text : IDBI check issue a/c
Select open item management check box
Save

Company code : VSL
Company code : VSL
Enter
Short text : IDBI check deposit a/c
G/L acct long text : IDBI check deposit a/c
Save

Company code : VSL
Company code : VSL
Enter
Short text : Bank charges
G/L acct long text : Bank charges
Save

2) Creation of House bank (FI12):
Company code : VSL

Enter
House bank : IDBI
Bank country : IN
Bank key : IDBI9876
Save
Bank name : IDBI bank limited
Street : Basheer bagh
City : Hyderabad
Bank branch : Main branch
Enter
Double click on bank account folder
Account id : IDBI1
Description : IDBI current acct no.1
Bank acct. Number : IDBI54321
Currency : INR
Save

3) Creation of check lots: FCHI
House bank : IDBI
Account ID : IDBI1
Lot no : 1
Check no : 500001
To : 500100
Select non sequential check box
Short info : IDBI bank
Purchase date : todays date
Enter
Select save or crtl+s

4) Define posting key and posting rules for check deposit:
Path: SPRO ------------ > Financial Accounting ---------------- > Bank Accounting ------------- >
Business transactions --------------- > Check deposit ------------ > Define posting keys and
posting rules for check deposit

Enter
Account Text
VSLA Main bank account
VSLB Check issue account
VSLC Check deposit account
VSLD Bank Charges
Save
Double click on assign accounts to account symbol folder.
Account symbol Currency GL Account
VSLA INR +++++++++0
VSLB INR +++++++++1
VSLC INR +++++++++2
VSLD INR 400304
Save

Double click on create keys for posting rules folder
Posting rule Text
VSL1 Check receipt clearing customer
VSL 2 Check deposit clearing in bank
VSL3 Check issue clearing in bank
VSL4 Bank charges direct debit by bank
Save

Double click on Define posting rules folder
Posting rule : VSL1 check receipt clrg customer

Rule: VSL1 check receipt claring customer
Bank check deposit a/c dr GL
To customer a/c with clrg sub ledger
Doc. Type DZ
Posting area : 2 (sub ledger accounting)
Posting key : 40
Account symbol : VSLC
Document type : DZ
Posting type : 8 (clear credit sub ledger account)
Select new entry button

Posting rule : VSL2 (Check deposit clearing in bank)

Rule: VSL2 (Check deposit clearing in bank)
Main bank a/c dr GL
To bank check deposit a/c with CLRG GL
Doc. Type SA

Posting area : 1 Bank account
Debit posting key : 40
Account symbol : VSLA (main bank)
Document type : SA
Posting type : 5 clear credit G/L account

Posting rule : VSL3 (check issue clearing in bank)

Rule: VSL3 (check issue clearing in bank)
Bank check issue de with CLRG GL
T o Main bank a/c GL
Doc. Type SA
Posting area : Blank
Account symbol : VSLB
Credit side
Posting key : 50
Account symbol : VSLA
Document type : SA
Posting key : 4 clear debit GL account
Posting rule : VSL4 bank charges direct debit by bank

Rule: VSL4 bank charges direct debit by bank
Bank charges a/c dr GL
To Main bank a/c GL
Doc. Type : SA
Posting area : 1 bank accounting
Debit side
Posting key : 40
Account symbol : VSLD
Credit side
Posting key : 50
Account symbol : VSLA

Docu. Type : SA
Posting type : 1 posting GL account
Save

Creation and assign business transaction
Business transactions --------------- > Check deposit ----------- > Create and Assign business
transactions
Transactions + / - Posting Rule Text
VSL1 + VSL1 Check receipt CLRG customer
VSL1 - VSL1 Check receipt CLRG customer (rev)
Save
Select cancelation button
Select yes button
Select save

Define variant for check deposit: OT45
Business transactions --------------- > Check deposit ----------- > Define variant for check
deposit.
Variant : VSL1
Name : Check deposit variant for VSL
Enter
From possible column double click on Reference document no. (Selection)
Enter
2
nd
column offset enter 20
From possible field column double click on business area
From possible field column double click on customer no.
Enter
4
th
column offset enter 48
Save
Select crate request button
Short description : Work bench request for VSL
Press enter
Keep the cursor on VSL1
Select activate button


Create and assign business transactions for manual bank statement:
Business transactions --------------- > Manual bank statement --------------- > Create and
Assign business transactions

Transaction +/- Posting rule Interpretation Text
Algorithm
VSL2 + VSL2 Check deposit clearing in bank
VSL2 - VSL2 Check deposit clearing in bank (rev)
VSL3 - VSL3 011 Check issue clearing in bank
VSL3 + VSL3 011 Check issue clearing in bank (rev)
VSL4 - VSL4 Bank charges direct debit by bank
VSL4 + VSL4 Bank charges direct debit by bank (rev)
Save

001: Outgoing check: Check no. Different from payment document no
Purchase scenario:
Purchase invoice posting F-43
1) Inventory RM a/c DR 100000
To vendor a/c 100000 doc no. 100001
2) Outgoing payment with clearing F-53
Vendor a/c dr 100000
To bank check issue a/c 100000 doc. No. 200001
3) Manual check creation FCH5
Assign check no. To payment doc.no
Payment document no. 200001
Check no 500001
Check no. Is deferent from payment doc. no.

Define variant for manual bank statement: (OT43)
Business transactions --------------- > Manual bank statement --------------- > Define variant
for manual bank statement
Variant : VSL2
Name : Manual bank statement variant for VSL
Enter
From possible fields column double click on reference document no (Selection)
Enter

4
th
column offset 36
Double click on bank reference from possible column
Double click on business area
Enter
Save
Keep the cursor on VSL2
Select active button
To make text field optional for field status group G001 and G005: (OBC4)
Select field status variant VSL
Double click on field status group folder
Double click on G001
Double click on General data
Text select optional entry field
Save
Double click on G005
Double click on General data
Text select optional entry field
Save

Sales scenario:
1) Sales invoice posting F-22
Type : DZ
Company code : VSL
Reference : 9876
Posting key : 01
Account : 3000601
Enter
Amount : 500000
Busi. Area : VSLH
Text : Sales in voice posting
Pstky : 50
Account : 300000
Enter
Bus. Area : VSLH
Text : +
Document -------------- > Simulate


2) Manual check deposit: (FF68)
Path: Accounting ------------ > Financial Accounting -------------- > Banks ----------- >
Incomings ------------- > Check deposit ---------- > Manual entry
From the menu bar Select Settings ------------- > Specifications
Define variant for manual bank statement
Start variant : IDBI9876
Bank acct no. : IDBI54321
Currency : INR
Group : 1
Transaction : VSL1 (Check receipt clrg customer)
Value date : todays date
Currency : INR
Enter
Amount : 500000
Reference doc. No : 9876
Bus. Area : VSLH
Customer : 3000601
Enter
Save
Save once again
From the menu bar select System ------------ > Services ----------- > Batch input ---------- >
Sessions
Select session name : /IDBI IDBI1
Select display errors only radio button
Ignore the message and select exit batch input button

3) To view customer account transaction: FBL5N
Company code : VSL
Clearing date : Todays date
Double click on type DZ
Select call up over view button

4) To view check deposit account: FBL3N
GL account : 200132

Company code : VSL

5) Enter manual bank statement:
Path: Accounting -------------- > Financial Accounting ----------------- > Banks ---------------- >
Incomings -------------- >Bank statements -------------- > Manual entry (FF67)
From the menu bar select Settings ---------------- > Specifications
Start variant : VSL2 Manual bank statement for VSL
Press enter
Bank key : IDBI9876
Bank account : IDBI54321
Currency : INR
Statement number : 1
Statement date : todays date
Enter
Transactions : VSL2 check deposit clearing in bank
Amount : 500000
Reference doc. No : 1
Enter
Save
Save once again
From the menu bar select System ------------ > Services ------------ > Batch input ---------- >
Sessions
Select session name : IDBI IDBI1
Select display errors only button
Ignore the warning message and select exit batch input button

6) To view check deposit a/c transactions: FBL3N
GL account number : 200132
Company code : VSL
Select clear items radio button

Double click on 500000 Cr

7) To view IDBI main bank account (FS10N)
GL account : 200130 IDBI main bank
Company code : VSL
Fiscal year : 2011

8) Purchase invoice posting: (F-43)
Type : KR
Company code : VSL
Pstky : 31
Account : 4000201
Enter
Amount : 100000
Bus. Area : VSLH
Text : purchase invoice posting
Pstky : 40
Account : 200120
Enter
Amount : *
Busi. Area : VSLH
Text : +
Document ---------- > Simulate save

9) Outgoing payment with clearing: (F-53)
Type : KZ
Company code : VSL
Amount : 100000
Clearing text : outgoing payment
Account : 4000201
Document ------------- > Simulate SAVE

10) Manual check creation: (FCH5)
Save

11) To view check issue account transactions: (FBL3N)
GL account number : 200131 IDBI check issue a/c
Company code : VSL
Open items in check issue a/c, checks issued but not presented

12) Enter manual bank statement: (FF67)
Debit Credit Balance
16-7-2011 500000 Cr
18-7-2011 check 500005 100000 Dr 400000 Cr
18-7-2011 bank charges 1000 Dr 399000 Cr 101000 dr

TR code: FF67
Select over view button
Keep the cursor on company code VSL IDBI bank limited
Select new statement button
Closing balance : 399000
Enter
Transaction : VSL3 check issue clearing in bank
Amount : 100000-
Bank reference : 500005
Bus. Area : VSLH
Transaction : VSL4 (bank charges)
Amount : 1000-
Busi. Area : VSLH
Enter
Save
From the menu bar select System ------ > Services --------- > Batch input ----- > Sessions
Select session name IDBI IDBI1
Select display errors only button
Ignore the message and select exit batch input button

13) To view check issue account transaction: (FBL3N)

GL account number : 200131 idbi check issue
Company code : VSL
Double click on 100000 Dr

14) To view IDBI main bank account (FS10N)
GL account : 200130 IDBI main bank
Company code : VSL
Fiscal year : 2011
Double click on 399000
Double click on 1000 credit
Select call up over view button
15) To view bank statement in SAP: (FF67)
Select over view button
Double click on company code VSL IDBI bank ltd
Double click on statement no 2

WITH HOLDING TAX

TDS stands for: Tax deducted at source, this is for vendor services transactions we deduct
TDS
Eg: Legal and professional charges
TCS stands for: Tax collected at source for customer scrap sales
TDS is part of CIN CIN stands for Country India version
In CIN we have central excise/sales tax/ TDS
Up to version 4.6 C when we buy SAP package from SAP India BGL we used to get 2
packages SAP Packages and CIN packages
From Version 4.7 EE onwards CIN is part of SAP
Classic withholding tax Extended withholding tax
i) In 1995 SAP war released in India A
Company has implemented SAP in 1995
ii) Changes in 1996 finance budget for
Changes in budget released patches
(program)
iii) Changes in 1997 finance budget for
Changes in budget SAP released patches

iv) Changes in 1998 finance budget for
v) Changes in 1999 finance budget for
vi) A company implemented SAP in 2000 In In 2000 released extended withholding tax
Basis person attach CIN package to SAP Modified existing programs by including
Package and attach the patches of the changes of 1996/97/98/99 finance
1996/97/98/99 Budgets.
Afterwards number of changes
i) Surcharge at present no surcharge
ii) Education cess at present no education
cess
iii) Higher and secondary education cess at
present no HSEC
iv) Earlier for TDS on contractors annual
return in form 26 c after wards changed
to uniform annual return form 26 after
wards changed to quarterly return in
form 26 Q the provisions are common
for TDS on Contractors / TDS on Rent /
TDS on Interest / TDS on professional
charges/ TCS on Scrap sale except TDS
on Salaries.

1) TDS on Contractors Income Tax section 194C:
Status of Contractor: Contractor maybe an individual / HUF / Partnership firm /
Company
2) TDS Rates:
i) In case of individual / HUF 1%
ii) In case of Partnership firm / Company 2%
3) TDS is to be deducted at the time of invoice posting or advance payment posting
whichever is earlier
4) If the contract value is less than Rs. 30000 and whole year contract value with the
same contractor is less than RS 75000 no need to deduct TDS
5) If the contractor does not have taxable income he can get exemption certificate from
income tax department for lower rate of deduction or nil rate of deduction in such a
case VSL has to deduct at lower rate or nil rate.
6) Income tax department gives exemption certificate for each year
7) If the bill amount includes material cost and conversion charges (composite contract)
some companies deducted TDS only on conversion charges SAP has given the facility
to deduct TDS only on conversion charges.

8) TDS deducted should be deposited with in the 7 days from the month end if 7
th
day
comes on holiday choice to make payment one day before or after
9) In case of year end provision credit TDS, to deposit within one month from the year
end.
10) Issue TDS certificate in form 16A Quarterly
11) File quarterly return in form 26Q
12) Structure:
Company code VSL
I
Business area HYD BGL
I I
City office Factory City office Factory

PAN will be at company code level
Tax deduction at source number can be at company code level / business area level /
Business place level
13) Section code local income tax address for each (TAN no. Tax deducted at source
number)

Maintain the Calendar:
Path: SPRO ------------- > SAP Net weaver ---------- > General settings -------------- >
Maintain calendar
Select public holidays radio button
Select crate button
Select with fixed date radio button
Select crate button
Day : 01
Month : 05 (May)
Short holiday name : May day
Long holiday name : May day
Enter
Select back arrow
Select holiday calendar radio button
Calendar ID : V2
Description : VSL HYD factory Holiday calendar
Select assign holiday button
Select May day check box

Select assign public holiday button
Save
Select factory calendar radio button
Factory calendar ID : V1 VSL HYD factory calendar
Holiday calendar ID : V2
Select Monday to Saturday check box
Save

Check with holding tax countries:
Path: SPRO ---------- > Financial Accounting ------------ > Financial Accounting Global
settings ------------- > Withholding tax ---------- > Extended withholding tax ---------- > Basic
setting ------------- > Check withholding tax countries
Country (Cty) : IN
W/Cty : IN
Description : INDIA
Save
Save in your AP Customization request

Define withholding tax keys:
setting ------------- > Define withholding tax keys
Country : IN
Enter
Off. Key : 194C
Name : TDS on Contractors
Save

Define section Code:
settings ------------- > India ---------------- > Define business places.

Company code : VSL
Section code : VSLF
Name : HYD income tax office circle 1
Save
Name : HYD income tax office circle 1
Enter

Assign factory calendar to section code:
settings ------------- > India ---------------- > Assign factory calendar to business places
Company code : VSL
Section code : VSLF
Factory calendar : V1
Rule : day before
Save

Define Business places: (SM30)
Path: form the menu bar select System ---------- > Services ----------- > Tabled
Maintenance ----------- > Extended table maintenance
Table / View : J_1BBRANCV
Select maintain button
Company code : VSL
Enter
Business place : VSLF VSL HYD factory
Save
Name : VSL HYD factory
Enter

Assign section code to business places: (SM30)
Table / View : V_ SECCODE
Company code : VSL
Enter
For section code VSLF assign business place VSLF
Save


Define withholding tax type for invoice posting:
settings ------------- > Withholding tax ---------- > Extended withholding tax ---------- >
Calculation ----------- > Withholding tax type -------------- > Define withholding tax type for
invoice posting
Country key : IN
Enter
Withholding tax type : V1
Description : Section 194C contractor invoice posting
Select Gross amount radio button
Select W/tax comm. Round radio button
Select post w /tax amount check box
Select no accumulation radio button
Save

Define withholding tax type for payment posting:
Calculation ----------- > Withholding tax type -------------- > Define withholding tax type for
payment posting
Country key : IN
Enter
Withholding tax type : VA
Description : Sec 194C contractors advance payment posting
Select Gross amount radio button
Select W/ tax comm. rounding radio button
Select post w/tax amount check box
Select No accumulation radio button
Select central invoice propo. (Proportionate) radio button
Save

Why to select central invoice proportionate or
How advance TDS will be adjusted:
1) 24-6-2011 advance payment F-48
Vendor SPL GL (A) Dr 100000

To bank 98000
To TDS 2000 to deposit before 7-7-2011
2) 20-7-2011 conversion charges posting F-43
Conversion charges dr 500000
To vendor 490000
To TDS 10000 to deposit before 8-7-2011
3) On 20-7-2011 transfer of advance from SPL GL to Normal by clearing SPL GL Items
F-54
Vendor a/c Dr 98000
TDS a/c Dr 2000 Automatic debit
To vendor Spl GL (A) 100000

TDS payments:
At the time of Advance 2000 to pay before 7-7-2011
At the time of Invoice 8000 to pay before 7-8-2011
Posting (10000-2000)

Define withholding tax code:
Calculation ------------ > Withholding tax codes ------------ > Define withholding tax codes.
Country code : IN
Enter
W/ tax code : V1
Description : Sec 194C contractors invoice posting
Official w/tax key : 194C select
Percentage subject to tax : 100
With/ tax rate : 2
Posting indicator : 1 standard posting: bank/vendor/customer line item reduced
Save
Select back arrow
Select w/tax type : V1
Change w/ holding tax type: VA
Change description : Sec 194C contractors advance posting
Enter
Save


Check Recipient type:
settings ----------- > Check recipient type
Country key : IN
Enter
With/ tax type Rec. Type Text
V1 CO Company
VA CO Company
Save

Maintain tax due dates:
settings ------------- > India --------------- > Maintain tax due dates.
Country : IN
Official w/tax key : 194C
Recipient type : CO
No. Days until tax due date : 777
Save
Assign withholding tax types to company codes:
Company codes ---------- > Assign withholding tax types to company codes.
Company code : VSL
Recipient type : CO
Select with /tax agent check box
With/ tax Obligated from : 1-4-2011
Obligated to w/ tax until : 31-3-2012
Save
Select back arrow
Select w/tax type : V1

Change w/tax type : VA
Enter
Save.

Activate extended withholding tax:
Company codes ---------- > Activate extended withholding tax
Company code : VSL
Enter
For company code VSL select external w/tax check box
Save

Creation of 2 GL masters: FS00
GL account : 400200
Company code : VSL
GL account : 400100
Company code : VSL
Enter
Account group : Manufacturing cost
Short text : Conversion charges
G/L acct Long text : Conversion charges
Save

GL account : 100510
Company code : VSL
GL account : 100500
Company code : VSL
Enter
Short text : TDS on contractors
G/L acct Long text : TDS on contractors
Save

Assignment of accounts for Automatic posting:

Postings ------------ > Accounts for withholding tax -------------- > Define account for
withholding tax to be paid over.
Enter
Select withholding tax code check box
Select withholding tax type check box
Save
Withholding tax type Withholding tax code Account
V1 V1 100510
VA VA 100510
Save

Maintain company code settings:
Path: SPRO -------------- > Logistics general ------------- > Tax on goods movements -----------
- > India ------------- > Basic settings ----------- > Maintain company code settings
Company code : VSL
Save

Specify document type for remittance Chelan:
TDS on contractors
1 CO 1000
2 OT 2000
3 CO 3000
4 OT 4000
5 CO 5000
When we make TDS payment we have to prepare 2 challans
1) Company contractors
2) Others
At the time of TDS payment we give Recipient type Co
We get a list of TDS deductions where contractor is a company
TDS on Contractors
1 CO 1000
2 CO 3000
3 CO 4000
Automatic entry
TDS on contractor a/c Dr with CLRG 8000 doc type SA
To Bank 8000


Specify document type:
Posting ----------- > India ------------- > Remittance challans -------------- > Document types --
------------- > Specify Document type (Account payable)
Company code : VSL
Remittance challan doc ty : SA
Save

Maintain number groups:
------------- > Maintain number groups.
Company code : VSL
Section code : VSLF
Number group : 004
Save

Assign number ranges to number groups:
------------- > Assign number ranges to number groups

Number group : 004
Internal no. Range : 04
Save
Maintain no. Range:
------------- > Maintain number Range.

Select maintain groups button
Select group without text having 004 check box
From the menu bar select Interval --------- > Maintain
Company code : VSL
Enter
Year : 2011
From number : 1
To number : 100000
Enter
Save
Ignore the message press enter.

Assign number range group to business place: (SM30)
Table / View : J_1IEWTNUMGR
Company code : VSL
Business place : VSLF
Number range : 004
Save

Assign number group to section code: (SM30)
Table / View : J_1IEWTNUMGR_1
Company code : VSL
Business place : VSLF
Number range : 004
Save

Maintain number group and SAP Script forms:
Postings ------------ > India ---------- > Withholding tax certificates for vendors and
customers -------------- > Maintain number group and SAP Script forms
Company code : VSL
Section code : VSLF

Form : J_1IEWT_CERT
Number group : 006
Save

Assign number ranges to number groups:
customers -------------- > Assign number ranges to number groups
Number group : 006
Interval no range : 06
Save
Save request

Maintain number ranges:
customers -------------- > Maintain number ranges
Select maintain groups button
Select group without text having 006 check box
From the menu bar select Interval --------- > Maintain
Company code : VSL
Enter
Year : 2011
From no : 100001
To no : 200000
Enter
Save

Activate CIN details button in vendor Master:
Path: SPRO ----------- > Logistics general ------------- > Tax goods movement ------------- >
India --------------- > Master data --------------- > Assign user to Material master screen
sequence for excise duty.
Double click on user screen reference folder

Name : SAPUSER
Save

Assign withholding tax codes in vendor master: (XK02)
Vendor number : 4000201
Company code : VSL
Select withholding tax check box
Enter
W/ tax country : IN
W/ tax type : V1
W/ tax code : V1
Select liable check box
Rec. Type : CO
W/ tax type : VA
W/ tax code : VA
Select liable check box
Rec. Type : CO
Select CIN details button
Select withholding tax tab
PAN : AABCB5730G
Select back arrow
Save

END USER AREA

1) Conversion change posting: F-43
Type : KR
Company code : VSL
Pstky : 31
Account : 4000201
Enter
Amount : 100000
Business place/ Section code : VSLF
Text : Conversion changes posting
Pstky : 40
Account : 400200 (conversion changes a/c)
Enter

Remove w/ tax code VA
Enter
Amount : *
Text : +
Document ------------- > Simulate
Save.

Note:
Option: 1 Option: 2 Option: 3
If the bill amount is less than If the bill amount is for If the bill amount is only
Rs. 30000 and whole year Rs. 20000 material cost for conversion charges
Contracts value is less than and Rs.80000 conversion
Rs.75000 charges
No TDS TDS to deduct only on TDS to deduct on
80000 100000
Remove V1 and VA i) For w / tax V1 w/tax i) Remove VA
Base enter 80000
ii) Remove VA

Create remittance challan:
Path: Accounting ---------- > Financial Accounting ----------- > Accounts payable --------- >
Withholding tax --------- > India -------------- > Extended withholding tax --------- >
Remittance of withholding tax ----------------- > Create remittance challan
Company code : VSL
Fiscal year : 2011
Business place/ section code : VSLF
Posting date : 1-7-2011 to 31-7-2011
Section : 194C
Recipient type : CO
Bank account : 200105
Enter
Double click on all payable items
Select document over view button
Double click on SBI ca a/c
Amount : *
Text : TDS payment for July

Save
Select clearing document button
Enter bank challan
Path: Accounting ---------- > Financial Accounting ----------- Accounts payable --------- >
Withholding tax --------- > India -------------- > Extended withholding tax --------- >
Remittance of withholding tax ----------------- > Enter bank challan
Company code : VSL
Fiscal year : 2011
Challan clearing number select document no. 39
Internal challan no and challan date will be up dated automatically
Bank challan no : 567
Challan date : 7-8-2011
Bank key : SBI

Print TDS Certificate:
Certificates ----------- > Print
Company code : VSL
Fiscal year : 2011
Business place/ sec : VSLF
Section : 194C
Posting date : 1-7-2011 to 30-9-2011
Bank challan dates : 1-8-2011 to 7-10-2011
Certificate date : 15-10-2011
Signatory : Mr X
Designation : Manager Accounts
Place of printing : HYD
Execute
Select print button
To view the printouts
From the menu bar select System -------- > Services ----------- > Output control
Select display contents button

To print Quarterly return: (J1NQEFILE)


Financial Accounting Basic Settings ---------------------- 2
General Ledger Accounting ----------- --------------------------- 34
Accounts Payables -------------------------------------------------- 88
Accounts receivable ------------------------------------------------- 120
Asset Accounting ---------------------------------------------------- 148
Cash journal ---------------------------------------------------------- 181
Closing procedure --------------------------------------------------- 183
GL Balances ----------------------------------------------------------- 186
Reports ----------------------------------------------------------------- 188
Balance sheet and P&L account ----------------------------------- 192
Bank Reconciliation -------------------------------------------------- 200
With holding tax ------------------------------------------------------ 214

FI END

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