Sap - Erp Financial Manual - 1: TFIN50 - 1

DIRECTOR GENERAL AUDIT & ACCOUNTS TRAINING INSTITUTE, LAHORE.
SAP – ERP FINANCIAL

MANUAL – 1
TFIN50_1
Compiled by Mr. Muhammad Akhlaq Khan, F.M.
12/3/2014
These notes are prepared from the SAP ERP Financial Manual – 1 during SAP training at SIEMENS
Academy, Islamabad, during November-2014.
Summary of TFIN50_1 Compiled by Muhammad Akhlaq Khan
FM/AO. AATI, Lahore
Short Contents
UNIT-1 BASIC SETTINGS ............................................................................................................................. 7
LESSON 1.1 — ORGANIZATIONAL UNITS ..................................................................................................................... 7
LESSON: 1.2 BASIC SETTINGS IN GENERAL LEDGER ACCOUNTING ............................................................... 13
LESSON 1.3 — VARIANT PRINCIPLE .................................................................................................................... 15
LESSON 1.4:- FISCAL YEAR .............................................................................................................................. 15
LESSON: 1.5 — CURRENCIES ............................................................................................................................... 18
UNIT-2 MASTER DATA ................................................................................................................................... 21
LESSON 2.1: GENERAL LEGER ACCOUNTS: ........................................................................................................... 21
CHART OF ACCOUNTS: ................................................................................................................................... 21
COLLECTIVE PROCESSING: ....................................................................................................................................... 31
LESSON 2.2 —PROFIT CENTER AND SEGMENT ........................................................................................................... 33
LESSON: 2.3 CUSTOMER / VENDOR ACCOUNTS .................................................................................................... 35
COMPARE MASTER DATA: ...................................................................................................................................... 36
UNIT —3 DOCUMENT CONTROL .................................................................................................................... 42
LESSON 3.1—DOCUMENT STRUCTURE ..................................................................................................................... 42
FIELD STATUS VARIANT: ......................................................................................................................................... 47
LESSON:3.2 — POSTING PERIODS ........................................................................................................................... 49
LESSON-3.3—POSTING AUTHORIZATIONS................................................................................................................. 51
LESSON:-3.4 SIMPLE DOCUMENT IN FINANCIAL ACCOUNTING ................................................................................. 52
UNIT-4 POSTING CONTROL ...................................................................................................................... 54
LESSON: 4.1 — DOCUMENT SPLITTING:.................................................................................................................... 54
LESSON: 4.2 — DEFAULT VALUES............................................................................................................................ 58
LESSON: 4.3 — CHANGE CONTROL .......................................................................................................................... 60
DOCUMENT CHANGE RULES: .................................................................................................................................. 60
LESSON 4.4 — DOCUMENT REVERSAL ...................................................................................................................... 61
LESSON 4.5 —PAYMENT TERM AND CASH DISCOUNT ................................................................................................. 63
LESSON 4.6 — TAXES ............................................................................................................................................ 68
LESSON 4.7 — CROSS-COMPANY CODE TRANSACTIONS .............................................................................................. 70
LESSON:- 4.8 — REAL-TIME INTEGRATION ................................................................................................................ 72
UNIT-5 CLEARING ........................................................................................................................................... 73
LESSON 5.1 —OPEN ITEM CLEARING........................................................................................................................ 73
LESSON:-5.2 — INCOMING AND OUT GOING PAYMENTS.............................................................................................. 77
LESSON:-5.2 — PAYMENT DIFFERENCES ................................................................................................................... 81
LESSON :5.3 — EXCHANGE RATE DIFFERENCES .......................................................................................................... 86
UNIT-6 CASH JOURNAL .................................................................................................................................. 87
LESSON 6.1 — CASH JOURNAL CONFIGURATION: ........................................................................................................ 87
LESSON :-6.2 — CASH JOURNAL TRANSACTIONS ........................................................................................................ 89
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TABLE OF CONTENTS
UNIT-1 BASIC SETTINGS ............................................................................................................................. 7
LESSON 1.1 — ORGANIZATIONAL UNITS ..................................................................................................................... 7
Client ............................................................................................................................................................. 7
Technically ................................................................................................................................................................. 7
Commercially: ............................................................................................................................................................ 7
Logging on .................................................................................................................................................................. 7
Organizational Units in SAP ERP Financial .................................................................................................... 7
Company Code ........................................................................................................................................................... 8
Creating a Company Code:— ..................................................................................................................................... 8
Company code information ....................................................................................................................................... 8
Company Address: ..................................................................................................................................................... 8
Currency: .................................................................................................................................................................... 8
Country Key:............................................................................................................................................................... 9
Language Key: ............................................................................................................................................................ 9
Enabling Business Area Financial Statements ............................................................................................... 9
Country Templates: ..................................................................................................................................... 10
Contents of Country Template: ................................................................................................................................ 10
Information on organization objects: .......................................................................................................... 11
Company Codes: ...................................................................................................................................................... 11
Business Area: .......................................................................................................................................................... 11
Other important organizational units in Financial Accounting: ............................................................................... 11
- Business Area ................................................................................................................................................ 11
- Profit center: ................................................................................................................................................. 11
- Segment: ....................................................................................................................................................... 11
- Company: ...................................................................................................................................................... 11
- Functional Area: ............................................................................................................................................ 11
International Accounting Requirements: ................................................................................................................. 12
Controlling Area (CO): .............................................................................................................................................. 12
Cross Company Codes: ............................................................................................................................................. 12
LESSON: 1.2 BASIC SETTINGS IN GENERAL LEDGER ACCOUNTING ............................................................... 13
Ledgers and Ledger Approach in New General Ledger Accounting: ........................................................................ 13
Accounts Approach .................................................................................................................................................. 13
Assignment of scenarios .......................................................................................................................................... 14
LESSON 1.3 — VARIANT PRINCIPLE .................................................................................................................... 15
The Variant Principle: ............................................................................................................................................... 15
LESSON 1.4:- FISCAL YEAR .............................................................................................................................. 15
Fiscal Year: .................................................................................................................................................. 15
What are Special periods? ....................................................................................................................................... 15
Types of Fiscal Years:- .............................................................................................................................................. 16
Year Independent: ................................................................................................................................................... 16
Year Specific: ............................................................................................................................................................ 17
LESSON: 1.5 — CURRENCIES ............................................................................................................................... 18
Currency key must be assigned (page 58) .............................................................................................. 18
Exchange Rate Types:............................................................................................................................................... 18
Currencies and Exchange Rate type: ........................................................................................................................ 18
Maintaining Exchange rates ..................................................................................................................................... 18
1- Inversion ................................................................................................................................................. 18
1. Inversion: ....................................................................................................................................................... 18
2. Exchange rate Spreads .................................................................................................................................. 18
3. Base Currency. ............................................................................................................................................... 19
Direct and Indirect Quotation of Exchange Rates: ................................................................................................... 19
Maintaining Exchange Rates using table “TCURR”: .................................................................................... 19
Design of Exchange Rate in Different Quotations: ................................................................................................... 20
UNIT-2 MASTER DATA ................................................................................................................................... 21
LESSON 2.1: GENERAL LEGER ACCOUNTS: ........................................................................................................... 21
Chart of Accounts:.................................................................................................................................................... 21
Variant Principal:......................................................................................................................................... 21
Defining the Chart of Accounts ................................................................................................................... 21
Specific Information includes: .................................................................................................................................. 21
General Information includes: ................................................................................................................................. 21
Controlling Integration includes ............................................................................................................................... 21
Consolidation ........................................................................................................................................................... 22
Status: ...................................................................................................................................................................... 22
Assigning Chart of Accounts: .................................................................................................................................... 22
CHART OF ACCOUNT NUMBER ................................................................................................................................ 22
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General Ledger Account: ............................................................................................................................. 22

1. The Chart of Account Segment ...................................................................................................................... 22
General Ledger Account Text:............................................................................................................................. 23
Chart of Account Segment Consists of several group of fields: .......................................................................... 23
Type / Description .............................................................................................................................................. 23
Keyword / Translation ........................................................................................................................................ 23
Information ......................................................................................................................................................... 23
Fields in the Chart of Accounts Segment: ........................................................................................................... 23
2- Company Code Segment of a G/L Account .................................................................................................... 23
Company Code Segment:.................................................................................................................................... 24
Fields of Company Code Segment: ..................................................................................................................... 24
One Chart of Account Several Company Codes: (page-99) ...................................................................................... 24
Retained Earnings Account: ........................................................................................................................ 24
Balance Sheet and P&L Statement Accounts: ............................................................................................. 25
Account Groups: .......................................................................................................................................... 25
Account Groups of G/L Accounts: ............................................................................................................................ 25
What is the purpose of the field Status? .................................................................................................................. 26
Transaction Specific Field Status: ............................................................................................................................. 26
Reconciliation Account ................................................................................................................................ 27
Reconciliation of the General Ledger with the Sub-ledgers ..................................................................................... 27
Reconciliation accounts ........................................................................................................................................... 27
Line item display (Entry view): ................................................................................................................................. 28
Line Item Display (Entry View)( ‫)وهتمامائٹمدكهاوجوريكاڈكىگئهيں‬......................................................................... 28
Open Item Management:......................................................................................................................................... 29
Account in Local Currency: ....................................................................................................................................... 30
Only balance in Local Currency ................................................................................................................................ 30
Account in foreign currency: .................................................................................................................................... 30
Methods of creating G/L Accounts: ............................................................................................................. 30
1- Manually ........................................................................................................................................................ 30
2- Copying: ......................................................................................................................................................... 31
3- Data Transfer ................................................................................................................................................. 31
Collective Processing: .................................................................................................................................. 31
Group Chart of Account: .......................................................................................................................................... 32
Country Chart of Accounts: ...................................................................................................................................... 32
LESSON 2.2 —PROFIT CENTER AND SEGMENT ........................................................................................................... 33
Definition ................................................................................................................................................................. 33
Extract from the IFRS-8: Business Segments ............................................................................................................ 33
Derivation of Segment: ............................................................................................................................................ 33
Driving a Segment (2) ............................................................................................................................................... 33
LESSON: 2.3 CUSTOMER / VENDOR ACCOUNTS .................................................................................................... 35
Sales and Service View of the Customer Account: ....................................................................................... 35
A sales area is a combination of: .............................................................................................................................. 35
The Sales organization ........................................................................................................................................ 35
The Distribution Channel .................................................................................................................................... 35
The Material Management (MM) view of Vendor Account: ....................................................................... 35
A complete customer Account ................................................................................................................................. 36
A complete Vendor Account .................................................................................................................................... 36
Centralized or Decentralized Maintenance (Customers / Vendors) ........................................................................ 36
Avoiding Duplication of Master Data: ...................................................................................................................... 36
Compare Master Data: ............................................................................................................................................. 36
Pages of Customer / Vendor Accounts: ................................................................................................................... 37
Copying Customer /Vendor master Record: ............................................................................................................ 37
IBAN ( International Bank Account Number): ............................................................................................. 37
Account Group for Customers and Vendors: ............................................................................................... 38
Number Rangers for Customers / Vendors: ............................................................................................................. 39
Status of the Fields in the Master Record: ............................................................................................................... 39
Field Status in Customer / Vendor Master Record:.................................................................................................. 39
Controlling Field Status: .............................................................................................................................. 39
Account Group-Specific Control: .............................................................................................................................. 39
Transaction-dependent Control ............................................................................................................................... 39
Company code-Dependent Control: ........................................................................................................................ 40
Dual Control Principle:................................................................................................................................. 40
Customer /Vendor Clearing ..................................................................................................................................... 40
Alternative Payer / Payee: ....................................................................................................................................... 41
Head Office /Branch: .......................................................................................................................................... 41
UNIT —3 DOCUMENT CONTROL .................................................................................................................... 42
LESSON 3.1—DOCUMENT STRUCTURE ..................................................................................................................... 42
Document in SAP ERP Financial: .................................................................................................................. 42
Document Type: ....................................................................................................................................................... 42
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Reversal Document Type: ........................................................................................................................................ 43

Standard Document Types ....................................................................................................................................... 43
Important Standard Document Types: ............................................................................................................... 43
Document Number: ................................................................................................................................................. 44
Document Number Ranges: ..................................................................................................................................... 45
Addendum: .................................................................................................................................................. 45
Posting Key:.............................................................................................................................................................. 46
Functions of the Posting Keys: ................................................................................................................................. 46
Document Field Status: ............................................................................................................................................ 46
Field Status Variant: ............................................................................................................................................ 47
Standard Posting Keys: ............................................................................................................................................. 48
LESSON:3.2 — POSTING PERIODS ........................................................................................................................... 49
Maintaining Posting Periods: ................................................................................................................................... 49
Opening and Closing Posting Periods: ...................................................................................................................... 49
Posting Period Variant: ............................................................................................................................................ 50
Period Checks by Account Type: .............................................................................................................................. 50
LESSON-3.3—POSTING AUTHORIZATIONS................................................................................................................. 51
Maximum Amount: .................................................................................................................................................. 51
Tolerance Groups: .................................................................................................................................................... 51
Assigning Posting Authorizations: ............................................................................................................................ 51
LESSON:-3.4 SIMPLE DOCUMENT IN FINANCIAL ACCOUNTING ................................................................................. 52
Enjoy Posting Screens: ............................................................................................................................................. 52
Simple Postings in SAP ERP Financials:..................................................................................................................... 52
Enjoy Posting Screen: Header and 1st Line Item:...................................................................................................... 52
Enjoy Posting Screen : Additional Line Items: .......................................................................................................... 53
UNIT-4 POSTING CONTROL ...................................................................................................................... 54
LESSON: 4.1 — DOCUMENT SPLITTING:.................................................................................................................... 54
Definition: .................................................................................................................................................... 54
The Data Entry View:................................................................................................................................................ 54
General Ledger View: .................................................................................................................................. 54
Entry View and General Ledger View: ................................................................................................................ 54
Document Splitting: ................................................................................................................................................. 54
Mapped Business Transaction Example ................................................................................................................... 54
Document Splitting —Active Split: ........................................................................................................................... 55
The inheritance Concept: .................................................................................................................................... 55
The default account assignment Concept: ......................................................................................................... 55
Three Simplified steps for Document Splitting: ....................................................................................................... 55
1- Passive Document Splitting ...................................................................................................................... 55
2- Active (rule-based) Document Splitting: .................................................................................................. 56
3- Creating Clearing lines / Zero Balance:..................................................................................................... 56
The Mandatory Field Indicator has two meanings: ............................................................................................ 56
The Splitting Procedure: ..................................................................................................................................... 57
LESSON: 4.2 — DEFAULT VALUES............................................................................................................................ 58
Default Values for User Settings: ............................................................................................................................. 58
Basic Default values ................................................................................................................................................. 59
Document Principle:................................................................................................................................................. 59
Proposals in Identical Fields: .................................................................................................................................... 59
System and Accounting Defaults: ................................................................................................................ 59
LESSON: 4.3 — CHANGE CONTROL .......................................................................................................................... 60
DOCUMENT CHANGE RULES: .................................................................................................................................. 60
LESSON 4.4 — DOCUMENT REVERSAL ...................................................................................................................... 61
Normal Reversal Posting: .................................................................................................................................... 62
Negative Posting ................................................................................................................................................. 62
LESSON 4.5 —PAYMENT TERM AND CASH DISCOUNT ................................................................................................. 63
Terms of Payment: ................................................................................................................................................... 63
 Baseline date ............................................................................................................................................ 63
 Cash discount Terms ................................................................................................................................ 63
 Cash discount percentage rate: ................................................................................................................ 63
Term of Payment for Credit Memos: ....................................................................................................................... 64
1- Invoice related credit memos:— .............................................................................................................. 64
2- Other Credit Memos – terms of payment not valid: ................................................................................ 64
3- Other credit memos – Terms of payment valid: ...................................................................................... 64
Incoming Invoices and Credit Memo: ...................................................................................................................... 64
Payment Control: ..................................................................................................................................................... 65
The Base Line Date: .................................................................................................................................................. 65
Possible default values: ...................................................................................................................................... 65
Specifications for calculating the baseline date: ................................................................................................. 65
Cash Discount: ......................................................................................................................................................... 66
Day Limit: ............................................................................................................................................................ 66
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Installment Payments: ............................................................................................................................................. 66

Cash Discount Base Amount .................................................................................................................................... 67
Posting Cash Discount – Gross procedure: .............................................................................................................. 67
Posting Cash Discount – Net procedure: .................................................................................................................. 67
LESSON 4.6 — TAXES ............................................................................................................................................ 68
Tax Support: ................................................................................................................................................ 68
Tax Postings: ............................................................................................................................................... 68
Tax Account Determination: ....................................................................................................................... 68
Tax Accounts: ...................................................................................................................................................... 69
Other General Ledger Accounts .......................................................................................................................... 69
LESSON 4.7 — CROSS-COMPANY CODE TRANSACTIONS .............................................................................................. 70
Central Procurement................................................................................................................................................ 70
Clearing accounts ........................................................................................................................................ 71
Cross company Code Document Number: .......................................................................................................... 71
LESSON:- 4.8 — REAL-TIME INTEGRATION ................................................................................................................ 72
Real-Time Integration CO / FI ................................................................................................................................... 72
Variants for CO—FI Real-Time Integration ............................................................................................................... 72
UNIT-5 CLEARING ........................................................................................................................................... 73
LESSON 5.1 —OPEN ITEM CLEARING........................................................................................................................ 73
Post with clearing: ....................................................................................................................................... 73
Account Clearing: ........................................................................................................................................ 74
The clearing Document: ........................................................................................................................................... 74
Account Clearing: ..................................................................................................................................................... 74
Clearing Program (Automatic Clearing) ...................................................................................................... 75
The Assignment Field and Sort Field: ....................................................................................................................... 76
LESSON:-5.2 — INCOMING AND OUT GOING PAYMENTS.............................................................................................. 77
The Manual Payment Process: .................................................................................................................... 77
The Document Head .................................................................................................................................... 77
Payment Header ...................................................................................................................................................... 77
Bank Data: ................................................................................................................................................................ 78
Open Item Selection: ............................................................................................................................................... 78
Process Open Items: .................................................................................................................................... 79
Posting the Payment: .................................................................................................................................. 79
Automatic posting for Clearing Open Items: ............................................................................................................ 80
Resetting Clearing: ...................................................................................................................................... 80
LESSON:-5.2 — PAYMENT DIFFERENCES ................................................................................................................... 81
1- Automatic clearing: .................................................................................................................................. 81
2- Manual Clearing: ...................................................................................................................................... 81
Tolerance Groups: ....................................................................................................................................... 81
Configuration of Tolerance groups: .................................................................................................................... 82
Use tolerances to define permitted payment differences .................................................................................. 82
Permitted Payment Differences: ........................................................................................................................ 82
Payment Differences: .................................................................................................................................. 83
Payment Difference Outside Tolerance: ............................................................................................................. 83
Processing Payment Differences: ....................................................................................................................... 83
Partial and Residual Payments: ................................................................................................................................ 84
Reason Codes: .................................................................................................................................................... 85
LESSON :5.3 — EXCHANGE RATE DIFFERENCES .......................................................................................................... 86
Realized Exchange Rate Differences: .......................................................................................................... 86
Account Determination: ........................................................................................................................................... 86
UNIT-6 CASH JOURNAL .................................................................................................................................. 87
LESSON 6.1 — CASH JOURNAL CONFIGURATION: ........................................................................................................ 87
Cash Journal Assignment: ........................................................................................................................... 87
Setting up the Cash Journal: ........................................................................................................................ 87
Creating Business Transactions: .................................................................................................................. 88
LESSON :-6.2 — CASH JOURNAL TRANSACTIONS ........................................................................................................ 89
Posting Business Transactions in the Cash Journal .................................................................................................. 89
Cash Journal Document with Document Split: ......................................................................................................... 89
Cash Journal Document with One-Time Account:.................................................................................................... 89
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UNIT-1 Basic Settings

Lesson 1.1 — Organizational Units
Client
ASAP ERP systemhas only one repository (storage area) that reflects the runtime
environment in which customers data is created and maintained. The repository contains
subdivisions called clients.
Technically
Each client is an independent unit with its own master records and a complete set of tables
and data.
Commercially:Commercially the client is a corporate group.
In other words in the SAP environment, a client is the partitions in SAP System
From release 3.0, SAP delivers three clients that are identical with regard to contents.
- Client000 is the SAP reference client continuously extended and must not be changed
by customers it can be used as a backup copy.
- Client001 Copy of Client 000 with the exception that customers can make changes in
it. (Customizing)
- Client066 Reserved for SAP Excess to customers systems to provide remote diagnosis
services such as Early Watch®
Client 000 contains the following default settings:
- Organization Specific Data —It has an example for each organizational unit. The key for
organizational specific data is uniform, 01, 001 and so on.
- Organization Independent Data — Client 000 contains extensive default settings so that
you can actually start operating with a lot of these things.
Logging on — To log on client you have to provide 3 digits key. A client must contain user
master record.
This defines the client in which you want to work. All entries are stored and processed
separately by client. The access authorization is assigned separately by client (there are a
few client-independent tables)
HINT: If several participants are using one PC, they should agree on a common password
and remember that password is case sensitive.
Organizational Units in SAP ERP Financial

In the SAP ERP system hierarchyclient is the highest level. Specifications or data that is
valid for all organization units in SAP ERP application are entered at client level. This
eliminates the need to enter information more than once. Technically each client is
an1independent unit with 2separate master records and 3a complete set of tables and data.
In business terms, a client level often corresponds to that of a corporate group or group of
affiliated companies. User must enter a client key and have a user master record in the
client in order to log on to the system.
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Company: Bellow the client we give second highest level to the Company the organization to
which SAP software is to be provided. Company is recognized with six characters key.
Company Code —The most important unit of financial accounting is the company code.
A Company code isan independent balancing or legal accounting entity. Financial
statements required by law can be created at company code level. Thus a company code is
the minimum structure necessary in SAP ERP Financial. It consists of maximum 4 Alpha
Numeric Characters.
Explanation: An international business may have operations scattered across numerous countries,
and every country authorities require registration of a legal entity for tax and other purposes. In such
a case a separate company code is usually created per country. Usually one company is represented
by one company code.
Every organization or Organizational Unit for which financial statements are to be created
must be stored as a company code in the SAP System.
Creating a Company Code:—Easiest way to create a Company Code is to copy a similar
existing company code and then make changes to the new company Code.
What is Copied:
 Definition — Name, Address
 Global Parameters — Currency, Language, Fiscal Year, CoA, etc,
 Customizing Tables—Tables in which data of the organizations business transactions is
saved.
 Accounts and the CompanyCode segment if desired.
 Account Determination
Note: Controlling area will not be copied.
Hint: SAP recommends this procedure since copying means that lots of tables are already
filled with SAP default data and only have to be adjusted if necessary.
Hint : The (IMG) suggests the following order:
- Copy, Delete, Check Company Code
- Edit Company Code Data.
IMG stands for Implementation Guide and can be accessed by T Code“SPRO”.SPRO is a standard SAP
transaction. Its stands for SAP PROJECT REFERENCE OBJECT. This transaction is used for customization setting in
SAP.
Hint: Use of the copy function is optional. You can also define the company code and carry
out the configuration yourself, without using a reference company code.
Company code information:Company Code Key— should be up to 4 alpha numeric

characters which identify the company code.
Company Address: Address is required for correspondence.
Currency:Accounting Currency defined in company codes becomes local currency; all
other currencies are treated as foreign currency. Business transactions in foreign currency
are translated to local currency.
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Country Key: Country key specifies the country of the company code. The system
interprets all other countries as foreign countries.
This is important for example, in payment transactions since different regulations have to be
considered for foreign payment transactions than for domestic payment transactions. This
setting enables you to prepare a different address for foreign correspondence.
Language Key:Texts are automatically displayed in the correct language.
 Defining a company code includes:
- 4 Character company code key
- Company name
- Address
- City
- Country
- Currency
- Language —Defining of Language key helps the system to create texts automatically
in the correct language.
 Global parameters include(to see list go to T code OBY6)

- Chart of Accounts
- Fiscal year
- Company code defaults — includes Discount rate instructions, Tax rate. These
instructions remain unchanged for all transactions in a company code.
Global Parameters given in TcodeOBY6

1. Company 2. Chart of Account Variant
3. Credit Control Area Variant 4. Company Code is Productive (Tick)
5. Document entry screen variant 6. Field Status Variant
7. Posting Period Variant 8. Max Exchange Rate Deviation
9. Work Flow Variant 10. Controlling Code = Controlling Area
11. Cost of Sales Accounting (Tick) 12. Negative Posting Permitted
13. Cash Management Activated 14. Country Chart of Account
15. Fm Area 16. Fiscal Year Variant
17. VAT Reg. No. 18. Proposed Fiscal Year
19. Define Default Value Date 20. Enable amount Split.
Enabling Business Area Financial Statements

In order to be able to create financial statements for business areas, the field for the
business is in the line item must be ready for input. In activity “Enable business Area
Financial Statements”,you can set the indicator for the business area field for each company
code.
Business Area: are defined at client level. They are not assigned to a company code Using
Transaction code SE17 you can call up table TGSB which contains all the business areas of
the client.
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When you define a business area. You only have to enter a four digit alphanumeric key
and a short description.
Segments have ten characters. —Segment defines area of responsibility it may contain a
little area or more than one business area, segments have ten characters while, Companies
have six characters (either numeric or alphanumeric). For Segment reporting concept of
Profit Center is to be adopted in place of business area. Business area is old concept and
Profit Centre is the new concept.
Country Templates: SAP serves more than 40 standard countries which can be used
for configuring the business activities of a specific company.
In SAP standard system, Company Code 0001 is template for a general company code with
the International Chart of Accounts INT and no special country specifications.
If you need a company code for a country that have a country Template, you can use the
country installation program to copy the country-specific tables from the country template
to company code 0001. Company code 0001 is then configured for the corresponding
country. You should then copy this company code in to new company code. You may then
start the country installation program again to create a template for another country.
Contents of Country Template:
- Cross Application: — Calendar setting, factory calendar, public holidays, and so on
- FI:— Tax on sales and purchases calculation procedure, withholding tax, account
determination, charts of account (INT is offered for countries with no specifications),
Financial statements versions, Customizing settings for the payment program, payment
methods and sample house banks, formats for the electronic account statement,
valuation approaches and so on.
- CO:— Cost elements, standard hierarchies for cost centers, profit centers and so on.
- Other country specific templates for other areas.
Caution :—Never use company Code-0001 as your productive company code, as some of the
templates are not available for it in Release 4.7.In SAP ERP standard system, Company code
0001 is a template for a general company code with the international chart of accounts and
no special country specifications.
Hint: The country installation program is defined with reference company code 0001. It
cannot be changed in customizing.
Definitions taken from NET
ERP — stands for Enterprise Resource Planning and
ECC— stands for Enterprise Central Component.
IMG — stands for Implementation Guide.
The below content is taken from wikipedia,

SAP R/3 is the former name of the main enterprise resource planning software produced by SAP AG. It was
renamed SAP ERP. It was later renamed Enterprise Central Component or ECC. SAP is an Enterprise Resource
Planning software.SAP ECC 5.0 ERP is the successor of SAP R/3 4.70. The newest version of the suite is MySAP
2005 or SAP ECC 6.0.
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Information on organization objects:

Company Codes:It is possible to distribute companies over several company codes (e.g.to
map branches or plants in other countries). Usually one company is represented as a
company code.
Business Area:If customers have heard the sentence “Business area are being
discontinued” this in not correct. The correct formulation is “Business area functions are
not being further developed”. Business areas are revaluated with the new general ledger
accounting as this can be completely balanced by document breakdown and, therefore, can
be used for external purposes.
Other important organizational units in Financial Accounting:
- Business Area: Represents a separate area of operation with an organization and can
be used across company codes. They are balancing entities that can create their own set
of financial statements for internal or external purposes. It is, therefore, possible to save
and evaluate transaction figures for each business area.
- Profit center:The profit center invoice evaluates the success of individual
independent areas within a company. These areas are responsible for costs and
revenue. The aim of profit center invoice is to provide an internal analysis of profits.
From an Accounting point of view it must be determined whether only a profit and loss
statement at profit center levels is to be created (document breakdown not active) or
whether a financial statement is also to be created(document breakdown active).
- Segment: According to international accounting principles (IFRS-8 and SFAS-131)
companies are obliged to provide information in their reports on the financial results of
business segments (Operation segments) This is conducted using the “Management
Approach” which requires that segment information from internal reporting is
constructed in the same way that this information is used to make decision on the
allocation of resources to segments and to evaluate performance.Segment have ten
characters.
- Company: Companies are used as a basis of consolidation functions for financial
accounting in the SAP System. A company can contain one or more company codes. The
usage of these is part of preparations for consolidation. Company has six characters.
Usually one company is represented by one company code.
- Functional Area: In Cost of Sales accounting, operating costs are stored according to
function (Selling, administrative and so on).Controlling Area (CO) is used in place of
company where internal accounting (cost accounting) and internal reporting is highly in
use and costs from one controlling area are frequently transferred from one controlling
area to the other.
The use of Business area, profit center, segments, companies and functional area is
intended to suit the requirements of customers’ internal and external accounting. Unlike
company code, the use of these objects is optional.
The most important question for selection of organizational objects used in accounting are:
- What is the most important accounting principle in my enterprise?
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- According to which accounting principles are figures reported internally /externally in

my company?
- Does my company structure its Profit & Loss statement according to total costs or the
cost-of-sales accounting?
- Is my company obliged to issue segment reporting according to the law?
- Does my company have to issue a consolidated financial statement?
The answer to these questions form the basis for the decision as to which organizational
objects are to be used and defined and are taken as templates form financial accounting.
International Accounting Requirements:
Customer who wishes to draw up financial statements by business areas, profit centers or
segments have to activate document breakdown.
If profit center accounting is to be used as traditional profit center accounting, the segments
can be derives with a BAdl implementation. If the profit center is used in the logic of the
new general ledger accounting (activated with scenario) traditional profit center accounting
cannot be used in parallel.
Controlling Area (CO): The controlling area is the most important organizational
element in controlling. It identifies a self-contained organizational structure for which costs
and revenues can be managed and allocated. It represents a separate unit of cost
accounting.
More than one company code can be assigned to one or more controlling areas. This
enables a cross-company code cost accounting between the assigned company codes,
subject to the condition that they are using same operating chart of accounts and same
fiscal year variant.
Usually controlling areas are set up by controlling employees. However, as there are
important relationships between financial and management accounting we will also regard
this area as a whole.
In controlling area SAP always recommends using cross country code cost accounting
unless there are particular grounds for not doing so.
Cross Company Codes: are used for recording transactions of transferring costs from
one controlling area to the other.
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Lesson: 1.2 BASIC SETTINGS IN GENERAL LEDGER

ACCOUNTING
Ledgers and Ledger Approach in New General Ledger Accounting:
 Each client has one leading ledger while additional non leading ledgers are used for
other requirements. Non leading ledgers may be one or more than one.
 Leading ledger is denoted by —0Land its contents are saved in the table named as
FAGLFLEXT with the standard system, while non leading ledger may be denoted by 1L, 2L
etc.
 Different Accounting principles(GAAP, IFRS, etc.) are built in the SAP, while deciding
leading and non leading ledger one should also select the accounting principles.
 Same or different accounting principles can be chosen for leading ledger and non leading
ledger and it is called PARALLEL ACCOUNTING.
 This is known as the ledger approach in the new General Ledger. Note that it is not
necessary to define an additional ledger per company code for each local accounting
principle, a non leading ledger is sufficient for the purpose.
 If you use multiple ledgers, you have the option of defining a different fiscal year in non-
leading ledgers.
 There is exactly one leading ledger! The values only from the leading ledger can be
posted to CO (CO:— Cost elements, standard hierarchies for cost centers, profit centers
and so on).
Accounts Approach
 In addition to ledger approach there is also the accounts approach.
 In this approach different valuation approaches and valuations are posted to different
accounts.
 When financial statements are prepared system decides which accounts are relevant
and need to be evaluated for IAS.
Points to be highlighted for two approaches are given below:
Accounts Approach Ledger Approach

Specific Account areas for each GAAP —> No specific account areas —> no change to chart
complex chart of accounts structure of accounts
At least one retained earnings account for each

Only one retained earnings account for all GAAPs
GAAP
Complex financial statements definition Standard financial statement definition
Relevance of posting for local / international Relevance of posting for local / international
GAAP specified at account level. GAAP specified at document level
All evaluation approaches can be posted to Only the leading valuation can be posted to
controlling controlling.
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Assignment of scenarios
Scenario means state of affairs, picture. A scenario defines which fields are updated in the
new G/L ( in General Ledger view and the new G/L Tables) during a posting.
A leading ledger can be assigned one or more scenarios (even all six)
Six Scenarios are:—
1. Cost Center update (FIN_CCA)
o Update of sender cost center and receiver cost center fields (when we make a posting in the General
Ledger accounts new G/L shall up-date table on the basis of Cost centers)
2. Preparation of Consolidation (FIN_CONS)

o Updation of consolidation transaction type and trading partner fields (when we make an entry in G/L
accounts the system transfer it according to the given scenario for consolidation)
3. Business Area (FIN_GSBER)

o Update of sender cost center and receiver business area fields (when we make an entry in G/L it
should split according to given business area in New G/L tables)
4. Profit center update (FIN_SEGM)

o Update of profit center and partner profit center fields (entries should split according to Profit
Center thus make them capable to prepare their own Financial Statements)
5. Segmentation (FIN_SEGM)
o Update of segment, partner segment and profit center fields.
6. Cost-of –Sales accounting (FIN_UKV)
o Update of sender cost center and receiver functional area fields.
No one can define his own scenarios except given above.
These scenarios are available in Customizing and can be assigned to legers.
The fields that are updated by the scenarios can be used to map certain business situations,
such as segment reporting.
You do not have to define non-leading ledgers — which means scenarios have not to be
assigned to non leading ledgers either.
IMPORTANT — you do not need a ledger for each scenario.
Multiple non leading ledgers are useful for portraying accounting with different accounting
principles
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Lesson 1.3 —VARIANT PRINCIPLE

Definition: In SAP ERPa variant is that which appears in several configuration tables and
that simplifies the system for customers.
Variant principle is a three step method, used to assign special properties to one or more
SAP ERPobjects.
Guidance The advantage of variant principle isthelow level of maintenance required in the system,
for e.g. fiscal year variant.
Instructo Instead of defining the fiscal year for company codes, proceed as follows:
r  Define variant— Fiscal year (“K4”) — K4 is the standard key for fiscal year.
 Determine values for the variant —(K4) (01/01 - 12/31 or 07/01 – 06/30)
 Assign variant(K4 ) to the SAP ERP object (n company codes) —means number of
company codes.
The Variant Principle:
The variant principle is a three step method used in the SAP system to assign particular
properties to one or more objects. The three steps are
1- Define the variant 2- Determine values for the variant
3- Assign the variant to the objects
The variantprinciple is used for
- Field status
- Posting period
- Fiscal years
Lesson 1.4:- FISCAL YEAR

Fiscal Year:
A fiscal year is usually a period of 12 months for which a company regularlycreates an
inventory, financial statements and P&L Statements.
Fiscal year variant is created according to the variant principle.i.e. Define, Determine Values,
Assign Variant.
What are Special periods?
In order to ensure that you can compare the closing months with the other periods of fiscal
year you make closing postings in special periods. Maximum four special periods can be
included.
For example Four Special periods could be comprised as follows: Ordinary functional period
12 months. Period 13= accrual deferral postings, period 14= audit postings, period
15=General meeting of share holders and period 16=adjustment postings.
Postings in special periods are made subject to four conditions:
- Posting date must be in the last posting periods (irrespective of whether this last posting
period is open or closed)
- Special period must be open for posting.
- Special period must be entered manually when posting.
- The authorization to post in special periods must be given. (optional).
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HINT: Fiscal year variant is “K4”, other variant where the fiscal year is the same as the
calendar year K1,K2,K3.
Types of Fiscal Years:-
- Year independent:The number and start and end dates for the periods are the same
for every year. It may be a calendar year or non-calendar year.
- Year-specific:Period can vary from year to year also called year dependent.
 To assign business transaction to different periods, you have to define a fiscal year
with posting periods. Fiscal year is defined as variant that is assigned to company
code.
 The fiscal year variant contains the definition of posting periods and special periods.
Special periods are used for posting that are not assigned to time periods, but to the
business process of “yearend closing”.
 In total you can define 16 periods.
 System derives the posting period from the posting date. If the posting date falls
within the last normal posting period, you can post the transaction in one of the
special periods.
Standard Fiscal Year variant are already defined in the system and you can use them as
templates.
Standard settings (Net search)
The following fiscal year variants have been created in the standard system:
1. Variants in which the fiscal year is the same as the calendar and has up to four special periods
2. Variants for shortened fiscal years. For more information on shortened fiscal years, see "Defining
shortened fiscal years".
3. Variants for non-calendar fiscal years:
- April to March with four special periods
- July to June with four special periods
- October to September with four special periods
- Variants that are set up on a weekly basis. These variants can only be used in the Special
Purpose Ledger application.
HINT: The fiscal year variant does not specify whether a period is open or closed. The date is
managed in another table. The fiscal year variant only defines the number of periods and
their start and finish dates.
Year Independent:
Year Independent Fiscal year means The number and start and end dates for each period are the same for every
year example for this is a calendar year
 If the calendar year is defined as fiscal year, the posting periods are equal to the
months of the year. Therefore, a calendar year must have 12 posting periods.
 If the fiscal year is defined as non calendar year, you have to define posting periods
by assigning end dates to each period. A non calendar year can have between 1 and
16 posting periods. If the non calendar year does not start on January 1st the period
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of the year that belongs to the former or the coming fiscal year must have an
indicator -1 or +1.
July 0
August 0
September 0
October 0
November 0
December 0
January -1
February -1
March -1
April -1
May -1
June -1
 If the fiscal year differs from the calendar year, but the posting periods correspond
to calendar months, the day limit for February should be 29 to consider leap years.
 Fiscal years are normally year independent.
Year Specific:
Year dependent means the start date and end dates of posting period may vary from year to year and some also
number of posting periods may use differently for different years
A fiscal year has to be defined as year specific if one or both of the following conditions are
fulfilled:
- The start and end date of the posting periods of some fiscal years will be different from
the dates of other fiscal years.
- Some fiscal years use a different number of posting periods.
If all of the fiscal years of a fiscal year variant have the same number of posting periods, only
the different period dates for the different years have to be defined.
If one fiscal year variant have less posting periods than the other, it is called a shortened
fiscal year. This is required if closinghave to be carried out before the end of the normal
fiscal year (company sold) You have to define the shortened fiscal year and its number of
posting periods before you can define the period dates. For this year you can only assign a
lower number of posting periods.
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Lesson: 1.5 — CURRENCIES

Currency key must be assigned (page 58)
In SAP ERP system currency is defined at the company code level.
Exchange Rate Types: The system uses exchange rate type M for currency translation
during document posting. This entry must exist in the system.
Other examples of exchange rate types are:
B —for Bank Selling Rate
G— for Buying Rate
O— for basket currencies.
X — for third country currencies.
Currencies and Exchange Rate type:
A currency key must be assigned to every currency used. Most currencies are already
defined in the SAP System with standard international currency keys. Each currency key can
have a validity date (after that date SAP system will not record any transaction in that
currency). (Currency key should be of three characters e.g. PKR, EUR, USD, GBP, etc.)
For every combination of two currencies, you can maintain different exchange rates which
are distinguished by an exchange rate type. These different exchange rates can be used for
various purposes such as valuation, conversion, translation and planning.
The relationship between currencies must be maintained per exchange rate type and
currency pair using translation ratios. This usually has to be performed only once.
Inflation heavily influenced the relationship between currencies. Therefore, their translation
ratios can be maintained on a time period basis.
Maintaining Exchange rates
Maintaining Exchange rates is an ongoing task. To reduce maintenance, SAP ERP offers
several tools, by using one of them you can reduce the amount of work involved in the
exchange rate maintenance. These tools are given bellow:
1- Inversion, 2- Exchange rate Spreads and 3- Base currency.
1. Inversion:
This has the effect that if an entry is missing for an exchange rate, you can use the inverse
exchange rate relationship to translate from one currency to another. (It is the oldest one
and is seldom used now).
2. Exchange rate Spreads

It is the Constant difference between the average rate and the buying rate, or between the
average rate and the bank selling rate.Exchange rate spread is subtracted from buying rate
or added to (Bank selling rate) the average rate.
Between the banks buying / selling rate and average rate usually remain constant. If
exchange rate spread of an exchange rate type is entered in the system, you only have to
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maintain the average rate since the buying and the selling rate can be derived by adding /
subtracting the exchange rate spread to /from the average rate.
3. Base Currency.
Currency key which should be used for all foreign currency translation for the exchange rate
type in question.
A base currency can be assigned to an exchange rate type. In this case you only have to
maintain exchange rates for all other currencies into the base currency. A translation
between two foreign currencies is calculated via the base currency i.e. by combining the two
currency rates.
HINT: You can use one of these tools for each exchange rate type. You can however use
different tools for different exchange rate types.
Direct and Indirect Quotation of Exchange Rates:
All SAP ERP applications process exchange rates using direct as well as indirect quotations.
Defining the exchange rate using direct or indirect method of quotation depends on market
standard or the individual business transaction. The use of indirect quotation is neither
application nor country specific. It affects all the components in which exchange rate are
use.
In Direct quotation one unit of foreign currency is quoted for the local currency. Whereas in
indirect quotation one unit of local currency is quoted for the foreign currency
Example: 1 . Local currency EUR, foreign currency =USD then
Direct quotation is = 1 USD = 1.3663 EUR
Indirect Quotation = 1 EUR = 0.7897 USD.
Example: 2 Local Currency PKR foreign currency USD
Direct Quotation = 1 USD = 100 PKR
Indirect quotation= 1 PKR = 0.01 USD
Maintaining Exchange Rates using table “TCURR”:

In many companies the exchange rate table (TCURR) is shared by several employees. In such
a case following problems may occur:
 The table (TCURR) cannot be maintained by more than one users simultaneously.
 The table is very large and maintaining it, is very time-consuming (scrolling is
necessary)
 Employeesmay maintain the exchange rates with the incorrect quotation in place of
direct quotation and vice versa.
 Employees maintain incorrect exchange rates (unknowingly or un intentionally)
As of release R/3 enterprise you can define worklists and then maintain the exchange rates
using the transaction TCURMNT. This has the following advantages.
 Parallel processing of different work lists is possible. You can also assign
authorization for work lists
 The work list is smaller and therefore clearer.
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 Only the relevant quotation can be maintained.

 Only relevant exchange rates can be maintained.
Business transaction with directly quoted exchange rates (local currency):
1st Example: 1 USD=1.2663 EUR
2nd Example: 1 USD=100 Pak Rupees.
Business transaction with indirectly quoted exchange rates :
1EUR = 0.7897 USD and
1PKR = 0.01 USD.
Currency /Rate USD = /0.7897
2nd Example USD = /0.01
Design of Exchange Rate in Different Quotations:
Exchange Rate can be entered as a direct or indirect quotation. You can maintain two
prefixes that can be used to differentiate between direct and indirect quotation exchange
rates during input and display. If you do not enter a prefix the standard setting is valid:
 “ “ (Blank, without a prefix) for direct quotation exchange rates.
 “/” for indirect quotation exchange rate
1st Scenario: If you work mainly with direct quotation and only rarely use indirect quotation,
you should use the standard settings. In this way you can enter direct quotation exchange
rates without a prefix
2nd Scenario: If you increasingly use indirect quotation as well as direct quotation, you
should define an alternative prefix for both:
 “*” for direct quotation and “/” for indirect quotation
 If you follow this suggestion the configuration will not allow you to enter the
exchange rate without a prefix and will give an error message. Thus the user will be
forced to consider which is the correct quotation and enter the rate with a valid
prefix.
3rd Scenario: If indirect quotation is the most widely used notation at your company, you can
configure the settings in this way:
 “*” for direct quotation, and “ “ (blank) for indirect quotation.
 This configuration allows indirect quotation exchange rates to be entered without a
prefix and less used direct quotation exchange rates have to be entered with a
prefix.
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UNIT-2 MASTER DATA

Lesson 2.1: General Leger Accounts:
Chart of Accounts:
CoA is the list of all general ledger accounts. The CoA directory contains all the charts of
accounts for a client. (page-85)
Examples of CoA:
INT= International chart of accounts based on the Joint Standard Accounting System
(Germany)
IKR=Industry chart of accounts (Germany)
CAUS=Chart of Accounts US (USA)
GFS= Chart of Accounts of IMF.
Variant Principal:
There are three steps required before you use a CoA.
1. Definition of Chart of Accounts
o Chart of Accounts Key
o Description (e.g. Chart of Accounts of ABC Company)
2. Definition of properties (language, length of G/L account numbers, group chart of
accounts, and so on.)
3. Assignment of Chart of Accounts to a Company code.
Chart of Accounts is a VARIANT that contains the structure and basic information about
General Ledger Accounts.
You define a Chart of Accounts with a four character ID
You define the individual component of the Chart of Account e.g. language, lengths of G/L
account number, group Char to of Account, Status.
The chart of Accounts must be assigned to every company code for which accounts are to
be set up based upon the structure concerned.
Defining the Chart of Accounts

Specific Information includes:
1. Key, of Chart of Accounts— (4 characters),
2. Description.
General Information includes:
1. Maintenance language —is the language in which account description are maintained.
2. Length of the G/L Account number — may be from 1 to 10 digits.
Controlling Integration includes:—While making integration of the General Ledger
Accounts (relating to Profit & Loss accounts) with cost types, you can determine, as to what
extent cost master record is to be maintained. You can maintain cost types manually or
automatically. When you save a New General Ledger Account, the corresponding cost type
is created automatically. The pre-requisite, however, is that a default value for the cost
element category is defined for this cost element. If no default value exists, the system
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assumes that not cost element is to be created. (It is advisable to have a manual creation of
cost elements.
Consolidation: If two company codes uses different chart of accounts, while assigning a
chart of account system allows you to, also assign GROUP CHART OF ACCOUNT. Then this
account number is used for cross company code reporting.
If you enter a group chart of account in the chart of accounts, the system defines that you
have to enter a group account number in the corresponding field in the General Ledger
Account definition (required entry field) and checks whether the group account number you
have entered exists in the group chart of account.
Status: “Blocked” indicator. (A CoA that is not yet completed can be blocked so that no
company code can be used until it is ready for use.
You can get a directory of the G/L Accounts in your chart of accounts for information or for
documentation purposes via report RFSKPL00. You use the G/L account plan to display G/L
account master data and to print G/L account list.
Assigning Chart of Accounts:(Tcode for assigning CoA to company code=OB62)
Every company code must have a chart of accounts assigned to it. One Chart of account can
be assigned to several company codes using variant principle.
The Controlling component uses the same Chart of Accounts as the Financial Accounting
Component. If company codes intend to use cross-company code controlling, they must use
the same chart of accounts. You can use report RFSKV00 to view the G/L account directory
with chart of account and company code-specific data.
CHART OF ACCOUNT NUMBER
System uses this number for cross company code reporting.
Cross Company Code: When same CoA is used by more than one Company Codes it is called cross
Company Code.
A Group CoAis required where different Company Codes are uses different CoA and we are
required to prepare a consolidated report for those company codes
General Ledger Account:

A complete General Ledger Account consists of two components:
1. A chart of Accounts segment
2. At least one company code segment
1. The Chart of Account Segment
The Chart of Accounts contains basic information about the account. The information for an
account is summarized in the Chart of Accounts Segment.It contains
- Account number — (maximum 10 digit, alphanumeric)
- Name of the account (as short and as long text)
- Control fields ( for example, account group) e.g. Integration with Co.
- Consolidation fields (for example unique company ID in group) e.g. Group CoA.
You can translate Chart of Account in other languages in order to be able to display the
account name in the appropriate logon language when displaying master data and when
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posting. If the chart of account has not been translated into the appropriate logon language,
the account name appears in the maintenance language.
Texts with different information can be assigned to each CoA segment.
General Ledger Account Text:
You can display G/L Account texts using the “Account Assignment Manual report
(RFSKTH00). The G/L Account texts are offered again at company code level. You can also
print them using this report.
You can also change the layout of the individual tab pages.
Chart of Account Segment Consists of several group of fields:

Type / Description
 Control in Chart of Accounts
 Description
 Consolidation data in chart of accounts.
Keyword / Translation
 Key words in CoA
 Translation
Information
 Information in CoA
 G/L texts in CoA.
Figure on Fields in the Chart of Accounts Segment
Fields in the Chart of Accounts Segment:

The information entered in the CoA segment for a G/L account applies to all company codes.
You only enter this information once. Whenever you enter information for company code
for an account number, the information from the chart of accounts segment is accessed
automatically, so you do not have to enter it again.
Texts entered for the CoA segment are managed by text ID and language. You can display
texts using report “Assignment manual” (RFSKTH00)
You can search for account number using keywords.
You can define and change the layout of the tab pages for the individual processing of the
G/L account master data. You can define:
- The number of tab pages
- Title of the tab pages
- The field groups that you require and their position on the tab pages.
- You can select the layout for central processing, andprocessing in the CoA and the
company code-specific area. The standard system contains layout for these editing
functions (they start with SAP). You can copy these layouts, adjust them to meet your
requirements, and then assign them to your CoA or your account groups.
2- Company Code Segment of a G/L Account
The CoA and Company Code segments make up a General Ledger Account. If an account is
not used in a company code, it does not need a company code segment.
The account is only complete once you have created the company code segment. You can
then post to it in a company code.
Information in the Company code segment is specific for this company code.
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Company Code Segment:

To use one of the accounts from the assigned CoA in your Company Code, you must create a
Company code segment for account. This Company Code segment is added to the CoA
segment, and together they form the account.
The company code segment contains information that refers exclusively to the Company
Code concern. This information controls the entry of accounting documents and the
management of accounting data.
HINT: If a GL Account is not used in a company code, it doesnot need company code
segment.
Fields of Company Code Segment:
The company code segment for the same General Ledger account can be different
depending upon the requirement of the company code. For example you set the “Tax
Category” indicator for a specific company code to include taxes when expenses accounts
are used. For other company codes, you might not set the indicator
You define the information that is relevant to each company code:
1- Currency
2- Taxes
3- Reconciliation accounts —Sub-ledger accounts.
4- Line item display-used to display each & every item recorded under that head of account
5- Sort Key — The basis on which I want to sort the data of that account.
6- Field status Group which maybe
o Hidden
o Display
o Required
o Optional
7- House Bank
8- Interest Calculation information
Taxes are managed by text ID and language. You can display taxes using the report “Account
Assignment manual”.
One Chart of Account Several Company Codes: (page-99)
A chart of accounts segment can be assigned to several company code segments, But the
entries in the company code segment are company code-specific and can differ with
different company codes (e.g. different currencies)
Every Company Code that wants to use an account from the assigned CoA has to create its
own company code segment. Because the number and name of the account is maintained in
the Chart of account, the account has the same name and number in all assigned company
codes.
Retained Earnings Account:
It is a part of financial statements. You use the field P&L statement account type to define
the retained earnings to which the balance is carried forward. You define the key in
Customizing. If you have defined only one retained earnings account in Customizing the
“P&L statement account type” field is hidden in the G/L account master record.
You can use different retained earning accounts to map different financial statement
standards, within the SAP ERP system.
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Balance Sheet and P&L Statement Accounts:

In the chart of accounts segment, you have to specify whether the account is a Balance
Sheet Account orP&L statement Account.
These two types of accounts are treated differently in the closing procedure.
- For Balance Sheet accounts, the balance is carried forward to the same account.
- For profit & Loss statement accounts, the balances are closed to P&L Account and
the balance of it is forwarded to a retained earnings account and the P& L Account is
set to Zero. A key e.g. “X” is assigned to the account to which the balanced is carried
forward. You enter this key on the field” P&L Statement Type” in the chart of
accounts segment.
In customizing, users define the retained earnings account that is assigned to expense
accounts during G/L account master record creation. If there is only one retained earnings
account, the system automatically uses the one defined in Customizing. If there is more than
one retained earnings account, when you create a master record you can select the retained
earnings account for each profit and loss statement.
Account Groups:
Before you can create accounts in the CoA, you must have account groups
▬ Group Accounts of the same type (material, reconciliation, P&L Statement etc,)
Instructor ▬ Control the number areas
Guide ▬ Control the field status (Screen layout of the company code segment)
o Hidden
o Display
o Required
o Optional
Account Groups of G/L Accounts:
 The number ranges of the accounts (Page-106)
 The field status of the fields in the company code segment of the master record.
Since a chart of account contains many different types of accounts, they can be grouped
into different accounts groups. Usually, one account group groups (combines) accounts with
the same tasks within the general ledger, e.g. Cash accounts, material accounts, assets
account, liabilities accounts, profit & loss accounts etc.
By assigning a number range to an account group, you can ensure that accounts of the same
type are within the same number range. Number intervals for General Ledger Account
master records can overlap. But remember that number range intervals in the G/L
account area must not overlap.
You must enter the account group in chart of accounts segment; it controls the appearance
of the company code segment of a G/L Account. For example for all of your cash accounts,
you want to be able to display all of the line items. In customizing for your cash accounts”
account group, change the field status to make “line item display” a required entry.
SAP ERP DELIVERS PREDEFINED ACCOUNT GROUPS.
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What is the purpose of the field Status?

 Superfluous field or field groups are hidden ( an asset account does not require, for
Guidance example, information about interest calculation, while a bank may require this
for information).
Instructor  Input errors are avoided (for cash account, the line items display should always be
activated in the master record = line item display is defined as a required entry field
in the company code segment.)
Field Status:The field status enables you to control the display and maintenance of an
accounts master data.
 You can assign fields that you do not use the status Hide.
 Fields whose values must not be changed can have the status of Display (even in
change mode)
 For fields where you must enter value, you can define the status Required Entry
 Field that can contain an entry, but are not required, can be set to Optional Entry.
Certain fields are grouped together and their field status is valid for the entire group e.g.
interest calculation indicator, interest cycle, etc.
The fields “Account currency” and “Field status group” are always required entry fields. This
status cannot be changed.
You have two options for controlling field status
 Account group-specific.
 Transaction-specific.
HINT: Fields which are hidden (suppressed) may contain values and these values still take
effect.
You have two options to controlling the field status:
▬ Account Group-Specific : Used for controlling Master data of any G/L Account.
▬ Transaction Specific. : Used for controlling the business transactions on that
specific G/L Account Type.
Transaction Specific Field Status:
You can also control the field status using the transaction (Display - Change -Create).
Guidance This is useful for transaction “Change”, for example, if you do not want to subsequently
for change a field.
Instructor In display mode fields are either displayed only or hidden, since no entries are possible.
The account group-specific and transaction-specific field statuses compete with each
other. The field status with the highest priority applies.
The following order applies with decreasing priority:
1- Hide
2- Display
3- Required Entry.
4- Optional Entry.
HINT: the field status is generally controlled by the account group. Transaction-specific field status is
used only if you want to control individual fields differently via the transaction “Change”.
If you do not want to use transaction-specific field status, choose “Optional entry” for all fields.
HINT: All fields status definitions of an account group in an overview.
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The fields displayed in the general ledger account master record are on the first hand
controlled by the account group field status, and secondly by the transaction specific field
status by using transaction specific controls i.e. Create, Change, display.
If you do not want certain fields to be modifiable after you have created a master record,
specify that a particular field is not modifiable in the “Change Master Data” transaction in
Customizing. For example, you want the currency of your cash account to be GBP and you
do not want it to be modifiable. In the transaction Change Master Data in Customizing,
assign the status “Display” to the relevant field.
For each field, the field status definitions from the account group and the transaction are
taken into consideration and the one with higher priority is used (starting with the highest)
i.e. — Hide, — Display, — Required Entry, — Optional Entry.
Fields that are accessed with the transaction Display Master Data are always either
displayed or hidden since you cannot make an entry in a “display” transaction.
If you do not want to use the transaction-specific control, set the field status for all fields to
optional. Since this field status has the lowest priority, the account group-specific control
shall always be used.
Reconciliation Account:
The reconciliation accountsconnects sub-ledger to the general ledger real-time. The
following sub ledgers are connected to the general via reconciliation accounts:
 Accounts Receivable
 Accounts Payable
 Assets
 Contract Accounts Receivable and Payable.
Reconciliation of the General Ledger with the Sub-ledgers
The report carries out an extended reconciliation in Financial Accounting. As part of the
Guidance monthly general ledger closing, it carries out the following consistency checks:
for
1. Debit and Credit transaction figures of the customer, vender, and G/L accounts with the
Instructor debit and credit totals of the posted documents (previous function of report SPF070)
2. Debit and credit transaction figures of customer, vendor, and GL accounts with the
debit and credit totals of the application indexes (secondary index). The application
indexes are required internally in the system for accounts with open item management
or line item display.
All results of the reconciliation are connected in a history management. You can
therefore make statements about the time of the report and the correctness of the
reconciliation work. Page-115
Reconciliation accounts:
are general ledger accounts assigned to the business partner master records to record all
transactions in the sub ledger.
All postings to the sub-ledger accounts are automatically posted to the assigned
reconciliation accounts. The general ledger is, therefore, always up to date.
You define a General Ledger Account as a reconciliation account by entering one of the
following accounts type in the field Reconciliation account for Account Type:
 D for Accounts Receivable
 K for Accounts Payable
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The reconciliation account is then only valid for the account type specified.
Typical reconciliation accounts are the Accounts Receivable and Accounts Payable.
HINT: In the General Ledger amount cannot be posted directly to reconciliation accounts.
That is why they always reconcile with the transactions made in the Vendors / customers
accounts.
If you want to look at the business partner account assigned to a specific reconciliation
account, you can select the field for the reconciliation account in the customer or vendor list
(RFDKVZ00 or RFKKZV00) via the free selections.
Line item display (Entry view):
Line items are items that are posted to a specific account. In contrast to a document item, a
line item only contains information relevant from the account view.
SAP Help: On the initial screen of the line item display, you can use selection criteria to restrict the number
of items displayed. You can also specify on this screen exactly how the line items are to be displayed.
You can display the following line items in a G/L Account:
Guidance Open items — Open items are the items that are yet to be cleared. These are the items
which are used to clear other line items in the same account. Items must be balance out to
for zero before they can be cleared.
Instructor
Cleared items —Like vendor accounts, GL accounts can also be managed on open item basis.
For such GL, each entry is tracked as open item. The clearing entry clears this open item
FBL3N will list open items and cleared items for all those GL which are open item managed,
which means that they have the Tick 'Open item management' in the control tab of GL master
Noted items — Special G/L transactions are also used to manage noted items.
These are postings that are not displayed in your accounts but are only to remind you
of outstanding payments due or to be made. You can process them with the payment
program or dunning program. As a result, it is possible to dun outstanding down
payments or to make down payments with the payment program. To do this, you enter
and store a down payment request. This special document does not update the account
balance: it is merely managed as a line item in the open item account and the special
G/L account. Therefore, you should always mark the Line item display option for these
accounts.
Parked items— When an item is punched in the system at the first stage for further
processing it are called a parked item.
You define whether an account is managed with line items in the master record of the
General Ledger Account.
You can activate the line item display for an account later (account has already been posted
to) using report RFSEPA01
Prerequisites:
- Line item display is active in the G/L Account.
- The account is blocked for posting during the changeover.
It should be noted when carrying out a line item display demonstration that the logic in the
new general ledger has changed.
Line Item Display (Entry View)(‫)وه تمامائٹمدكهاو جوريكاڈ كىگئهيں‬

Transaction figures are the totals of line item postings on the debit or credit side.
The balance is the difference between the debit and the credit transaction figure.
The field “Line item display” is a control field in the company code segment of an account.
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 For accounts without” line item display”, only the transaction figures are updated when
a document is posted to this account. When a user wants to look at this account online,
they can only view the balance.
 For Accounts with “ Line item Display”, the most important data from the posted line
items is stored in a special index table. Because this data is also stored in the documents,
it is redundant and needs additional storage and system time. When a user wants to
look at this account online, they can view both the balance and the individual line items.
You can use report (FFSEPA01) to subsequently activate the line item display –read the
documentation for this report before you execute it.
Since the line item display takes up additional system resources, you should only use it if
there is no other way of looking at the line items. You should not activate the line item
display for:
 Reconciliation Accounts (line items are managed in the sub-ledgers)
 Revenue accounts (line items are managed by the Sales Order Management application)
 Material Stock accounts (line items are managed by the Purchasing Management
application)
 Tax accounts (Tax items are only useful in connection with the document the tax
amounts were already checked when the document was posted)
Guidance In practice, revenue and tax accounts are often kept on a line item basis for reasons
for
Instructor of traceability.
The active new General Ledger accounting has an “Entry view and a General ledger view”
for a document. This is explained in detail in the “Document splitting (posting control)” unit.
In the new general ledger accounting, the statement regarding the control of line item
management in the account refers only to the entry view of documents. In general ledger
view, the line items on all accounts are always visible. This cannot be changed as, in the new
general ledger accounting, a sub-ledger can no longer completely explain the general ledger
( e.g. profit center and segment in the items during document splitting).
Open Item Management:
If the indicator “Open Item Management” is set in the master record for a G/L Account,
Guidance
the items belonging to this account are either open items or cleared items. The balance
for
of an account with open item management is always the balance of the open items. G/L
Instructor accounts are always managed with open item management if you want to be able to
check whether an offsetting posting has already taken place for a business transaction.
Items in accounts with open item management are specified as open or cleared.
Account with open item management must have line item display activated. Open item
management is a prerequisite if you need to check whether there is an offsetting posting of
a given business transaction. You can display open and cleared items separately, and
therefore it is easy to see which business transactions still need to be cleared.
You should use open line management for the following accounts:
- Bank clearing Accounts
- Clearing accounts for goods receipt / invoice receipt (GR/IR).
- Salary clearing accounts.
You can only activate open item management if the account has a zero balance.
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Account in Local Currency:

As a standard, local currency is the account currency when you create a G/L Account.
However, while defining company code, you can also define the currency of that account.
You can select one of the following:
▬ Local Currency
▬ Foreign Currency
When you create a G/L account, you can choose either the local currency or a foreign
currency as the account currency. The default value is always the local currency.
If you select the local currency, you can post to this G/L account Transaction in any currency
(Transaction figures are managed for each currency i.e. other currencies are converted into
the local currency for each line item.) Transaction figures are managed for each currency:
▬ Local currency (total of all posting amounts translated into the local currency)
▬ Currency 1 (total of all amount posted in currency 1, may be the local currency)
▬ Currency 2 (total of all amounts posted in currency 2)
▬ Currency 3 (total of all amounts posted in currency 3)
▬ And so on.
This applies whether or not line item display is activated.
If you have posted to an account, you can only change the currency of the account balance
is zero.
Only balance in Local Currency:
If the indicator “only Balance in Local Currency” is selected in the master data record,
transaction figures are only managed for amount converted in local currency.
You should select this field for clearing accounts where you want to clear account by
assigning items with the same local currency amount with one another, without
necessitating exchange rate difference postings.
The indicator must be set in cash discount and GR /IR clearing accounts.
It must not be set in reconciliation accounts for customer or vendors.
The indicator is usually set in balance sheet accounts that are not managed in foreign
currencies and not managed on an open item basis.
Account in foreign currency:
If you select a foreign currency as account currency, you can only post amounts in this
account only in that particular foreign currency.
Methods of creating G/L Accounts:

There are three methods of creating G/L Accounts: 1- Manual, 2- Copying and 3- Data
transfer.
1- Manually
- One Step method: Create both segments simultaneously (centrally). In this method
you create G/L Account in a specified Company code. To create G/L Account in other
company codes the exercise is to be repeated.
- Two Step Method:
 Chart of Account Segment.
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 Company code Segment.

- This allows you to create the G/L Account only for one time in the CoA
segmentand in multiple company codes segments.
2- Copying:
- Copying an individual G/L account with reference to another G/L account.
- Copy the entire company code segment
- Copying the entire chart of accounts segment.
 This option is used for creating an account that has the same properties as an
existing account, e.g. another cash account, create the new account with reference
to the existing account and change the account name accordingly.
 If all G/L accounts in an existing company code are required in another company
code, you can copy the entire company code segment to the new company code.
 You can also copy the entire CoA to a new CoA, including the account
determination. You can also copy the financial statement version.
3- Data Transfer
- You can copy / Transfer a new chart of accounts form an external system.
 To reduce data entry, you can use the programs such as
- RFBISA00,
- Batch Input Interfaces for G/L Account master can be modified by ABAP team
to transfer new chart of accounts
In the CoA segment, important is defining the nature of Account i.e. whether it relate to P&L or B/S.
In Company code three things are important
Currency,
Line Item Management
Open item management. (Show all items whether they are open or cleared)
Collective Processing:
You can make changes to G/L account master data simultaneously for several General
Guidance Ledger accounts. To change G/L Accounts master data in collective processing, you have
for the following options:
Instructor
- Change chart of accounts data
- Change company code data
- Change account name.
The SAP ERP system provides collective processing functions for G/L account master records.
You can change the master data in the CoA segment, company code segment or the names of
several G/L Accounts at the same time. The G/L accounts can be from different charts of accounts.
You can make changes to the displayed G/L accounts:
- You can select the fields to be changed.
- You can change the values of the fields displayed. Enter the new values in the column “
New Values” to replace the existing values. For all G/L accounts selected, the old value is
replaced with the new value.
HINT: Changes in existing G/L accounts are effective once saved and could have extensive
consequences. You should therefore check your changes before saving.
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Group Chart of Account:

If you use different operational chart of accounts in different company codes in a group due
to legal requirements, for example external reporting for the individual country company,
then you have a solution i.e. use a group chart of account.
In the individual operational CoA, a group account in the group chart of accounts is
assigned to each account. First, however, you have to assign a group chart of accounts to
the operative charts of accounts. If this is done, the field “Group Chart of Account Number”
in the CoA segments of the accounts in the operational CoA is a required entry field.
There is a 1:n relationship between the group chart of accounts in the operative chart of
accounts.
If for internal purposes, cross-company code reporting may be useful, for example, financial
statements that contain the items of several company codes.
Where all company codes uses the same chart of accounts this problem do not occur.
However, some company codes may have to use special charts of accounts because of legal
requirements. If this is the case, the following procedure applies for internal reporting:
- Use a Group Chart of Accounts which must contain all of the group accounts.
- The Group Chart of Accounts must be assigned to each operational chart of accounts.
If this is done, the field “Group Account Number” in the chart of account segment of
the operational charts of accounts is a required entry filed.
- You must enter the group account number in the CoA segment of the operational
account. Different accounts on one operational chart of account can refer to the same
group account.
- You must use a financial statement version for the group chart of accounts.
Disadvantage: Because the company code use different operation charts of accounts, no
intercompany code controlling can be performed. (Page-136)
Country Chart of Accounts:
Instructor Using the country chart of accounts, you can fulfill the country-specific requirements for
external reporting and simultaneously carry out uniform internal reporting.
Guide
All company codes use the same operational chart of accounts.
This procedure enables you to fulfill country-specific requirements and simultaneously
carry out cross-company code controlling.
An alternative to using a group chart of accounts is to use a country chart of accounts. All
the company codes use the same operational chart of accounts. Company codes that
nevertheless require a special chart of accounts for external reporting have the following
options:
- A country chart of accounts is assigned.
- The country chart of accounts number (alternative account number) is entered in every
company code segment. Every chart of accounts number can only be used once.
HINT: Since all company codes post into the same operational chart of accounts, cross-
company code controlling is possible.
Disadvantage: Accounting clerks who may be familiar with the country charts of accounts
firs have to get used to using the operational chart of accounts.
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Lesson 2.2 —Profit Center and Segment

Definition
A profit center is an organizational unit in accounting that reflects a management-oriented structure of the
organization for the purpose of internal control.
You can analyze operating results for profit centers using either the cost-of-sales or the period accounting
approach.
By calculating the fixed capital as well, you can use your profit centers as investment centers.
The profit center is the only object from which the segment can be uniformly derived. Of
course, when BADI ( Business Add-Ins is a new SAP enhancement technique based on [[ABAP
Objects]] ) or a substitution is used, any collection can be created. However, notice that a
BADI is only a defined interface, and there is no example coding supplied. A generally critical
point is making subsequent changes to the profit center in master data. In these cases, an
automatic correction document is not created. You must specify how these changes are
posted.
Segments can be used to meet the requirements of international accounting principles
(IAS/IFRS / US GAAP) regarding segment reporting.
Extract from the IFRS-8: Business Segments

A business segment is a part of a company that:
▬ That carries out business activities that generate revenues and for which expenses can be incurred
(including revenues and expenses in connection with transactions with other areas of the same company)
▬ Whose operating profits are regularly inspected by the main decision-maker of the company with regard to
decisions about the allocation of resources to this segment and the evaluation of its profitability, and
▬ For which there is corresponding financial information.
The profit center or business area objects can be used as alternatives.
The segment is provided in addition because the business area and or profit center were
frequently used for other purposes in the past and thereby to meet other requirements.
Business Area — Old concept —can be used for preparing Financial statements.
Profit Centre— New concept—Helps in segmental reporting containing multiple profit centers.
Dummy profit centers can be created when profit centers are not finalizsed but for it segments can be prepared.
Derivation of Segment:
An ERP system enables you to save a segment in the master data of a profit centre. The
segment is posted automatically when the profit center is posted to.
There is no “dummy segment posting”, as in the profit center logic – if the profit center does
not have a segment, there is no segment account assignment either.
The standard method is to derive the segment from the profit center.
Driving a Segment (2)
The segment is derived from the characteristic Profit Center because this already exist in
various SAP Objects, and the characteristic Segment is automatically derived from this.
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There is a SAP Note 1035140 (correction of standard errors or amendments given by SAP management)
on this topic. Using segments is only officially approved by SAP if profit centers are being
used simultaneously. Segments can only be derived automatically using profit centers. In
many business cases, particularly in logistics, you cannot enter the segment manually.
Various standard interfaces do not support the segment either. For these reasons, using
segments is officially approved only if you are also using profit centers.
If it is not possible to derive the characteristic Segment from a profit center master record,
other ways must be found of assigning a segment.
Document splitting provides the following options:
- Manual Entry
- BAdI implementation
- Defining substitution rules and
- Standard account assignment.
Profit center Accounting has its historical origin in Controlling. However, due to increased
significance of external accounting, it is now also a part of Financial Accounting. Each
individual company decides whether Profit Center Accounting is an instrument of internal or
external accounting.
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Lesson: 2.3 Customer / Vendor Accounts

Just like general ledger accounts, customer and vendor account also have two segments:
i- Client level that contains general data. This date can be accessed throughout the
whole organization.
ii- A segment at company code level, which contains company code-specific data.
Any company code that wishes to do business with a specific customer or vendor
has to create a company code segment for this customer or vendor. This also
creates a customer or vendor account.
Using reports RFBIDE10 / RFBIKR10, you can transfer customer / vendor master data
maintained in a source company code into another company code.
Sales and Service View of the Customer Account:
If the Sales departments (SD) process business with customers, The SD Department creates
a sales area segment for each customer, in addition to the segments previously mentioned.
It contains data that is important for the sales area, for example, data for order processing,
dispatch data, billing data, etc.
A sales area is a combination of:
 Sales organization
 Distribution Channel
 Division
The Sales organization
The sales organization is responsible for the sales and distribution of goods and services. Up
to this level the sales figures are managed for reporting and analysis purposes.
The Distribution Channel
The Distribution channel is the channel through which a customer receives a product (for
example, retail, wholesale, direct sales)
The division represents a product line. In the sales area, you can use the division to make
customer-specific agreements, for example, partial deliveries, price agreements, and so on.
A customer can have several sales area segments.
Because the sales and distribution department also stays in contract with a customer and
has to know specific data about this customer, a sales area segment can be created for each
customer.
Any sales area that wants to do business with a customer has to create a sales area segment
first. The sales area segment contains sales area-specific data.
The Material Management (MM) view of Vendor Account:

If the purchasing department process business with vendors, the purchasing departments
create a purchasing organization segment for each vendor, in addition to the segments
previously mentioned. It contains data that is important for the purchasing organization.
Just as there is a sales area segment for customers, there are purchase area segment for
purchasing organization segments for vendors.
Any purchasing organization that wants to do business with a vendor has to create a
purchasing organization segment first. The purchasing organization segment contains
purchasing organization specific data.
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A complete customer Account:-

A complete customer’s account consists of the following three segments:
 General Data at client level
 Company code segment (Contains Company Code Specific Data)
 Sales area segment (Contains data relevant to purchase Department)
Usually, the sales area segment must at least be created for the sales area assigned to the
company code.
HINT: there may be other sales areas doing business with the customers as well.
The account number is assigned to the customer at the client level. This ensures that the
account number for a customer is the same for all company codes and sales areas.
Central Maintenance of sales or purchase areas is also possible.
A complete Vendor Accountconsists of the following three segments:
 General Data at client level
 Company code segment
 Purchasing organization segment.
Usually, at least the purchasing organizationssegment for the purchasing organization
assigned to the company code must be created.
Note: there may be other purchase organizations doing business with the vendor as well.
The account number is assigned to the vendor at the client level. This ensures that the
account number for a vendor is the same for all company codes and purchasing
organizations.
Centralized or Decentralized Maintenance (Customers / Vendors)
The system offers separate functions for maintaining customer master records depending
on the requirements of your organization. These data records can be maintained centrally
for all areas or separately for Financial Accounting and Sales and Distribution.
As for customer master records, vendor master records can also be maintained centrally for
all areas or separately for Financial Accounting and Materials Management.
If Master data is maintained separately, there is a danger that customer / vendor accounts
are incomplete or there may be duplication of records.
HINT: When implementing both Accounts Receivable and sales and distribution, members of
both the implementation teams must work together to decide how to configure customer
master records and who will be responsible for their maintenance.
Avoiding Duplication of Master Data:
There are two ways of avoiding duplication when you are creating record of a new
customer:
 Before you create master record, use the match-code to check whether the
customer / vendor already exist in the system.
 The message control should create a message if you try to create a customer /
vendor again
You do not need to show the match code search again.
A match code may be the tracking No. of that customer / vendor e.g. CNIC, NTN etc.
Compare Master Data:
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If you use the component Purchasing Management and / or Sales Order management,
customers and vendors must be maintained for both the components. It is easiest to create
customer /vendor master records centrally to ensure that they are set up correctly.
However, in some cases, Purchasing Management / Sales Order Management create their
own segments of the master record and Accounting creates its own segments of the master
record. In this case there is the risk of creating incomplete or duplicate master records. To
find and correct these incomplete accounts, you can run report RFDKAG00, Customer
Master Data Comparison, or RFKKAG00, Vendor Master Data Comparison, and make the
necessary corrections. You can then correct the accounts. (Page -180)
You can prevent the creation of duplicate accounts as follows:
 Use the match-code before you create a new account
 Activate the automatic duplication check.
Priority of Data:
i- Back End Configurational Data —Remains always in the system however changes
ii- Front End Master Data
iii- Front End Transactional Data.
Pages of Customer / Vendor Accounts:

If you want to change or display an account, you can go directly to every page by selecting it
on the initial screen.
Important fields are:
 Search terms: you can enter an abbreviation for the customer / vendor name in
these fields. The format is defined by company guidelines and practices.
 Group: Customers or vendors who belong to the same corporate group can be
bundled together under a user-defined group key. This group key can be used for
running reports, transaction processing, or for mach codes.
 Clerk / accounting: The name of the clerk must be saved under an ID. You can enter
this in the customer / vendor master records for which the clerk concerned is
responsible. The name of the clerk is then printed on correspondence automatically.
You can also use this ID for sorting dunning and payment proposal lists.
(In general practice dunning means sending letters to our customers reminding them to pay invoices which are
due and/or well past it.)
Explanatory Textscan be entered in every segment.

Line item display and open item management are configured as standard for every
customer / vendor account.
Copying Customer /Vendor master Record:
You can also create new customer and vendor master records with reference to an existing
master record. Only data which does not refer directly to the customer /vendor master
record is copied from the reference account to the new account. The copied date must be
checked and changed, if necessary, before the record is saved. We recommend that you
create a reference account for every account group.
IBAN( International Bank Account Number):

IBAN is an internationally recognized, unique identification number for a certain bank
account. It was designed by ISO (International Organization for Standardization) and
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ECBS(European Committee for Banking Standards) to facilitate handling of international

payment transactions. The IBAN contains a maximum of 34 alphanumeric characters and is
structured differently in every country. It usually contains the country code, bank key and
account number.
The SAP System used the IBAN in addition to the standard country-specific bank details. You
can enter an IBAN only in customer / vendor master record if he provides and requests
entry. For this reason, you cannot automatically generate and save the IBANs for several
master records. You have to enter the IBAN manually in each master record. For certain
countries the system generates a proposal
When You enter IBAN for new bank details, the system can generate the country-specific
bank details for certain countries. If necessary, make sure that the payment medium
programs used can also output the IBAN.
Account Group for Customers and Vendors:

Account Group control:
 The account number range — so that all accounts in an account group are in one
account number range.
 The field status of the account fields— so that all accounts in an account group have
the same screen layout.
 Use as a one-time account — one time customer / one timed vendor.
In contrast to general ledger accounts, where you have to enter the account group in the
chart of account segment of the master record, for customer and vendor account you have
to enter the account group before you maintain the individual master record segment.
Reasons:
 For customer and vendor accounts, the account group controls their internal or
external number assignment, For G/L accounts, the number assignment is always
external.
 In addition to the company code segment sales segment and purchasing segment
the account group also controls the screen layout at client level.
The account group controls the screen layout for the “General Data”, the Company Code
Segment and sales area and purchasing organization segment. Consequently, you always
have to specify it on initial screen.
When you create customer /vendor master records, enter the account group on the initial
screen. In Financial Accounting, once the customer /vendor account has been created, you
can no longer change the account group. However, if you use partner roles in Sales and
Distribution, in some case you can change the account group from an ordering address to a
ship-to address.
You can delete the current number. This is useful if, for example, customer / vendor
accounts have been archived. In this case the current number is not updated automatically.
You can delete number ranges provided no number has been assigned from them yet. If
number has already been assigned, the system prevents you deleting a number range with
internal assignment. If the number range has external assignment, the system issues a
warning.
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Number Rangers for Customers / Vendors:

There should be separate number ranges for customers and vendors accounts. The range of
possible account number is divided into smaller number ranges. Number ranges must not
overlap.
For each number range you can define whether the number assignment is internal or
external. Internal numbers are assigned by the system, whereas external numbers are
entered by the user who creates the record. External numbers may be alphanumeric.
With internal number assignment the system always assigns the next number available in
the range to a new account. If you want to know how many numbers are left in a specific
number range, you can display the Current Number.
With external number assignment, the user chooses the account number. Numbers do not
have to be assigned in sequence; therefore, a current number cannot be displayed.
Each number range can he assigned to one or more account groups, for customer or vendor
account only.
One time Customer / Vendors:
For all customers or vendors with whom you rarely do business, create a special customer
and a special vendor master record. These master records contain receivable and payable
for one-time customer /vendor (one time accounts). In contrast to other master records, a
one-time account master record does not contain any information about a specific customer
/ vendor since this account is used for more than one customer / vendor. Therefore, the
customer / vendor-specific fields should be hidden.
You enter the customer / vendor specific data for one time customer / vendors in the
document during posting.
Status of the Fields in the Master Record:
The account group is used to control the field displayed in the master record. For example,
to ensure that all correspondences has complete address information, you must change the
field status so that all address fields are marked as “required entry”
Field Status in Customer / Vendor Master Record:
You can make field status definitions via:
 Account group-specific fields status
 Transaction-specific field status
 Company code-specific field status.
Controlling Field Status:

The layout of the customer /vendor master data screen can be affected by several factors:
Account Group-Specific Control:
Usually the field status is controlled only by the account group. This means that all accounts
of a specific group have the same screen layout.
Transaction-dependent Control
The field status can be dependent on the master data transaction (Create, Change, Display).
The transaction-dependent field status should be set to “display” for the “change”
transaction if the field is not to be changed after it has been created, such as the
“Reconciliation accounts”, field.
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Company code-Dependent Control:

You can control the field status for fields in the company code segment of customer and
vendor master records via the company code-specific screen layout. You can hide fields that
are not used in a specific company code, but enter values in these fields in other company
codes. For example if a company code does not want to use the dunning program, hide the
relevant fields for this company code.
Account group-specific fields status, the transaction-specific field status and the company
code-specific field status are compared, and the field status with the highest priority is used.
Fields that are accessed with the “display” transaction are always either displayed or
suppressed, since you cannot make an entry in a “display” transaction.
If you do not want to use the transaction-specific or company code-specific control, set the
field status for all fields to optional. Since this field status has the lowest priority, the
account group-specific control is always used.
Dual Control Principle:

You now can define that one person makes changes to customer or vendor master data
while another is responsible for confirming the change usually for critical customer / vendor
changes.
First you have to define the fields for dual control in the customer / vendor master records
in the IMG.
If you define a field in the customer / vendor master record as “sensitive”, the
corresponding customer / vendor is blocked for payment if the entry is changed. The block
is removed when a second person with authorization checks the change and confirms or
rejects it.
The confirmation for the changes can be made for a single customer /vendor or you can get
a list. This list can be restricted by:
 Customer / Vendor
 Company code
 Account not yet confirmed
 Account rejected
 Accounts to be confirmed by me
 You can display the changes to the customer or vendor master record for all
accounts using reportsRFDABL00 or RFKABL00.
Keys:
Vendor (Accounts Payables) K
Customer Accounts Receivable D
Asset(For Asset Accounting i.e AA) A
General Ledger Account S
Material (For Material Management i.e.MM) M
Customer /Vendor Clearing
If a customer is also a vendor, or vice versa, the payment and the dunning program can clear
open items against each other. The open items of the assigned account can also be
displayed in the line item display and the open item selection screens.
To clear open items, you have to carry out the following steps:
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 You have to enter the vendor account number in the customer account, and vie versa.
 Each company code can decide separately whether it wants to clear open item between
customer and vendors. If clearing is to be used, you have to select the “Clearing with
Vendor” field in the customer account, or the corresponding field in the vendor account.
If you set the “Account Control and Status” under Additional Selections” in the report for
the customer or vendor list (RFDKVZ00 or RFKKVZ00), when you print the report you can see
the partner relationships for the respective customer or vendor.
Alternative Payer / Payee:
Alternative payer: An invoice is not cleared by the customer from whom a receivable is due,
but by an alternative payer. For example a receivable is due from a customer who declares
bankruptcy. The administrator makes the payment (alternative payer).
Alternative payee: A payment is not made to the vendor to whom the payable is due.
At the client and company code level, you can enter an alternative payer /payee. The entry
in the company code segment has higher priority than the entry at client level.
There are several options for using this function within the master record. If you set the
“Individual Entries” indicator when creating an invoice, you can enter information about an
individual payer / payee for a customer /vendor that has not been created in my SAP ERP.
If the alternative payer/payee is an existing customer or vendor, you can enter the customer
/ vendor account number as permitted payer / payee in the master record. During invoice
entry, you can choose one of these payer(s)/ Payee(s) using match-codes.
If you enter an alternative payer, the amount to clear the due open items in the account is
paid by the alternative payer.
If you enter an alternative payee, the amount that the company has to pay to clear the open
item due is paid to the alternative payee.
If you set the “Payment data” indicator under “Additional Selections” in the report for the customer
or vendor list (RFDKVZ00 or RFKKVZ00”, when you print the report you can see the alternative payer
for the respective customer or the alternative payee for the vendor.
Head Office /Branch:
Customers in some industries place orders locally (that is, via their branches) but pay
invoices centrally (from head office). There is a difference between the goods flow and the
cash flow. You can reflect this in the SAP System via Head Office and Branch office.
All items posted to a branch account are automatically transferred to the head office
account. Usually dunning notices go to the head office and it is the head office that makes
and receives payments. However if the “Decentralize Processing” field is selected in the
head office master record, the dunning and payment programs use the branch account
instead.
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Unit —3 DOCUMENT CONTROL

Lesson 3.1—Document Structure
Document in SAP ERP Financial:
The SAP system works on the basis of the document principle. A document is saved for
every posting. The document remains as a complete unit in the system until it is archived.
Every document is uniquely identified by the following fields:
 Document Number
 Company Code
 Fiscal Year.
Documents in SAP ERP Financial contains the following:
 A document header (information that applies to the entire document)
 Between 2 and 999 line item (information that is specific to the line item). When you
post documents via the Accounting interface for example, from Sales Order
Management, Purchasing Management, or other applications), it creates items in the
accounting document that are identical in almost all of the fields.
You can display detailed data for the document head and line items.
Two important control keys:
 Document Type for the document header
 Posting key for the line items.
The SAP system generates at-least one document for every business transaction. Each
document receives a unique document number.
The system can assign the document number (internal number assignment) or the user can
assign the number when entering the document (external number assignment).
A business transaction can create one or more documents. For example, when goods
received from a vendor a material document is created to record data that is important for
inventory management. An accounting document is created to record financially-relevant
information such as G/L accounts and amounts.
In the system documents are generated for the various business transactions without an
accounting document being created at the same time, because accounting is not affected.
An example of this would be a purchase order in Materials Management.
Related documents are linked in the system so that you have an overview of every business
transaction in the system.
Using report RFBELJ00, you can create a compact document journal in the system. It
contains a table of the most important data from the selected documents from the
document headers and line items.
You can use reports RFBUEB00 and RFBUEB01 to find documents in the system.
Document Type:
Document type is the “key” that differentiates the business transactions to be posted.
Guidance
for Document types are defined at client level and therefore valid for all company codes.
Instructor For example document type provides information about whether the document is a
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vendor invoice or a customer invoice. Posting documents are classified by document

types. There are different types of business transactions.
The document type controls the document header and defines the account types to be
posted to and the document number assignment.
The Document Type controls the document head and is used to differentiate the business
transactions to be posted for example vendor invoices, customer payment etc. Document
types are defined at client level and are therefore valid for all company codes. The standard
system is delivered with document types that can be changed or copied.
Document Types define the following:
- Number ranges for document numbers.
- Account types permitted for postings.
Document types also define the following:
- The field status of the “Document Header Text” and Reference Number fields in the
document header.
- Whether invoices are posted with the net procedure or gross procedure.
In the procedure recommended by SAP for storing original documents, the document type
controls document storage. Always store the original documents under the number of the
system. If the original document has an external number:
- Enter the external number of the original document in the “Reference Number” field in
the header of the system document.
- Note the number of the system document in the original document.
Reversal Document Type:
A document once posted cannot be deleted from the system however its reversal document
can be created to nullify its impact on financial statements.
The reversal document type is used to reverse documents. If no reversal document type is
specified, the reversal document has the same document type as the original document.
When a document is reversed, external document number assignment is not possible. For
this reason, reversal document type must be specified for all document types that work with
external document number assignment. This reversal document type then works with
internal number assignment.
Standard Document Types
The document type “General Documents” (AB) permits postings to all account types. A
“Customer Credit Memo” (DG), however, only permits postings to customer and G/L
accounts.
This prevents, for example, a (vendor)credit memo being posted to an asset. (Reasons: The
posting is made by the asset accountant and not by the accounts payable accountant.
Important Standard Document Types:
Document type AB allows postings to all accounts types.
All other document types limit the types of accounts we can post. Document type DG, for
example, allows you to post to customer (D) and G/L accounts (S) only.
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To transfer billing documents from the SAP ERP billing system, you need one of the
following document types:
- RV, the default document type for Sales Order management billing documents
(customer invoices)
- RE, the default document type for Materials Management billing document (vendor
invoices)
When internal number assignment is used, the system assigns a new number to each
document in the financial accounting component. In external number assignment, the
system transfers the billing document number to the accounting document, providing this
number has not already been assigned.
The payment program uses mostly the document type ZP for its automatic postings.
Guidance In new G/L Accounting and activated document splitting, you have to make an
for additional Customizing setting for new document types.
Instructor Every business transaction that is entered is analyzed during the document
splitting process. In this process, the system determines which splitting rule is
applied to the document. To enable the system to determine the splitting rule, a
business transaction variant must be assigned to each document.
To ensure that splitting rule is used appropriately, the relevant document must
meet certain requirements. These requirements relate in particular to certain
item categories that either must or must not be available. This information is
specified for each business transaction variant and is checked against the current
document during posting. If document does not meet these requirements, the
system rejects the posting.
For the document types delivered in the standard system, SAP delivers a
classification for the document splitting. This classification is a proposal that you
should check against your own document type organization as to whether the
classification or assignment to a business transaction variant leads to the desired
results in the document splitting.
SAP delivers business transactions in the standard system. The item categories
permitted for each business transaction are already defined. SAP also delivers
business transactions variants that represent a further restriction of a business
transaction.
You cannot define additional business transactions. However, you can define
your own business transactions variants for the standard business transactions.
Document splitting is mainly controlled by document type. Customers should,
therefore, make sure that the document types used for business processes are
those that must be uniquely assigned to a business transaction variant in
document splitting and thus to splitting rules.
Therefore, it may be necessary to add additional document types.
Document Number:
Document number is the key that uniquely identifies each document in a company code
within a fiscal year. In order to store the different documents by document type, they are
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subdivided in document number ranges. The document number range defines the number
range to which the document numbers to be assigned belong.
A document number range is assigned to each document type.
The size of the number range intervals should be defined in accordance with the
organization of the document storage and the document volume (recommendation: +30%
safety buffer).
Document number ranges are defined dependent on the company code. For this reason,
they must be copied to every company code in which the document type in question is used
(except if the company code was created using the function “Copy company code”)
Document Number Ranges:
The document number range defines the range of numbers that must be assigned as
document numbers. These number ranges must not overlap.
 Internal Numbering: The system saves the last document number that was taken from
the number range in the Current Number field and assigns the number following the
current number as the next document number.
 External number assignment: The user enters the number of the original document, or
the number is transferred automatically from another system. The numbers are usually
not assigned in sequence, which is why the system cannot store a document number.
The numbers can be alphanumeric.
The document number range must be defined for the year in which it is used. There are two
options:
 To a fiscal year in the future: At the beginning of a new fiscal year, the system continues
to use the number after the current number as the next number. It does not restart at
the first number of the number range.
 For Every Fiscal year: At the beginning of a new fiscal year, the system starts again with
the first number of the number range. This helps to ensure that the number range is
sufficient.
Addendum:
If the ledger solution is mapped in new G/L accounting, different ledgers can use different
fiscal year variants. This is a very rare case. It is then necessary to make special settings for
these ledgers in Customizing:
 Document number ranges are stored for the general ledger view
 The number ranges are assigned to the document types for the general ledger view.
Addendum:
If the ledger solution is used in new G/L Accounting, document types for pure posting in a
non-leading ledger must be assigned separate number ranges. This is done to ensure that
there are no gaps in the document assignment in the leading view.
One number range can be assigned to several document types. You can copy the intervals of
document number ranges from one company code to another, or copy intervals from one
fiscal year to another.
We can use report RFBNUM00 to find gaps in the document number assignment.
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Posting Key:
Two digit numeric key that controls the entry of lineitems.
The posting key defines
 To which type of account the line item is to be posted —Account type (D,K,S,A,M)
o D—Customers—Accounts Receivable
o K—Vendor—Accounts Payable
o S— General Ledger Account
o A— Assets
o M— Material
 Debit or Credit Posting
 Layout of the entry screens (field status of additional details)
Functions of the Posting Keys:
Like document types, posting keys are also defined at client level
In addition to the control functions, the posting key also specifies:
 Whether the line item is connected to a payment transaction. This information is
required for analyzing the payment history and creating payment notices.
 Whether the posting is sales-relevant and the sales figure of the account is to be
updated by the transaction, for example, by the posting of a customer invoice.
The posting keys have been enhanced for the Enjoy SAP document entry functions. In the
standard transaction posting keys are labeled “debit” and “credit”. The following default
values are provided in Customizing for the SAP ERP system:
- For General Ledger account Posting: “Debit” is posting key 40, “Credit” is posting key 50.
- For Customer Invoices: “Debit” is posting key 01, “Credit” is posting key 11.
- For Vendor invoices: “Debit” is posting key 21, “Credit” is posting key 31.
Document Field Status:
As with the master records, you can specify for each posting item whether fields are to
Guidance
be hidden, display or function as required or optional fields. The document field status
for
defines whether fields are to be hidden or whether they are required or optional fields.
Instructor However, this does not apply for the following fields:— Amount, — Posting Key, —
Account.
These fields are required entry fields; you cannot influence their field status.
The field status for posting an accounting document is determined by three factors:
- Account Type e.g. G/L account, Sub ledger account.
- Field status of the posting key
- Field status of the account
The system determines the field status dependent on the account type. It cannot be
influenced by Customizing.e.g. The system automatically hide the terms of payment for
a pure G/L account posting.
The posting key- specific and account specific field statuses both control the field
structure of the additional account assignments in the line item.
This enables the user to enter line items for specific accounts or dependent on the
posting key. The rule that the field status with the highest priority is used applies here
too.
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If the user tries to combine “Hide” with “Required Entry”, this fails. The system issues
an error message.
Exception to the rules: If business area financial statements are to be used, the
“Business Area” field must be ready for input. The field is ready for input if the user has
activated business area financial statements. The “Hide” field status no longer affects
the “Business Area” Field.
When you enter document different fields are displayed depending on the transaction and
the documents used. For example, when you post expenses, the cost center and tax data
normally have to be specified. In contrast, this information is not required when you post
cash. What information is displayed when a document is processed is controlled by the field
status.
As a general rule you define account dependent field status for general ledger account in
customizing. For customer and vendor data you define the posting key-dependent field
status in Customizing according to your requirements.
As with the field statuses defined for fields in G/L accounts, the field status with the higher
priority is used. The priority is: Hide, Display, Required and Optional.
Exceptions to this Rule:
- If business area is used the business area field must be ready for input. You can activate
it by enabling business area financial statements for the company code. You can only use
field status to define whether the field is a required or an optional entry field.
- Entries in tax fields are only possible if the general ledger account is relevant for tax.
The hide field status cannot be combined with the required entry field status. This
combination causes error.
Field Status Variant:
The field status variants are assigned to the company codes (variant principle). This ensures
that the field status groups can be used in the accounts of these company codes. Different
company cods can use one field status variant.
For each group of general ledger accounts you have to define the status of every document
entry field. When documents are entered for these G/L accounts, should the text field be
required, optional or hidden? When documents are entered for these G/L accounts, should
the cost center field be required, optional or hidden? and so on.
This information is divided into field status groups for each group of G/L accounts.
We assign field status groups to the respective general ledger accounts in the G/L account
master records.
The field status groups are summarized in one field status Variant.
The field status variant is assigned to your company code(s). No posting can be made until
this is complete. Typically, you assign the same field status variant to all of your company
codes so that the same field status information applies across company codes.
Various field status groups are available in the standard SAP ERP system. It is recommend
that you copy the standard field status groups and modify them as necessary.
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If a document is posted to a subledger account, the field status group of the reconciliation
account is used. Page-255
D— Accounts R/A K—Accounts P/A S—G/L Accounts
01. 11. 21. 31. 40 50
02. 12. 22. 32. 80 90
03. 13. 23. 33. 81 01
04. 14. 24. 34. 83 93
05. 15. 25. 35. 84 94
06. 16. 26. 36. 85 95
07. 17. 27. 37. 86 96
08. 18. 28. 38.
09. 19. 29. 39.
A—Assets M—Materials
70 75 89 99
Standard Posting Keys:

SAP recommends that you use the standard posting keys delivered. If you change them or
define new posting keys, all tables containing a reference to these must also be updated.
Posting keys for assets and materials may only be used if the corresponding SAP
components are installed.
By changing fields status definitions of posting keys and the field status group you can make
the field status transaction-dependent or account-dependent.
Since the sub-ledger accounts do not have a field status group, postings, are differentiated
mainly by means of different posting keys. For this reason there are numerous posting keys
for sub-ledger accounts.
Postings to General Ledger accounts are mainly differentiated by means of different field
status groups. Therefore, only two posting keys (40 and 50) are required for posting.
Addendum: In addition to the accounts and posting key-dependent field statuses for
postings, mandatory fields are also controlled centrally for document splitting objects (such
as the segment or profit center) when document splitting is used. This is explained in detail
in the “Document Splitting” posting control unit.
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Lesson:3.2 — Posting Periods

The posting date in the document header determines the posting period in which postings
are to take place. The system usually proposes the current date as posting date.
Posting periods are defined via the fiscal year variant. The periods configured in the fiscal
year variant are derived from the month of the posting date.
The posting period must be open to enable posting. You open the posting period by
entering a time range that is the time range of the posting period. You open and close
posting periods in Customizing or for the application
Maintaining Posting Periods:
For technical reasons, for each posting period variant you need an entry “+” that is valid for
all account types. The columns for the account number interval must be empty.
The period intervals defined for the “+” to check whether the period determined can be
posted to in a variant.
When you enter the posting date in the document header, the system uses the entry for the
account type “+” to check whether the period determined can be posted to. If all account
types are to be open at the same time, the minimum entry “+” is sufficient.
You can define whether periods can be posted to differently by account type (A, D, K, M, S,
V) and by account interval. If you do not enter G/L account number for the account
intervals, you must enter “ZZZZZZZ” as the account number upper limit. (Number of Z
should be equal to number of digits in CoA)
For each account type within a posting period variant, you specify which posting periods are
open for posting. Two time intervals (Period 1 and 2) are available. For each interval, specify
a period lower limit and period upper limit, and the fiscal year.
You close periods by selecting period details such that the periods to be closed are no longer
contained.
Special periods have no start and end date. They are assigned to the last posting period.
For posting in special periods the posting date must be the last posting period the special
period open and entered in the document during posting.
Posting Periods: are defined in the fiscal year variant.
To prevent document form being posted to an incorrect posting period, you can close
certain posting periods.
Usually the current posting period is open and all other periods are closed. At the end of the
period this period is usually closed and the next period is opened. You open a posting period
by entering a range in the posting period variant that encompasses this period. You can
have as many posting periods open as desired.
During period closing you open special periods for closing posting.
During closing two periods intervals must be open at the same time. Therefore two period
intervals can be entered in the posting period table.
Opening and Closing Posting Periods:
When you open and close periods, this affects all company codes to which the posting
period variant is assigned. This means that several company codes can have the same
posting period variant. This enables the group-wide posting closing with less work required.
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Posting Period Variant:

Several company codes use the same posting period variant. For all company codes
assigned, the posting periods are opened and closed simultaneously this simplifies the
period maintenance.
Period Checks by Account Type:
In the document header, the periods assigned to the account type “+” are checked. This
the first check. Therefore, the account type “+” must be open for all periods that are
supposed to be open for any other account type. The posting period variant must contain at
least the account type “+”. If the posting periods for different account types are all to be
handled in the same way, the control by means of the “+” entry is sufficient.
Posting periods can be handled differently for different account types; i.e. for a certain
posting period, postings to customer account may be permitted while postings to vendor
account may not.
At the line item level, the system checks the account type of the posting key to ensure that
the period is open for the assigned account type.
The account interval always contains G/L accounts. By entering certain reconciliation
account behind sub-ledger account types, these sub-ledger accounts can be treated
differently to account that have a different reconciliation account.
HINT: From ERP6.0EHP4.0 onward there is a 3rd period interval for real time integration of
controlling in Accounting.
During closing, two period intervals must be open at the same time. Therefore, two periods
intervals can be entered in the posting period table.
An authorization group may be assigned to the first period interval. Then, only users
belonging to this authorization group have the permission to post in the first period interval.
It makes sense to use the first range for the special periods and authorize only the
accountants involved in closing to post in the special periods.
The user must have the authorization for authorization object F_BKPF_BUP (accounting
document: Authorization for posting periods) with the same value in the field “authorization
group” as in the posting period table.
With the new General Ledger Accounting, a third period interval is displayed. In this interval,
open periods are stored for the real-time integration CO—>FI.
The third interval is used to control whether FI postings triggered from CO really should be
able to be posted in the periods. If the third interval is not filled, the entries in intervals 1
and 2 are also valid for these postings.
With the new G/L accounting, there is also the option to control more precisely which
values for which individual account assignment objects can be posted, and when.
When entering a document, among other items, you enter the posting date –the system
automatically determines the posting period and fiscal year based on the posting date
entered.
In the document overview the posting date, the posting period and the fiscal year are
displayed. The posting period determined is entered in the document and the transaction
figures for this posting period and up dated.
If you display the balance of an account, the transactions figure for the posting period are
displayed.
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Lesson-3.3—Posting Authorizations
This lesson provides you with an introduction to determining maximum amounts when
posting documents.
Maximum Amount:
In this section we will focus on the upper limits for posting transactions within tolerance
groups.
In tolerance groups you can enter upper limits for the following:
1. Total amount per document
2. Amount per customer / vendor item
3. Cash discount a user with this tolerance group is able to grant
The currency is the local currency of the company code.
Tolerance Groups:
Accounting employees for whom you want to define special tolerance must be assigned to a
separate tolerance group.
Each company code must always have a tolerance group “Blank”. This default tolerance
group applies for employees that are not explicitly assigned to another tolerance group.
When you assign a user to a tolerance group, enter the name with which the user logs on to
the system under “Name of User”.
Each employee must be assigned to only one tolerance group.
A tolerance group can be assigned to one or more company codes.
Maximum amount within the tolerance group:
 Amount per document: Maximum posting amount per document (total of all debit
or credit items)
 Amount per open item: maximum posting amount per customer or vendor item.
The restriction does not apply to automatically created line items, for example, for
payment clearing.
Assigning Posting Authorizations:
We can create as many tolerance groups as we like. Every user can be explicitly assigned to
a tolerance group.
If users are not assigned to any special tolerance group, then the entries in tolerance group
“—“ are valid for them.
This is the default tolerance group
Tolerance group “—“ usually contains values which are meant to apply to most employees.
For any employee who have especially high or low limits, a special tolerance group should
be created and assigned to their user logon ID’s. (Page-296)
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Lesson:-3.4 Simple Document in Financial Accounting

Enjoy Posting Screens:
The enjoy postings in the general ledger, customers, and vendors area are single screen
transactions. You can enter documents with a minimum number of entries on one screen.
On the top part of the screen, you enter the general data for the document that you want to
enter or process further, together with the data for the customer or vendor item. Important
fields are on the initial tab page, less frequently used fields and detailed information are on
the subsequent tab pages.
On the lower part of the screen you enter the invoice or line items in a table. Once you have
made your entries, you can check, hold or post the document. The system uses the check,
proposal and posting logic of the existing entry transactions such as the invoice / credit
memo fast entry or the standard document entry.
The Enjoy transactions are offered parallel to the standard transactions, in which you can
make more complex postings, for example, asset purchase from vendor, via the menu by
branching directly to the existing complex posting transactions.
Via user-specific editing options, you can, for example, control the display and entry for the
document type and the posting period individually.
Simple Postings in SAP ERP Financials:
The SAP Financial Accounting component uses one posting transaction for several different
postings for example:
 G/L account postings
 Customer invoice postings
 Customer credit memo postings.
 Vendor invoice postings
 Vendor Credit memo posting
Enjoy Posting Screen: Header and 1st Line Item:
You enter the general date for posting document on the screen in the document header, for
example invoice and posting date, text, and so on. For entering invoice and credit memos
received, you can define a document type for each transaction, which then appears as a
general default value. You can overwrite this proposed document type at any time as long
as the document type field is ready for input during document entry. If you do not define a
document type, the system proposes standard document types; for example, KR for
entering vendor invoices.
The important input fields are in the foreground on a tab page and the fields used less
frequently are on the subsequent tab pages.
With customer or vendor invoices you enter the business partner account data in this
section together with the invoice or credit memo amount. When you choose Enter, the
business partner master data is also displayed alongside the account name, address and
blank details. You can display an open item list by pressing the “Open Items” button.
In addition to the header and item data the entry screen also contains an information area
where you can see the display balance.
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Via the button “Tree”, you can access screen variants, account assignment templates, and
held document that you can select as templates. Users can navigate from a tree structure on
the left hand side of the screen
Enjoy Posting Screen : Additional Line Items:
Enter the additional line items for the document in the table in the bottom section of the
screen. The account name appears once you have made and confirmed your entries.
You can select different fields or columns and change the size and sequence of the columns
and fields. You can also copy line items.
At the top of the screen, you can select from Park, Post, or Hold, to complete the document
entry transaction once the balance is zero.
You can still use the standard transaction for entering postings.
For complex postings you can access the complex posting transaction via the menu. You
cannot return to the initial screen from this complex posting transaction.
You can enter any explanatory text for the line item. This item text can be used internally
and externally. If you want to use the text for external purposes e.g. in correspondence,
dunning notices, payment advice notes, and so on enter a “*” in front of the text (the * is
not become a part of the printout).
In Customizing, you can define text templates under a four digit key – these text templates
are copied into the line item when you enter the relevant key in the text field during
document entry.
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Unit-4 POSTING CONTROL

Lesson: 4.1 — Document Splitting:
In new General Ledger accounting, every financial accounting transaction always have two views
i.e.The Data entry View and the General Ledger View
Besides the leading ledger, you may also see the document in other, non-leading ledgers in the General ledger view.
Definition:
The Data Entry View:
View of — how a document appears to the document creator and therefore, how it is shown in the
sub-ledgers (Account Receivable, Accounts Payable, Asset Account). In other words data entry view
is (just) entry view.
General Ledger View:
View of how a document appears in the General Ledger
Entry View and General Ledger View:
Displaying a document in the entry view and general ledger view is defined in the New General
Ledger Accounting and cannot be switched on or off using customizing.
(If a customer uses classic general ledger accounting, the document is displayed in only one view i.e.
entry view. This view corresponds to the entry view of the New G/L accounting)
New General Ledger Accounting offers the following aspects for a balance sheet analysis below the
company code level for example for profit center or for segment.
In new G/L, Profit Center, Segment and Business Area are by default parts of its leading ledger table
i.e. FAGLFLEXT.
FI drilldown reports based on the totals of leading ledger table FAGLFLEXT.
Document Splitting:
Displaying the Profit & Loss statement by profit center, business area, or segment is never
problematic, since the positions which have an effect was always provided with unique
corresponding objects by the original controlling objects, the problem is that the line item (e.g.
Payable and Taxes) cannot be split in the entry view. This only happens in the general ledger view,
using document splitting.
HINT: Note that Document splitting is only for customers who have to or want to add a further
characteristic (such as segment) on the balance sheet, in addition to company code.
Mapped Business Transaction Example:Vendor invoice with multiple expenses line items
and different account assignment (with 10% Tax)
Entry View:
CCD P BS A/c Head Description Amount Curr Tx CCtr Pc Segemnt Explain
AA00 1 31 1000 Millar Inc 11,000 EUR 1I Cedit
2 40 477000 Advert Cost 1000 EUR 1I 1000 1000 Seg-A Debit
3 40 417000 Purchase Serv 9000 EUR 1I 4140 1402 Seg-B Debit
4 40 154000 Input Tax 1000 EUR 1I Debit
General Ledger View:
CCD P BS A/c Head Description Amount Curr Tx CCtr Pc Segment Explain
AA00 1 31 160000 Accounts P/A 1,100 EUR 1I 1000 Seg-A Credit
2 40 477000 Advert Cost 1,000 EUR 1I 1000 1000 Debit
4 40 154000 Input Tax 100 EUR 1I 1000 Debit
1 31 160000 Accounts P/A 9,900 EUR 1I 1402 Seg-B Credit
3 40 417000 Purchase Serv 9,000 EUR 1I 4140 1402 Debit
4 40 154000 Input Tax 900 EUR 1I 1402 Debit
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Document Splitting —Active Split:

The entities defined as splitting characteristics (Balancing Characteristics) are inherited in
Non-account-assigned posting lines.
Document splitting is (also called on line split) ensures that companies can create complete
balance sheet for desired objects.
If document splitting is not activated, there is no difference between the entry view and the
general ledger view.
 Document splitting is initially activated in customizing across all clients
 In a further step (in the dialog structure) you can activate / deactivate splitting in
each company code in the same transaction.
 Inheritance means that when you create a customer invoice from a revenue line, the
unique characteristics are projected (inherited) to the customer and tax lines in the
general ledger view.
 The default account assignment can be used to replace all assignment and could not
be derived from the posting with a constant “value”.
Document splitting is activated in Customizing.
Note: Since document splitting can be activated for each client and deactivated for each
company code, the decision of whether to split the document or not is made at company
code level. However, all company codes of a client can only use one document splitting
procedure, i.e. different procedures cannot be assigned to different company codes.
The inheritance Concept:
If an account assignment object is unique in a document, it is inherited online in all missing
positions. The indicator should always be set when document setting is activated.
The default account assignment Concept:
It is possible to work with default account assignment, that is, if the position is not provided
with the necessary object for any reason, then a default value (such as a profit center or
segment) can be set automatically.
To use such a default account assignment, you must first define a constant in customizing.
Note that using a default value can reduce the data quality. Incorrect document splitting
rules are then not recognized, since every missing object is replaced by this constant. If you
want to use default account assignment, carryout a test without default values, in order to
find any possible errors.
Three Simplified steps for Document Splitting:
You can divide the Document Splitting Process into three (simplified) steps /Types.
1- Passive Document Splitting
 During clearing (for example during a payment) the account assignments of the
items to be cleared are transferred to the clearing items ( e.g. A/P lines.)
 This step cannot be changed by the customer.
During Clearing the entities (segments or profit centers) of the document being cleared
are copied to the clearing document without being changed
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Example: Payment of an incoming invoice that has been assigned to multiple accounts. The
incoming invoice was divided over two segments A and B in the proportion 60:40. During
clearing, the payment is split 60:40 over the segments( only G/L view)
2- Active (rule-based) Document Splitting:
 The system process a specific document split due to (standard or customer defined)
splitting rules.
 Splitting rules can be configured.
For document, “which do not show clearing”, individual distribution rules can be created in
customizing to decide which position of a document are divided according to which basic
position. The document type is the basis for the rule.
Example:- An incoming invoice that has been assigned to multiple accounts.
3- Creating Clearing lines / Zero Balance:
The third step is creating clearing lines / Zero balance for each financial statement
characteristic ( and Document):
 The system creates clearing lines to achieve an accurate document split.
 You can control this process with the zero balance indicator (in the document
splitting Customizing).
Creating clearing lines / zero balance formation is always used if, in addition to the total
document, the objects to be balanced “within” the document (e.g. profit center, segment)
should be balanced to “0”.
Example: Without this function a posting from segment A to segment B on the same
account would only create two line items. With zero balance formation, two further clearing
lines are created, and these can be understood as the relationship between these two
segments (receivables from segment A to B and payable from B to A)
In customizing, you must first specify the (FI-) characteristics for which you want document
splitting to be carried out, because document splitting characteristics determine which
objects document splitting is used for (where to divide /balance)
Standard Splitting Characteristics are:
- Business Area,
- Profit Center
- Segment
Note User- defined characteristics can also be used for document splitting.
Always set the Zero balance indictor if you want to create a financial statement for the
characteristics. The balance of the defined entities is then always “0” for every posting,
ensuring entry balancing.
The Mandatory Field Indicator has two meanings:
1st it is in extension of the field status for account in which the characteristics cannot be
“entered” during document entry, and /or for account that cannot be controlled using the
field status. (Example: Vendor lines should always include a profit center or a segment)
2nd it is a check as to whether a business process-equivalent business transaction variant
was selected (which determines whether a splitting rule can be found).
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The mandatory field indicator works in addition to field status control in the account or in
the posting key.
The Splitting Procedure:
A splitting procedure is the total of all splitting rules of all business transactions. As such the
splitting procedure defines how and under which circumstances document split will be
performed. In detail, this means each splitting procedure defines how each item category
will be handled in the individual business transactions— for example whether the account
assignment of a customer item will be copied from the revenue item to a customer invoice
or not.
 A Business Transaction: is a general breakdown of the actual business process that SAP
Provides and is assigned a wide variety of item categories.
 A Business Transaction Variant: is the specific version of the predefined business
transaction provided by SAP and the (technical) modeling of a real business process for
document splitting.
 An item Category is a technical map of the posted line items. It describes the items that
appears within a document (business transaction) They are derived from among other
things, the general ledger account categories.
o In other words: the item category is the semantic description for the document
split.
 An individual splitting rule defines which item categories can/should be split (—>item
categories to be processed) and at the same time defines which foundation (—> Base)
can be used (—> Base item categories).
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Lesson: 4.2 — Default Values

To simplify document entry every user can enter values in his master record. These are
values defined for a column type. When you log on to the SAP ERP system, the memory is
filled with default values that were defined in the user master record. This data is only
relevant to the individual user and not to the whole system.
Demonstration: User-Specific Memory

Setting Password:
Password set up instructions:
Application Menu: System—>User Profile—> Own Data.
Tab page “Address”— Here you can specify details such as name and address for the user.
Tab page “Defaults” — Start Menu: You can always start with a specific menu by entering a
transaction name, for example, FDMN for customer menu. This is not so common now, you
generally define a specific role or start transaction via Menu: Extras—> Set Start Transaction or
define appropriate roles. You can also enter preferences for
 Logon language
 Decimal notation
 Data format.
“Parameter” tab page — Here you can define default values that are then generally unchanged,
for example, you always want to propose the same company code. You can determine the
parameter ID by placing the cursor in the required field, pressing F1 and then clicking on the
icon “Technical Information”.
Default Values for User Settings:

Parameter IDs allow user to set default values for fields whose value does not change very
often, for example, company code, currency. When you execute the transaction, these
values appear in the corresponding fields automatically. You, therefore, do not have to
enter these values manually and can prevent input errors.
Using editing options, you can configure your screens for the following areas:
 Receipt Entry: Users can “hide” fields that may not be relevant for their jobs, such as
foreign currency or cross company code transactions. You can also use special
editing options for the single screen transactions.
 Document Display: Using the List Viewer, the user can select different display
options for displaying documents.
 Open Items: Users can choose line layout displays and posting options for processing
open items, in other words, they can enter the amount of a partial payment or the
balance for the new open item.
When users log on to the SAP ERP system their user ID has specific properties that apply to
it throughout the system e.g.logon language, date format, and decimal notation. Users can
also set a default printer for themselves. You can simplify the work for user maintenance by
first creating a dummy user and maintaining the values in accordance with the accounting
requirements and then copying this user.
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Basic Default values: For document entry, the current date is proposed as the posting
Guidance
date (you cannot change this)
for
Instructor Document Principle: The balance of a document must be zero before it can be posted.
Proposals in Identical Fields: These entries are proposed in identical fields in other
functions, for example the number of the customer if you go from the transaction “Display
Mater Data” to the transaction “Display Items”. This is called the set-get parameter.
To simplify the work in the application, you can define different default values for document
entry in Customizing.
System and Accounting Defaults:

The system provides you with basic default values for document entry. For example, during
document entry, the current data is proposed as the posting data.
If you have already entered a document, for the next document, the system proposes the
company code that you entered in the last document.
The system works on the basis of “Document Principle” i.e. all documents must balance
before they can be posted to.
To enter the different business transactions in account, the system offers you predefined
document types and posting keys in the configuration. For example, a vendor invoice has
document type KR, the credit posting is carried out with posting key 31.
In the system, you can control whether the fiscal year is proposed when you display or
change documents. In company code with (mostly) year-specific document number
assignment, it is helpful if the fiscal year is proposed – the system then proposes the
document number of the last document processed and the relevant fiscal year. You can also
have the CPU date proposed as value date.
At company code level, enter the maximum difference permitted between the exchange
rate in the document header of a business transaction and the exchange rate in the
exchange rate table. If the system determines that this percentage maximum difference has
been exceeded, it issues a warning message. In this way, incorrect entries can be recognized
and corrected in time.
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Lesson: 4.3 — Change Control

You can change document that have already been posted, but only certain fields! Not certain
Guidance rules:
for
Instructor  Document Header: The reference number and document header text are modifiable.
 Line Items: You cannot change the amount, the posting key, or the account, therefore,
no creative accounting!! – Changing the amount contravenes accounting principles.
All changes are logged, not just the last one. If a field has been changed several times, the
changes are listed one beneath the other. The changed document does not receive a new
document number.
You can use report RFBABL00 (Report of document changes) to get an overview of all
document change.
User can change documents that have already been posted. However, based on different
rules, only certain fields can be changed. These rules can either be predefined by the system
or be user-specific.
Certain fields in both the document header and the line items can be changed.
 Document Header: Only the reference number and document header text can be
changed.
 Line Items: The system does not allow changes
▬ to the amount,
▬ posting key,
▬ the account, or
▬ any other fields that would affect the reconciliation of posting.
As users make changes to documents, the following information is logged:
 The field that was changed
 The new and old values
 The user who made the change
 The time and date of the change.
You can differentiate according to the following criteria:
Guidance
for  Account Type: Define rules for customers, vendors, or general ledger accounts. For fields in the
Instructor document header, do not make any entries here. There the change rule apply for all account
types.
 Transaction Class: Only used for the special general ledger transactions bill of exchange and
down payment.
 Company code: If the field is blank, the rule applies for all company codes.
In the document header, there can only be one prerequisite for a field being modifiable, that the
posting period has not been closed.
For the line items you can have several prerequisites for a field being modifiable You can only enter
these prerequisites if the field is actually modifiable
Document Change Rules:

You can differentiate between document change rules according to the following criteria:
 Account Type: the account type allows the users to define rules for customer, vendor,
and General Ledger Accounts.
 Transaction Class: Transaction classes are only used for the special G/L transactions bill
of exchange and down payment.
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 Company code: If the field is blank, the rule applies to every company code.
The conditions for changing a field are predefined. You can change them as follows:
 The posting period is still open
 The line item is not yet cleared
 The line item is either a debit in a customer account or a credit in a vendor account.
 The document is not a credit memo for an invoice
 The document is not a credit memo for down payment.
You can display document changes for all documents with report RFBABL00. In this report
you have selection options including the company code, the document numbers, the fiscal
year, the change date, and the user name of the person making the change.
Lesson 4.4 — Document Reversal

A document when entered and posted in a system incorrectly, it cannot be deleted. It must
be reversed and re-entered correctly.
There are two ways to reverse documents that have been entered incorrectly:
Guidance
for  Normal Reversal posting ( separate document is created)
Instructor  Negative posting (from 4.0 as required by customers.) (Separate Document is not
created)
During the normal reversal, a reversal document is created. The reversal document and
the reversed document are then cleared items.
In the document header of the reversed document you can see the number of the
reversal document and the reversal reason.
The document header of the reversal document contains the number of the reversed
document but not the reversal reason.
Mass reversal: With recurring entries or with the payment program, a large number of
documents are created automatically. Using the mass reversal function, these can be
reversed simultaneously.
Users can make errors when they enter documents. As a result the document created
contains incorrect information. In order to log the adjustments, the incorrect document
must first be reversed. The document can then be re-entered correctly.
The system provides a function to reverse G/L, customer and vendor documents both
individually or in a mass reversal.
A document can be reversed either by
▬ normal reversal posting or
▬ Negative posting.
When you reverse a document you have to enter a reversal reason that explains the
reversal. The reversal reason also controls whether the reversal date is allowed to be
different to the original posting date.
Documents with cleared items cannot be reversed. The document must first be reset and
then reversed. If a cheque is also issued first you have to declare the cheque as void and
then reset the document and then reversed.
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The normal reversal posting executes an inverse posting and increases the transaction figure. If
Guidance you want to avoid an “unnecessary” increase in the transaction figures, you can use the negative
for posting. This function was developed as a result of customer requirements and is an option, that
Instructor is, you do not have to use it. The negative posing also performs an inverse posting, but resets the
transaction figures.
You can see the negative posting by clicking on a line item in the reversal document, then clicking
on Extras —) More Data, in the menu bar.
Normal Reversal Posting:
It causes the system to post the incorrect debit as a credit and the incorrect credit as a
debit. The normal reversal posting, therefore, causes an additional increase in the
transaction figures.
Negative Posting
The negative posting also post the incorrect debit as a credit and the incorrect credit as a
debit. This time the posted amount is not added to the transaction figures, but is subtracted
from the transaction figures of the other side of the account. This sets the transaction
figures back to as they were before the incorrect posting took place.
Normally the system uses the normal reversal posting to reverse documents. The following
prerequisites must be fulfilled to enable negative postings:
 The company code permits negative postings.
 The reversal reason must be defined for negative reversal.
Negative postings can also be used to perform transfer postings of incorrect line items. The
item is removed from the wrong account by a negative posting (resetting the transaction
figures) and posted to the correct account by a normal posting. This can only be done with a
document type that explicitly allows negative postings.
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Lesson 4.5 —Payment Term and Cash Discount

The company uses different terms of payment. Cash discounts are to be posted
Guidance automatically by the system. The company continually negotiates new terms of
for payments with a vendor, and these are to be reflected in the system
Instructor These are the payment conditions for clearing invoices:
They are known s terms of payment in SAP ERP. They include the due date and the cash
discount that can be granted if the invoice is paid within a certain time.
SAP ERP contains some predefined standard terms of payment. If necessary, you can
define new terms of payment.
The terms of payment are used to calculate the cash discount and due date for paying
the invoice.
The terms of payment can be:
 Defined in the vendor or customer master record.
 Proposed when you post a document.
 Entered manually
The dunning and payment programs access these terms of payment.
Terms of Payment:
Terms of payment are conditions agreed between business partners for the payment of
invoices. The conditions define the due date and the cash discount offered for payment of
the invoice within a certain period.
Some terms of payment are predefined in the system; you can add new ones if necessary.
Terms of payment enable the system to calculate a cash discount and invoice due date.
In order to do this the system needs the following data
 Baseline date: The date from which the due date is derived
 Cash discount Terms: The terms by which the cash discount can be taken.
 Cash discount percentage rate: the percentage rate used to calculate cash discount.
When you process a document, you enter the terms of payment so that the system can
calculate the required conditions of payment.
If you have entered terms of payment in the master record, these are proposed. You can
also enter or change them during processing.
In the customer / vendor master record, you can enter terms of payment in
1. Company code segment
2. Sales area segment or
3. Purchasing organization segment.
The payment terms defaulted when you post an invoice depends on where the invoice is
created:
 If the invoice is created in Financial Accounting the terms of payment from the company
code segment are defaulted, you can change them.
 If the invoice (billing document) is created in Sales and Distribution or Sales order
Management, the terms of payment from the sales area segment are defaulted. When
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you post the sales order management invoice, the terms of payment are automatically
transferred to Financial Accounting invoice (copied to FI invoice).
 If a vendor invoice is entered in Purchasing, the terms of payment from the purchasing
organization segment are defaulted. During posting, the terms of payment are
automatically transferred to Financial Accounting.
HINT: System does not check that the terms of payment in the different segments agree or
not.
When you post to a customer /vendor account, you can enter a cash discount amount or
cash discount percentage rate.
If you enters a cash discount amount and delete the terms of payment and the related
entries (exception: ZB00), the fixed cash discount amount applies.
You can also fix the cash discount when you post to a vendor account. “Fixed” means that
the first or second cash discount terms can be claimed regardless of whether the
corresponding date has expired.
The cash discount amount is automatically entered in a customer or vendor invoice during
clearing.
Term of Payment for Credit Memos:
Generally no terms of payment are proposed when you post a credit memo. However, there
are three options for posting credit memos:
1- Invoice related credit memos:—
Here you can create a connection to the original invoice when you post a credit memo by
entering the document number of the invoice in the “Invoice Reference” field.As a result the
terms of payment from the invoice are copied to the credit memo. Both are then due on
same day and offset against one another from automatic dunning and payment.
2- Other Credit Memos – terms of payment not valid:
a) If you do not enter an invoice reference when you post a credit memo. But do enter
terms of payment, these terms of payment have no effect.
b) The additional “Net Due Date” field in the line item display then contains the
baseline date (document date)
3- Other credit memos – Terms of payment valid:
If the terms of payment entered in a credit memo without reference and to be valid, then
you must enter a V(=valued) in the invoice reference field.
For dunning the invoice and credit memos are offset against each other. An invoice-related
credit memo is only offset when the invoice itself is due.
Incoming Invoices and Credit Memo:
You can also have terms of payment for incoming invoices and incoming credit memos:
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You use the Day Limitto specify the date (of calendar month) up to which the terms of
payment are valid (baseline date); we will look at this more closely in connection with the
graphic “Day Limits”.
The Description of terms of payment covers three elements:
▬ Sales order management text for printing on invoices
▬ An explanation if necessary
▬ An explanation generated by the system.The explanation given by you replaces the
system-generated explanation.
The account type defines the sub-ledger in which terms of payment can be used. We
recommend you define different terms of payment keys for customers and vendors and
validate them separately for customers or vendors. Otherwise problems can arise if Sales
order management changes a terms of payment key.
Payment Control:
 Using block keys, which can be entered in line items or accounts, you can block line
items or accounts for payment or collection. These block keys can also be entered in
payment terms.
 A payment method (for each country, the system has payment methods defined that
you can use in that county) is entered in line items or accounts. Like payment blocks,
payment methods can be entered in the terms of payment.
A block key and payment methods defined in terms of payment are defaulted in the line
item when the terms of payment are used.
You can enter the block key and the payment method:
 During posting
 In the customer /vendor master record (company code segment)
 In the terms of payment.
The Base Line Date:
The baseline date is the starting date, and the system uses it to calculate the due date for
the invoice and the cash discount terms. It can be proposed or calculated.
Possible default values:
 No default
 Posting date
 Document date
 Entry date.
Specifications for calculating the baseline date:
To calculate the base line date with the day limit to system requires:
 A fixed daywith which the calendar day of the baseline date is to be overwritten.
 The number of months to be added to the calendar month of the baseline month.
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Cash Discount:
To calculate the cash discount, you enter a percentage rate in the terms of payment. You
also enter the number of days that the percentage is valid for in the same line. You can also
add fixed days and months.
The days and months specified in the terms of payment are used in conjunction with the
baseline date to calculate the correct cash discount amount for the payment date.
Up-to three cash discount periods can be entered.
Day Limit:
Day limit is the base line date to which a condition is valid. You can use the day limit to
define different terms of payment under a term of payment key.
Day limit enable date-specific terms of payment in one term of payment key.
You can define several versions of terms of payment, with each version having a different
day limit.
The day limit is the baseline date up to which the payment terms version applies. For terms
of payment that are dependent, for example, on whether the baseline date is before the
15th of the month, you can enter two-part terms of payment under the same terms of
payment key. This results in two entries where different terms of payments can defined.
The following terms of payment require the specification of a day limit:
▬ Documents with invoice date up to the 15th of the month are payable on the last day of
the following month.
▬ Documents with a later invoice date are payable on the 15 th of the month after.
Installment Payments:
Installment payments are a percentage split of the invoice amount in several partial amount
Guidance
with different due dates; for example, for purchasing assets (10% on completion of contract,
for
50% on deliver, 40% on acceptance).
Instructor
First define terms of payment in which the field Installment Payment is selected, but with no
cash discount terms and no cash discount percentage.
An invoice can be paid over several months using an installment plan, or a portion of the
invoice amount may be retained for payment at a later date.
The total amount is divided into partial amounts due on different dates.
The system carryout this split automatically if installment payment is defined in the terms of
payment.
To do this, select installment payment and do not assign cash discount period or cash
discount percentage rates.
Define an installment number, a percentage rate, and terms of payment for each
installment.
The percentage rates specified must be total 100%.
The system creates a line item for each installment specified.
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The line item amounts correspond to the percentages of the total amount. The total of the
line item amounts corresponds to the total amount.
The terms of payment for line items are the terms of payment defined for the individual
installments.
The line item display then contains one line item for each installment, whereby each line
item has the same document number but different due dates.
Cash Discount Base Amount
Depending on the national regulations of the country, the cash discount base amount to be
used by the system for calculating cash discount may be:
▬ Net value (taxes not included) ; or
▬ Gross value (including taxes)
This setting belongs to the global parameters of a company code.
For all accounts that are posted automatically e.g. cash discount expenses, revenue, tax
accounts, etc. you must set the “Post Automatically Only” indicator and the accounts must
be defined as such in the IMG (Implementation Guide)
Posting Cash Discount – Gross procedure:
You can enter the amount of cash discount:
- Manually; or
- Automatically (by the system using the rates given in terms of payment.
You can still change the cash discount after you post the invoice.
When an open item on a customer or vendor account is cleared, the possible cash discount
is posted automatically to an account for “cash discount expenses” or cash discount
received.
You define the accounts for cash discount expenses or cash discount revenues in the
configuration.
Posting Cash Discount – Net procedure:
If you post a vendor invoice with a document type for the net procedure, the amount
posted to the expenses or balance sheet account is reduced by the cash discount amount.
The same amount is also posted to a cash discount clearing account to clear the posting.
When you use the net procedure, the cash discount amount is automatically posted when
the invoice is posted.
When the invoice is paid, the system caries out a clearing posting to the cash discount
clearing account.
If the invoice is paid after the cash discount deadline, the cash discount loss is posted to a
separate account.
The cash discount clearing account must be managed on an open item basis.
HINT: SAP ERP supports net procedure for vendors only.
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Lesson 4.6 — Taxes

SAP supports the tax system for different countries:
 Tax on sales and purchase
 Additional Taxes
 Withholding Tax (not covered in this course)
Basically there is two types of Taxation that can be processed in the SAP ERP system.
 Taxes are levied at a national level with uniformly defined rates.
 Taxes are levied at a state / jurisdiction level, with rates defined by the state /
jurisdiction. Due to the complications involved with this type of taxation, third party
software is often used to determine the tax allocation. SAP provides generic
interface software to support this.
In some countries taxes are even levied on both levels.
When dealing with the taxes, the SAP ERP system provides support by:
 Checking the tax amount entered (via defined conditions type) or calculating them
automatically.
 Posting the tax amounts to tax accounts
 Performing tax adjustments for cash discounts or other forms of deductions.
 Creating tax returns
The tax base is configured for every company code under “Global Parameters”.
Tax Support:
The system supports the treatment of taxes as follows:
- Checks the tax amount entered or automatically calculates the tax.
- Posts the tax amount to tax accounts defined in the G/L Accounts.
- Performs tax adjustments for cash discounts or other forms of deductions.
The expenses or revenues is the base amount which can include a cash discount (tax base is
gross) or exclude a cash discount (tax base is net).
The tax code is used for the calculation procedure required to perform taxation functions on
the SAP system.
National regulations determine whether the tax base amount must be:
- Net amount (taxable expenses or revenue items minus cash discount)
- Gross amount (taxable expenses or revenue items include cash discount)
- You define which amount is to be used for each company code or for the highest level of
the jurisdiction code.
Tax Postings:
- The tax calculated by the system are usually posted via a separate line item to a special
tax account. This is the standard scenario.
- Taxes with certain transaction/ account keys ( for example, NVV) are distributed to the
relevant expenses /revenue items. This is the case for sales tax payable or other not-
deductible input taxes.
Tax Account Determination:
To enable the automatic tax account determination you have to assign the following data to
the account / Transaction keys that generate the tax items during posting:
- Posting keys (40 and 50 are recommended)
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- Rules that determine which fields the account determination is based on (the account
determination can be based on the tax code or the account key)
- Tax accounts.
When exchange rates differences occur because of tax adjustment in foreign currencies,
these exchange rate differences are usually posted to the normal account for exchange rate
differences. However, for each company code, you can specify that the exchange rate for
tax items can also be entered manually or is determined by the posting or the document
date. The resulting differences are posted to a special account.
Tax Accounts:
In the general ledger account master record, enter the tax code that can be used to
Guidance post to this account in the “Tax Category” field.
for
The tax accounts for the input and output tax must contain the following tax categories
Instructor
in the master record:
- “<” For input tax
- “>” For output tax
The properties of the tax code define whether or not the tax posted is an input or an
output tax.
In the account for output tax, you can use the “Post automatically only” field (on the
Create/Bank/Interest tab page) to prevent manual tax postings.
The “Post automatically only” indicator should be selected only for output tax, not for
input tax. If you receive an invoice with an incorrect input tax amount, you still have to
post this amount manually.
You define tax accounts, that are account to which tax items are posted, in the field Tax
Category by entering one of the following signs:
- <For input Tax
- > For output Tax
- The properties of the tax code define whether or not the tax posted is an input or an
output tax.
Post automatically only must be selected if you do not want to post tax manually.
Other General Ledger Accounts
All other G/L accounts may have one of the following entries in the “Tax Category” field:
 ,, “ For non-tax-relevant postings (e.g. bank postings)
 “-“ For postings that require an input tax code (for example, reconciliation accounts for
payables form goods and services.
 “+” for posting s that require an output tax code (for example, reconciliation accounts
for receivable from goods and services)
 “*” For postings that require any tax code.
 “xx” For postings with the predefined tax code xx.
 The properties of the tax code define whether or not the tax posted in an input or an
output tax.
If the “Postings Without Tax Allowed” field is selected, you can post to this G/L account
without specifying a tax code. This is especially necessary for tax postings within a
jurisdiction code tax calculation procedure to foreign customers who do not have a
jurisdiction code.
HINT: Account for cash discount need an entry in the Tax category field if the system is
supposed to post tax adjustments.
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Lesson 4.7 — Cross-Company Code Transactions

The process flow for cross- company code transactions is as follows:
Guidance
for 1- Accounts are posted to in several company codes. Since a document is always
Instructor assigned to exactly one company code, one document is not sufficient. You need
one document for each company code.
2- For clearing debit and credit, the system automatically creates off-setting postings in
each company code to clear accounts for receivables and payables.
3- Both documents receive one common cross-company code transaction number.
Report RFBVOR00 displays cross-company code transactions.
A cross company code transaction involves two or more company codes in one business
transaction: Examples:
 One company code makes purchases for other company codes (Central Procurement)
 One company code pays invoices for other company code (Central Payment)
 One company code sells goods to other company codes
A cross company code transaction posts to accounts in several company codes. This cannot
be done by posting only one document because a document is always assigned to exactly
one company code. Instead, the system creates and posts a separate document in each
company code involved.
In order to balance debits and credits within these documents, the system generates
automatic line items which are posted to clearing accounts, for payable or receivables.
HINT: The documents which belong to one cross-company code transaction are linked by a
common cross-company code transaction number.
Central Procurement
Example: A vendor delivers goods to company codes 1000 and 2000, but send invoice for all
goods to company code 1000. You enter a part of the expenses and post the invoice to the
vendor account in company code 1000. When entering the invoice, you have to post the
other part of the expenses to company code 2000. The clearing posting and tax posting are
created automatically.
The tax is not distributed between the company codes according to their expenses.
Therefore, this function may only be used if the transactions itself is not tax-relevant or if
the company codes form a taxable entity.
The tax calculated is always posted to the company code of the first item. Therefore, to
ensure that the tax is posted to the same company code as the invoice, the invoice item
must always be entered first.
Certain countries’ tax regulations require that the tax amount are posted in the company
codes in which the expenses occurred. Therefore, the tax must be distributed from the first
company code to the other company codes according to their expenses amount. You can do
this using report RFBUST10
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Clearing accounts
Clearing accounts must be defined in every company code before a cross-company code
transaction may be carried out. The clearing accounts may be G/L accounts, customer, or
vendor accounts.
In the configuration you must assign clearing account to every possible combination of two
company codes to allow cross company code postings between these combinations e.g.
three company codes need 3x2=6 clearing accounts.
To reduce the number of clearing accounts, you can use just one company code as the
clearing company code. In this case, you only have to assign clearing accounts to every
combination of the clearing company code and the other company codes i.e. three company
codes need 2x2=4 clearing accounts.
A
A
B C
B C
Posting keys must be assigned to the clearing accounts to identify their account types.
Cross company Code Document Number:
When the Cross company code document is posted, the system generates a cross-company
code document number to link all of the new documents together.
The document number is a combination of
▬ the document number of the first company code,
▬ the first company code number and
▬ the fiscal year.
It is stored in the document header of all of the documents created for a complete audit
trail.
Cross-company code documents may be reversed. To do this, use the reversal function for
cross-company code transaction.
Cross Company Code Doc. No. of 1st CC 1st Company Code No Fiscal Year
Transaction No. 1500000012 1000 2014
Document No. of
1500000012 1st Company Code=1000
Company Code 1000
Document No. of
2000000031 2nd Company Code=2000
Company Code 2000
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Lesson:- 4.8 — Real-Time Integration

In the new G/L Accounting, real-time integration replaces the reconciliation ledger in classic
general ledger accounting. The reason behind real-time integration is to save time in closing
processing.
Real-Time Integration CO / FI
In many controlling posting, financial accounting objects are addressed. These cases are
implemented using real-time integration CO—>FI in financial accounting. Defined variants in
Customizing are used to decide for which objects postings of this kind should or have to be
created.
Real Time integration mostly affects the following cases:
1- As a result of a posting between controlling objects, a change results for an
accounting object (profit center, segment business area or functional area) stored in
a controlling object.
2- Costs are posted across company codes in cross-company code cost accounting In
this case such postings must also be mapped correspondingly in accounting.
Special features of the Financial Accounting Document (2b)
 Postings are made real-time (for each CO document)
 In this case, the FI follow-on document has no clearing accounts. Clearing lines
are only necessary if the activity in management Accounting / CO (2) results in a
change of a balancing entity.
 You can navigate from the real-time follow-on Financial Accounting document to
the Management Accounting document (2/2a) and vice versa. The key idea here
is to ensure the traceability of accounting documents.
Variants for CO—FI Real-Time Integration

To determine which characteristic changes will generate real time FI line items you can use
the checkboxes, define Boolean rules, or implement a BAdI with your own program logic.
Please note that it does not make any sense to select characteristics that you have not
assigned to at least one ledger in the scenarios.
The key date activation defines when (from which posting date of the CO document) CO-FI
reconciliation is possible with real-time integration.
You can also create Financial Accounting documents for CO documents entered before the
new G/L has activated.
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Unit-5 CLEARING
Lesson 5.1 —Open itemClearing
Open items are incomplete transactions, such as a vendor invoice that has not been paid.
For a transaction to be considered as completed, it must be cleared. A transaction is cleared
when a clearing posting has been carried out from an item or group of items so that the
resulting balance of the items is zero.
Document with open items cannot be archived and stay in the system until all open items
are cleared. There are two ways to clear open items in SAP ERP
1- Account clearing (subsequent)
2- Posting with clearing (during posting)
E mail of SAP Expertjay banda
SAP System offers the following methods to clear accounts with open item management:
Posting with clearing
Using the posting with clearing function, you enter document line items and then select the open items to be cleared. Once
you have fulfilled all the prerequisites for clearing, the system clears the open items. The system generates one or more
offsetting postings for the open items to be cleared
Account clearing
In this clearing procedure, you select open items that balance to zero from an account. The system then marks these items
as cleared. It enters a clearing document number and the clearing date in the document items. The clearing date can be the
current date or a date that you enter manually. The clearing document number is the number of the most recent document
involved in the clearing transaction.
Automatic Clearing
You can use the Automatic clearing program to clear open items from customer, vendor, and G/L accounts. This program
uses predefined criteria to group together open items per account. If the balance of the group of open items equals zero in
local, foreign, and where applicable, the parallel currency, the items are marked as cleared.
Examples of Postings with Clearing:

▬ An invoice is posted to a customer account. (This record will be declared as an open
item because at this time it is unpaid.
▬ The customer pays the invoice and the payment is assigned to the open item.
▬ The invoice is cleared with the payment and the resulting balance is zero.
Example of Account Clearing:
▬ Manually clearing an open invoice with a related credit memo and payment on
account.
A clearing transaction always creates a clearing document.
The process takes place in 4 individual steps:
1- Enter the clearing amount and the account manually.
2- Select the open item.
3- The clearing amount is assigned automatically.
4- As a result of this posting, the open item is cleared.
In contrast to the “account clearing” transactions, here clearing is performed in a single step
together with the posting of the incoming payment. At least two accounts are affected.
Post with clearing:

When you use post with clearing function, enter the clearing document amount and then
select the open items that are to be cleared.
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 If the total amount of selected open items equals the amount of the clearing document,
the system clears the open items by clearing one or more clearing items.
 If the total amount of selected open items does not equal the amount of the clearing
document, the system allows you to post the difference.
“Posting with clearing” can be carried out for several accounts, account types, and for any
currency simultaneously.
You can carry out the “Post with Clearing” transaction manually or automatically using the
automatic payment program.
Account Clearing:
The Account Clearing transaction usually clears clearing accounts, since the debit and
Guide for credit items usually balance to zero. First run the “Automatic Clearing” Report SAPF124.
Instructor The remaining debit and credit items are cleared manually without a posting. Payment
differences within the tolerance group are cleared. If manual clearing is not possible, the
user can create a residual item or partial payment after selecting open items.
- Open items must be cleared so that they can be archived. Otherwise they take up too
much of the memory.
- You can use this function to clear one or more items or an entire account by manually
assigning postings and offsetting postings.
- You then manually select the open items of an account that must balance to zero.
Manual clearing takes place, for example, in the following cases:
- For bank subaccounts and clearing accounts.
- For debit memo procedures
- For a vendor makes a repayment.
You can use the “Clear Account” transactions to clear items from several accounts.
The line items display shows both items as cleared.
The clearing Document:

- Normally contains no line items. This is because postings are often not required to
Guidance clear items within an account.
for - Does not appear in the line item display, neither with the cleared nor with the open
Instructor items.
- The invoice and the credit memo are now cleared items and therefore, have the
same clearing document number.
The clearing document contains items if:
- Document splitting is activated in new G/L Accounting.
- The items to be cleared belongs to different business areas. The system then has to
carry out offsetting postings to bring the balance to zero for each business area. This
is done using the transaction “Transfer Posting with Clearing”
- An invoice is cleared with a credit memo minus cash discount. The clearing document
then contains the cash discount posting.
- The clearing date can be current date or a date that you enter yourself.
- Exchange rate differences are to be posted.
Account Clearing:
Using the “clear account”function, you select those open items from an account that
balance to zero. The system marks them as cleared and creates a clearing document. The
clearing document number and the clearing date are entered in the cleared items. The
clearing date can be the current date or a date that the user determines.
The “Clear Account” function works for any accounts managed on an open item basis in the
general ledger and the sub-ledgers.
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The “Clear Account” transaction can be performed manually or automatically using the
clearing program.
Clearing Program (Automatic Clearing)
Instead of using the clearing Account function you can also carry out automatic
Guidance clearing using reports SAPF124 or by choosing the menu path.
for
Report SAPF124 summarizes the open items from the selected accounts in groups and
Instructor clears them if they have the same following system criteria:
- Company Code
- Account Type
- Account Number
- Reconciliation Account Number
- Currency Code
- Special G/L Indicator
The program also groups a maximum of five additional user criteria from the
document header / line items to create the groups.
The criteria are selected form the fields of tables BSEG and BKPF and should also be
contained in table BSISBSID and BSIK
- If the balance of the items in a group is zero, these items are cleared and a
clearing document is created (new for 4.0).
Important : clearing only takes place if the balance of the selected group is zero. If
not, the system gives an error message. The accounts are blocked during clearing.
- For Release 4.0 the program can also create automatic postings (cash discount,
exchange rate differences, taxes)
Item not cleared:
Held items, statistical postings and certain G/L Transactions (e.g. down payments, bills
of exchange, items withholding tax).
Prerequisites:
- The account is managed on an open item basis
- No special G/L transactions should be cleared.
Steps in the clearing program

o Group items for each account
o If balance is zero, items are marked for clearing
 Prerequisites for clearing:
o User criteria must be defined in Customizing
o Account to be cleared must be defined for automatic clearing
 Items that are not cleared:
o Noted items
o Statistical posting, bill of exchange postings.
o Items with withholding tax entries.
Clearing Program:
The user can clear open items for general ledger and sub-ledger accounts with the
automatic clearing program.
The program groups together the items of an account that have the same entries in the
following fields:
 Reconciliation account number
 Currency
 Special G/L indicator
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 Five freely defined criteria from document header or line item, for example
o assignment fields,
o reference number, etc.
If the balance (in local currency) of the items within a group is zero, the system
automatically clears them and creates clearing documents.
All account requiring automatic clearing must be defined in Customizing.
The automatic clearing program does not clear:
- Noted items
- Statistical postings and certain special G/L transactions relating to bills of exchange.
- Down payments can only be cleared if down payment clearing items of the same
amount have already been posted.
- Items with withholding tax entries.
The Assignment Field and Sort Field:
The system automatically fills the assignment fields for a line item when you post items
Guidance according to the “Sort Field” entry in the master record.
for ▬ You can combine upto four fields with a maximum of 18 characters. For example, to
Instructor display the document number (10 characters) and the posting date (6 characters),
these two field names are included in the definition of the assignment field.
▬ You can also use purchase order number as the sort key for customers and vendors.
▬ In the general ledger, for example, the sort key could be the cost center.
▬ The line item sorting in the line item display and clearing functions is based on the
value in the assignment field.
Copying control in SD enables to specify (in customizing for SD) what is copied into the FI
document, that is, how the assignment and reference fields are filled.
The system automatically fills the assignment field for a line item when you post items
according to the “Sort Field” entry in the master record.
The assignment field can be a combination of up to 4 fields with a maximum of 18
characters. For example, to display the document number (10 characters) and the posting
date ( 6 characters), these 2 fields name are included in the assignment field definition.
For example, if the sort key is set to the purchase order number in the business partner
master record, then the assignment field in the business partner line item is filled with the
purchase order number.
However, if the sort key is set to the cost center in a general ledger master record, then the
assignment field in the general ledger line item is filled with the number of the cost center
when the G/L account is used.
The line item sorting is the line item display and clearing function is based on the
assignment field.
Example:
When an invoice is posted in Sales Order Management, an accounting document is created in
Financial Accounting. The Accounting Document has a document number that is normally different
to the number of the Sales Order Management Invoice. You can use the reference and the
assignment to trace which document in Sales Order Management the accounting document is based
on. The reference and the assignment in the accounting document are copied from the reference
and the assignment in the sales Order Management billing document. You can define which
numbers (purchase order, order, delivery, or billing document number) are copied into the Sales
Order Management document as reference and assignment and then transferred to Financial
Accounting. You can then use these fields as selection criteria in Financial Accounting.
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Lesson:-5.2 — Incoming and out Going Payments

The Manual Payment Process:
A manual payment is a transaction that clears an open item, typically an invoice, by
manually assigning a clearing document.
An incoming payment, typically used in accounts Receivable, clears an open debit amount.
An outgoing payment, typically used in Accounts Payable, clears an open credit amount.
Manual payment is processed in three steps:
▬ Data is entered in the document header (bank data, open items, etc.)
▬ Open items are selected to be cleared.
▬ Simulate the document to check the assignment and posting is correct, then perform the
real posting by “saving” transaction.
Possible payment differences will be dealt with in the next lesson.
The Document Head

Document Date 06.10.2014 Type VP/CP Company Code 3000
Posting Date 06.10.2014 Period 10 Currency PKR
Reference Conversion Date
Doc. Header Text
Clearing Text Inv. # or Cheque #.
Bank Data
Account Business Area
Amount Amount in LC
Bank Charges CL Bank Charges
Tax Assignment
Open Item Selection Additional Selections
Account  None
Account Type  Amount
Advice No.  Document No.
Distribute Account to age Standard OI  Posting Date
Auto Search Other Accounts  Others
Payment Header
The data entered in the document header is similar to the data entered when posting
invoices. The document header consists of three sections:
i) the payment header
ii) the Bank data and
iii) the open item selection.
Enter the following information in the payment header section of the document header:
▬ Enter the document date – this is the date on the physical document.
▬ The system proposed the document type dependent on the transaction called.
▬ If the company code is not proposed you have to enter it and it is then proposed as a
parameter.
▬ The period specification includes the posting date and the posting period. The current
date is defaulted as the posting date and the posting period is derived from the posting
date.
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▬ The currency specifications include the currency code, the exchange rate and the date
for currency translation. If no exchange rate or translation date is entered, the exchange
rate from the exchange rate table on the posting date is used.
▬ Any references needed to identify the incoming payment may be entered in the
reference document number, document header text, and clearing text fields.
o If you enter “*” in the reference field, the document number is copied into this field.
The entry in the “Clearing Text: field is copied into all clearing items and appears on
the far right in the open item display.
o You can only make an entry in the in the “document number” field if number
assignment is external.
Bank Data:
Enter the following bank data in the next section of the document header:
- The account in a general ledger account used for incoming or outgoing payments.
- The payment amount is the total payment amount
- The bank may charge service charges for its services and these are posted automatically
to a special expense account. With incoming payments the system adds the bank
charges to the payment amount to form the clearing amount. With outgoing payment it
subtract the bank charges from the payment amount to determine the clearing amount.
- The value date is the date used to evaluate the position in Cash Management. It may be
defaulted by the system.
- The tax is an optional description of the item. Start the line with “*” to enable the text to
be printed on external correspondence too. Youcan also work with text templates-the
user can select an entry from a list of standard texts.
- The assignment number is either created by the system or you can enter it manually.
Open Item Selection:
The last section in the document header determines the selection of open items:
Guidance
 Enter the account number of the business partner in the Account field.
for
 For the Account Type you can make your selection using theF4 help, for example, D
Instructor and K.
 You can select open item with a special G/L indicator and /or normal open items.
 Entering the payment advice note number simplifies the selection of the items to be
cleared.
 By specifying additional accounts you can also select and clear items from other
accounts.
 If you select the indicator Distribute by Age, the items to be cleared are selected
automatically. The item with most days in arrears are cleared first (or assigned)
automatically and the system creates a payment on account for the residual
amount.
 In the automatic search the system tries to find a combination of open items whose
total comes closest to the amount entered. If the amount is only partially found, you
can accept or reject the proposal in an additional dialog box.
 You use the Additional Selection to restrict the open items. Use “Other” to access
even more selection options.
If you only know the document number to which an incoming payment refers, but not
the customer, you can select the open items without specifying the customer using
“Additional Selections” to select using document numbers.
If an incoming payment refers to several invoices, you can enter additional customers
from the menu bar, after you have processed the open items.
Enter the following “open item selection” data in the next selection of the document
header:
 Account and Account Type: in this area, “Account” refers to the account number of the
business partner and the account type for this account. The account and account type
are required to determine the account that contains the open items.
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 Normal Open items and /or Special G/L Transactions: You can select normal open
items and / or special G/L transactions for processing.
 Payment advice note number: You can use the number of a payment advice note
(either entered manually or created by the system) to select the open items.
 Other accounts: You can select other accounts and process their open items at the
same time.
 Additional Selections: You can use additional selection criteria defined in the
configuration to select open items. You can use the “Distribute by age” or “automatic
search” functions to speed up the selection process.
Process Open Items:

During open item processing the amount you enter is assigned to the appropriate line
Instructor’s items and their cash discount. To do this you have to activate the items so that they can
Guide be assigned,
There are several options for activating or deactivating line items:
 Editing options for open items: Set the selected items initially inactive indicator,
 Double click on the amount to be deactivated.
You can post the document if the amount entered is the same as the amount assigned.
Highlighted items are active and can be assigned to the amount as a total;
The next screen lists all of the unassigned, open items. These could be payments, debit or
credit memos, or invoices. Depending on your settings all of the items can be active or
inactive.
The first step in processing open items is to activate the required line items before you can
assign a payment.
The amount entered is assigned to the appropriate line items and their cash discount.
There are several options for activating or de-activating line items:
 Editing options for open items: Set the “Selected items Initially Inactive” indicator.
 Double-click the amount to be de-activated.
 Selection of action menus and function keys: there are different menus and keys
available.
You can post the document if the amount entered is the same as the amount assigned.
The cash discount granted is determined by the terms of payment of the line item.
The cash discount is taken into consideration for calculating the assigned amount.
You can change the cash discount by overwriting the absolute cash discount or by changing
the cash discount percentage rate. It must not exceed the limit set in the tolerance.
Posting the Payment:

 You can recognize documents that belong together because they have the same
clearing document number in the “Clearing Document” field in the line item
Instructor’s display.
Guide  The cleared document also contains the number of the clearing document.
However, the clearing document does not contain the number of the cleared
document.
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If you subsequently discover an error in the document that you want to correct
clearing is reset and the document reversed. You then have to re-enter the original
posting correctly.
After processing the open items you can check the document you have entered
Via Document —>Simulate you can display all of the items including those created
automatically.
If the debits and the credits agree, you can post the complete document.
If you subsequently discover that the document contains an error that has to be corrected,
and then follow the following procedure:
i- Reset the cleared items,
ii- then reverse the document.
iii- Now re-enter the posting correctly.
Automatic posting for Clearing Open Items:
If necessary the system performs automatic postings during Clearing. For this purpose you
have to configure your system. The entries required for account determination:
 Cash discounts expenses or revenue
 Cash discount clearing (net procedure)
 Tax adjustments
 Exchange rate differences
 Bank charges
 Clearing of cross-company code payments.
 Over-or under payments within tolerances.
You can enter bank charges when you enter the bank data; they are automatically posted to
the G/L account.
In order to perform manual cross-company code payments you have to assign a clearing
transaction (either “Incoming Payment” OR “Outgoing Payment”) to the combination of
paying company code and the company code for which the payment is being made. Then,
when you select open items, open items are displayed from each company code.
Resetting Clearing:
You cannot directly reverse a clearing document created by any of the transactions”
Clear Account” or “Post with clearing”. As they apply to a cleared document. First you
have to reset clearing.
In the transaction “Reset Cleared Items”, you can choose between “Reset Only” and
“Reset and Reverse”.
- The clearing data is removed from the items. All changes are logged and can be
displayed.
- If you select “reset only”, the clearing document becomes an open item.
- If you select “reset and reverse” it becomes a cleared item. The system also creates a
reversal document.
- The cleared document becomes an open item again.
In Accounts Receivable, the payment history and the credit limit are corrected, if
applicable.
Users can reset clearing for individual documents. When you reset clearing the clearing data
is removed from the items.
The changes are logged and can be displayed in change documents. In Accounts Receivable,
the payment history and the credit limit are corrected, if applicable.
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Lesson:-5.2 — Payment Differences

If payment differences occur they may be handled either automatically or manually.
1- Automatic clearing:
If the payment difference is small, it can be dealt with automatically:
- By adjusting the cash discount
- By writing off the difference to special account.
The limit up to which a difference is considered to be immaterial are defined in the
tolerance groups.
2- Manual Clearing:
If the payment difference is too high to be considered inconsequential, it must be processed
manually by using one of the following methods:
- By adjusting the cash discount
- By posting the payment as a partial payment
- By posting the payment difference as a residual item
- By posting the payment difference as a difference posting.
Tolerance Groups:
In accounting tolerances can be divided into three types: 1- Employee tolerance groups, 2-
G/L account tolerance groups and 3- customer /vendor tolerance groups.
1- Employee Tolerance group is used to control:
 Upper limit for transactions posted
 Permitted payment differences
2- Tolerance group for G/L Accounts is used to control permitted payment differences.(for
example, for automatic clearing procedures).
3- Customer / vendor Tolerance group provide specifications for:
 Default values for clearing transactions.
 Permitted payment differences
 Specifications for posting residual items from payment differences
 Tolerances for payment advice notes.
For automatic clearing transactions with tolerances you first have to define tolerance
Guidance groups in Customizing.
for
 First define tolerance groups for customers / vendors; this is important for the
Instructor treatment of payment of differences and residual items that can occur during
payment clearing.
 Tolerances can be specified in one or more tolerance groups. A tolerance group is
assigned to each customer /vendor via the master record.
For each tolerance group, define the following:
 Tolerances up to which payment differences can automatically be posted to
expenses or revenue accounts during clearing of open items.
 The treatment of terms of payment for the creation of residual items.
Each tolerance group is defined for a company code in local currency. If a tolerance
group is to apply in several company codes, it must be defined for several company
codes. The tolerance group BLANK is required as the minimum tolerance group for
employees and customers / vendors.
 If an employee is not assigned to a tolerance group, tolerance group BLANK applies.
 Each employee must be assigned to only one tolerance group.
 A tolerance group can be assigned to one or more company codes.
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Configuration of Tolerance groups:

 Tolerance group of employees for Example:
- Accountant — I
- Accounts — II Defining the Tolerance
- Accounting Manager. Groups and Configuring
 Tolerance groups for customers /vendors, for example Them.
- Good customers / vendors.
- Not so good customers / vendors
- Cash only Customers / vendors.
 Tolerance group for G/L accounts for example
- Clearing accounts (external procurement).
- Clearing accounts (in-house production).
Use tolerances to define permitted payment differences
Assign the tolerance groups to:
 User master data.
 G/L account master records. Assigning the Tolerance
 Customer / vendor master records. Groups.
You have to carry out two steps to use tolerance groups:
Group definition:
- The tolerance group is defined by a group key, company code, and a currency code
- The group key is a four character alphanumeric key.
- The key “ “ (blank) is the standard tolerance group and is required as the minimum
tolerance group.
Group assignment:
- Employee tolerance group may be assigned to employees.
- G/L account tolerance group may be assigned to G/L account master records.
- Customer/vendor tolerance groups may be assigned to a customer or vendor master
record.
- If no tolerances are assigned, the default tolerance group “ “ (blank) applies.
Permitted Payment Differences:
The specifications for permitted payment differences can be found in both types of
tolerance groups. They control the automatic posting of cash discount adjustments and
unauthorized customer deductions.
The system takes the entries in both groups into account during clearing. The payment
difference has to be within both tolerances to be handled automatically. Therefore, the
lower tolerance always applies.
The entries in the tolerance groups are always in local currency.
The unit for “Cash Discount Adjustment” should be in local currency and not in percentage.
Example:
 A payment difference has to be lower than 3.00 and 2.00 of currency units to be written
off as a cash discount adjustment automatically
 A payment difference has to be a lower than 200 and 100 currency units as well as lower
than 2.5% and 2% of the open amount to be written off automatically as an
unauthorized deduction. The lower of the two tolerance values always apply. For an
open amount of 1000 currency units unauthorized amount will be 20 currency units and
for an open amount of 100,000 currency units this would be an unauthorized customer
deduction of 100 currency units.
 The system always checks if it can post the difference as a cash discount adjustment first
and then checks whether it can be considered as an unauthorized deduction.
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Payment Differences:
A payment difference normally occurs during open item clearing. The difference is then
compared to tolerance limits of the employee and the customer /vendor and is handled
accordingly.
The system handles payment differences as follows:
 When the payment difference is within the tolerance for cash discount adjustment the
system check it
o If it is within cash discount adjustment limit, then adjust it as a cash discount
adjustment automatically.
o If the payment difference is within the tolerance for unauthorized deductions, it
is automatically posted as an unauthorized customer deduction (account for over
or under payment)
 Otherwise manual processing is permitted using the employee tolerance group for “Cash
discount for Line item”.
Payment Difference Outside Tolerance:
You want to use automatic posting within tolerances to reduce the manual work
Guidance required.
for If the payment difference is outside tolerances it has to be processed manually. The
Instructor employee can:
1- Adjust a cash discount manually if necessary.
2- Post the payment as partial payment
3- Post the payment difference as residual item
4- Write off the difference (manual account assignment)
o As sales deduction
o As posting on account.
You can enter a reason code for each.
In case of a partial payment the system creates an invoice reference between the partial
payment and the invoice.
When residual items are created, the term of payment can be transferred from the invoice.
A posting to an expense account is a difference posting. Here, the complete cash discount is
granted. This is only useful if you specify a reason code that can then be used for the
valuation. A specific text is defined for this reason code in the correspondence type. The
reason code may also control the account to which the difference is written off.
An employee can only carry out a manual cash discount adjustment with his tolerances.
Processing Payment Differences:
If the payment difference is immaterial, it may be processed automatically by allowing the
system to adjust the cash discount up to certain amount or to write it off to a special
account. The limits to which a payment difference is considered to be immaterial are
defined in tolerance groups. Within the tolerance group for an employee, you can allow an
adjustment of the cash discount (within defined limits), so that the employees has the
authorization to make the adjustment.
If the payment difference is too high to be immaterial, it must be processed manually. The
payment can be posted as follows:
 Partial payment
 The payment difference may be posted as a residual item.
 The Payment difference can be posted to an account assigned to a reason code or
written off by manually entering a new posting item
 Payment on account.
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For partial payment, the invoice and the partial payment are managed as open items and
both have the same assignment. Double clicking on the partial payment shows that it is a
payment for the invoice. The invoice and the partial payment are not cleared until the
payment is cleared.
No cash discount is posted for a partial payment. The cash discount is calculated on the
complete invoice amount during clearing. If the invoice clearing exceeds the cash discount
terms agreed in the terms of payment for the invoice, the cash discount is reduced.
After clearing the invoice, partial payment and clearing payment are cleared items and have
the same clearing document number.
The (second) clearing payment has a difference assignment to the first items.
When you create a residual item the payment difference is posted as residual item and
remains in the account; the original document and the payment are cleared. The system
creates a new document number with reference to the original document
The posting changes the original receivable into a cleared item. A new receivable (residual
item) is created for the remaining amount. Double clicking on the partial payment shows
that it is a residual item for the invoice.
The partial granting of cash discount makes cash discount lower and residual item higher.
Example: Sales: 1000 units, Discount Rate=3%, Cash received=900 Remaining outstanding 70
For clearing however, only 70 units are required since cash discount is also granted on the
residual item. If payment takes place after the cash discount deadline, the cash discount in
the open item processing is reduced automatically.
For both partial payments and the creation of residual items you can specify a reason code
that is in the next field in the document and on the right in the open item display. Both the
partial payment difference and the residual item can be posted to a separate expense
account dependent on the reason code.
The customer and vendor tolerance groups contain entries that control the treatment of
residual items:
 Whether the terms of payment from the invoice will apply or always the same fixed
terms of payment are valid.
 Whether the cash discount is granted partially (only for the payment amount) and not
for the whole amount.
 By specifying a dunning key, whether the residual item is to have a maximum dunning
level or is to be printed separately.
During dunning run a partial payment is cleared with the invoice, so that only the difference
amount is dunned.
The invoice and payment on account are still open items in partial payment.
For incoming payment where you do not know which items are to be cleared, you post the
incoming amount to the credit side of the customer account without clearing specific open
items. You can use “Clear Account” to assign the incoming payment to open item at a later
point in time.
Partial and Residual Payments:
Residual Payment
Partial Payment
Customer / Vendor Customer / Vendor
8000 5000 8000 5000
Open Item 3000
Invoice Reference Both are Open items Invoice Reference Both are Cleared items
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If the payment difference is outside of the tolerances it has to be processed manually. The
user can:
 Post the payment as partial payment, where all the documents remain in the
account as open items.
 Post the payment difference as residual item, whereby only the residual item
remains in the account and the original document and the payment are cleared. A
new document number is created with reference to the original documents.
 Post the payment difference to a different account as a difference posting using
reason codes and automatic determination.
 Write off the difference (manual account assignment)
The customer /vendor tolerance groups contain entries that control the residual items.
These specify
 Whether the terms of payment of a residual item are the same as those of the
cleared item or whether the terms of payment are fixed.
 Whether cash discount is granted only partially and not for the whole amount.
 By specifying a dunning key, whether the residual item has a maximum dunning level
or is printed separately
If you know the reason for a payment difference, you can enter a reason code.
Reason Codes:
Reason codes are used to describe the reason for the payment difference. To assign more
than one reason code to a payment difference, click on “distribute difference”.
Reason code can be assigned to these accounts to clear them:
- Difference postings.
- Partial payments.
- Residual items.
The reason code can be used to analyze the post process payment differences. Additional
optional functions are:
 Control of the type of payment notice which is sent to the customer.
 Control of the account where a residual item is posted.
 Automatic posting of a residual item to a specified G/L Account.
 Exclusion of residual items from credit limit checks because they are disputed.
Explanations for the individual column:
 CorrT: Correspondence Type
 W: Write off to separate account.
 D: Disputed item, does not increase the total receivable from a customer in Credit
Management.
 T: The reason code text is not transferred to the segment text of the residual item or the
partial payment.
 D: Indicates that payment difference with this reason code create outstanding
receivables / residual items, even though the tolerance limit for differences to the
payment advice not item is not exceeded.
You can define one joint G/L account for all reason codes. A special G/L account can also be
defined for each reason code.
The correspondence Type determines the payment notification sent to the customer. With
SAP50 (cash discount difference) for example, the customer receives a payment notification.
The print request is not automatically placed in the spool. It is requested automatically, but
executed with a special report.
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Lesson :5.3 — Exchange Rate Differences

When you clear open items in foreign currency, exchange rate differences arise as a result of
Guidance exchange rate fluctuations. This happens when the exchange rate of the outgoing invoice is
for different to the exchange rate for the incoming payment. The system automatically posts these
Instructor exchange rate differences as realized profits or losses.
Exchange rate differences are also posted if open items are evaluated for the financial statements
(e.g. according to the lowest value principle). These differences from the valuation however are
posted to a different exchange rate difference account and as offsetting posting to a financial
statement adjustment account.
When clearing an open item that has already been valuated, the system reverses the financial
statement adjustment account and posts the remaining exchange rate difference to the account
for realized exchange rate differences.
Realized Exchange Rate Differences:

When clearing open items in foreign currency, exchange rate differences may occur due to
fluctuations in exchange rates.
The system posts the differences automatically to the revenue / expense account for
exchange rate differences that you defined during configuration. This prevents incorrect
postings.
The realized difference is stored in the cleared line item.
Exchange rate differences are also posted when open items are valuated for financial
Guidance
statements. These exchange rate differences from valuation are posted to another
for
exchange rate difference account and to a financial statement adjustment account.
Instructor When clearing an open item that has already been valuated, the system refers the
balance sheet correction account and posts the remaining exchange rate difference to
the account for realized exchange rate differences.
The exchange rate difference key is in the master record of the G/L account (Company
code segment, tab page “Control”) and is used for the foreign currency valuation on
closing.
You can make the assignment of the exchange rate difference accounts to the general
ledger account dependent on the currency and the currency type (company code
currency, group currency, company currency):
 You can define the same expense and revenue account for each balance sheet
account for all currencies and currency types (this is the setting in the IMG).
 For each currency and currency type, you can define one expense and one revenue
account for each balance sheet account.
 For each currency type, you can define one expense and one revenue account for
each balance sheet.
Account Determination:
All reconciliation accounts and all G/L accounts with open item transactions in foreign
currency must be assigned revenue /expense accounts for realized losses and gains.
One gain / loss account can be assigned:
 All currencies and currency types.
 Per currencies and currency type.
 Per currency
 Per currency type.
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Unit-6 Cash Journal

Lesson 6.1 — Cash Journal configuration:
The accounting department requires special general ledger accounts to handle the cash
journal. You want to be able to post to this account automatically.
What can the cash journal do?
Guidance  Tool for managing cash from Release 4.6.
for  Supports posting cash receipts and expenses.
Instructor  Create a separate cash journal for each currency
 You can make postings to G/L, customer, and vendor accounts.
 A company code can have several cash journals
 A cash journal has a four digit alphanumeric key.
The balance is displayed dependent on the entries you make in the data
selection. There are three tab pages for payments, receipts, and checks.
Cash Journal Assignment:

The cash journal is a tool for managing cash that was offered with R/3 release 4.6. It
supports posting cash receipts and payments.
With this tool you can:
 Create a separate cash journal for each currency.
 Post to customer, vendor, and general ledger accounts.
 Run several cash journals in each company code.
Choose a random number for cash journal identification ( a four-digit alphanumeric key)
Setting up the Cash Journal:

To set up new cash journal for a company code, you have to enter the appropriate values
for the following fields:
 The company code in which you want to use the cash journal.
 The four digit cash journal identification name (Alphanumeric).
 The G/L account to which you want to post the cash journal business transactions.
 The currency in which you want to run the cash journal
 The document types for:
- G/L Account postings
- Outgoing payments vendors
- Incoming payment from vendors
- Outgoing payment to customers
- Incoming payments from customers.
Within the cash journal you process different transactions that you have to set up
beforehand using business transaction categories. Below are standard business transactions
categories and their postings:
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 Expenses (E) for Expenses /Cash desk

 Revenues (R) for Cash desk/Revenue
 Cash transfer
o From cash journal to bank(B)
o From bank to cash journal (C)
 Accounts Receivable (D)
Customers payment receipt Cash office/customer
Customer outgoing payment Customer / cash office
 Accounts Payable (K)
Vendor payment issue Vendor / Cash office
Vendor incoming payment Cash journal/vendor
Creating Business Transactions:

There are two places where you can define new cash journal business transactions:
- In cash journal itself or
- In Customizing (IMG).
When you give the business transaction a name, you can base it on the type of business
transaction. For example, for the business transaction for creating postings to cash sales,
you could assign the name “Cash Sale”.
To create a business transaction, make the following setting:
 The company code in which the business transaction should be created.
 The type of business transaction (Note: you cannot make an entry in the field G/L
account for accounting transaction types D& K)
 Specify tax codes for the business transaction E (Exp) and R (Revenue)
 For business transaction categories E, R, C, and B, you can set an indicator to enable the
general ledger account for the business transaction to be changed when document is
entered. In this case, the general ledger account is only a default value.
 For business transaction categories E and R, you can set an indicator to enable the tax
code for the business transaction to be changed when the document is entered. If no tax
code has been defined, you have to specify one (if required for the account) when you
create the document.
 Once saved, the business transaction is assigned a number automatically. During
document entry, the business transaction can be called up by its name or its number.
 You can set an indicator that blocks the business transaction for further postings.
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Lesson :-6.2 — Cash Journal Transactions

If a department handles various kinds of cash transactions, these transactions have to be
saved locally and posted /transferred to the general ledger every day.
Characteristics of Cash Journal Transactions:

 The cash journal transaction is also a single screen transaction.
 Entries saved in the cash journal are posted to the general ledger, for example, at the
end of the working day.
 You can print the cash journal entries via “Print Journal”.
 You can display documents via the button “Follow-On Document.”
 From Release 4.6C, you can reflect check receipts in the cash journal.
Posting Business Transactions in the Cash Journal

The cash journal is one of the Enjoy business transactions that you can process on a single
screen. On this screen, you can enter, display, and change journal entries.
You can save cash journal entries locally in the cash journal sub-ledger, and copy or delete
them. The cash journal entries saved are posted to the general ledger, for example, at the
end of the working day.
You can also print the cash journal entries you have saved (receipts) as well as the cash
journal entries posted in the time period displayed. The print forms are selected in
Customizing.
The follow-on documents that are posted as a result of cash journal entries are displayed.
You can also copy and delete cash journal entries saved and display the deleted cash journal
entries.
From Release 4.6C, you can also enter checks in the cash journal.
Cash Journal Document with Document Split:

In the SAP system you can enter a cash journal document with a document split. In other
words, a cash journal document can contain several items with different tax codes and /or
account assignments relevant to cost accounting. When the cash journal document is
forwarded to Financial Accounting, only one accounting document is therefore created.
Cash Journal Document with One-Time Account:

In the cash journal you can create a business transaction linked to a one-time account. If you
use a one-time account in the cash journal, the dialog box for entering the one-time data is
called automatically and the entries saved in the cash journal.
Page 89 of 89

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DIRECTOR GENERAL AUDIT & ACCOUNTS TRAINING INSTITUTE, LAHORE.

SAP – ERP FINANCIAL

General Ledger Account: ............................................................................................................................. 22

Reversal Document Type: ........................................................................................................................................ 43

Installment Payments: ............................................................................................................................................. 66

UNIT-1 Basic Settings

Organizational Units in SAP ERP Financial

Company code information:Company Code Key— should be up to 4 alpha numeric

 Global parameters include(to see list go to T code OBY6)

Global Parameters given in TcodeOBY6

Enabling Business Area Financial Statements

The below content is taken from wikipedia,

Information on organization objects:

- According to which accounting principles are figures reported internally /externally in

Lesson: 1.2 BASIC SETTINGS IN GENERAL LEDGER

Accounts Approach Ledger Approach

At least one retained earnings account for each

Complex financial statements definition Standard financial statement definition

2. Preparation of Consolidation (FIN_CONS)

3. Business Area (FIN_GSBER)

4. Profit center update (FIN_SEGM)

Lesson 1.3 —VARIANT PRINCIPLE

Lesson 1.4:- FISCAL YEAR

Lesson: 1.5 — CURRENCIES

2. Exchange rate Spreads

Maintaining Exchange Rates using table “TCURR”:

 Only the relevant quotation can be maintained.

UNIT-2 MASTER DATA

Defining the Chart of Accounts

General Ledger Account:

Chart of Account Segment Consists of several group of fields:

Fields in the Chart of Accounts Segment:

Company Code Segment:

Balance Sheet and P&L Statement Accounts:

What is the purpose of the field Status?

You can display the following line items in a G/L Account:

Line Item Display (Entry View)(‫)وه تمامائٹمدكهاو جوريكاڈ كىگئهيں‬

Account in Local Currency:

Methods of creating G/L Accounts:

 Company code Segment.

Group Chart of Account:

Lesson 2.2 —Profit Center and Segment

Extract from the IFRS-8: Business Segments

▬ For which there is corresponding financial information.

The profit center or business area objects can be used as alternatives.

Lesson: 2.3 Customer / Vendor Accounts

The Material Management (MM) view of Vendor Account:

A complete customer Account:-

Pages of Customer / Vendor Accounts:

Explanatory Textscan be entered in every segment.

IBAN( International Bank Account Number):

ECBS(European Committee for Banking Standards) to facilitate handling of international

Account Group for Customers and Vendors:

Number Rangers for Customers / Vendors:

Controlling Field Status:

Company code-Dependent Control:

Dual Control Principle:

Unit —3 DOCUMENT CONTROL