INTERNAL EXTERNAL

ZIYA-UL-HAQ SUNDARMAHALINGAM
SELF INTRODUCTORY
My name is Monisha Subban. I have completed Bachelor of Commerce with
Professional Accounting in the year 2016. I have a professional experience of about 1.5 years
of experience as a Technical Support Analyst with IBM (2016-2017) and about 1 year with
BNP Paribas (2018) in Corporate Actions supporting Australia and New Zealand clients.

I have a professional gap of about 4 years (2019 - present) to take care of my family. In order
to kick start my career I chose SAP which is highly expected in business nowadays. For my
educational qualification SAP FICO (Finance & Controlling) was the best suite.

I now successfully completed the course and also the internship at Thiranz Tech Solutions
under the guidance of Mr. Ziya-Ul-Haq.

My portfolio for the completion of the course as an intern is below.

All the details in this portfolio are my 4 months hard work and are true to my knowledge.

Sincerely,

Monisha Subban.
 SAP – System Application Product in Data Processing

SAP is software or a company itself. It is a German based Organization formed in the year
1972 by Ex-IBM employees. SAP is an ERP (Enterprise Resource Planning) Application
Software.

History of SAP

 1972-1980: IBM employees became SAP Founders and launched SAP Logo.
 They formed a LLC and have employees to work as well as customers/ clients.
 1981-1990: SAP growth to other countries with increase in revenue and manpower.
 They entered Financial Markets and Industries.
 1991-2000: SAP an agreement with Microsoft.
 Marketing activities in Russia, Japan and China.
 SAP entered Share Market and had a lot of investors.
 2001-2010: SAP started running on latest web technology.
 Downfall in the year 2009 but rose back again and entered US markets.
 2011-Present: SAP on mobile devices where Apple and SAP became partners.
 Launched new generation S/4 HANA.
 Now it‟s the words largest business network.
SAP Modules – Functional Modules

 FICO – Finance and Controlling

 SD – Sales and Distribution
 MM – Material Management
 PP – Production Planning
 PM – Plant Maintenance
 QM – Quality Management
 SCM – Supply Chain Management
 HCM – Human Capital Management

Technical Module:

ABAB – Advanced Business Application Programming

Network Module:

BASIS – Business Application Software Integrated Solutions

Database Module:

S/4 HANA – High Performance Analytical Appliances

SAP is an ERP Central Component.

SAP Project Types:

Implementation Project: SAP is being implemented for the first time in an organization. For
Implementation SAP follows ASAP methodology (Accelerated SAP)

 Project Preparation: Initial planning takes place as to what all can be implemented
and how along with the timeline to complete the project and cost. These all are
discussed in the very first meeting “kick-off meeting”.
 Business Blueprint: AS IS Project (Current Status Scenario) TO BE Project (Future
Business Scenario) is pictured along with scope, planning and team building to
 execute the project. GAP analysis takes place here (difference between existing
system and SAP system)
 Realisation: Submission of all TO BE documents. Core Team Member to consultant.
Quality Checking, Testing and Feedbacks.
 Pre-Final Preparation: Check with the client if they are satisfied with their
implementation. Check user acceptance testing. In case the project is approved then
we move to next stage or get back to discussion and blue print.
 Go- Live and Support: Project implemented and goes live. As per the SLM any
issues can be rectified without any charges and later is converted as Incidents. Every
incident has a ticketing charge.

Support Project: After implementation and go live the implementation team will provide
support to the client as agreed in the SLA.

Up gradation Project: SAP system upgrades to the latest released version.

Roll-out Project: Means expanding the business in other regions after implementation.

SAP using companies:

o MRF
o Coco-Cola
o TATA
o Samsung
o TITAN
o Nestle
o Sony
o HUL – Hindustan Unilever Limited
o Dabur
o Hero
o Big Bazaar
o Asian Paints

SAP Competitors:

o Zoho
o Oracle
o Sage
o Infor
o SAS
o MS Dynamics
 NILAN’S DAIRY FARM

Nilan‟s Diary Farm is a company which purchases cow‟s milk from

vendors and then manufactures all kinds of Dairy products and supplies it to
many customers. The company is based is “Pannimadai” a small place is
“Coimbatore, India”. All settings for Nilan‟s Dairy Farm is structured in SAP
and finally Financial Statement is viewed.
ENTERPRISE STRUCTURE

PARENT COMPANY (OX15)

Define Company (OX15):

It represents a group or an organizational unit of a company. One organisational unit

is linked with another organisational unit of a company. This relationship is called Enterprise
Structure or Organisational structure.

Type SPRO (SAP Project Reference Object) or OX15 to define a company.

Click on SAP Reference IMG

Select Enterprise Structure > Definition > Financial Accounting > Define Company

Click on New Entries

A parent company is always 6 digits, alpha numeric. (eg. MONICO)

Fill in the details with exact Country code, Language and Currency.
When you click enter a TR will appear. Click on own request and click on the concerned
query to get a unique TR to be generated. You can write any short description for your
company. All new configuration or customization made for that particular company will be
saved in a TR “Transport Request”.

CREATION OF COMPANY CODE (OX02)

Every separate legal entity or a limited liability company or a private limited company
is a company code. A company code is mandatory. In every country it is legally required to
provide the financial statements to the government. Hence, a company code is created. A
group can have “n” number of companies.

Eg: Reliance is a company – Reliance Trends, Smart, Footwear, etc is a company code.
Click on the address bar and fill in the details. Save.
ASSIGN COMPANY CODE WITH COMPANY (OX16)

BUSINESS AREA (OX03)

A business area represents the region of an organisation where the business is

operating. Type OX03 for business area for follow the path

SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define Business
Area

CONSOLIDATION BUSINESS AREA (OCC1)

To know where exactly the area is based (region wise). Eg: district  state,
statecountry.

Path: SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Maintain
Consolidation Business Area

ASSIGN CBA WITH BA (OBB6)

Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Business Area to Consolidation Business Area.
BUSINESS AREA FINANCIAL STATEMENTS (OB65)

To enable BA Balance Sheet,

Path: SPRO > IMG > Financial Accounting > Financial Accounting Global Settings >
Enable Business Area Balance Sheet.

SEGMENT (S_AL0_19000003)

Segment is newly implemented in SAP. It is to know the performance as per business

lines and geographical area in Balance Sheet. (i.e) to analyse profit and loss in that particular
region. Segment has no T-Code and also it is not assigned with any Company Code. Segment
is implemented as per IFRS (International Financial Reporting Standards).

Segment is mostly used in profit centre in CO.

A Segment has a programming code (s_al0_19000003).

CREDIT CONTROL AREA (OB45)

This is defined to control the credit limit of a customer or an employee of the

business. Credit Limit is known by monitoring or observing the previous credit history. CCA
is an integration of SD and FI Modules. SD knows the risk level of the customer and is
communicated with FI. CCA can have different credit limit for every company code or
different company codes for every credit limit (vice-versa).

Path: SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Define
Credit Control Area

000012 indicate to block order.

ASSIGN CREDIT CONTROL AREA WITH COMPANY CODE (OB38)

Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Credit Control Area.
FUNCTION AREA (OKBD)

This area is to classify expenses of the business.

Expenses such as:

 Admin / Operational Expenses

 Selling / Marketing Expenses
 Production Expenses
 Financial Expenses
 Developing / Research Expenses

FM AREA (OF01)

Financial Management Area / Fund Management Area

This is one of the most important areas in an organisational unit in order to conduct
the cost or the budget of financial statements of the business. It determines in what currency
the fund is to be managed in the forthcoming years. New entries can be done only through
path and not through T-code.

Path: SPRO > IMG > Enterprise Structure > Definition > Financial Accounting > Maintain
FM Area
ASSIGN FM AREA WITH COMPANY CODE (OF18)

Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to FM Area.

VARIANT

FISCAL YEAR VARIANT (OB29)

Fiscal Year Variant

Fiscal Year is similar to the Periodicity concept in Accounting Concepts. This is to know the
financial position of the business. Fiscal Year is of two types:

 Year Dependent: A shortened fiscal year is defined as Year Dependent FY.

 Year Independent: A country following SAP fiscal year or calendar year.

Each month in the fiscal year is called as a Period. Every country has its own
fiscal year and special periods. Fiscal year is of 12 months and the special period
is a maximum of 4 months. Eg: SAP has designed a Fiscal Year Variant for many
countries and that could be copied to company code according to country. For
example Germany K0 – denotes no special period. K1 - denotes 1 special period.
Likewise it has up to K4 – 4 special periods. Fiscal Year has 3 attributes which
are:

 Periods
 Period Text
 Shortened Fiscal Year

Define Fiscal Year Variant (OB29)

Path: SPRO > IMG > Financial Accounting (New) > Global Settings > Ledgers > Fiscal
Year & Posting Periods > Maintain Fiscal Year Variant
Periods: Denotes the number of months (for SAP to understand) as SAP knows only calendar
year.

FYI (Fiscal Year Indicator): It is calculated on the basis of current year minus future year.
Period Text: The periods (months) are noted as text for SAP to understand.

Shortened Fiscal Year: A company which is operating for less than 1 year or more than 1
year. Eg: Leap year

Period Text: For SAP to understand non calendar year we are specifying texts.

ASSIGN FISCAL YEAR VARIANT WITH COMPANY CODE (OB37)

Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Fiscal Year Variant.
Fiscal year variant is pre-defined by SAP for every country. In India we follow v3. My fiscal
year variant is *1.

POSTING PERIOD VARIANT (OBBO)

Define Posting Period Variant (OBBO)

To make transactions for the concerned period. Posting of entries for a specific
period. This period is designed to have control

 Month wise (1- 12)

 A/c type wise (+ all types)
 Period wise (12m + 4 special m)

OPEN & CLOSED POSTING PERIOD (OB52)

In case we need to make a transaction for the future period or previous period, we
need to open a posting period for the transaction to be made in SAP. If it is closed it will not
allow any entry to be made except for the current period.
ASSIGN POSTING PERIOD WITH COMPANY CODE (OBBP)

Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Posting Period Variant.

FIELD STATUS VARIANT (OBC4)

This variant controls the line items. In order to make a transaction we would require
few items to be modified as required/ optional.
ASSIGN FIELD STATUS VARIANT WITH COMPANY CODE (OBC5)

Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting > Assign
Company Code to Field Status Variant.
CHART OF ACCOUNT (OB13)

It is a list of all General Ledger a/c that controls the name and number of GL Master
Data and some control information. In other words, the grouping of GL a/c forms the
framework for recording accounting transactions in a structured way. One COA can be used
by one or many company codes. For every G/L a/c COA contains a/c no., a/c name, and some
information on how an a/c functions and how a G/L is created in a company code.

Types of COA:

o Operational COA: It contains list of GL a/c for posting transactions.

o Group COA: It is used to consolidate many legal entities financial statement.
o Country COA: It is to meet country specific legal requirements.

DEFINE ACCOUNT GROUP (OBD4)

Account Group lists its

 Liabilities (1series)
 Assets (2 series)
 Revenue (3 series)
 Expenses (4 series)
DEFINE RETAINED EARNINGS ACCOUNT (OB53)

To allow conditions or make settings in SAP for year-end assumptions. This is a place where
revenue gets merged with Equity. During the year-end period this automatically posts in the
financial statement.

Here x denotes nil. And 1999 has been taken because retained earnings account is processed
in the year-end period in General Ledger and will affect the Capital/ Equity of the business in
the financial report.

ASSIGN COA WITH COMPANY CODE (OB62)

Path: SPRO > IMG > Enterprise Structure > Assignment > Financial Accounting (New) >
Financial Accounting Global Settings (New) > General Ledger Accounting (New) > Master
Data > G/L accounts > Preparations > Assign Company Code to Chart of Accounts.
DOCUMENT TYPE (OBA7)

Document type is used to classify business transactions and to know how documents
are stored. In SAP language posting a transaction is called document. For every document
type there is a corresponding reversal document type.

SA – General a/c document

AB – Reversal entry document

NUMBER RANGE (FBN1)

Here 1 to 999 denotes the level of entries that can be posted under SA in GL. NR status
shows how many entries are posted (end user activity) and Ext means we need to give
number for every document by ourselves, if we are not checking asking SAP to give
INTERNAL number by itself.

POSTING KEYS (OB41)

In order to determine the transaction type which is entered in the line item, a two digit
numerical is used known as „Posting Key‟. Posting key determines

a) Account Types
b) Types of posting. Debit or Credit
c) Field status of transaction

40 – Debit
50 – Credit

TOLERANCE

CREATION OF TOLERANCE EMPLOYEE LEVEL (OBA4)

Tolerance is used to predefine the amount limits for your employees on the basis of

 The maximum document amount the employee is allowed to post

 The maximum amount the employee can enter in a customer or vendor a/c
 The maximum cash discount percentage the employee can grant
 The maximum acceptance tolerance for payment differences for employee.
We have created 2 tolerance groups with and without a group name, in case of error in future
they can posted in the blank group.

TOLERANCE FOR GROUPS G/L (OBA0)

Minor differences between the Invoice amount and the amount received from the
customers/amount paid to the vendors are a very common occurrence. In such scenario, the
following options can be adopted:

 The receipts/payments can be posted by partially clearing the invoices and creating a
residual item for the difference, if the amount of difference is beyond a certain limit
and is hence material

 The receipts/payments can be posted by clearing the invoices and creating a separate
entry for the difference amount, if the amount of difference is within a certain limit
and is hence immaterial

The above mentioned limit which controls whether a difference amount is material or
immaterial is determined by the tolerance limit defined in the SAP system.
For eg: Buying a product worth Rs.999/- and paying Rs.1000/- the seller does not give a
balance of Re.1/- this can be the sellers profit and vice versa.

CUSTOMER & VENDOR TOLERANCE LEVEL (OBA3)

These tolerances are used for dealing with differences in payment and residual items
which can occur during payment settlement. Specify the tolerances under one or more
tolerance groups. Allocate a tolerance group to each vendor via the master record. For each
tolerance group, specify the following:

 Tolerances up to which differences in payment are posted automatically to expense or

revenue accounts when clearing open items

 The handling of the terms of payment for residual items, if they are to be posted
during clearing
DOCUMENT SPLITTING (S_ELN_06000009)

 It is a new feature to ECC 6.0 and it does not have any T-codes.
 It helps line item section on certain characteristics.
 It has Entry View (sub-ledger) and GL Entry View (main ledger).

Documents can be split in terms of

 Business Area
 Segment
 Profit Centre

Create Document Splitting

Path: SPRO > IMG > Financial Accounting > General Ledger Accounting New > Business
Transaction > Document Splitting
Activate Document Splitting

Only if we activate document splitting, the transactions can be split and posted. If we
check Inactive from Deactivate General Ledger Document Splitting view, we will not be
allowed to split transactions.

Classify General Ledger Accounts for Document Splitting (GSP_LZ2)

In all General Ledger accounts Document Splitting should work.

 CONTROLLING

One who can analyse a report and give an output in various forms is a controller. He is also
called as a Business Analyst. The management consults the CO Team for important decision
making in an organization.

CO helps to improve management across financial variances by planning and analysing costs
to deliver reports that influence decision making. CO Team should be able to realize errors
and correct them on time. A person with good analytical skills only can be a controller.

Any report that a CO generates should be informative and include detailed information on
any actual/ plan variance. CO Team is the best at providing suggestions on management
decisions. It analyses the data prepared by the Finance Team. It does:

 Planning
 Actual
 Variance / Actual Repost

It supports coordination, monitoring, planning, budgeting, cost centre, profit centre etc.

The components of SAP CO

 Purpose
 Controlling Area
 Version
 Business Transactions
 Hierarchy Concept

Main Characteristics of Controlling involves:

 CEA: Cost Element Accounting

 CCA: Cost Centre Accounting
 PCA: Profit Centre Accounting
 PA: Profit Analysis
 PC: Product Costing
 ABA: Activity Bases Accounting

Purpose: CO element corresponds to a cost-relevant item in COA.

CO helps in Cost Center reports. There are two types of Cost Element.

Primary Cost Element: It takes the source from FI GL & its destination to CO.

Secondary Cost Element: It takes the source from CO & its destination to CO.

Controlling Area:

For SAP FI all the activities are done from company code perspective.
 For SAP CO all the activities are done from controlling area perspective. Controlling
Area is the Hero for CO.

Version: In SAP a plan is called as the version. Like the organisation follows a plan for the
next 5 years is the version. SAP standard version is “0”.

Business Transaction:

1. Option 1 (Assignment) – same as company code

Following all configurations & customizations as same as company
code. Only for one company code.
2. Option 2 (Assignment) – cross company code
Two different companies following the same CA.

Currency Concept:

LC1- Legal, Local & Company code currency.

LC2- Group Currency

LC3 – Global, Hard & Index Based currency.

 10 – Company code currency: the currency that is mentioned while creating a

company code. It is used for cost accounting.
 20 – Controlling Area currency: the currency that is mentioned while creating CA. It
is also used for cost accounting.
 30 – Group Currency: taking or using a common currency (i.e) applicable
internationally.
 40 – Hard Currency: the value of currency is more in those countries. Hard currency
countries are economically & politically stable. Eg: US Dollar, British Pound,
European Euro
 50 – Index Based Currency: countries using other country‟s currencies due to high
inflation in those countries. (The value of currency is very less)
 60 – Global Company Currency: assigning 2 or more currency for one company code.

Hierarchy Concept:

 Top Node
 Middle Node
 Lower Node

MAINTAIN CONTROL AREA (OKKP)

Path: SPRO > IMG > Controlling > General Controlling > Organisation > Maintain
Controlling Area
ASSIGN CONTOLLING AREA WITH COMPANY CODE (OX19)
ACTIVATE CONTROL AREA (OKKP)

VERSION PLANNING (OKEQ)

SAP Standard Version is “0” (plan/ actual/ variance). This is similar to government setting a
plan for 5 years. Using the default version
CONTROLLING DOCUMENT (KANK)
Maintain Control Area Settings (Profit centre) (0KE5)
PROFIT CENTER GROUP (KCH1)

This is the same as creating a Business Area.

Easy Access Screen > Accounting > Controlling > Profit Center accounting > Master Data >
Profit Center Group > Create
DEFINE PROFIT CENTER (KE51)
COST CENTER GROUP (KSH1)

This is to track/ monitor the expenses.

COST CENTER (KS01)

This is to track/ monitor the expenses for each region.

INTERNAL ORDER

Field Status Variant - OBC4 *Cost Center Optional, *CO/PP order Optional, *Cost Object
Optional.

Internal Order Master Data (KO01)

Internal Master Data Controlled by Order Type (KOT2)

KONK

Change status from Created to Release in KO02

Budget Template (OKOB)

Tolerance Limit through Path

Create Internal Order Budget (KO22)

To KO02

Reports (S_ALR_87013019)
Entry on FB50
 GENERAL LEDGER

Creation of General Ledger Master Data

For each account a number has to be maintained in SAP. This is mainly because SAP
does not understand terms (names). This is helpful when posting transactions.

In order to create master data we need Architecture, Master Data Field and Method

Architecture: Either COA method or CoCd method. (I am following COA method)

Field: States the GL a/c no., COA, A/c group, A/c type, Short text, Long text.

Method: Adopting Centrally Screen (FS00)

1. Type/ Description:
Specifies the Account Group (Liability, Asset, Revenue & Expense)

2. Control Data:
States the currency (currency in terms of local currency/ parallel
currency – 2 other currencies can be used for foreign transactions)
Reconciliation account for account type denotes the customer or
supplier name.
 Open Item Management states to whomever the business is repayable
Line Item display shows the transaction type
Sort Key specifies how to sort transaction (posting date wise)

3. Create / Bank / Interest:

Most importantly specifies the Field Status Group
Also gives us the option to tick post automatically
If the account type is relevant to cash flow or not

4. Key word / translation:

Specifies the language.
 5. Information CA:
Shows the creation details from Chart of Accounts.

6. Information Cocd:
Information linked from company code.

Create Cost Element (FS00) or (KA01)

This activity is one type which can be performed by both Controlling and FI end user
screen.

This is mainly used by the controlling team to track the purchases/ other expenses made by FI
or other departments.

Path (CO End user): SPRO > IMG > Accounting > Controlling > Cost Element Accounting
>Master Data > Cost Element > Individual Processing > Create Primary

Path (FI End user): Accounting > Financial accounting > General Ledger > Master Records >
General Ledger account > Individual Processing > Centrally
 General Ledger End User Activity
General Ledger Transaction Data Posting (F-02) or FB50

End user activities of posting each document into SAP. All activities are done from
Easy Access Screen.

Before posting any document always use your company

OKKS – NILA
OB57 – NILA
Posting Document through ENJOY SCREEN (FB50)

Shortcut key for copying amount (*) and for text (+)

Once the debit and credit details are given, to recheck if the entered transaction is right we
can go to Simulate to show the transaction.
FB03 – Display Screen

Posting Document through CLASSICAL SCREEN (F-02)

HOLDING DOCUMENT

A document can be kept on hold without posting for hierarchy communication.

A temporary account number is given: NILAHD1

This is for the same level employee (he can keep the transaction on hold and can post it by
himself). This does not have any financial impact unless posted.
(OR)

PARK DOCUMENT

A document is kept on park when that particular employee does not have the
authorization to post that particular document. This is mostly for the lower level employees
dealing with higher possessions. This is actually an end user feature to authorise the
document and post. This too does not have any financial impact. Park document process
enables with Employee Level Tolerance. (a link between tolerance)

This concept in SAP term is called as “Work Flow Concept” (between 1 employee and
another employee).
Setting Tolerance level for employee in order to Park a document.

Park can be done through FB50 (Document > Park)

Or

FV50 & F-65 is a screen especially for park documents.

Park Document (FBV1)

Post Parked Document (FBV0)

Open Item Management (F-07)

To record / post any OIM

To clear any OIM

First post document (Salary to Salary payable)

Partial Clearing

A partial payment happens when we post a payment on account and no clearing

occurs. This means both invoice and payment will remain as open items till we cleared them.
Residual Clearing:

A residual payment will clear the original document and a new item will be created.
Manual Clearing

Clearing a document manually rather than using clearing method. Here Bank entry is
created for amount debited from account.
FB01 for Manual Clearing:
GL Level Tolerance (Gain & Loss)

GL Tolerance Level – LOSS

GL Tolerance Level – GAIN
When an amount is payable to a customer/ service customer and during the payment release
time an amount may be reduced (on condition basis). So when an actual amount is payable
but is paid on variance, the difference can be either LOSS or GAIN for the company.

Setting up a percentage or amount for allowing LOSS or GAIN is called GL Tolerance Level.
The system usually takes the amount or percentage whichever is lower.

A master data is created as “Tolerance Gain and Tolerance Loss” in FS00. These are mapped
with necessary cost and profit center in Default account Assignment (OKB9)

Gain:

Creating accounts for Clearing Differences in OBXZ

Loss:
GL REFERENCE DOCUMENT

Sample Document (FBM1):

Saving a template document and utilising that document for daily activities. There is
no financial impact until the document is moved or posted. We give an ID and post the right
transaction with reference.

Sample Document Type – x2 ; Number Range – x2 (In real time its 92) – OBA7
F-01 – POST WITH REFERENCE

RECURRING DOCUMENT (FBD1)

A document that has to be posted every month again and again.

It‟s no range document number

A master data is created for the same.

Setting up default CC and PC for that particular master data account no (OKB9)
Enter Recurring Document (FBD1)
Processing Recurring Document (F.14)
RECURRING DOCUMENT WITH RUN SCHEDULE

Creation of Master Data (FS00)

Setting up default CC and PC for that particular master data account no (OKB9)
Creating Run Schedule (OBC1)

Creating Run Dates (OBC2)

F.14
REVERSE DOCUMENT (FB08)
 ACCOUNTS PAYABLE

When a company purchases goods on credit which needs to be paid back in a short
period of time, it is known as Accounts Payable. It is treated as a liability and comes under
the head 'current liabilities'. Accounts Payable is a short-term debt payment which needs to be
paid to avoid default.

The Accounts Payable department is responsible for the financial, administrative and
clerical support of a company. They are in charge of making payments owed by the company
to suppliers and other creditors, paying vendor invoices or bills, and recording the company's
short-term debts.

Define Vendor Account Group (OBD3)

Within which details of Field Status Variant has to be given.

CREATION OF VENDOR GROUPS (OBD3)

Vendor Range Maintenance (XKN1)

It is predefined by SAP.

NUMBER RANGE (OBAS)

Assigning vendor account group with number range.

DOCUMENT TYPE (OBA7)

Document Type (OBA7)

Vendor:

For vendor it‟s “K”

Adjustment (Vendor Document) – KA - 17

Purchase (Vendor Invoice) – KR - 19
Purchase Return (Vendor Credit Memo) – KG - 17
Purchase Payment (Vendor Payment) – KZ – 15
NUMBER RANGE (FBN1)

POSTING KEYS (OB41)

Raising Invoice and Clearing Payment

Raising Invoice (FB60) – Enjoy Screen

FBL1N – To view Open Item
Standard Clearing (F-53)
FBL1N – To view cleared items

Raising Invoice (F-42) – Classical Screen

Partial Clearing (F-53)
Residual Clearing:
Residual Clearing (F-53)
Manual Clearing

Raising Invoice (FB60)

Manual Clearing (F-44)
Purchase Return

Raising Invoice (FB60)

Purchase Return (FB65)

TERMS OF PAYMENT (OBB8)

It‟s predefined and designed by SAP. SAP has given almost 666 entries. Terms of
Payment is defined to set up certain conditions or terms for payment to vendor or payment
from customer.
Day limit specifies the “Due date” on which the payment is made or received.

Fixed day specifies the “Exact date” on which the payment is made or received.

Additional months here denotes on which month the payment is to be made. For instance the
invoice is raised on 12th January and the ToP specifies the payment to be made on 7th of that
month, then this particular payment will be overdue. So the company uses additional months
so that the payment can fall on the preceding month also.
Block Key is mostly set up for vendor when the payment is released. We can block a vendor
on different conditions so that the company does not make any kind of payment.

Default for baseline date specifies the date when the invoice has to be posted. Usually every
company uses “Document date”.

ToP mapped in particular vendor/customer account.

Creating a ToP to block a Vendor

Bank Charges (OBXK)

When a payment is to be made to the vendor immediately through NEFT Transfer

then the particular bank might charge transaction charges depending on the amount
transferred.

For a slab from 10000-100000 bank charges Rs.5/-

For a slab from 100000-200000 bank charges Rs.10/-
For a slab more than 200000 bank charges Rs.25/- and so on.

Certain conditions need to be made for bank charges to be applicable. The bank charges will
affect Bank account and not vendor account.

Creation of Master Data in FS00.

Mapping Bank Charges master data created along for the charges to affect Bank account and
not vendor account.
Default account assignment settings (OKB9)
INSTALMENT PAYMENT (OBB8)

Payment made on instalments. It‟s a kind of EMI payment but as per the terms the customer
makes necessary payments. Terms are defined as;

Conditions are made in own explanation and for each condition a ToP is created and mapped
along the main condition. Instalment payment is checked.
Both the sub conditions are linked with the main condition in OBB9

Applying this condition in vendor account for it to reflect during transaction and payment.
CASH DISCOUNT

Cash Discount (OBB8) OKB9 OBXU

Create a Master Data as Cash Discount Received.

Receiving cash discount from vendor.

Default account assignment settings (OKB9)

Mapping the Cash Discount setting to the particular Vendor (FK02)

DOWN PAYMENT (F-48)

Down payment means paying in advance before the goods are received. This kind of
GL is called as “Special GL” and its posting key is 29(A). This transaction is known as
“Commitment Management”.

Creating Vendor Advance and Customer Advance master data on FS00.

Maintaining accounting configuration in special GL lists: (OBYR & OBXR)

OBYR

Down Payment made on F-48

Same amount purchase so manual clearing through F-44
SCENARIO II
Transfer of Balance (F-54)
INTEGRATION VENDOR & CUSTOMER

Integration happens when your vendor becomes your customer. Same vendor and
same customer.

In vendor account mapping customer ID and on customer account mapping vendor ID.

This kind of activity is known as merging/ integration/ transfer/ connection / adjustment.

Vendor Invoice (FB60)
SCENARIO II
 ACCOUNTS RECEIVABLE

Accounts receivable (AR) are the balance of money due to a firm for goods or
services delivered or used but not yet paid for by customers. Accounts receivable are listed on
the balance sheet as a current asset. Any amount of money owed by customers for purchases
made on credit is AR.

Accounts receivable is the recording and processing of financial transactions relating

to sales and customers. The opportunities span a number of valuable roles such as: Billing
analyst: Liaise with the organisation's sales teams to carry out timely invoicing of customers.

CUSTOMER ACCOUNT GROUP CREATION (OBD2)

Customer Range Maintenance (XDN1)

It is predefined by SAP.
Number range (OBAR)

Creation of Customer (FD01)

Customer:

For customer it‟s “D”

Adjustment (Customer Document) – DA - 16

Sales (Customer Invoice) – DR - 18
Sales Return (Customer Credit Memo) – DG - 16
Sales Payment (Customer Payment) – DZ - 14

Posting Key for Customer (OB41)

All other activities remain the same for AR

Eg:
Customer Invoice (FB70) or (F-22)

FBL5N – To view Open Items

Payment Received (F-28)
FBL5N – To view cleared items

Partial Clearing

Raising Invoice:

Incoming Payments (F-28)

Residual Clearing

Raising Invoice (FB70)

Incoming Payment (F-28)

Manual Clearing

Customer Invoice (FB70) or (F-22)

To Clear the payment (F-32)
Sales Return (FB75)

Customer Invoice (FB70)

Terms of Payment (OBB8)

Changes to be made in respective Customer account

Overdue as on 11.08.2022
INSTALMENT CUSTOMER
Cash Discount (OBB8) and (OBX1)

Default account assignment setting on OKB9

DOWN PAYMENT

Maintain account configurations (OBXR)

Down Payment (F-29)
SCENARIO II
 BANKING

Banking deals with managing accounting transactions with your banks. Further, it
helps you to manage both incoming and outgoing payments for effective cash-balance
management.

HOUSE BANK

The house banks of your company are the banks that your company has an account
with. You can use them to process payment transactions. In the SAP system, house banks
have the following characteristics: Each company code can have multiple house banks. You
can define multiple house banks for each bank.

DEFINE HOUSE BANK (FI12)

This is the companies‟ Bank account where the transaction takes place. A legal entity
can have many House Banks.
Bank Number here denotes the contact number of the bank.

Bank Key

First, it's important to note that the bank key is a unique, country-dependent identifier.
It is an SAP internal ID used to uniquely identify a bank. This ID, together with the country
key, links to the other bank data in the system, such as name, bank number, and SWIFT code.

Account ID

A bank account number is a unique set of digits assigned to the account holder when
you open a bank account. Financial institutions will assign such numbers to each account you
hold. Businesses and banks use these numbers to identify your account.
Create Bank Master Data (FI01)

Vendor Bank Account:

Create Customer Bank
Cheque:

A cheque is a document you can issue to your bank, directing it to pay the specified
sum mentioned in digits as well as words to the person whose name is borne on the cheque.
Cheques are also called negotiable instruments.

Create Cheque (FCHI)

Cheque Number (FCHN)

Recording Cheque and Encashment (FCH6)

Raising Invoice:
Record for Cheque sent (FCH5)
FCHN -
BRS – FB50

F-03 (Manual Clearing)

Post BRS – BANK ENCASHMENT (FCH6)

Check for Encashment – FCHN

VOID CHEQUE (FCH3)

TO CANCEL CHEQUE (FCH8)

Vendor Invoice (FB60)

Checking Status on FCHN
 PETTY CASH

A petty cash fund is a small amount of company cash, often kept on hand (e.g., in a
locked drawer or box), to pay for minor or incidental expenses, such as office supplies or
employee reimbursements.

It is to maintain cash in hand transactions. It can post all kind of transactions such as cash
receipts, payments in one single screen. It allows you to make small petty expenses and
receive small incomes in cash.

PATH: SPRO > IMG > Financial Accounting (New) > Financial Accounting Global Settings
(New) > Bank Accounting > Business Transactions > Cash Journal > Create G/L account for
Cash Journal

Creation of Master Data – FS00

Amount Limit (does not have a T-code)

This indicates how much cash balance can be kept in hand. Excess any should be
immediately deposited into bank account.

Document Type (OBA7)

Number Range Intervals (FBN1)

Cash Journal Document Numbers (FBCJC1)

Set Up Cash Journal – (FBCJC0)

Create, Change & Delete Business Transactions (FBCJC2)

SET UP PRINT PARAMETERS FOR CASH JOURNAL (FBCJC3)

Vendor Invoice (FB60)

Customer Invoice (FB70)

Petty Cash Transaction (FBCJ)

When given print cash journal
 FOREIGN EXCHANGE

Foreign exchange is the trading of different national currencies or units of account. It

is important because the exchange rate, the price of one currency in terms of another, helps to
determine a nation's economic health and hence the well-being of all the people residing in it.

Currency Translation Exchange Rate (OB07)

Currency Translation Ratio (OBBS)

Currency Exchange Rate (OB08)

Creating Master Data Ledger account (FS00)

Creating a loan account and getting loan from Denmark. Loan from “Nordea Bank”.
Viewing balance in FB03
FOREX LOSS or GAIN

When a transaction is made using a foreign currency and a payment is made for the same on a
future date, then the value of the currency might increase or decrease. If the value increases
then it‟s a Loss for the business and if the value decreases it‟s a Gain for the business. This
might not affect the open item but will be reflected as a Loss or Gain.

Creating Master Data for Forex Loss and Forex Gain with respective Cost Element mapped
in FS00.

Default account assignment for both the accounts. (OKB9)

Setting Currency Exchange Rate in OB08

 DUNNING

Dunning is the process of sending reminders to customers with overdue payment

items, requesting payment of the outstanding amount by a specified date. To help you track
open invoices and monitor the payment behaviour of your customers.

Dunning Types:

Dunning Levels – Up to 9 levels in SAP

Dunning Intervals – 1 week

Working Day – Public Calendar

Process Fee – Dunning Charges (Penalty)

Dunning Text – Format

Dunning Amount Determination – for how much customers need to pay

New Procedures in (FBMP)

Customer account requirements (FD01)

Raising Invoice (FB70)

RUN DUNNING PROCEDURES (F150)
 AUTOMATIC PAYMENT PROGRAM

Automatic Payment Program (APP) serves the purpose of posting accounts payable
like payment to a vendor based on vendor invoices automatically. APP is used to find out
due/overdue invoices and to process a list of customer and vendor invoices to make payments
in one go.

Maintain Payment Program (FBZP)

* Payment Methods in Country

*Payment Method in Company Code

*All Company Codes
*Paying Company Codes

*House Bank
*Bank Determination
DOCUMENT TYPE (OBA7)

“ZP”
Number Range Maintenance

Vendor Requirements (FK01)

Vendor Invoice (FB60)

Automatic Payment Transaction – F110
enter.
Payment Run
 TAX DEDUCTED AT SOURCE

The concept of TDS was introduced with an aim to collect tax from the very source of
income. As per this concept, a person (deductor) who is liable to make payment of specified
nature to any other person (deductee) shall deduct tax at source and remit the same into the
account of the Central Government.

Tax deducted at source is the amount that is to be deducted at the time of making payment to
contractors or professionals. Withholding Tax is the amount deducted in advance that is
before paying the amount to the payee. Withholding tax is deducted for paying the tax to the
government.

Tax has to be deducted during Invoice or while making the payment.

For WHT the individual or a company requires PAN (Permanent Account Number) and TAN
(Tax Assessment number) number.

If the deductee does not have a PAN number then TDS is calculated for 20%

Steps for TDS (Configuration settings)

1. Check WHT countries.

2. Define TDS Tax Key.
3. Define TDS Exemption.
4. Define TDS Tax Types.
5. Check TDS Tax Amounts.
6. Check Recipients Types.
7. Define TDS Tax codes.
8. Creation of TDS Ledgers.
9. Create TDS Vendor.
10. Assign GL for auto posting process.
11. Define Business Place
12. Section Code.
13. Factory Calendar.
14. Maintain Tax Due dates.
 15. Assign TDS to CoCd.
16. Activate TDS.
17. Maintain Logistics settings.
18. Vendor Update with PAN and TDS settings.
19. Posting TDS Transactions.
20. TDS Reports in SAP (J1INMIS)

Path: SPRO > IMG > Financial Accounting (New) > Financial Accounting Global Settings
(New) > Withholding Tax > Extended Withholding Tax > Basic Settings……………….

Check WHT Countries

Define TDS Tax Key

Define TDS Exemption

Define TDS Tax Types

Check Recipients Types

Define TDS Tax codes

100% -

5% - As per section 194M TDS on payment to Resident Contractors & Professionals

Creation of TDS Ledgers (FS00)

Create TDS Vendor

Define Business Place

Path: SPRO > IMG > Cross-Applicant Component >General Application Functions >
Business Place

Activate
Section Code

Under Define Business Places;

Factory Calendar

Maintain Tax Due Date

Assign TDS to CoCD

Activate TDS

Maintain Logistics Settings

Vendor Updates with PAN and TDS Settings (FK02)

Posting TDS Transaction

Vendor Invoice (FB60)
 GOODS AND SERVICE TAX

GST is a single tax on the supply of goods and services, right from the manufacturer
to the consumer. Credits of input taxes paid at each stage will be available in the subsequent
stage of value addition, which makes GST essentially a tax only on value addition at each
stage.

The types of GST in India are CGST, SGST, and IGST. This simple division helps
distinguish between inter-state and intra-state supplies and mitigates indirect taxes.

Access Sequence (OBQ2) or OBYZ

It is pre-defined in SAP as MWST.

Condition Types (OBQ1) or OBYZ

Account Key (OBCN)

Procedures (OBQ3) or OBYZ

Assign country with company tax procedures (OBBG)

Creation of Tax Code (FTXP)
Create necessary Master Data in FS00
Assign GL to Auto Post (OB40)
Create Vendor (FK01)

Vendor Invoice (FB60)

SCENARIO II

Vendor region update for IGST

Create Customer (FD01)
SCENARIO II

Customer region details update for IGST

 ASSET ACCOUNTING

ASSET of DIARY FARM

In accounting, an asset is any resource that a business owns or controls. It's anything
that could be sold for money. The study of a balance sheet and assets and liabilities helps us
to ascertain the equity value. Asset Accounting in the SAP system is used for managing and
monitoring fixed assets. In Financial Accounting, it serves as a subsidiary ledger to the
general ledger, providing detailed information on transactions involving fixed assets.

Purchase of Asset and calculating depreciation for every year using a depreciation method.

T-code: ORFA

Check country specific

Assign Country with Tax Procedures (OBBG)
Assign Tax Code to Non-Taxable Transaction (OBCL)

Assign Company Code with COD (

Asset Class

1. Account Determination

2. Screen Layout Rules

3. Number Range Intervals

4. Asset Class

Master Data Creation (FS00)

Default Account Assignment (OKB9)

Number Range for Document Type AA and AF

Posting Intervals and Rules (OAYR)

Automatic Calculation and Rounding Specification (OAYO)

Define Depreciation Methods (ORFA)

Maintain Period Control Method

Maintain Depreciation Key (ORFA)
Depreciation Areas (OAYZ)

ASSIGN BALANCE SHEET ACCOUNTS (AO90)

Create Asset Class (AS01)

Creation of Sub-Asset (AS11)

FB01 - GL
Purchase of Asset from Vendor
Asset Acquisition (F-90)
Asset Reports (AW01N)

Depreciation Run (AFAB)

 FINANCIAL STATEMENT

Financial statements are written records that convey the business activities and the
financial performance of a company. Financial statements are often audited by government
agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing
purposes.

T-Code: OB58
Run Financial Statement (F.01)