SAP FICO Module Notes

SAP Basic Informamtion.

What is SAP?
SAP stands for Systems Applications and Products in Data Processing.

SAP, by definition, is also name of the ERP (Enterprise Resource Planning)

software as well the name of the company.

SAP Software was Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner, and
Tschira.

SAP system consists of a number of fully integrated modules, which covers virtually
every aspect of business management.

SAP is #1 in the ERP market. As of 2010, SAP has more than 140,000 installations
worldwide, over 25 industry-specific business solutions and more than 75,000
customers in 120 countries

Other Competitive products of SAP Software in the market are Oracle, Microsoft
Dynamics, etc.

Phases of ASAP Methodology

The ASAP methodology prescribes a correct pathway for SAP implementation projects. It consists of
six steps, the 6 major phases of SAP implementation:
Pre-sales, Preparation, Business Blueprint, Realization, Going Live, and Post-Production. Here we
are going to discuss all the steps in detail.
1. Pre-sale of ERP. In this pre-sale phase, ERP (SAP) tries to get the project from the client.
Most clients consider more than one option for their business and then give all options a try to
see which one provides the best result. In most cases, clients get the ERP software license
directly from the software companies. This step may or may not include a test to check which
ERP system is most suitable for the client.
2. Preparation. Once a client decided has decided on its ERP system, then they prepare the
landscape of the project. In this step, server information, project cost, resources, Subject Matter
Experts (SME), and business teams are decided by the PMO (the Project Management
Organization). It consists of project managers, a steering committee, core business members,
 and sponsors. A project team studies legacy systems and gathers information regarding core
systems, interfaces, what interfaces the client wants, what is necessary, what is nice to have,
etc. The core team carries out "as-is" studying, a study of the current system and its processes.
The project management team also hires resources and carries out project planning and
outline.
3. Business Blueprint. In this phase, the core team does "GAP analysis," an analysis of the
differences between the system as is and the system to be studied. Allocated resources write
down the rules and requirements for the new system. Integration points, interfaces and process
maps are finalized. Functional consultants write the functional specification. If needed technical
specifications are written down for developers to do further configuration. A testing team also
started working on preparing testing steps and scenarios. Financial specifications and technical
specifications are created in this step for further development and configurations.
4. Realization. In the realization step, functional consultants carry out configuration. Development
is done for the required customization. Testing is carried out by the core team. Basis
configuration is carried out by the security team. A basis team moves all configurations from
one server to another for testing purposes. Testing is mostly done in the quality control server.
All the configurations upload master data across all modules (sample load of few parts or entire
data end as per client wants). Unit testing and integration testing has been done by the testing
team. Unit testing, integration testing, and day-in-the-life testing happen at this stage.
5. Pre-Goes-Live Phase In this step, all configurations from the golden client will be moved to
other services. Uploading master data into the new system is done mostly using LSMW, BAPI
or BADI. Cut-over activities are done only when we stop the legacy system and start using the
SAP system. End-user training and user documentation are carried out in this pre-go-live stage.
After all cut-over activities, SAP implementation goes live in a production environment.
6. Post-Production Support. In this step, the team helps the client to solve if any production
issue came regarding configuration, master data change, or transaction issues. Also, the team
will provide training to users and super-users. All the support documentation work has been
completed in this step.

SAP WORKING PROFILE IN SAP :

CONSULTANT:

SAP consultant role is to build the system, changes & modification/updation in currently
installed SAP system for the end users.

SAP END USER :

SAP End user only use the SAP system just to fetch some info, or to create new thing. So a
end user is just using the final product which it is meant for and consultant design the
product/updation and modification.

The responsibilities of a support consultant are: - Primarily responsible for Handling

tickets and application support to the End users. - When an issue comes diagnose,
analyze and solve the issue. - Responsible for any enhancements.
SAP : Three-Tier Architecture
With SAP R/3, SAP ushers in a new generation of enterprise software — from mainframe
computing (client-server architecture) to the three-tier architecture of database,
application, and user interface.

Three-Tier Architecture of SAP R/3

Presentation Servers

Presentation servers contain systems capable of providing a graphical interface.

 Presentation Layer is also known as client Layer

 Presentation Layer is a user interaction
 In SAP-User interaction purpose we use GUI
 GUI stands for Graphical user interface
 Example − Desktop, Mobile Devices, laptops

Application Servers

Application servers include specialized systems with multiple CPUs and a vast amount
of RAM.
 Application Layer is also known as Kernel Layer and Basic Layer.
 SAP application programs are executed in Application Layer.
 Application Layer serves as a purpose of a communicator between Presentation and
Database Layer.
 Application server is where the dispatcher distributes the work load to the different work
processes makes the job done.

Database Servers

Database servers contain specialized systems with fast and large hard-drives.

 Database layer stores the data

 Data store can be Business data, SAP system data, SAP tables, Programs.
 Examples − Oracle, Microsoft SQL Server, IBM DB/2, Siebel, Sybase, etc.
Three-Tier Architecture

What is a Client?
A client is a logical portion of an SAP R/3 physical database. From a business standpoint,
a client can be interpreted as a logical group of companies.

Points to Remember −
 All customizing (configuration) and development (ABAP) work in SAP R/3 is performed in a
client.
 However, the data from both customizing and development work may be stored within an
individual client (client dependent data) or among all clients (client independent data) in the
system.

Client-Dependent vs. Client-Independent

The data in each client may be separate from that of the other clients. There are basically
two types of data in an SAP R/3 system − Client-dependent and Client-
independent data.
 Client-dependent data is defined as data specific to an individual client. Examples of client-
dependent data include number ranges, ABAP variants, and user masters as well as the data
that is created or updated through SAP R/3 transactions.
 Client-independent data can be defined as data contained across all clients in the system.
Examples of client-independent data include data dictionary objects (tables, views), ABAP
source code, screens, and menus.

 Data resides in tables. To determine if a particular table is client-dependent or client-

independent, the table structure needs to be reviewed. The table structure can be viewed by
the data dictionary (SE11). If MANDT (client in German) is the first key field of the table, then
the table is client-dependent; otherwise, the table is client-independent.
 For example, the TSTC table is client-independent; however, the USR01 table is client-
dependent.

SAP R/3 Delivered Clients

Every SAP R/3 system contains the three clients 000, 001, and 066. Let’s review these
clients and examine what they contain.
These clients provide different features and must not be deleted.
  Client 000 performs special functions. In particular, it is given extended functionality during
upgrades.
 Client 001 is basically a copy of 000 and can be used as a basis for a new customizing client.
 Client 066 is a special client which is provided for operational system monitoring. It is used
by SAP R/3’s Early Watch Service to provide performance recommendations.

In releases prior to 3.0, client 000 contained a model company. As of Release 4.0 clients,
000 and 001 are identical. Client 000 no longer contains a model company. Either client
can be used as the basis for configuration through a client copy. Typically, most projects
start with a copy of client 000 to begin building configuration. Customer work should
never take place in the three delivered clients.

TOPIC WISE NOTES

Enterprise Structure
 In this section, you will learn how to portray the specific organizational structure of your
business in the R/3 System.
 To help you portray your company structure, different Accounting, Logistics and Human
Resources organization units are provided.
 First analyze the structures and procedures in your company, and then match them to the
SAP structures. There are various organization elements defined as examples in the
standard version. Normally these would not cover all your needs. Extend the elements as
required.
 During the clarification stage, work with the structures delivered by SAP. In order to
obtain a high degree of indentification and acceptance from project members and user
departments from the start, you may have to change some of SAP's terminology.
 You should limit the number of persons authorized to maintain organization elements.
Define the authorization profiles accordingly. As soon as your organization units are
ready, access should be locked so that no other changes can be made.
 Note
 The definition of organization units is a fundamental step in your project. It is a critical
factor in how the project will be structured.
 You should not use more organization units than necessary. Only use new organization
units if this is required by the existing data structures.
 Once you have decided on an organizational structure it is not easy to change it.
Company Code
You have already defined the company codes you require in the Enterprise Structure Implementation
Guide. For information on this, refer to Define, Copy, Delete, Check Company Code. You must now
create other structures and master records and make control specifications for each company code in
Financial Accounting.

Note

If you need more than one company code in your company, you should decide how you want to make
the company code-dependent specifications. You have the following options:

 You maintain the company code-specific parameters for all company codes manually.

This makes sense, for example, if the company is organized decentrally and the individual company
codes are arranged differently.

 You maintain the specifications for one company code and copy those specifications that are
also required in other company codes into the other company codes. You maintain the
specifications that are not the same in the other company codes manually.

This makes sense in the case of a centrally organized company where the individual company codes
do not differ that much in the way they are organized. This also makes sense if partial tasks are
carried out centrally, such as payment transactions or customer credit control.

Decide on a procedure. The SAP System supports the procedures mentioned by means of a program for
copying company codes. This program can be executed from the "Enterprise structure" IMG via the
activity Define, Copy, Delete, Check Company Code.

Fiscal Year
A fiscal year consists of several posting periods and if necessary, special periods that can be posted to
after a temporary year-end closing.

You define how your fiscal year is set up in the SAP System by creating a fiscal year variant at client level.
Each company code is assigned a fiscal year variant. Several company codes can use the same fiscal year
variant.

Additional information

For more information on fiscal year variants, see the "FI Closing and Reporting" documentation.

Posting Periods
It is possible to specify which company codes are open independent of a company code. Thus, as
many company codes as required can use the same variants for open company codes.
In the following activities, you make the necessary settings to be able to manage identical
posting periods in several company codes.

Document Number Ranges

A number range must be assigned to each document type in the SAP System. Via the document
types, you distinguish the postings according to the different business transactions, for example
customer payment, vendor credit memo, and so on. To store documents separately according to
document types, you must assign a separate number range to each document type, for example to
invoices or to credit memos.
In the following activities:
 You define your document number ranges.
 You can determine which intervals of document number ranges are to be copied from one
company code into another.
 You can determine which intervals of document number ranges are to be copied from one
fiscal year into another.
Define Document Types
In this activity you create document types for customer, vendor and general ledger business
transactions in Financial Accounting. Document types differentiate business transactions and control
document filing.

You specify a number range for each document type. Document numbers are chosen from this number
range. You can use one number range for several document types.

Document types are valid for all clients. You specify a number range key for each document type. You
create the desired number range intervals for each number range key based on the company code. This
means that you can specify intervals of different sizes for the same number range.

Example

You defined a document type for incoming invoices. In company code 0001 there are a lot of invoices to
be posted. Thus you create a large number interval for the number range in this company code. In
another company code there are only a few incoming invoices that need to be posted. For this company
code you can define a small number interval for the same number range.

If a document type is not used in a company code, do not store a number interval for that company
code.

Note

To use the net method of posting documents, you need a net document type (for example, KN). In this
document type, you have to set the "Net document type" indicator found under the "Control" area. You
can define a common document type (for example, AB) and a common number range for clearing open
items in accounts receivable, payable and G/L acccounts.

For automatic posting transactions (for example, transfer postings with clearing), you have to define a
clearing document type (for example, AB). If you do not want to use the standard setting AB for the
clearing document type, you can delete it and define your own. Under the document type properties,
you can assign an individual reverse document type to each document type. For document types with
external number ranges, you have to define an individual reverse document type because the system
can make automatic reverse entries only in document types that have internal number assignment.

Standard settings

The preset document types cover business transactions

  in Financial Accounting for:

 General ledger accounting

 Accounts receivable

 Accounts payable

 Asset accounting

 Consolidation

 in Materials Management and Sales and Distribution for:

 Goods receipt and issue

 Incoming and outgoing invoices

Define Posting Keys

In this activity you define posting keys. Users specify a posting key before entering a line item. The
posting key controls how the line item is entered and processed.

For each posting key, you define among other things:

 which side of an account can be posted to,

 which type of account can be posted to, and

 which fields the system displays on the entry screens and whether an entry must be made (field
status).

Note

The system also uses the field status group you specify in a G/L account to determine the status of fields
in document entry. Field status groups are defined within a field status variant.

Recommendation

Use the posting keys delivered with the standard system.

Activities

1. Check the standard settings.

2. Modify them if necessary.

In particular, you may need to make changes to customer and vendor posting keys if a different field
status is required.
Define Field Status Variants
In this activity you can define and edit field status variants and groups. You group several field status
groups together in one field status variant. You assign the field status variants to a company code in the
activity Assign Company Code to Field Status Variants. This allows you to work with the same field
status groups in any number of company codes.

You can also define and process field status groups. You must define a field status group in the company
code-specific area of each G/L account. The field status group determines which fields are ready for
input, which are required entry fields, and which are hidden during document entry. Bear in mind that
additional account assignments (i.e. cost centers or orders) are only possible if data can be entered in
the corresponding fields.

Standard settings

Field status variant 0001 is entered for company code 0001 in the standard SAP software. Field status
groups are already defined for this variant.

Note

You cannot attach a field status to some fields, such as those in the document header. You can,
however, switch between required and optional entry field designations in the document type for some
of these header fields.

The field status group you enter in the reconciliation accounts affects postings to the related customer
or vendor accounts. You cannot enter a field status group in the customer or vendor accounts. Field
status groups are determined for customer and vendor accounts from their respective reconciliation
accounts, via the G/L account number in their master records.

There are other factors, besides the field status group itself, which have an influence on the field status.
Among these are:

 the field status defined for the posting key.

The status "optional entry field" was assigned to posting keys 40 and 50 in the standard system.
These are the standard posting keys for G/L account postings. The "optional entry field" status has
no effect on the field status.

 Specifications for the document type.

You can specify here that a reference number and document header text must always be entered,
for example.

Recommendation

Designate field status via the field status groups in the G/L accounts. This allows you a more account-
specific screen layout. You cannot differentiate by posting key, since there are only two such keys for
postings to G/L accounts.
The situation with reconciliation accounts is different. You do not make any differentiated field status
definition via the master record for these special G/L accounts. You use the debit and credit posting keys
instead.

Activities

1. Create new field status variants using Edit -> New entries . You can also use the copy function to
create new field status variants. To do this, select Edit -> Copy as . When copying field status
variants, the accompanying field status groups are also copied.

2. Look at the standard field status groups.

3. Find out which fields on the entry screens should be

 ready for input

Edit Chart of Accounts List

 In the chart of accounts list you enter the charts of accounts that you want to use in your
organization (at client level).
 Standard settings
 The list already contains sample charts of accounts for some countries. Charts of accounts GKR
and IKR, for example, have been entered for Germany.
 Activities
 1. Check whether you can use one of the charts of accounts supplied with the standard system.
To do this, you can display the charts of accounts on the screen or print them out using the
"Chart of Accounts" program. You can find the program under Accounting -> Financial
accounting -> General ledger -> Information system -> General Ledger Reports -> Master Data ->
-> Chart of Accounts Chart of Accounts.
 2. If you want to create your own chart of accounts, enter it in the chart of accounts list.

Define Account Group

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

The account group determines:

 the interval in which the account number must be

 which fields are required and optional entries when creating and changing master records

 which fields are suppressed when creating and changing master data.

It enables you to control the layout of screens.

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

Note

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

Account groups are defined for the standard charts of accounts.

Activities

Check and change the standard account groups as needed. If you set up your own charts of accounts,
you must specify account groups for them.

Define Retained Earnings Account

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

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

Note

Your specification depends on the chart of accounts.

Requirements

The chart of accounts must be specified in the chart of accounts list.

Standard settings

Account 332000 was defined for chart of accounts IKR and account 900000 was defined for GKR, using
the key "X" respectively.

Activities

1. Change the standard settings if necessary.

If you do not use one of the standard charts of accounts, you must specify the P&L statement
account type(s) and the retained earnings accounts for each new chart of accounts you set up.

2. Make sure the accounts you specify are created.

Define Tolerance Groups for G/L Accounts

For G/L account clearing, tolerance groups define the limits within
which differences are accepted and automatically posted to predefined
accounts. The groups defined here can be assigned in the general ledger
account master record.
Define Document Number Ranges
In this IMG activity you create number ranges for documents. For each number range you specify
(among other things):

 a number interval from which document numbers are selected

 the type of number assignment (internal or external)

You assign one or more document types to each number range. The number range becomes effective
via the document type specified in document entry and posting.

You can use one number range for several document types. This means you can differentiate documents
by document type but combine them again for filing the original documents, provided you store your
original documents under the EDP document number.

Note

The type of number assignment is of special importance. For each document type you should check
whether a separate number range must be used and which type of number assignment is most
appropriate.

One example of a case where external number assignment would be suitable is when you transfer
documents into your SAP system from a non-SAP system. The numbers must be unique. The number
range is not displayed with external numbers. You must therefore ensure that you do not skip any
numbers when entering numbers manually (for organizational reasons).

You should use internal number assignment if the original documents do not have a unique document
number. This is the case, for example, with vendor invoices.

Number ranges for documents are company code-dependent. You must therefore create your number
ranges for each company code in which the document type is used, namely with the same number range
key.

The number intervals must not overlap. If you use year-dependent number ranges, you can specify the
same interval with the same key several times for different to- fiscal years (the limit up to which a
number range is still valid). If you want to define number ranges which are independent of the to-fiscal
year, enter 9999 in the to- fiscal year field.

Caution

For sample documents, use a number range with key X2, for recurring entry documents with key X1.
These keys may not be used for other number ranges.

Recommendation

Store your original documents (paper documents) under the EDP number of the SAP System. You should
write the EDP document number on the original document. In this way, the original document for a
business transaction can be found at any time.

Activities

1. Determine how document filing is to be carried out in your company codes.

2. Define your number ranges accordingly.

3. Make sure that the number ranges are assigned to the corresponding document types.

Notes on transporting
Define Account Groups with Screen Layout (Customers)
In this step, you determine the account groups for customers.
You can also define reference account groups for one-time accounts. You can use these to
control the fields of the one-time account screen so that, for example, certain fields are displayed
as required fields or are hidden.
When creating a customer account, you must specify an account group. You can specify a
reference account group under "Control" in the "General data" part of a one-time account's
master data. If you do not specify a reference account group, then, as previously, all fields of the
one-time account screen are ready for input during document entry.
You use the account group to determine:
 the interval for the account numbers
 whether the number is assigned internally by the system or externally by the user (type of
number assignment)
 whether it is a one-time account
 which fields are ready for input or must be filled when creating and changing master
records (field status)
Example:
You want to hide the address, communication and bank data fields for the one-time accounts.
You determine the field status in the general data area for these fields since the fields are
contained in this area. The reconciliation account field is defined as a required field since a
reconciliation account must also be specified for the one-time accounts. This field is
company code-dependent. You define the status of this field in the company code-dependent
data area.
With the account groups, you group accounts together according to the criteria mentioned above,
for example, one-time accounts. You determine the account number interval and the type of
number assignment using the number ranges.
Note
If you create new account groups, do not forget to maintain the field status. Otherwise all
corresponding fields are shown. It is recommended that you control the field status via the
account groups. In exceptional cases, it can make sense to control the field status either
dependent on company code or dependent on transaction.
Note on changing the account group
You may only delete an account group from the system if there are no master records referencing
this account group. Otherwise you can no longer display or change the master record.
 Changing the field status definition
If you hide a field at a later stage in which you had already made an entry, the field contents
are still valid.
 Changing number ranges
 You can increase the upper limit of the number interval as long as there is no other interval
containing the required numbers. You can allocate a new number range to the account group.
The numbers of the new master records must then be contained in the new area.
Standard settings

Define Tolerances for Customers/Vendors

In this activity you define the tolerances for customers/vendors. The tolerances are used for dealing
with payment differences and residual items that may arise when payment clearing is carried out. You
specify the tolerances in one or more tolerance groups and assign a tolerance group to each
customer/vendor using the master record. For each tolerance group specify the following:

 Tolerances, up to which payment differences arising from open item clearing can be
automatically posted to expense or revenue accounts

 The treatment of terms of payment for residual items if they are to be posted during clearing

Note

Ensure that you can also Define Tolerance Groups for Employees. For clearing, the lower limit from the
specifications for the customer/vendor, and the specifications for the employee group are valid.

Requirements

If you want to enter fixed terms of payment for posting residual items from payment differences for a
tolerance group, you have to define the terms of payment first. To do this, see Maintain Terms of
Payment.

If you want to assign a dunning key to a tolerance group, you must have already defined the dunning
key. To do this, see Define Dunning Keys.

Activities

1. Identify groups of customers/vendors to which identical tolerances apply.

2. Create the required tolerance groups for your customers/vendors.

3. Make sure that the required tolerance groups are assigned to the customers/vendors in the
master record.

Further notes

If you want to work with uniform tolerances for all customers/vendors in a company code, create a
tolerance group with the key "blank" ( ) for the company code. In this case, you do not have to enter the
tolerance group in the customer/vendor master record. You can also use a tolerance group with key
"blank" ( ), if for example, you want to define lower tolerances for particular customer/vendors than
others. In this case, for example, you create a tolerance group 0001 with low tolerances for the
customers/vendors and then enter this tolerance group in the customer/vendor master record. All other
customers/vendors automatically have the tolerance group "blank" ( ) assigned to them.

Define Reconciliation Accounts for Customer Down Payments

In this step, you define an account in which the customer down payments or down payment
requests are managed in the general ledger. In the case of down payments or down payment
requests, the posting is automatically made to this account instead of to the normal receivables
account (reconciliation account).
Note
You can group the specifications account type, special G/L indicator and reconciliation account
together under a three-character key. You store the clearing accounts for output tax under this
key in the next step. This is only necessary if you display down payments or down payment
requests gross.
You specify as to whether a down payment or down payment request is displayed gross or net in
the alternative reconciliation account via the Tax category field.
Activities
1. Specify the number of the alternative reconciliation account.
2. Make sure the account is created and that the Tax category field is filled correctly.
3. If you want the gross display, specify the clearing accounts for output tax in the next step.
Define House Banks
Each house bank of a company code is represented by a bank ID in the SAP system, every account at a
house bank by an account ID.

In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications
are used, for example, for automatic payment transactions to determine the bank details for payment.

Standard settings

Several house banks are supplied as examples in the standard system in order to enable configuration of
the payment program.

Note

For domestic banks, you should enter the bank number in the "bank key" field and for foreign banks,
you should enter the SWIFT code in this field.

For Belgium, the first three house bank ID items must be numeric.

Do not forget to create a G/L account for the specified bank account. The G/L account is to be managed
in the same currency as the account at the bank.

Activities

1. Work out the specifications you have to enter in the system for your house banks.
 2. Define your house banks and the corresponding accounts in the system under a bank ID or an
account ID.

Additional information

If you have already carried out the step "Copy bank directory", you have already created house banks in
the system or have updated the house bank data that already existed.

If this is the case, in this step you only have to create the house banks that were not created in the
"Copy bank directory" step. You can also add any data that may be required to house banks that were
copied along with the bank directory.

Define Document Types for Cash Journal Documents

You can select existing document types for cash journal documents, or define new document
types in this activity.
You must have document types for the following postings:
 G/L account postings
 Outgoing payments to vendors
 Incoming payments from vendors
 Incoming payments from customers
 Outgoing payments to customers
Note
Ensure that on the detail screen, the selection fields under Permitted account types, your postings
are selected accordingly. Useful selections are for example, account types customer, vendor, G/L
account.

Assign Country to Calculation Procedure

In this activity, you enter the key for the calculation procedure which determines the conditions which
are allowed per document and which defines the sequence of the conditions in the document for each
country.

Requirements

Each calculation procedure which you enter must contain the necessary specifications for calculating
and posting the taxes on sales/purchases. For more information on this, read the chapter "Create
calculation procedure".

Activities

1. Assign a procedure for tax calculation to every country with which your company has business
dealings.

2. Make sure that the corresponding data for calculating taxes is stored for each calculation
procedure which you enter here.
Define Tax Codes for Sales and Purchases
Use

You have to define a separate tax on sales/purchases code for each country in which one of your
company codes is located.
Each code contains one or more tax rates for the different tax types.

If you have to report tax-exempt or non-taxable sales to the tax authorities, you need to define a tax
rate with the value 0.

Note

Do not delete or change any taxes on sales/purchases codes and their definitions as long as items with
these codes exist in the system.
Otherwise, the SAP system displays the tax amounts with incorrect tax rates in the corresponding
reports and determines incorrect amounts during a tax adjustment for payment transactions.

Standard settings

SAP supplies a tax calculation procedure for each country. The procedure comprises a list of all common
tax types with rules for tax calculation. In addition, example tax codes are defined for some countries.

Activities

1. Check the standard tax codes for your country. Add further tax codes, if necessary.

2. Ensure that tax accounts are defined for the automatic posting of taxes.

Notes on transporting tax codes

When tax codes are transported, only the tax rates of the tax codes are transported.

The transport of tax codes between systems or clients is carried out in two steps:

1. step:
Export of tax codes from the source system or source client

2. step:
Import of tax codes into the target system or target client

Export

Define Tax Accounts

In this activity, you specify the accounts to which the different tax types are to be posted. The
system determines these accounts for automatic postings.
Activities
Define the tax accounts.
Notes for the transport of tax accounts
When you transport tax codes between different systems or clients, no tax accounts are
transported.
Adjust the tax accounts in the source and targWithholding Tax Type
In the system you use withholding tax types to represent the various withholding taxes in a
country. You define withholding tax types in the following activities.
The withholding tax type controls the essential calculation options for extended withholding tax,
whilst the withholding tax code only controls the percentage rate of the withholding tax.
You must enter the withholding tax type in the customer/vendor withholding tax master data and
in the company code master data.
The system recognizes two categories of withholding tax type depending on when the
withholding tax amounts are posted:
 Posting with invoice
 Posting with payment
et system (or source and target client) manually.

Assign Tax Codes for Non-Taxable Transactions

In this activity you define an incoming and outgoing tax code for each company code, to be used
for posting non-taxable transactions to tax-relevant accounts. Transactions posted like this are,
for example; goods issue delivery, goods movement, goods receipt purchase order, goods receipt
production order, order accounting.
Activities
Define tax codes for non-tax relevant transactions for each company code.

Activate Extended Withholding Tax

In this activity you activate extended withholding tax.
SAP provides you with two procedures for processing withholding tax:
"Standard" and extended withholding tax.
"Standard" withholding tax is the procedure that has always been supported by the system. It
offers you the following features:
 Withholding tax for accounts payable
 Withholding tax calculation during payment
 Withholding tax code per vendor line item
Extended withholding tax provides the following additional features:
 Multiple withholding taxes per customer or vendor line item
 Withholding tax calculation for partial payments
  Quellensteuerberechnung bei Rechnungserfassung und bei Zahlung
 Activities
1. Migrate your master data and transaction data.
2. Activate extended withholding tax.
3. Carry out Customizing in Financial Accounting Global Settings under Withholding Tax ->
Extended Withholding Tax.
Further notes
Once you decide to use extended withholding tax and activate it, you have to migrate you master
data and transaction data. It is then impossible to revert back to using ordinary

Asset Accounting
This part of the Implementation Guide contains all the implementation steps for the Asset Accounting
(FI-AA) component.

The first section, "FI-AA Implementation Guide - Lean Implementation," contains the minimum steps
required for a quicker, more streamlined implementation of Asset Accounting. (See the FI-AA
Implementation Guide - Lean Implementation).

Note

 You can get more information about the concepts of SAP Asset Accounting in "FI-AA Asset
Accounting" in the SAP library. In the individual steps of the Implementation Guide, you find
references to this documentation under the heading "Additional Hints."

Organizational Structures
In this section, you define the features of the FI-AA organizational objects (chart of depreciation,
FI company code, asset class). All assets in the system have to be assigned to these
organizational objects that you define. In this way,
 you can represent your organizational structures that are relevant to Asset Accounting in
the system
 you can classify your assets according to asset accounting criteria.
At the same time, you can also assign assets to other organizational units in other components
(such as cost centers, plants, and so on). You define these organizational units in Customizing for
the component they belong to (such as cost center accounting).

Integration with the General Ledger

The system settings and entries you make in this section are required for the integration of Asset
Accounting with the General Ledger:
 Depreciation areas that post depreciation/APC automatically to the General Ledger
  G/L accounts that are relevant for Asset Accounting (reconciliation accounts and
accounts that are posted using batch input)
 Screen layout controls for G/L accounts
 Default input tax indicator for transactions not subject to tax
 Specifications for periodic posting of depreciation to the General Ledger

Asset Accounting (Lean Implementation)

Information about this Segment of the Implementation Guide
This segment of the Implementation Guide contains all the implementation steps needed for a
minimal configuration of the FI-AA Asset Accounting component. After you have completed all
the activities in this segment, the component is ready for production startup. This reduced
configuration is based on the basic functions generally required of asset accounting.
In order to make quicker implementation possible, the complete functions of the FI-AA
component are not discussed here. The following topics have been omitted (among others):
 Depreciation areas in foreign currencies
 Requirements for consolidation of a corporate group
 Group assets
 Definition of your own depreciation keys (in addition to those provided in the standard
system)
 Definition of your own transaction types (in addition to those provided in the standard
system)
 Definition of your own reports in (addition to those provided in the standard system)
If you need any of the above functions, you have to use the more comprehensive SAP Reference
IMG for Asset Accounting.

Define Screen Layout for Asset Master Data

In this step, you define the screen layout control for asset master data. The screen layout control
contains the specifications for the field groups in the asset master record. You enter the screen layout
control in the asset class. This method allows you to structure the master record individually for each
asset class.

Note

This step must be carried out exactly to guarantee optimal master data maintenance.

Standard settings
SAP delivers some sample definitions which you can use as references when formulating a more
detailed structure for the asset master.

Activities

1. Create the screen layout control according to your requirements. (You may already have carried
out this step in the "Organizational Structures" section of the FI-AA Implementation Guide.)

2. Define for the individual field groups

 the characteristics of the master record screen (whether fields are required, optional,
display fields or should be suppressed)

 the maintenance level

 whether it can be copied (when creating a new master record using a reference master
record)

Caution

The only field that can be suppressed are initial fields (that is, they have no contents). Fields that have
contents are always displayed, regardless of the screen layout. Fields might have contents, despite the
screen layout, for example if

 the screen layout is changed

 the asset data transfer supplies values to suppressed fields

If you want to suppress fields that have contents, you have to define them first as modifiable, and then
delete their contents.

Further notes

SAP Library FI-AA: Master Data Maintenance -> Screen Layout and Tab Layout for Master Data

Define Screen Layout for Asset Master Data

In this step, you define the screen layout control for asset master data. The screen layout control
contains the specifications for the field groups in the asset master record. You enter the screen layout
control in the asset class. This method allows you to structure the master record individually for each
asset class.

Note

This step must be carried out exactly to guarantee optimal master data maintenance.

Standard settings

SAP delivers some sample definitions which you can use as references when formulating a more
detailed structure for the asset master.

Activities
 1. Create the screen layout control according to your requirements. (You may already have carried
out this step in the "Organizational Structures" section of the FI-AA Implementation Guide.)

2. Define for the individual field groups

 the characteristics of the master record screen (whether fields are required, optional,
display fields or should be suppressed)

 the maintenance level

 whether it can be copied (when creating a new master record using a reference master
record)

Caution

The only field that can be suppressed are initial fields (that is, they have no contents). Fields that have
contents are always displayed, regardless of the screen layout. Fields might have contents, despite the
screen layout, for example if

 the screen layout is changed

 the asset data transfer supplies values to suppressed fields

If you want to suppress fields that have contents, you have to define them first as modifiable, and then
delete their contents.

Further notes

SAP Library FI-AA: Master Data Maintenance -> Screen Layout and Tab Layout for Master Data

Specify Parameters for Data Transfer

In this step, you specify the control parameters for the transfer of legacy data from your previous
system:
 Date, which will be the value date for the legacy data transferred to the SAP Asset
Accounting component (transfer date).
This date also determines the last closed fiscal year for Asset Accounting.
Example:
Transfer date = 12/31/YYYY
=> last closed fiscal year = YYYY
Transfer date = 06/30/YYYY
=> last closed fiscal year = YYYY
 Period up to which depreciation has already been posted to the general ledger in your
previous system
You only need this entry when you transfer data during the course of the fiscal year (rather
than at the end).
  If your legacy system contains only net book values, rather than depreciation values and
historical APC, you can transfer net book values.
 Depreciation areas, for which the system should recalculate accumulated past
depreciation
 Depreciation areas, for which the system should determine a new base insurable value.
Standard settings
You have to make the date specifications yourself. The other transfer parameters are already set
up in the standard depreciation areas.
Activities
1. Enter the transfer date
 which should determine the status of the legacy data the system transfers from
your previous system and
 which should determine the value date of the data in the SAP System
2. If you chose a transfer date within the fiscal year (not at the end), enter the period up to
which depreciation was already

Maintain Controlling Area

In this IMG activity you can:

 Create a controlling area

 Change the settings for an existing controlling area

 Copy the controlling area "0001"

Basic Data

The deciding factor for basic data characteristics is the organization of cost accounting, meaning the
assignment of company code(s) to a controlling area.

If you have already created master data, you cannot then remove the company codes already assigned.
However, you can assign more company codes to the controlling area.

Note on number of controlling areas

The way you assign company codes and controlling areas affects your currency settings, in other words,
the currency type, the currency, and the currency-related updating, also the chart of accounts, and the
fiscal year variant of the controlling area.

Further basic data for a controlling area includes the cost center standard hierarchy and the settings for
the reconciliation ledger.

Control indicator
You can use the control indicator to activate or deactivate particular components and functions in
Controlling per fiscal year.

Assignment

If you require cross-company code cost accounting, you need to explicitly assign the company codes to
the controlling area.

Requirements

 In your organizational structure, you specified whether you require cross-company code cost
accounting or whether the controlling area is used in a 1:1 relationship with the company code.

 In Customizing, under Global settings, you have defined the currencies that you require.

 In Customizing, under Enterprise Structure -> Definition -> Financial Accounting, you created one
or more company codes.

Maintain Number Ranges for Controlling Documents

In this IMG activity you create number ranges for business transactions in Controlling or change existing
settings.

For every posting in CO the SAP System generates a numbered document. The document numbers are
unique to each controlling area, since each number is assigned only once.

In CO, there are no legal requirements for a continuous assignment of document numbers. To improve
performance, after each restart of an application server, a maximum of 100 document numbers for each
number range are not assigned.

Every transaction that you carry out on the controlling area level has to be assigned to a number range
group.

A number range group, in turn, includes two document number intervals:

 An internal interval for all documents to which the user did not explicitly assign a document
number;

 An external interval for all documents where the document numbers were assigned by the user,
or which are brought into the SAP system from a non-SAP system (for example, through batch
input) and the original document numbers are to be retained.

If no external document number is given during posting, the SAP system uses the next open number
from the internal number interval of the transaction it belongs to.

Requirements

 You have system authorization for maintaining number ranges. (authorization object
S_NUMBER).

 Complete the IMG activity Maintain Controlling Area.

Note
You define the document number range in CO independently from the fiscal year.

Standard settings

The SAP System includes standard assignments for controlling area 0001. You can copy these
assignments to other controlling areas. You need to maintain the number range groups only if you
require other assignments or other number range groups.

Recommendation

1. SAP recommends that you create separate document number ranges for plan and actual cost
transactions so that, when reorganization programs run separately for plan and actual data, the
number ranges can also be reset separately.

2. For transactions seldom used, such as repostings at period-end closing, you should not create
individual number range groups. Otherwise, note that no more than 100 document numbers are
assigned for system performance

Maintain Versions
Versions enable you to have independent sets of planning and actual data.

In planning, you use versions to configure alternative scenarios based on different assumptions. For
example, the different versions can represent different employment markets, price and wage increases,
or sales programs.

You normally configure the most likely scenario in version 000. The plan data you enter there forms the
basis for calculating planned prices for activity types, and determines the rates with which activities
containing actual amounts can be settled. Version 000 also contains all actual data postings. The plan
and actual data for version 000 can be used in plan/actual comparisons and variance analysis.

You make settings for version maintenance on a hierarchical basis.

In this IMG activity you edit the general version definition on the client level.

 You make controlling area settings in the IMG for the Cost Center Accounting, Overhead Orders,
or Activity-Based Costing components.

 You make profitability segment settings in the IMG for the Profitability Analysis component.

 You make profit center settings in the IMG for the Profit Center Accounting component.

Notes

 "Version" replaces the earlier term "plan/planning version".

 You can record plan and/or actual data in a version.

 In Activity-Based Costing, you can record actual data in different delta versions.

 If you use parallel valuations and transfer prices, you define parallel actual versions alongside
operational version 000 in order to separate different valuations. Use the IMG activity Create
Versions for Valuation Methods.
Complete the IMG step Maintain Controlling Area.

Standard Settings

When you create a controlling area, the SAP system automatically creates version 000, valid for five
fiscal years. The first fiscal year depends on the control indicator you set when you created the
controlling area:

 If the indicator is set for the current year or earlier, the five-year period begins with the current
year.

 If the indicator is set for future years, the five-year period begins with the earliest of these years
as the first year.

Create Cost Centers

In the following section you learn how to create cost centers .

Note on Cost Centers

Requirements

 You have completed the step Maintain controlling area in the IMG General Controlling under
Organization.

 You have maintained the necessary cost center types.

 You defined a standard hierarchy.

Activities

Create your cost centers.

Note on transport

To transport cost centers, a separate function is available in the IMG General Controlling.

Addtional information

For more information on creating cost centers, see the SAP Library under Controlling -> Cost Center
Accounting -> Cost Center Accounting Module Administration -> Cost Centers and Cost Center Groups ->
Maintaining Cost Centers.

Define Standard Hierarchy

In this activity, you maintain the relevant standard hierarchy for your controlling area.

You can either change an existing hierarchy or create a new one.

Requirements
When maintaining controlling areas, you specified the highest node of the standard hierarchy (name of
the standard hiearchy). To do so, in Customizing choose General Controlling -> Organization -> Maintain
Controlling Area.

Standard settings

In the standard system, controlling areas are already defined as examples. Their standard hiearchies are
also maintained (0001 for controlling area 0001 for example).

Cost centers are assigned to the business area 0001 in all controlling areas.

Activities

You use the enterprise organizaiton interface to display and edit your standard hierarchy.

Each time you call up the maintenance interface, the system automatically calls up the data that you last
processed.

The maintenance interface is divided into different screen areas, each of which covers particular
functions:

 Search Area

In the search area, you select one or more organizational units that you want to display, edit, or
assign to the standard hierarchy, for example:

 For the cost center standard hierarchy

- Cost center

- Inactive cost center

- Cost center group

 For the profit center standard hierarchy

- Profit center

- Inactive profit center

- Profit center group

 For the business process standard hierarchy

- Business processes

- Inactive business processes

- Business process groups

 Selection area

In the selection area, the organizational units you selected are displayed in a list.
  You can tailor the output of the list according to certain criteria by setting the filter. In
this way, for example, you can select all objects belonging to a user.

 You can display and change an organizational unit with regard to its assignment to the
standard hierarchy and associated master data.

You can do this as follows:

- Choose the organizational units by double-clicking on them. The system transfers the
organizational unit to the central overview area.

- Use drag-and-drop to move the organizational unit to the overview area.

 You can activate and delete inactive master data versions of cost centers, profit
centers, and business processes To do this, flag the relevant objects in the selection list.

Note

You can also select the relevant objects in the structure tree of the overview area.

 Overview area

The Overview area displays the assignment of the organizational unit to the standard hierarchy in a
tree structure.

You can:

 Show/hide additional columns with column configuration.

 Print the structure

 Specify the time interval in which the standard hierarchy including CO objects should be
processed

Create new objects and assign them to existing objects

 Move the objects within the tree structure using drag-and-drop

 Select a different object for display or for editing

 Detail area

The system displays the master data for the individual objects in the Detail area.

To display or edit the master data for a particular object, choose the object in question by double-
clicking on it in the tree structure.

Notes on Transport

A separate function exists in Customizing for transporting the standard hierarchy. To do so, in
Customizing choose General Controlling -> Preparations for Productive Start -> Transport System
Settings.

Further notes
For more information on the functions available to you on the maintenance inferface for the enterprise
organization, see the "SAP Library" under AC - Financials -> CO - Controlling -> Controlling -> Enterprise
Organization.

Profit Center Accounting

This implementation guide describes the installation tasks for the component
EC-PCA Profit Center Accounting
using the account-based period account and cost-of-sales accounting methods.
In order to understand the installation guidelines, you should know how to work with the SAP
system. For information on this, see the manual Introduction to the SAP system.
Before you start setting up the system, you should familiarize yourself with the business
functions and with the concept of account-based Profit Center Accounting. You can find further
information in the online manual EC-PCA - Profit Center Accounting.
For information on the functionality of SAP Basis, see the online manual BC - System
administration.
The corresponding SAP training courses will provide you with the knowledge necessary to
configure your system.

Define Standard Hierarchy

If you are not using the enterprise organization function, you can create and modify the standard
hierarchy for profit centers in this IMG activity.

The standard hierarchy is a structure which contains all the profit centers belonging to one controlling
area.

The standard hierarchy consists of two structural elements. The end nodes are the nodes of the
structure to which you can assign profit centers. Summarization nodes cannot contain profit centers
themselves, but rather summarize the profit centers of the nodes which are attached to them.

This distinction between types of nodes is made automatically by the system. Once you have assigned
profit centers to a node, you can no longer assign another node to it. Likewise, once you have attached
other nodes, you cannot assign profit centers to it.

Prerequisites

The prerequisite for this function is that you have already specified the name of the standard hierarchy
when you defined the settings for this controlling area.

Recommendation

First create a special group for the controlling area's dummy profit center directly under the root node
of the hierarchy. This makes it easier to display the unassigned costs and revenues later in the
information system.
Actions

The actual profit centers are subsequently assigned to the hierarchy areas when the master data is
defined. You use this function just to define the hierarchical structure of the profit center groups of the
standard hierarchy.

Further notes

You can copy the standard hierarchy from Cost Center Accounting and then modify it as desired.

Notes on transporting

You can transport the Customizing settings for Profit Center Accounting under Transport Connection.

In SAP FI, month-end closing involves activities in posting a closing period.

You can carry out the following activities as a part of month-end closing −

 Open and close posting periods.

 You close one or more posting periods in the past for posting, and permit posting
to be made to one or more current or future posting periods.

Use the T-code F.05 or FAGL_FC_VAL for new G/L accounts.

It will open a new window wherein you need to enter the following details −

 Company Code for which Foreign Currency Valuation is to be carried out.

 Evaluation Key Date.

 Valuation Method for Exchange Rate Consideration.

 Valuation in Currency Type.

You can filter out Valuation activity by entering the appropriate parameters
in the Tab Screens.

Click the Execute button . It will open a list of all G/L accounts selected for
foreign currency valuation.
Sales Returns

in SAP FI are used to manage full products that the customer has returned.
These are used in consumer goods industry.

All returns are related to quality defects and not incorrect deliveries. The path
that the returned merchandise takes often has to be tracked in detail.
Returned items have to be sent for inspection.

Example − Once the analysis of the returned merchandise is complete, the

vendor or manufacturer determines −

 The status of the merchandise and whether it can be reused.

 Whether the customer will be credited for the merchandise and the amount of
credit.

The "Sales Returns" component gives you an overview of your physical

warehouse stocks and the corresponding postings whenever you require.

in SAP FI are used to manage full products that the customer has returned.
These are used in consumer goods industry.

All returns are related to quality defects and not incorrect deliveries. The path
that the returned merchandise takes often has to be tracked in detail.
Returned items have to be sent for inspection.

Example − Once the analysis of the returned merchandise is complete, the

vendor or manufacturer determines −

 The status of the merchandise and whether it can be reused.

 Whether the customer will be credited for the merchandise and the amount of
credit.
The "Sales Returns" component gives you an overview of your physical
warehouse stocks and the corresponding postings whenever you require.

SAP CO Profitability Analysis is used to analyze the market segments classified as

products, customers, sales area, business area, etc.
SAP CO Profitability Analysis (CO-PA) is used for the evaluation of Market segments
which is classified according to products, customers, and orders −

 or any combination of these.

 or Strategic business units such as sales organizations.
 or business areas, with reference to company's profit.
 or contribution margin.
There are two types of Profitability Analysis are supported −
 Costing-based Profitability Analysis − It is used to group the costs and revenues as per
the value fields. It is used to ensure that you access at all times to a complete, short-term
profitability report.
 Account-based Profitability Analysis − It is used to provide you with a profitability report
that is permanently reconciled with financial accounting. It is mainly used for getting
information related to sales, marketing, product management and corporate planning
departments to support internal accounting and decision-making.

Key Components in SAP CO-PA

The key components in SAP CO-PA are as follows −
 Actual Posting − It allows you to transfer sales orders and billing documents from the Sales
and Distribution application component to CO-PA in real time. You can also transfer costs
from cost centers, orders and projects, as well as costs and revenues from direct postings or
settle costs from CO to profitability segment.
 Information System − It allows you to analyze existing data from a profitability standpoint
using drilldown function in the reporting tool. It allows you to navigate through a
multidimensional data cube using different functions like drilldown or switching hierarchies.
The system displays data in either value fields or accounts, depending on the currently active
type of Profitability Analysis and the type to which the report structure is assigned.
 Planning − This allows you to create a sales and profit plan. Whereas both types of
Profitability Analysis can receive actual data in parallel, there is no common source of
planning data. Consequently, you always plan either in accounts (account-based CO-PA) or
in value fields (costing-based CO-PA). The manual planning function allows you to define
planning screens for your organization. With this you can display reference data in planning,
calculate formulas, create forecasts, and more. You can perform planning at any level of
detail.

Example
You can plan at a higher level, and have this data distributed top-down automatically. In
automatic planning, you can copy and revaluate actual or planning data for a large
number of profitability segments at once.